Document:

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                              RETAIL VENTURES, INC.

                                  Exhibit 4(a)

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                                                                    EXHIBIT 4(a)

                       THE PROFIT SHARING AND 401(k) PLAN

               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000)

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                       THE PROFIT SHARING AND 401(k) PLAN

               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000)

                                TABLE OF CONTENTS

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ARTICLE I NATURE OF PLAN.................................................................................................1

ARTICLE II DEFINITIONS AND CONSTRUCTION..................................................................................3
           2.1       Accounts............................................................................................3
           2.2       Accrued Benefit.....................................................................................3
           2.3       Actual Deferral Percentage..........................................................................4
           2.4       Actual Matching Percentage..........................................................................5
           2.5       Administrator.......................................................................................5
           2.6       Alternate Payee.....................................................................................6
           2.7       Annual Addition.....................................................................................6
           2.8       Beneficiary.........................................................................................6
           2.9       Code................................................................................................6
           2.10      Committee...........................................................................................7
           2.11      Company.............................................................................................7
           2.12      Company Stock.......................................................................................7
           2.13      Compensation........................................................................................7
           2.14      Considered Compensation.............................................................................8
           2.15      Determination Year..................................................................................8
           2.16      Early Retirement Age................................................................................8
           2.17      Effective Date......................................................................................8
           2.18      Eligible Employee...................................................................................8
           2.19      Employee............................................................................................8
           2.20      Employee Contribution...............................................................................8
           2.21      Employer............................................................................................8
           2.22      Employer Matching Contribution......................................................................9
           2.23      Employer Nonelective Contribution...................................................................9
           2.24      Employer Profit Sharing Contribution................................................................9
           2.25      Employer Salary Reduction Contribution..............................................................9
           2.26      Employment Commencement Date........................................................................9
           2.27      ERISA...............................................................................................9
           2.28      Fiscal Year.........................................................................................9
           2.29      Forfeitures.........................................................................................9
           2.30      Forfeiture Amount...................................................................................9
           2.31      Former Participant..................................................................................9
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           2.32      Full-Time Employee..................................................................................9
           2.33      Highly Compensated Employee.........................................................................9
           2.34      Hour of Service....................................................................................10
           2.35      Leave of Absence...................................................................................12
           2.36      Limitation Year....................................................................................12
           2.37      Normal Retirement Age..............................................................................12
           2.38      One Year Break in Service..........................................................................12
           2.39      Parental Absence...................................................................................12
           2.40      Part-Time Employee.................................................................................13
           2.41      Participant........................................................................................13
           2.42      Plan...............................................................................................13
           2.43      Plan Entry Date....................................................................................13
           2.44      Plan Year..........................................................................................13
           2.45      Qualified Domestic Relations Order.................................................................13
           2.46      Qualified Employer Contributions...................................................................14
           2.47      Re-Employed Employee...............................................................................14
           2.48      Related Employer...................................................................................15
           2.49      Related Plan.......................................................................................15
           2.50      Reemployment Commencement Date.....................................................................15
           2.51      Required Commencement Date.........................................................................15
           2.52      Rollover Contribution..............................................................................15
           2.53      Service............................................................................................15
           2.54      Total and Permanent Disability.....................................................................16
           2.55      Trust..............................................................................................16
           2.56      Trust Agreement....................................................................................16
           2.57      Trust Fund.........................................................................................16
           2.58      Trustee............................................................................................16
           2.59      Valuation Date.....................................................................................16
           2.60      Vested Accrued Benefit.............................................................................16
           2.61      Vesting Service....................................................................................16
           2.62      Year of Eligibility Service........................................................................16
           2.63      Year of Vesting Service............................................................................17

ARTICLE III ELIGIBILITY AND PARTICIPATION...............................................................................18
           3.1       Eligibility........................................................................................18
           3.2       Participation - Re-Employed Employees..............................................................18
           3.3       Notice of Participation; Passive Enrollment........................................................18
           3.4       Election Not to Participate........................................................................19

ARTICLE IV EMPLOYER CONTRIBUTIONS.......................................................................................20
           4.1       Employer Contributions.............................................................................20
           4.2       Employer Contribution Limitation...................................................................20
           4.3       Determination of Contribution......................................................................21
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           4.4       Time and Method of Payment of Employer Contributions...............................................22
           4.5       Limitations on Employer Matching Contribution......................................................22
           4.6       Return of Employer Contributions...................................................................25
           4.7       Employee Contributions.............................................................................26
           4.8       Rollover Contributions.............................................................................26
           4.9       Investment of Assets...............................................................................26
           4.10      Investment Elections...............................................................................27
           4.11      Change of Elections................................................................................27
           4.12      Default Investments................................................................................27
           4.13      Investment in Stock of Employer....................................................................27

ARTICLE V PARTICIPANT DEFERRALS OF CONSIDERED COMPENSATION..............................................................29
           5.1       Participant Election to Defer Considered Compensation..............................................29
           5.2       Limitation on Employer Salary Reduction Contributions for Highly
                     Compensated Employees..............................................................................29
           5.3       Distribution of Excess Deferrals...................................................................33

ARTICLE VI ALLOCATIONS..................................................................................................35
           6.1       Participant's Accounts.............................................................................35
           6.2       Charging of Payments, Distributions and Loans......................................................35
           6.3       Allocation of Earnings and Losses to Accounts......................................................35
           6.4       Allocation of Contributions........................................................................36
           6.5       Dates Contributions Considered Made................................................................38
           6.6       Valuation..........................................................................................38
           6.7       Equitable Allocations..............................................................................38
           6.8       Limitation on Annual Additions.....................................................................39
           6.9       Allocation Does Not Create Rights..................................................................40

ARTICLE VII TERMINATION OF SERVICE - PARTICIPANT VESTING................................................................41
           7.1       Normal Retirement..................................................................................41
           7.2       Early Retirement...................................................................................41
           7.3       Disability.........................................................................................41
           7.4       Death..............................................................................................42
           7.5       Termination of Service Prior to Early or Normal Retirement.........................................42
           7.6       Years of Vesting Service...........................................................................43
           7.7       Forfeiture Occurs and Restoration of Non-Vested Accrued Benefit....................................43
           7.8       Termination, Partial Termination, or Complete Discontinuance of Employer Contributions.............44

ARTICLE VIII TIME AND METHOD OF PAYMENT OF BENEFITS.....................................................................45
           8.1       Time of Payment....................................................................................45
           8.2       Payment of Retirement or Disability Benefits.......................................................47
           8.3       Payment of Benefits Following Separation From Service..............................................48
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           8.4       Pre-Retirement Death Benefits......................................................................48
           8.5       Pre-Retirement Spousal Death Benefit...............................................................49
           8.6       Deferral of Payments...............................................................................49
           8.7       Lump Sum Cashout and Special Limitation on Involuntary Payment of Benefits.........................49
           8.8       Qualified Domestic Relations Orders................................................................50
           8.9       Payment in the Event of Legal Disability...........................................................50
           8.10      Accounts Charged...................................................................................51
           8.11      Payments Only from Trust Fund......................................................................51
           8.12      Unclaimed Account Procedure........................................................................51
           8.13      Restrictions on Distributions......................................................................51

ARTICLE VIII A TRANSITION RULES.........................................................................................53
           8A.1      Transition Benefits................................................................................53
           8A.2      Forms of Retirement Benefit........................................................................53
           8A.3      Distribution of Benefits Upon Death................................................................56

ARTICLE IX TOP HEAVY PLAN PROVISIONS....................................................................................58
           9.1       Top Heavy Rules Applied............................................................................58
           9.2       Additional Definitions.............................................................................58
           9.3       Additional Limitation - Defined Benefit Plan.......................................................61
           9.4       Minimum Benefit....................................................................................63
           9.5       Termination of Service Prior to Normal Retirement Age..............................................64

ARTICLE X IN-SERVICE WITHDRAWALS........................................................................................66
           10.1      In-Service Withdrawal From Accounts................................................................66
           10.2      Hardship Withdrawals...............................................................................66
           10.3      Age 59 1/2.........................................................................................68
           10.4      After Tax Contributions............................................................................69

ARTICLE XI LOANS........................................................................................................70
           11.1      Loans to Participants: Basic Terms and Limits......................................................70
           11.2      Instruments and Security for Loans.................................................................71
           11.3      Loan Provisions Incorporated by Reference..........................................................72
           11.4      Payment of Expenses................................................................................72

ARTICLE XII EMPLOYER ADMINISTRATIVE PROVISIONS..........................................................................74
           12.1      Information........................................................................................74
           12.2      No Liability.......................................................................................74
           12.3      Employer Action....................................................................................74
           12.4      Indemnity..........................................................................................74
           12.5      Amendment to Vesting Schedule......................................................................74
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ARTICLE XIII COMMITTEE - ADMINISTRATION AND INVESTMENT PROVISIONS.......................................................76
           13.1      Appointment of Committee...........................................................................76
           13.2      Term...............................................................................................76
           13.3      Compensation.......................................................................................76
           13.4      Powers of the Committee............................................................................76
           13.5      Manner of Action...................................................................................78
           13.6      Authorized Representative..........................................................................78
           13.7      Exclusive Benefit..................................................................................78
           13.8      Interested Member..................................................................................78
           13.9      Funding Policy.....................................................................................79
           13.10     Books and Records..................................................................................79

ARTICLE XIV PARTICIPANT ADMINISTRATIVE PROVISIONS.......................................................................80
           14.1      Beneficiary Designation............................................................................80
           14.2      No Beneficiary Designation.........................................................................80
           14.3      Personal Data to Committee.........................................................................80
           14.4      Address for Notification...........................................................................80
           14.5      Place of Payment and Proof of Continued Eligibility................................................80
           14.6      Alienation.........................................................................................81
           14.7      Litigation Against the Trust.......................................................................81
           14.8      Information Available..............................................................................81
           14.9      Beneficiary's Right to Information.................................................................81
           14.10     Claims Procedure...................................................................................81
           14.11     Appeal Procedure for Denial of Benefits............................................................82
           14.12     No Rights Implied..................................................................................83
           14.13     Electronic Transactions............................................................................83

ARTICLE XV FIDUCIARY DUTIES.............................................................................................84
           15.1      Fiduciaries........................................................................................84
           15.2      Allocation of Responsibilities.....................................................................84
           15.3      Procedures for Delegation and Allocation of Responsibilities.......................................85
           15.4      Allocation of Fiduciary Liability..................................................................85

ARTICLE XVI DISCONTINUANCE AMENDMENT AND TERMINATION....................................................................87
           16.1      Discontinuance.....................................................................................87
           16.2      Amendment..........................................................................................87
           16.3      Termination........................................................................................87
           16.4      Termination, Partial Termination, or Complete Discontinuance of Employer Contributions.............87
           16.5      Procedure on Termination...........................................................................88
           16.6      Merger.............................................................................................88
           16.7      Notice of Change in Terms..........................................................................88
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ARTICLE XVII THE TRUST..................................................................................................89
           17.1      Purpose of the Trust Fund..........................................................................89
           17.2      Appointment of Trustee.............................................................................89
           17.3      Exclusive Benefit of Participants..................................................................89
           17.4      Benefits Supported Only By the Trust Fund..........................................................89
           17.5      Rights to Trust Assets.............................................................................89
           17.6      Restriction of Use of Trust Fund...................................................................89

ARTICLE XVIII MISCELLANEOUS.............................................................................................90
           18.1      Execution of Receipts and Releases.................................................................90
           18.2      No Guarantee of Interests..........................................................................90
           18.3      Payment of Expenses................................................................................90
           18.4      Employer Records...................................................................................90
           18.5      Interpretations and Adjustments....................................................................90
           18.6      Uniform Rules......................................................................................90
           18.7      Evidence...........................................................................................91
           18.8      Severability.......................................................................................91
           18.9      Notice.............................................................................................91
           18.10     Waiver of Notice...................................................................................91
           18.11     Successors.........................................................................................91
           18.12     Headings...........................................................................................91
           18.13     Governing Law......................................................................................91
           18.14     Qualified Military Service.........................................................................91

ARTICLE XIX EMPLOYER PARTICIPATION......................................................................................92
           19.1      Adoption by Employer...............................................................................92
           19.2      Withdrawal by Employer.............................................................................92
           19.3      Adoption Contingent Upon Initial and Continued Qualification.......................................93
           19.4      No Joint Venture Implied...........................................................................93

ARTICLE XX SIGNATURE PAGE...............................................................................................94

SCHEDULE I..............................................................................................................95
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                       THE PROFIT SHARING AND 401(k) PLAN

               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000)

                                    ARTICLE I

                                 NATURE OF PLAN

           WHEREAS, Schottenstein Stores Corporation, a Delaware corporation,
established the Associates Profit Sharing and 401(k) Plan #SS7 of Schottenstein
Stores Corporation and Affiliated Entities (the "Prior Plan") for the benefit of
its eligible employees and their beneficiaries. The profit sharing provisions of
the Prior Plan were effective August 1, 1989 and the qualified cash or deferred
arrangement was effective October 1, 1989; and

           WHEREAS, Schottenstein Stores Corporation amended and restated the
Prior Plan effective as of January 1, 1994 to comply with the provisions of
applicable law through January 1, 1994; and

           WHEREAS, effective January 1, 1996, Schottenstein Stores Corporation
again amended and restated the Prior Plan to authorize plan loans and to make
certain other technical changes to reflect the fact that assets from the Savings
and Profit Sharing Retirement Plan of Steinbach Stores, Inc. and Participating
Affiliated Companies would be transferred to the Prior Plan in a direct
trustee-to-trustee transfer in connection with the conversion of certain
Steinbach Stores, Inc. department stores into Value City Department Stores; and

           WHEREAS, effective April 1, 1999, the American Eagle Outfitters, Inc.
Retirement Plan (as amended and restated effective January 1, 1994) was merged
into this Plan; and

           WHEREAS, effective September 1, 2000, the Filene's Basement, Inc.
Thrift Incentive Plan (as amended and restated effective January 1, 1994) shall
be merged into this Plan; and

           WHEREAS, effective July 1, 2000, the Gramex Corporation 401(k) Profit
Sharing Plan shall be merged into this Plan.

           NOW, THEREFORE, effective January 1, 2000, the Company hereby amends
and restates the Plan into the Plan as set forth herein, which amended and
restated Plan shall, as of the dates set forth above, consist of the merged
Associates Profit Sharing and 401(k) Plan #SS7 of Schottenstein Stores
Corporation and Affiliated Entities and Filene's Basement, Inc. Thrift Incentive
Plan and Gramex Corporation 401(k) Profit Sharing Plan. The Company intends that
the Plan be qualified under section 401(a) of the Code (hereinafter defined),
with a cash or deferred arrangement qualified

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under section 401(k) of the Code and a trust exempt from taxation under section
501(a) of the Code. Pursuant to the requirements of section 401(a)(27) of the
Code, the Company also intends that the Plan be a profit-sharing plan.

--------------------------
End of Article I

                                       2
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                                   ARTICLE II

                          DEFINITIONS AND CONSTRUCTION

           For the purpose of this Plan, the following definitions shall apply
unless the context requires otherwise. Words used in the masculine gender shall
apply to the feminine, where applicable, and wherever the context of the Plan
dictates, the plural shall be read as the singular and the singular as the
plural. The words "Article" or "Section" in this Plan are intended to be a
cross-reference to the same, and shall refer to an Article or Section of this
Plan unless specifically stated otherwise. Compounds of the word "here," such as
"herein" and "hereof" shall be construed to refer to another provision of this
Plan, unless otherwise specified or required by the context.

           In determining the time within which an event or action is to take
place for purposes of the Plan, no fraction of a day shall be considered, and
any act, the performance of which would fall on a Saturday, Sunday, holiday or
other non-business day, may be performed on the next following business day.

           It is the intention of the Employer that the Plan be qualified under
the provisions of the Code and ERISA and that all its provisions shall be
construed to that result.

           2.1        Accounts. The separate accounts maintained to record the
interests of Participants under the Plan. The following terms designate the
Accounts under the Plan and are defined as provided herein.

                      (a)        Employer Matching Contribution Account. The
separate account of a Participant consisting of Employer Matching Contributions
made by the Employer pursuant to Section 4.1(b) and allocated to the Participant
pursuant to Section 6.4, together with the income, gain, and losses allocated
thereto and less distributions made therefrom.

                      (b)        Employer Nonelective Contribution Account. The
separate account of a Participant consisting of the Employer Nonelective
Contributions made by the Employer pursuant to Section 4.1(d) and allocated to
the Participant pursuant to Section 6.4, together with the income, gain, and
losses allocated thereto and less distributions made therefrom.

                      (c)        Employer Profit Sharing Contribution Account.
The separate account of a Participant consisting of the Employer Profit Sharing
Contributions made by the Employer pursuant to Section 4.1(c) and allocated to
the Participant pursuant to Section 6.4, together with the income, gain, and
losses allocated thereto and less distributions made therefrom.

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                      (d)        Employer Salary Reduction Contribution Account.
The separate account of a Participant consisting of the sum of (i) Employer
Salary Reduction Contributions made by the Employer in accordance with Section
4.1(a) and allocated to the Participant pursuant to Section 6.4, and (ii)
Employer Nonelective Contributions made by the Employer pursuant to Section
4.1(d) and allocated to the Participant pursuant to Section 6.4, together with
the income, gain, and losses allocated thereto and less distributions therefrom.

                      (e)        Employee Contribution Account. The separate
account of a Participant consisting of the balance of Employer Salary Reduction
Contributions, if any, recharacterized as Employee Contributions and allocated
to a Participant's Employee Contribution Account pursuant to the provisions of
Section 5.2, together with the income, gain, and losses allocated thereto, and
less distributions made therefrom.

                      (f)        Rollover Contribution Account. The separate
account of a Participant consisting of Rollover Contributions made by a
Participant or Employee in accordance with Section 4.8, together with the
income, gain, and losses allocated thereto, and less distributions made
therefrom.

           2.2        Accrued Benefit. The amount allocated to a Participant's
Accounts as of any date.

           2.3        Actual Deferral Percentage. For a specified group of
Eligible Employees the average (arithmetic mean) of the ratios (calculated
separately for each Eligible Employee in such group to the nearest .01%) of: (i)
the amount of all Employer Salary Reduction Contributions actually contributed
to the Trust on behalf of such Employee and allocated to his Employer Salary
Reduction Contribution Account for such Plan Year, and such Employer Matching
Contributions, Employer Nonelective Contributions, and Employer Profit Sharing
Contributions, if any, for such Plan Year, as may qualify for aggregation
hereunder under section 401(k)(3)(D)(ii) of the Code, that may be designated by
the Committee under this Section as includible in this computation for this Plan
Year, to (ii) the Considered Compensation received by the Employee during the
Plan Year, such average of ratios being multiplied by 100.

                      (a)        To the extent that the Committee elects,
pursuant to the above paragraph, to take Employer Matching Contributions,
Employer Nonelective Contributions, or Employer Profit Sharing Contributions
(that meet the requirements of the applicable Treasury Regulations) into account
in computing the Actual Deferral Percentage, the Actual Matching Percentage
tests under Section 4.5 must still be computed and satisfied separately, and in
doing so the Employer shall disregard the Employer Matching Contributions,
Employer Nonelective Contributions, or Employer Profit Sharing Contributions
used in computing the Actual Deferral Percentage for such Plan Year.

                      (b)        For purposes of this Section, the ratio
calculated for any Eligible Employee who is a Highly Compensated Employee for
the Plan Year and who is eligible to have Employer Salary Reduction
Contributions allocated to his account under two or more plans or arrangements
described in section 401(k) of the Code that are maintained by an Employer or a
Related Employer

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shall be determined as if all such contributions were made under a single
arrangement. Further, in the event that this Plan satisfies the requirements of
sections 401(a)(4) or 410(b) (other than section 410(b)(2)(A)(ii)) of the Code
only if aggregated with one or more other plans, or if one or more other plans
satisfy the requirements of sections 401(a)(4) or 410(b) (other than section
410(b)(2)(A)(ii)) of the Code only if aggregated with this Plan, the Actual
Deferral Percentage shall be determined by calculating the ratio for each
Eligible Employee as if all such plans were a single plan. Moreover, if two or
more plans are permissively aggregated for purposes of section 401(k) of the
Code, the aggregated plans must also satisfy sections 401(a)(4) and 410(b) of
the Code as though they were a single plan.

           2.4        Actual Matching Percentage. For a specified group of
Eligible Employees (who have satisfied the eligibility requirements of Article
III) the average (arithmetic mean) of the ratios (calculated separately for each
Eligible Employee in such group to the nearest .01%) of: (i) the sum of all
Employer Matching Contributions and Employee Contributions actually contributed
to the Trust on behalf of such Employee and allocated to his Employer Matching
Contribution Account or Employee Contribution Account for such Plan Year, and,
in accordance with applicable Treasury Regulations, such Employer Salary
Reduction Contributions, Employer Nonelective Contributions, or Employer Profit
Sharing Contributions if any, as may be designated by the Committee under this
Section as includible in this computation for this Plan Year, to (ii) the
Considered Compensation received by the Employee during the Plan Year, such
average of ratios being multiplied by 100.

                      (a)        To the extent that the Committee elects,
pursuant to the above paragraph, to take Employer Salary Reduction
Contributions, Employer Nonelective Contributions, or Employer Profit Sharing
Contributions into account in computing the Actual Matching Percentage for such
Plan Year, the Actual Deferral Percentage tests under Section 5.2 must still be
computed and satisfied separately, and in doing so, the Employer shall disregard
Employer Salary Reduction Contributions, Employer Nonelective Contributions, and
Employer Profit Sharing Contributions used in computing the Actual Matching
Percentage for such Plan Year.

                      (b)        For purposes of this Section, the ratio
calculated for any Eligible Employee who is a Highly Compensated Employee for
the Plan Year and who is eligible to have Employer Matching Contributions or
Employee Contributions allocated to his account under two or more plans or
arrangements described in section 401(a) of the Code that are maintained by an
Employer or a Related Employer shall be determined as if all such contributions
were made under a single arrangement. Further, in the event that this Plan
satisfies the requirements of sections 401(a)(4) or 410(b) (other than section
410(b)(2)(A)(ii)) of the Code only if aggregated with one or more other plans,
or if one or more other plans satisfy the requirements of sections 401(a)(4) or
410(b) (other than section 410(b)(2)(A)(ii)) of the Code only if aggregated with
this Plan, the Actual Matching Percentage shall be determined by calculating the
ratio for each Eligible Employee as if all such plans were a single plan.
Moreover, if two or more plans are permissively aggregated for purposes of
section 401(m) of the Code, the aggregated plans must also satisfy sections
401(a)(4) and 410(b) of the Code as though they were a single plan.

                                       5
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           2.5        Administrator. The Plan Administrator shall be the
Committee.

           2.6        Alternate Payee. Any spouse, former spouse, child, or
other dependent of a Participant who is recognized by a Domestic Relations Order
as having a right to receive all, or a portion of, the benefits payable under
the Plan with respect to such Participant.

           2.7        Annual Addition. The sum of the following additions to a
Participant's Accounts for the Limitation Year:

                      (a)        Employer contributions,

                      (b)        Employee contributions, and

                      (c)        Forfeitures, plus

                      (d)        contributions during the Limitation Year
allocated to any individual medical benefit account (within the meaning of
sections 415(l) and 419A(d)(2) of the Code) that is established for the
Participant.

           2.8        Beneficiary. Any person or fiduciary designated by a
Participant who is or may become entitled to a benefit under the Plan following
the death of the Participant; provided, that in the case of a married
Participant, the Participant's Beneficiary shall be the Participant's surviving
spouse unless the Participant's spouse (i) consents in writing to the
designation of another party as Beneficiary of all or a part of the benefit to
which the Participant may become entitled under the Plan, (ii) such election
designates a Beneficiary (or a form of benefits) which may not be changed
without spousal consent (or the consent of the spouse expressly permits
designations by the Participant without any requirement of further spousal
consent), (iii) the spouse's consent acknowledges the effect of such election,
and (iv) such consent is witnessed by a notary public or a member of the
Committee. Such spousal consent shall not be required if it is established to
the satisfaction of the Committee that such consent cannot be obtained because
the spouse cannot be located or because of such other circumstances as the
Secretary of the Treasury may prescribe by regulations. Any consent by a spouse
hereunder shall be effective only with respect to that spouse. Absent a
designation or surviving spouse, a Participant's Beneficiary shall be determined
in the following order of classes, with each class to receive benefits to the
exclusion of all subsequent classes, and all members of each class to share
equally:

                      (a)        lineal descendants (including adopted children)
                                 per stirpes;

                      (b)        surviving parents; and

                      (c)        Participant's estate.

           2.9        Code. The Internal Revenue Code of 1986, as amended.

                                       6
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           2.10       Committee. The Committee specified in Article XIII as from
time to time constituted. If no such committee is appointed, the Company shall
constitute the Committee.

           2.11       Company. Schottenstein Stores Corporation and its
successors and assigns.

           2.12       Company Stock. The common stock of the Company or of a
Related Employer or of another Employer that has adopted the Plan pursuant to
the provisions of Article XIX.

           2.13       Compensation. A Participant's wages, salaries, fees for
professional services, and other amounts received (without regard to whether or
not an amount is paid in cash) for personal services actually rendered in the
course of employment with an Employer as an Employee to the extent that the
amounts are includible in gross income (including, but not limited to,
commissions paid salesmen, overtime pay, compensation for services on the basis
of a percentage of profits, commissions on insurance premiums, tips, bonuses,
fringe benefits, reimbursements and expense allowances), but excluding the
following:

                      (a)        Employer contributions to a plan of deferred
compensation to the extent contributions are not included in gross income of the
Participant for the taxable year in which contributed, or on behalf of the
Participant to a Simplified Employee Pension Plan to the extent such
contributions are deductible under section 219(b)(7) of the Code, and any
distributions from a plan of deferred compensation whether or not includible in
the gross income of the Participant when distributed (except for amounts
received from an unfunded, nonqualified plan in the year such amounts are
includible in the Employee's gross income);

                      (b)        amounts realized from the exercise of a
non-qualified stock option, or when restricted stock (or property) held by the
Participant becomes freely transferable or is no longer subject to a substantial
risk of forfeiture;

                      (c)        amounts realized from the sale, exchange or
other disposition of stock acquired under a qualified stock option; and

                      (d)        other amounts that receive special tax
benefits, or contributions made by the Employer (whether or not under a salary
reduction agreement) towards the purchase of a 403(b) annuity contract (whether
or not the contributions are excludable from the gross income of the
Participant).

Notwithstanding the foregoing, Compensation shall include any elective deferral
(as defined in Section 402(g)(3) of the Code) and any amount which is
contributed or deferred by an Employer at the election of an Employee and which
is not includible in the gross income of the Employee by reason of Section 125
or 457 of the Code. For purposes of the limitation on Annual Additions,
Compensation, as defined above, taken into account for a Limitation Year, is the
Compensation actually paid or made available to the Participant during such
year. Compensation for all purposes

                                       7
<PAGE>

under the Plan in excess of $160,000 (as adjusted for increases in the cost of
living in accordance with section 401(a)(17)(B) of the Code) shall be
disregarded.

           2.14       Considered Compensation. For purposes of making
contributions and allocations hereunder, "Considered Compensation" shall mean,
as to each Participant, the total remuneration paid (without taking into account
the effect of any election to defer the receipt of compensation made in
conjunction with Section 5.1 of this Plan or the effect of any election under
Section 125 of the Code) for the Plan Year reflected on Internal Revenue Service
Form W-2 and that is currently includible in income by the Participant for
income tax purposes. Considered Compensation in excess of $160,000 (as adjusted
for increases in the cost of living in accordance with section 401(a)(17)(B) of
the Code) shall be disregarded.

           2.15       Determination Year. The Plan Year for which a
determination is being made of who is a Highly Compensated Employee.

           2.16       Early Retirement Age. For individuals who became
Participants on or prior to April 1, 1999, the Participant's 55th birthday.

           2.17       Effective Date. The Effective Date of this Plan, as
amended and restated, shall be January 1, 2000.

           2.18       Eligible Employee. (1) Any Employee of an Employer other
than an Employee covered by a collective bargaining agreement, unless the
bargaining agreement provides for such coverage, and (2) an Employee of any
other Employer, provided that such Employee is a member of a classification of
Employees designated by the Employer as eligible to participate in this Plan in
connection with such Employer's adoption of this Plan pursuant to the terms of
Article XIX. Notwithstanding the preceding, a leased employee described in
Section 2.19 shall not be treated as an Eligible Employee and an individual who
is a non-resident alien shall not be treated as an Eligible Employee.

           2.19       Employee. An employee of an Employer. In addition, the
term "Employee" shall mean any leased employee (within the meaning of section
414(n)(2) of the Code) that section 414(n) of the Code requires the Employer to
treat as an employee; provided, however, that if leased employees constitute
less than twenty percent (20%) of the number of non-Highly Compensated Employees
of the Company, the term "Employee" shall not include those leased employees
covered by a plan described in section 414(n)(5) of the Code.

           2.20       Employee Contribution. The balance, if any, of Employer
Salary Reduction Contributions recharacterized as Employee Contributions and
allocated to a Participant's Employee Contribution Account pursuant to the
provisions of Section 5.2.

           2.21       Employer. The Company and any other entity that adopts
this Plan pursuant to the terms of Article XIX. Schedule I shall list all
participating Employers.

                                       8
<PAGE>

           2.22       Employer Matching Contribution. A contribution made by the
Employer pursuant to Section 4.1(b).

           2.23       Employer Nonelective Contribution. A contribution made by
the Employer pursuant to Section 4.1(d).

           2.24       Employer Profit Sharing Contribution. A contribution made
by the Employer pursuant to Section 4.1(c).

           2.25       Employer Salary Reduction Contribution. A contribution
made by the Employer pursuant to Section 4.1(a).

           2.26       Employment Commencement Date. The date on which an
Employee first performs an Hour of Service for the Employer.

           2.27       ERISA. The Employee Retirement Income Security Act of
1974, as amended.

           2.28       Fiscal Year. The fiscal year of the Employer.

           2.29       Forfeitures. The aggregate amount of all Forfeiture
Amounts that have ceased for a Plan Year to be part of Participants' Accrued
Benefits, with respect to such Plan Year, as provided in Section 7.7(a).

           2.30       Forfeiture Amount. The portion of a Participant's Employer
Matching Contribution Account and Employer Profit Sharing Contribution Account
that is not part of the Participant's Vested Accrued Benefit upon the
Participant's termination of Service, determined pursuant to Section 7.5.

           2.31       Former Participant. Any individual, other than a
Re-Employed Employee, who has been a Participant, but who has terminated
Service, and who has not yet received the entire benefit to which he is entitled
under the Plan.

           2.32       Full-Time Employee. An Eligible Employee who is regularly
scheduled to work 20 or more hours per week for an Employer.

           2.33       Highly Compensated Employee. An Employee or former
Employee who is a highly compensated active employee or a highly compensated
former employee as defined hereunder.

A "highly compensated active employee" includes any Employee who performs
services for an Employer during the Plan Year and who (i) was a five percent
owner at any time during the Plan Year or the look back year or (ii) received
compensation from an Employer during the look back year in excess of $80,000
(subject to adjustment annually at the same time and in the same manner as under
Section 415(d) of the Code) and was in the top paid group of employees for the
look back year.

                                       9
<PAGE>

An Employee is in the top paid group of employees if he is in the top 20 percent
of the employees of his Employer and all Related Employers when ranked on the
basis of compensation paid during the look back year.

A "highly compensated former employee" includes any Employee who (1) separated
from service from an Employer and all Related Employers (or is deemed to have
separated from service from an Employer and all Related Employers) prior to the
Plan Year, (2) performed no services for an Employer during the Plan Year, and
(3) for either the separation year or any Plan Year ending on or after the date
the Employee attains age 55, was a highly compensated active employee, as
determined under the rules in effect under Section 414(q) of the Code for such
year.

The determination of who is a Highly Compensated Employee hereunder, including,
if applicable, determinations as to the number and identity of employees in the
top paid group, shall be made in accordance with the provisions of Section
414(q) of the Code and regulations issued thereunder.

For purposes of this definition, the following terms have the following
meanings:

                      (a)        An employee's "compensation" means compensation
as defined in Section 415(c)(3) of the Code and regulations issued thereunder.

                      (b)        The "look back year" means the 12-month period
immediately preceding the Plan Year.

           2.34       Hour of Service.

                      (a)        Each hour for which the Employee or Participant
is either directly or indirectly paid or entitled to payment by an Employer or a
Related Employer for the performance of duties or for reasons (such as vacation,
holiday, sickness, incapacity, layoff, jury duty, military duty, or leave of
absence) other than for the performance of duties (irrespective of whether the
employment relationship has terminated), and each hour for which back pay,
irrespective of mitigation of damages, has been awarded to the Employee or
Participant or agreed to by an Employer. The number of Hours of Service to be
credited to an Employee or Participant because of his being entitled to payment
for reasons other than for the performance of duties shall be determined in
accordance with section 2530.200b-2(b) of the Department of Labor Regulations.
Notwithstanding the preceding sentence, not more than 501 Hours of Service shall
be credited to any Employee or Participant during any computation period for any
single, continuous period during which the Employee or Participant performs no
duties. In addition, an hour of service performed for a Related Employer during
the time that (i) the Related Employer is a Related Employer and (ii) any other
Related Employer maintains or adopts the Plan, that if performed for an Employer
would be an Hour of Service, and any hour with respect to such a Related
Employer that would be an Hour of Service if it were creditable pursuant to this
Section with respect to an Employer shall be considered an Hour of Service
performed for the Employer.

                                       10
<PAGE>

                      (b)        The Committee shall credit Hours of Service
with respect to any Employee or Participant in the following manner:

                                 (i)        Hours of Service for which an
           Employee or Participant is either directly or indirectly paid or
           entitled to payment by an Employer for the performance of duties
           shall be credited for the Plan Year in which the Employee performs
           the duties.

                                 (ii)       Hours of Service for which an
           Employee or Participant is either directly or indirectly paid or
           entitled to payment by an Employer for reasons (such as vacation,
           holiday, sickness, incapacity, layoff, jury duty, military duty, or
           leave of absence) other than for the performance of duties shall be
           credited as follows:

                      (1)        If payment for such Hours of Service is
                                 calculated on the basis of units of time (such
                                 as hours, days, weeks, or months), such Hours
                                 of Service shall be credited to the Plan
                                 Year(s) in which the period during which no
                                 duties are performed occurs, beginning with the
                                 first unit of time to which the payment
                                 relates.

                      (2)        If payment for such Hours of Service is not
                                 calculated on the basis of units of time, such
                                 Hours of Service shall be credited to the Plan
                                 Year in which the period during which no duties
                                 are performed occurs, or, if the period during
                                 which no duties are performed extends beyond
                                 one Plan Year, such Hours of Service shall be
                                 allocated between not more than the first two
                                 Plan Years on any reasonable basis which is
                                 consistently applied.

                                 (iii)      Hours of Service for which back pay
           has been awarded to an Employee or Participant or agreed to by an
           Employer shall be credited for the Plan Year(s) in which the award or
           the agreement pertains rather than for the Plan Year in which the
           award, agreement, or payment is made.

                      (c)        Hours of Service shall include hours earned as
an employee of Schottenstein Stores Corporation or as an employee of any entity
affiliated with Schottenstein Stores Corporation or American Eagle Outfitters,
Inc., and shall also include hours earned as an employee of any entity which
maintains this Plan or which maintained the American Eagle Outfitters, Inc.
Retirement Plan prior to April 1, 1999 and shall include hours earned as an
employee of any entity affiliated with an entity maintaining either such Plan.
Notwithstanding the foregoing, an Employee shall not be credited with more than
a single Hour of Service for a single hour of service performed by the Employee.

                      (d)        The Committee shall credit Hours of Service
under only one of the methods described herein.

                                       11
<PAGE>

                      (e)        The Committee shall resolve any ambiguity with
respect to the crediting of an Hour of Service in favor of the Employee.

           2.35       Leave of Absence. Any period of absence from the active
employment of an Employer specifically granted to the Employee in writing in
accordance with a uniform policy, consistently applied, or military service
under circumstance in which the Employee has reemployment rights under Federal
law, subject to the following conditions:

                      (a)        Absence from the active Service of the Employer
by reason of Leave of Absence granted by the Employer because of accident,
illness, or military service or for any other reason granted by the Employer on
the basis of a uniform policy applied without discrimination will not terminate
an Employee's Service, provided he returns to the active employment of the
Employer at or prior to the expiration of his leave, or, if not specified
therein, within the period of time which accords with the Employer's policy with
respect to permitted absences.

                      (b)        Absence from the active Service of the Employer
because of engagement in military service under circumstances in which the
Employee has reemployment rights under Federal law will be considered a Leave of
Absence granted by the Employer and will not terminate the Service of an
Employee if he returns to the active employment of the Employer within 90 days
from and after discharge or separation from such engagement or, if later, within
the period of time during which he has re-employment rights under any applicable
Federal law.

                      (c)        If any such Employee who is on Leave of Absence
pursuant to paragraphs (a) or (b) above does not return to the active Service of
the Employer at or prior to the expiration of his Leave of Absence, his Service
will be considered terminated as of the date on which his Leave of Absence
began; provided, however, that if such Employee is prevented from his timely
return to the active employment of the Employer because of his permanent
disability or his death, he shall be treated under the Plan as though he
returned to active Service immediately preceding the date of his permanent
disability or his death.

           2.36       Limitation Year. The 12 consecutive month period beginning
on January 1 and ending on December 31.

           2.37       Normal Retirement Age. The Participant's 65th birthday;
provided, however, that the Normal Retirement Age for a Participant who had an
Account balance in the American Eagle Outfitters, Inc. Retirement Plan shall be
the earlier of (i) age 65, or (ii) the later of (x) his 60th birthday, or (y)
the date 5 years after first becoming a Participant in the American Eagle
Outfitters, Inc. Retirement Plan.

           2.38       One Year Break in Service. A Plan Year in which a person
fails to complete more than 500 Hours of Service.

           2.39       Parental Absence. Any period of absence from the active
Service of an Employer:

                                       12
<PAGE>

                      (a)        by reason of the pregnancy of the Employee;

                      (b)        by reason of the birth of a child of the
Employee;

                      (c)        by reason of the placement of a child with the
Employee in connection with the adoption of such child by the Employee; or

                      (d)        for purposes of caring for such child for a
period beginning immediately following such birth or placement.

           2.40       Part-Time Employee. An Eligible Employee who is regularly
scheduled to work less than 20 hours per week for an Employer.

           2.41       Participant. An Eligible Employee, other than a Former
Participant, who has satisfied the requirements of Article III.

           2.42       Plan. The Profit Sharing and 401(k) Plan, as embodied
herein and as amended from time to time.

           2.43       Plan Entry Date. The first day of each calendar month.

           2.44       Plan Year. The 12 consecutive month period beginning on
January 1 and ending on December 31 of each year.

           2.45       Qualified Domestic Relations Order. An order entered on or
after January 1, 1985, that creates or recognizes the existence of an Alternate
Payee's right to, or assigns to an Alternate Payee the right to, receive all or
a portion of the benefits payable with respect to a Participant under the Plan,
does not require the Plan to provide any type or form of benefit, or any option,
not otherwise provided under the Plan, does not require the Plan to provide
increased benefits (determined on the basis of actuarial value), does not
require the payment of benefits to an Alternate Payee that are required to be
paid to another Alternate Payee under another order previously determined to be
a Qualified Domestic Relations Order, and that has the following
characteristics:

                      (a)        A judgment, decree, or order (including one
that approves a property settlement agreement) that relates to the provision of
child support, alimony payments, or marital property rights to a spouse, former
spouse, child, or other dependent of a Participant and is rendered under a state
(within the meaning of section 7701(a)(10) of the Code) domestic relations law
(including a community property law).

                      (b)        The order must clearly specify:

                                 (i)        the name and last known mailing
           address (if any) of the Participant and the name and mailing address
           of each Alternate Payee covered by the order;

                                       13
<PAGE>

                                 (ii)       the amount or percentage of the
           Participant's benefits to be paid by the Plan to each such Alternate
           Payee, or the manner in which such amount or percentage is to be
           determined;

                                 (iii)      the number of payments or payment
           period to which such order applies; and

                                 (iv)       specifically specifies that it is
           applicable with respect to this Plan.

                      (c)        In the case of any payment before a Participant
has separated from Service, an order will not be treated as failing to be a
Qualified Domestic Relations Order solely because such order requires the
payment of benefits be made to an Alternate Payee:

                                 (i)        in the case of any payment before a
           Participant has separated from Service, on or after the date on which
           the Participant is entitled to a distribution under the Plan or on or
           after the later of the date the Participant attains age 50 or the
           earliest date on which the Participant could begin receiving benefits
           under the Plan if the Participant separated from Service,

                                 (ii)       as if the Participant had retired on
           the date on which payment is to commence under such order (taking
           into account only the present value of benefits actually accrued as
           of such date), and

                                 (iii)      in any form in which such benefits
           may be paid under the Plan to the Participant (other than in the form
           of a joint and survivor annuity with respect to the Alternate Payee
           and his or her subsequent spouse).

                      (d)        In addition, the Committee shall treat any
order entered prior to January 1, 1985 as a Qualified Domestic Relations Order
if the Committee is paying benefits pursuant to such order on such date, and the
Committee may treat any other order entered prior to January 1, 1985, as a
Qualified Domestic Relations Order even if such order does not satisfy the
requirements of this Section.

           2.46       Qualified Employer Contributions. Employer contributions
that both (i) qualify for aggregation for Code Section 401(k) or 401(m)
discrimination testing purposes, pursuant to sections 401(k)(3)(1) (ii) or
401(m)(3) of the Code, and (ii) were in fact aggregated for such purposes.

           2.47       Re-Employed Employee. An Employee who (i) previously
separated from Service or service with a Related Employer with a nonforfeitable
interest in his Employer Matching Contribution Account or Employee Profit
Sharing Contribution Account or (ii) previously separated from Service or
service with a Related Employer without a nonforfeitable interest in his
Employer Matching Contribution Account or Employer Profit Sharing Contribution
Account but who resumes Service or service with a Related Employer before his
number of consecutive One Year Breaks in

                                       14
<PAGE>

Service equals or exceeds the greater of five or his number of years of Vesting
Service prior to his separation from Service or separation from service with a
Related Employer.

           2.48       Related Employer. Any business entity that is, along with
an Employer, (i) a member of a controlled group of corporations (as defined in
section 414(b) of the Code, with such section, for purposes of the limitation on
Annual Additions, being modified pursuant to section 415(h) of the Code), (ii) a
member of a group of trades or businesses (whether or not incorporated) that are
under common control (as defined by section 414(c) of the Code, with such
section being modified, for purposes of the limitation on Annual Additions, in
accordance with section 415(h) of the Code), (iii) a member of an affiliated
service group (as defined by section 414(m) of the Code), or (iv) any other
entity described by Treasury Regulations promulgated pursuant to section 414(o)
of the Code.

           2.49       Related Plan. Any defined contribution plan (as defined in
section 415(k) of the Code) maintained by the Employer or any Related Employer.

           2.50       Reemployment Commencement Date. The date on which an
Employee first performs an Hour of Service for the Employer following a
separation from Service.

           2.51       Required Commencement Date. For a Participant who is not a
5% owner (as defined in Section 416(i) of the Code) of the Employer, the
Required Commencement Date shall be April 1 of the calendar year following the
later of the calendar year in which the Participant attains age 70 1/2 or
retires. The Required Commencement Date of a Participant who is a 5% owner shall
be April 1 of the calendar year following the calendar year in which the
Participant attains age 70 1/2.

           2.52       Rollover Contribution. A transfer or contribution to the
Plan of an eligible rollover distribution (within the meaning of section
402(c)(4) of the Code) from an employees' trust described in section 401(a) of
the Code that is exempt from tax under section 501(a) thereof and any earnings
thereon in a manner which would constitute a direct trust-to-trust transfer or
an eligible rollover contribution within the meaning of section 402(c)(4),
403(a)(4) or 408(d)(3)(A)(ii) of the Code. Notwithstanding the foregoing
provisions of this Section 2.52, no direct trust-to-trust transfer to this Plan
of an amount described in the immediately preceding sentence shall be permitted
if such amount is attributable, directly or indirectly, to a transfer from a
defined benefit plan (within the meaning of section 414(j) of the Code) or a
defined contribution plan (within the meaning of section 414(i) of the Code)
subject to the minimum funding standards of section 412 of the Code.

           2.53       Service. Any period of time the Employee is employed by an
Employer, including any period the Employee is on Leave of Absence authorized by
the Employer under a uniform, nondiscriminatory policy applicable to all
Employees and including any leave of absence that an Employee is entitled to
take pursuant to FMLA, provided that such Employee returns to work at the
conclusion of such leave in a manner consistent with the requirements of FMLA
and any administrative requirements imposed by the Employer that are permissible
under FMLA. The Plan shall treat service of an Employee with a predecessor or
Related Employer as Service with an Employer to the extent required by section
414(a) of the Code. Periods of service recognized under

                                       15
<PAGE>

the American Eagle Outfitters, Inc. Retirement Plan prior to its amendment and
restatement into this Plan shall be recognized as Service under this Plan.

           2.54       Total and Permanent Disability. A permanent mental or
physical impairment which prevents the Participant from engaging in any
substantial gainful occupation or employment. The Committee will determine
whether a Participant has a Total and Permanent Disability under uniform rules
of general application, and the determination of the Committee shall be final.

           2.55       Trust. The trust or trusts related to the Plan, as may be
amended from time to time, to hold, administer, and invest the contributions
made under the Plan.

           2.56       Trust Agreement. The agreement or agreements between the
Company and the Trustee or any successor Trustee establishing the Trust and
specifying the duties of the Trustee.

           2.57       Trust Fund. All property of every kind held or acquired by
the Trustee under the Trust Agreement.

           2.58       Trustee. The person or entity from time to time appointed
as Trustee under the Trust Agreement.

           2.59       Valuation Date. Each day that the New York Stock Exchange
is open for business and any other date chosen by the Committee.

           2.60       Vested Accrued Benefit. The percentage of a Participant's
Accrued Benefit to which he becomes entitled upon termination of his employment,
determined in accordance with Section 7.5.

           2.61       Vesting Service. The period of Service of an Employee
which is used to determine the Employee's nonforfeitable interest in his
Employer Matching Contribution Account and his Employer Profit Sharing
Contribution Account. Service recognized for vesting purposes under the Filene's
Basement, Inc. Thrift Incentive Plan or under the Gramex Corporation 401(k)
Profit Sharing Plan shall be recognized under the Plan as Vesting Service.

           2.62       Year of Eligibility Service. A Year of Eligibility Service
shall mean an eligibility computation period during which an Employee completes
not less than one thousand (1,000) Hours of Service. For purposes of the
preceding sentence, the term "eligibility computation period" initially shall
mean the 12-month period commencing on the date that the Employee performs the
first Hour of Service for an Employer, and ending on the first anniversary
thereof. Thereafter, the "eligibility computation period" shall be each Plan
Year, beginning with Plan Year in which the initial eligibility computation
period ends. Service with Filene's Basement, Inc. and with Gramex Corporation
shall be recognized when computing a Year of Eligibility Service under the Plan.

                                       16
<PAGE>

           2.63       Year of Vesting Service. For purposes of vesting under
Section 7.5, a Year of Vesting Service shall mean a vesting computation period
during which an Employee completes not less than one thousand (1,000) Hours of
Service. For purposes of the preceding sentence, the term "vesting computation
period" initially shall mean the 12-month period commencing on the date that the
Employee performs the first Hour of Service for an Employer, and ending on the
first anniversary thereof. Thereafter, the "vesting computation period" shall be
each Plan Year, beginning with Plan Year in which the initial vesting
computation period ends.

--------------------------
End of Article II

                                       17
<PAGE>

                                   ARTICLE III

                          ELIGIBILITY AND PARTICIPATION

           3.1        Eligibility. Each Eligible Employee who, prior to April 1,
1999 was a participant in the Prior Plan or the American Eagle Outfitters, Inc.
Retirement Plan shall be a Participant hereunder as of April 1, 1999. Each
Eligible Employee who, prior to May 1, 2000 was a participant in the Filene's
Basement, Inc. Thrift Incentive Plan shall become a Participant hereunder as of
May 1, 2000. Each Eligible Employee who, prior to March 1, 2000 was a
participant in the Gramex Corporation 401(k) Profit Sharing Plan shall become a
Participant hereunder as of March 1, 2000. Each other Full-Time Employee may
become a Participant in the Plan on the Plan Entry Date (or any date thereafter)
coincident with or immediately following his attainment of age 20 1/2 and his
completion of 60 days of employment with an Employer or a Related Employer. Each
other Part-Time Employee may become a Participant in the Plan on the Plan Entry
Date (or any date thereafter) that is coincident with or immediately following
60 days after his attainment of age 20 1/2 and his completion of one Year of
Eligibility Service. Notwithstanding the foregoing, an Eligible Employee who is
covered by a collective bargaining agreement pursuant to which he is entitled to
become a Participant in this Plan may become a Participant in accordance with
the provisions of such collective bargaining agreement.

           3.2        Participation - Re-Employed Employees. A Re-Employed
Employee who is an Eligible Employee shall reenter the Plan as a Participant:

                      (a)        If he was a Participant prior to his separation
from Service, the day he performs his first Hour of Service as a result of his
return to Service, or

                      (b)        If he was not a Participant prior to his
separation from Service, on the first Plan Entry Date (or any date thereafter)
after his Reemployment Commencement Date, but in no event prior to the date his
participation would have commenced had there been no separation from Service.

           Any other Employee whose employment terminates and who is
subsequently re-employed shall commence participation in accordance with the
provisions of Section 3.1.

           3.3        Notice of Participation; Passive Enrollment. Prior to his
Plan Entry Date, the Committee shall give an Eligible Employee reasonable
notice of his pending commencement of participation in the Plan. Such notice
shall include forms and instructions on which the Eligible Employee may make
the election provided in Section 5.1 of this Plan; provided, however, that a
Full-Time Employee shall automatically be enrolled in the Plan as of the first
Plan Entry Date on which he is eligible under this Article III and shall be
deemed to have elected to defer one percent (1%) of his Considered Compensation
in accordance with Section 5.1 of the Plan, unless the

                                       18
<PAGE>

Participant (i) elects to defer a greater percentage of his Considered
Compensation, (ii) affirmatively elects not to defer any portion of his
Considered Compensation, or (iii) irrevocably elects not to participate in the
Plan in accordance with Section 3.4 of the Plan. By his participation, a
Participant shall be deemed to have agreed to abide by the provisions of the
Plan. Notwithstanding the foregoing, there will be no passive enrollment of an
Eligible Employee hired by Value City Department Stores, Inc. and Related
Employers on or after January 1, 2001. In addition, notwithstanding the
foregoing, the deemed passive enrollment election percentage for all other
Eligible Employees hired by an Employer on or after January 1, 2001 shall be
three percent (3%) of Considered Compensation.

           3.4        Election Not to Participate. Notwithstanding the other
provisions of this Article III, an Employee may, subject to the approval of the
Employer, irrevocably elect voluntarily not to participate in the Plan. The
election not to participate must be communicated to the Committee, in writing,
at least thirty (30) days before the date on which the Employee would otherwise
become eligible to commence participation in the Plan.

--------------------------
End of Article III

                                       19
<PAGE>

                                   ARTICLE IV

                             EMPLOYER CONTRIBUTIONS

           4.1        Employer Contributions. Subject to the limitations
specified in Section 4.2, each Employer shall make the contributions provided
for in (a) of this Section 4.1 for each Limitation Year ending with or within
its Fiscal Year. In addition, subject to the limitations specified in Section
4.2 for each such Limitation Year, each Employer may also make additional
contributions, in its sole and absolute discretion, as described in (b), (c) and
(d) of this Section 4.1. The Employer contributions made for any Limitation Year
shall or may be as follows:

                      (a)        Employer Salary Reduction Contribution. An
Employer Salary Reduction Contribution that equals the aggregate amount by which
Participants have elected, in accordance with the provisions of Section 5.1, to
reduce their Considered Compensation for the Plan Year that ends with or
immediately after the Limitation Year.

                      (b)        Employer Matching Contribution. An Employer
Matching Contribution in an amount determined by the Employer in its sole and
absolute discretion, subject to the limitations of Section 4.5, as a percentage
of the amount that such Participant elects to defer pursuant to Section 5.1 (and
that is not subsequently distributed pursuant to Sections 5.2 or 5.3). The
Employer Matching Contribution, if any, may vary from Employer to Employer.

                      (c)        Employer Profit Sharing Contribution. An
Employer Profit Sharing Contribution in an amount, if any, determined by the
Employer, in its sole and absolute discretion. Employer Profit Sharing
Contributions may be made in cash or in stock, or in a combination thereof, in
the discretion of the Employer. The amount, if any, of Employer Profit Sharing
Contributions may vary from Employer to Employer.

                      (d)        Employer Nonelective Contribution. An Employer
Nonelective Contribution in an amount, if any, determined by the Employer in its
sole and absolute discretion.

           4.2        Employer Contribution Limitation. Notwithstanding the
provisions of Section 4.1, the aggregate amount of Employer Salary Reduction
Contributions, Employer Matching Contributions, Employer Nonelective
Contributions, and Employer Profit Sharing Contributions for each Limitation
Year shall not exceed either the total amount deductible under section 404 of
the Code, or the sum of:

                      (a)        The aggregate of the limitations prescribed by
Section 6.8 for all Participants entitled to share in the allocation of such
Employer contributions under Section 6.4, and

                                       20
<PAGE>

                      (b)        The sum of any amounts that have been
erroneously unallocated with respect to Employees who were or would have been
entitled to share in the allocation of Employer contributions but for the
failure to credit such Participants with Hours of Service that are determined
during the Limitation Year to be creditable, to the extent such contribution was
not made in a preceding Limitation Year.

If either of the above limitations would be exceeded for any Limitation Year,
the Employer shall reduce its Employer contributions to the extent necessary to
satisfy such limitations, in the following order of reduction: (i) to the extent
permitted by law without jeopardizing the qualification of either the Plan or
the cash or deferred arrangement thereunder, Employer Salary Reduction
Contributions, starting with the Participant(s) with the highest Actual Deferral
Percentage, (ii) Employer Profit Sharing Contributions, (iii) Employer Matching
Contributions, and (iv) Employer Nonelective Contributions.

Forfeitures arising during a Limitation Year shall be applied to reduce Employer
contributions for the Limitation Year in which such Forfeitures occur and shall
be deemed to be Employer contributions for such Limitation Year; provided,
however, that Forfeitures shall not reduce Employer Salary Reduction
Contributions. Prior to January 1, 2001, Forfeitures need not be applied to
reduce the Employer contributions of the Employer for which the Employee giving
rise to a Forfeiture was employed. Effective January 1, 2001, Forfeitures may
only be applied to reduce the Employer contributions of the Employer (or of a
Related Employer) for which the Employee giving rise to the Forfeiture was
employed. Forfeitures used to reduce Employer contributions shall be deemed to
reduce Employer contributions in the following order: first, Employer
Nonelective Contributions, second, Employer Matching Contributions, and third,
Employer Profit Sharing Contributions. If Forfeitures arising during the
Limitation Year exceed the aggregate limitations prescribed by Section 6.8 for
all Participants entitled to share in the allocation of Employer contributions
for the Limitation Year plus any amounts described in Section 4.2(b), the amount
by which such Forfeitures exceed the aggregate limitations and the amount
described in Section 4.2(b) (if such Forfeitures are the result of a reasonable
error in estimating a Participant's Compensation or other facts and
circumstances which the Commissioner of the Internal Revenue Service finds
justify the availability of the rules set forth in this paragraph) shall be
credited to a suspense account and held there unallocated until the end of the
next Limitation Year, and succeeding Limitation Years, as necessary. Such
Forfeitures shall then be deemed to be Forfeitures arising during such later
Limitation Year and shall again be used to reduce Employer Contributions, in the
manner provided for under this paragraph, at the end of such later Limitation
Year. In addition, and notwithstanding any of the provisions of this paragraph,
the allocation of Forfeitures hereunder shall be consistent with the
requirements of section 1.415-6(b)(6) of the Treasury Regulations.

           4.3        Determination of Contribution. Each Employer, from its
records, shall determine the amount of any contributions to be made by it to the
Trust under the terms of the Plan. An Employer shall be liable only for
contributions for its Employees, and not for contributions for Participants
other than its own Employees.

                                       21
<PAGE>

           4.4        Time and Method of Payment of Employer Contributions. Each
Employer shall pay Employer Salary Reduction Contributions deferred pursuant to
Section 5.1 to the Trustee on the earliest date on which such contributions can
by reasonably segregated from the Employer's general assets, but not later than
the fifteenth business day of the month following the month in which the amount
would otherwise have been payable to the Participant. The Employer may pay the
remainder of its contribution for each Limitation Year in one or more
installments. The Employer's contribution for any Limitation Year shall be due
on the last day of its Fiscal Year with or within which such Limitation Year
ends, and, unless paid before, shall be payable then or as soon thereafter as
practicable, but not later than the time prescribed by law for filing the
Employer's Federal income tax return (including extensions thereof) for such
Fiscal Year. If the contribution is on account of the Employer's preceding
Fiscal Year, the contribution shall be accompanied by the Employer's signed
statement to the Trustee that payment is on account of such Fiscal Year.
Contributions may be paid in cash, or other property, as the Employer may
determine, including qualifying employer real property and qualifying employer
securities (as defined in sections 407 and 408 of ERISA). Property shall be
valued at its fair market value at the time of contribution. All contributions
for each Limitation Year shall be deemed to be paid as of the earlier of the
actual date of payment or the last day of such Limitation Year.

           4.5        Limitations on Employer Matching Contribution. For each
Plan Year, the Plan shall satisfy the nondiscrimination tests in section 401(m)
of the Code and Treasury Regulations promulgated thereunder. This Code section
and corresponding regulations are hereby incorporated by this reference.

                      (a)        Limitations. Notwithstanding the provisions of
Sections 4.1 and 5.2(c)(3), the Actual Matching Percentage for the Highly
Compensated Employees with respect to any Plan Year shall not exceed the greater
of (i) or (ii):

                                 (i)        125 percent of the Actual Matching
           Percentage for the Eligible Employees who are not Highly Compensated
           Employees for the preceding Plan Year, or

                                 (ii)       The lesser of 200 percent of the
           Actual Matching Percentage for the Eligible Employees who are not
           Highly Compensated Employees for the preceding Plan Year, or the
           Actual Matching Percentage for the preceding Plan Year for the
           Eligible Employees who are not Highly Compensated Employees plus two
           percentage points.

                      (b)        Aggregate Limit. If one or more Highly
Compensated Employees are eligible for contributions that are tested under both
this Section 4.5 and Section 5.2, multiple use of the Actual Matching Percentage
alternative limit set forth in Section 4.5.(a) shall be limited so that the
disparity in the aggregated Actual Deferral Percentage and Actual Matching
Percentage of such Highly Compensated Employees does not exceed that of all
other Participants by more than the aggregate limit. Except as provided in this
Section, the "aggregate limit," for purposes of this Section 4.5(b), is the
greater of the following:

                                       22
<PAGE>

           (1)        The sum of:

                      (A)        1.25 multiplied by the greater of (i) the
                                 Actual Deferral Percentage of the group of
                                 Participants who are not Highly Compensated
                                 Employees for the Plan Year, or (ii) the Actual
                                 Matching Percentage of the group of
                                 Participants who are not Highly Compensated
                                 Employees for the Plan Year, and

                      (B)        Two plus the lesser of (i) or (ii) above;
                                 provided, however, that this amount shall not
                                 exceed 2.0 multiplied by the lesser of (i) or
                                 (ii) above.

           (2)        The sum of:

                      (A)        1.25 multiplied by the lesser of (a) the Actual
                                 Deferral Percentage of the group of
                                 Participants who are not Highly Compensated
                                 Employees for the Plan Year, and (b) the Actual
                                 Matching Percentage for the group of
                                 Participants who are not Highly Compensated
                                 Employees for the Plan Year; and

                      (B)        Two plus the greater of (a) and (b) in the
                                 immediately preceding subparagraph; provided,
                                 however, that this amount shall not exceed 2.0
                                 multiplied by the greater of (a) or (b) above.

Amounts in excess of the aggregate limit shall be treated as excess
contributions and adjusted as provided in Section 4.5(c). For purposes of
applying this multiple use limit, the Actual Matching Percentage and the Actual
Deferral Percentage shall be determined after any required distributions of
excess contributions and deferrals under Sections 4.5(c), 5.2(c), and 5.3, and
any recharacterizations of excess contributions under Section 5.2(c)(3).

                      (c)        Adjustments for Excess Contributions. A
distribution which is made pursuant to the adjustments described in this Section
4.5(c) may be made notwithstanding any other provision of the Plan.

                                 (i)        Determination of Excess
           Contributions. If at any time during a Plan Year, the Actual Matching
           Percentage for the Highly Compensated Employees would exceed, if not
           adjusted in accordance with the limitations of this Section, the
           amounts allowed under Section 4.5(a), the "excess contributions"
           (hereinafter defined) for the Plan Year shall be eliminated by (i)
           the Committee refunding Employee Contributions plus earnings (or less
           losses) thereon for the Plan Year and, if so elected by the
           Committee, the portion of the following year preceding the date of
           distribution, or (ii) the Employers reducing the amount of the
           Employer Matching Contributions that they otherwise would have made
           to the Plan under Section 4.1, all pursuant to the rules specified
           below, until the Actual Matching Percentage for the Highly
           Compensated Employees does not exceed the limits of Section 4.5(a).
           "Excess contributions" shall mean, with respect to the Plan Year,

                                       23
<PAGE>

           the excess of (i) the aggregate amount of Employee Contributions and
           Employer Matching Contributions (and any other contributions
           considered in determining the Actual Matching Percentage) actually
           paid over to the Trust (or which, absent the limitations of Section
           4.5(a), would have been paid over to the Trust) on behalf of Highly
           Compensated Employees for such Plan Year, over (ii) the maximum
           amount of such Employee Contributions and Employer Matching
           Contributions (and any other contributions considered in determining
           the Actual Matching Percentage) permitted under the limitations of
           Section 4.5(a).

           Refund or reduction of excess contributions shall be made according
           to any of the following methods, alone or in combination, as
           determined by the Committee, and in accordance with sections
           401(a)(4) and 401(m) of the Code (and regulations thereunder):

           (1)        Refund of Unmatched Employee Contributions. Any Employee
                      Contributions which are not matched by Employer Matching
                      Contributions or any other contributions considered in
                      determining the Actual Matching Percentage (plus earnings
                      or less losses thereon as specified in Sections
                      4.5(c)(iii), (iv) and (v) below) shall be refunded
                      (according to the leveling method specified in Section
                      4.5(c)(ii) below) to such Highly Compensated Employees
                      until the limits of Section 4.5(a) are satisfied.

           (2)        Reduction or Refund of Employer Matching Contributions and
                      Refund of Matched Employee Contributions. If, after
                      applying paragraph (1) above, the limits of Section 4.5(a)
                      are not satisfied, the Committee shall eliminate such
                      excess contributions by alternately applying paragraphs
                      (A) and (B) below (beginning with paragraph (A)) on an
                      equal dollar-for-dollar basis, until the limits of Section
                      4.5(a) are satisfied.

                      (A)        Proportionately reduce (or, if necessary,
                                 refund according to the leveling method
                                 specified in Section 4.5(c)(ii)) the amount of
                                 Employer Matching Contributions that, but for
                                 this paragraph, would otherwise be contributed
                                 (or have been contributed) by the Employer, and

                      (B)        Refund (according to the leveling method
                                 specified in Section 4.5(c)(ii)) the portion of
                                 Employee Contributions that were matched or
                                 would have been matched but for the application
                                 of this Section. Such refund (plus earnings or
                                 less losses thereon as specified in Sections
                                 4.5(c)(iii) and (iv) below) shall be
                                 distributed to the applicable Highly
                                 Compensated Employees.

                                 (ii)       Leveling Method. The amount of
           excess contributions to be refunded to each Highly Compensated
           Employee under Sections 4.5(c)(i)(1) or 4.5(c)(i)(2)(B) above is to
           be determined by the following leveling method, under which the
           Actual Matching Percentage of the Highly Compensated Employee with
           the highest Employer Matching Contribution is reduced to the extent
           required to (i) enable the Plan to satisfy the limitations of Section
           4.5(a) or (ii) cause such Highly Compensated Employee's Employer
           Matching Contribution to equal the Employer Matching Contribution of
           the Highly Compensated

                                       24
<PAGE>

           Employee with the next highest Employer Matching Contribution,
           whichever occurs first. This process (in conjunction with the
           proportional reduction of Employer Matching Contributions under
           Section 4.5(c)(i)(2)(A)) must be repeated until the Plan satisfies
           the limitations of Section 4.5(a). All refunds shall be distributed
           by the Trustee to the Highly Compensated Employees within 2 1/2
           months after the close of the Plan Year in which such excess
           contributions arose, if administratively feasible, and within 12
           months after the close of such Plan Year, at the latest.

           The excess contributions identified by application of the preceding
           paragraph shall be distributed to the Highly Compensated Employees
           whose Employer Matching Contributions were reduced.

                                 (iii)      Determination of Earnings and Losses
           for the Plan Year. The earnings or losses allocable to excess
           contributions for the applicable Plan Year shall be determined by
           multiplying the total income (or loss) allocable to the Participant's
           Employee Contribution Account for the applicable Plan Year by a
           fraction, the numerator of which is the excess contribution on behalf
           of the Participant for the applicable Plan Year and the denominator
           of which is the balance of the Participant's Employee Contribution
           Account on the last day of the applicable Plan Year (prior to any
           refund of excess contributions) reduced by the income or gain (or
           increased by the loss) allocable to such total amount for the Plan
           Year. In lieu of the method described in this Section, the Committee
           may calculate earnings and losses hereunder under any other method
           authorized under applicable law.

                                 (iv)       Determination of Income or Loss for
           the Gap Period. If the Committee elects to distribute such income or
           credit such loss, the income or loss for the period between the end
           of the applicable Plan Year and the date of distribution of the
           excess contribution (the "gap period") shall be equal to the actual
           income or loss thereon during such period, or, if not readily
           ascertainable, 10% of the income or loss determined under Section
           4.5(c)(iii) above, multiplied by the number of calendar months that
           have elapsed since the end of the applicable Plan Year. Distributions
           occurring on or before the 15th day of the month shall be treated as
           having been made on the last day of the preceding month, and
           distributions occurring after such 15th day shall be treated as
           having been made on the first day of the next month.

                                 (v)        Income Allocable to Excess
           Contributions. The income allocable to excess contributions, for
           purposes of Section 4.5(c)(iii) and 4.5(c)(iv), shall include all
           earnings and appreciation, including such items as interest,
           dividends, rent, royalties, gains from the sale of property,
           appreciation in the value of stock, bonds, annuity and life insurance
           contracts, and other property, without regard to whether or not such
           appreciation has been realized.

           4.6        Return of Employer Contributions. Notwithstanding any
provision herein to the contrary, upon an Employer's request, a contribution
which was (a) made upon a mistake of fact,

                                       25
<PAGE>

(b) conditioned upon initial qualification of the Plan, or (c) conditioned upon
deductibility of the contribution under section 404 of the Code, shall be
returned to the Employer within one year after payment of the contribution,
denial of the initial qualification, or disallowance of the deduction (to the
extent disallowed), as the case may be; provided, however, the amount returned
shall be the excess of the amount contributed over the amount which would have
been contributed if there had been no mistake of fact or a mistake in
determining the amount of the deduction. Any earnings on the excess contribution
amount shall not be returned to the Employer, although any losses thereon will
reduce the amount so returned. The entire amount may be returned if the Plan,
from its inception, fails to be a qualified plan, within the meaning of section
401(a) of the Code.

           4.7        Employee Contributions. Employee Contributions shall
consist of Employer Salary Reduction Contributions recharacterized as Employee
Contributions by the Committee pursuant to Section 5.2(b)(iii). As of the last
Valuation Date for each Plan Year, the Committee shall allocate and credit, for
the Plan Year preceding such Valuation Date, each Participant's Employee
Contributions deemed to have been made during such Plan Year, plus earnings and
gains and less any losses for such Plan Year on Employee Contributions, to the
contributing Participant's Employee Contribution Account.

           4.8        Rollover Contributions. Any Eligible Employee may make a
Rollover Contribution to the Plan which shall be credited to such Eligible
Employee's Rollover Contribution Account. The Committee shall allocate and
credit a Rollover Contribution to the Rollover Contribution Account as of the
Valuation Date coinciding with or next following the date on which the Rollover
Contribution is made. The Committee, in its sole discretion, may direct the
Trustee either to invest the Rollover Contribution as part of the Trust Fund or
to hold the amount contributed in a segregated account (the "Segregated Rollover
Contribution Account") for the Participant's sole benefit. If a Segregated
Rollover Contribution Account is established for a Participant, as of each
Valuation Date, the Committee shall allocate and credit the net income (or net
loss) attributable to the Participant's Segregated Rollover Contribution Account
and the increase or decrease in the fair market value of the assets of such
Account solely to the Participant's Rollover Contribution Account. All Rollover
Contributions shall be fully nonforfeitable and their value shall be paid to the
Participant in the manner the Participant elects upon retirement, termination,
disability, or death or as permitted pursuant to Section 10.4 of the Plan.
Before accepting a Rollover Contribution, the Committee may require a
Participant to furnish satisfactory evidence that the proposed transfer is in
fact a Rollover Contribution which the Code permits an employee to make to a
plan qualified under section 401(a) of the Code.

           4.9        Investment of Assets. Each eligible Employee shall be
entitled to direct the investment of his Accounts among such investment
alternatives as the Committee shall determine. The Committee may, in its
discretion, discontinue the use of any funds provided that Eligible Employees
with accounts invested in a discontinued fund are given notice of such
discontinuance and an opportunity to make an election to transfer their accounts
held in the discontinued fund to another fund maintained under the Plan.

                                       26

<PAGE>

The Committee may, for administrative purposes, establish unit values for one or
more investment fund or funds (or any portion thereof) and maintain the accounts
setting forth each Participant's interest in such investment fund (or any
portion thereof) in terms of such units, all in accordance with such rules and
procedures as the Committee shall deem to be fair, equitable and
administratively practicable. In the event that unit accounting is established
for any investment fund (or any portion thereof), the value of a Participant's
interest in that investment fund (or any portion thereof) at any time shall be
an amount equal to the then value of the unit in such investment fund (or any
portion thereof) multiplied by the number of units then credited to the
Participant.

Notwithstanding the foregoing, the Committee shall make available a sufficient
number and variety of investment funds to ensure that the Fiduciaries named in
Section 15.1 and any other fiduciaries of the Plan are relieved of liability in
the manner described in section 404(c) of ERISA for investment directions made
by Employees.

           4.10       Investment Elections. Each Participant will designate in
which fund or combination of funds he desires his contributions to be invested;
provided, however, that the amount invested in any fund which he elects shall be
any increment of one percent (1%) of his contributions.

           4.11       Change of Elections. Changes in investment elections may
be made by the Participant at any time. Changes in investment elections may be
made as to the investment of the amounts held in such Participant's Accounts or
as to the Participant's contributions, or both. Changes in investment elections
shall be made in such manner as the Committee shall determine.

           4.12       Default Investments. To the extent not covered in Section
4.10, or to the extent that a Participant fails or refuses to give the
investment directions contemplated in Section 4.10, all Participant Accounts
shall be invested at the discretion of the applicable fiduciary, as specified in
Article XV.

           4.13       Investment in Stock of Employer. The Committee shall
establish nondiscriminatory rules and procedures with respect to shares of
common stock of an Employer as an investment media; however, the following terms
and conditions shall always apply.

                      (a)        The acquisition or sale of common stock of an
Employer is for adequate consideration and no commission is charged to
Participants with respect to the acquisition or sale.

                      (b)        Information provided to shareholders of the
Employer is provided to Participants and beneficiaries with accounts holding
such securities.

                      (c)        Voting, tender and similar rights with respect
to shares are passed through to Participants and beneficiaries with accounts
holding such shares.

                      (d)        Information relating to the purchase, holding
and sale of Employer common stock, and the exercise of voting tender and similar
rights with respect to such shares by Participants

                                       27
<PAGE>

and beneficiaries, is maintained in accordance with procedures which are
designated to safeguard the confidentiality of such information, except to the
extent necessary to comply with Federal laws or state laws not preempted by
ERISA.

                      (e)        The Committee shall designate a fiduciary who
is responsible for insuring that procedures are in place to insure compliance
with the provisions of this Section 4.13 including the requirement in (f) below
that an independent fiduciary be appointed when appropriate.

                      (f)        The Plan Administrator shall put in place
procedures for the appointment of an independent fiduciary to carry out
activities relating to any situations which the fiduciary designated in (e)
above determines to involve a potential for undue influence upon Participants
and beneficiaries with regard to the direct or indirect exercise of shareholder
rights.

                      (g)        A Participant shall be permitted to invest in
common stock of an Employer only if such common stock is a "qualifying employer
security" as defined in section 4975(e)(8) of the Code and section 407(d)(5) of
ERISA.

--------------------------
End of Article IV

                                       28
<PAGE>

                                    ARTICLE V

                PARTICIPANT DEFERRALS OF CONSIDERED COMPENSATION

           5.1        Participant Election to Defer Considered Compensation.

                      (a)        Subject to the provisions of Section 5.2, a
Participant may elect:

                                 (i)        To receive his entire Considered
           Compensation in cash; or

                                 (ii)       To defer a portion of his Considered
           Compensation, in specified whole percentages, not to exceed the
           lesser of (A) $10,000 (subject to cost of living adjustments) during
           a calendar year, or, (B) twenty percent (20%) of his Considered
           Compensation for the Plan Year. The Employer shall contribute the
           deferral amount to the Trust as an Employer Salary Reduction
           Contribution to be allocated, for the Participant's benefit, to his
           Employer Salary Reduction Contribution Account.

The $10,000 limitation referred to in Section 5.1(a)(ii) above shall be
decreased by any salary deferrals under section 401(k) of the Code made by a
Participant under any Related Plan, to the extent that any "excess deferrals"
(as defined in Section 5.3) are allocated to this Plan pursuant to Section 5.3.

                      (b)        An Employee who makes an election under this
Section 5.1 to defer the receipt of Considered Compensation must do so as
prescribed by the Committee. The deferral election shall become effective as of
the date an Employee becomes a Participant pursuant to Article III. Such an
election may be accomplished by electronic or telephonic means which are not
otherwise prohibited by law and which are in accordance with procedures and
systems approved or arranged by the Committee or its delegates. Notwithstanding
the foregoing, a Full-Time Employee shall automatically be deemed to have
elected to defer one percent (1%) of his Considered Compensation, in accordance
with and subject to the provisions of Section 3.3 of the Plan.

                      (c)        A Participant may modify or suspend a deferral
election made hereunder effective as of the first day of the next calendar month
by delivering notice as prescribed by the Committee or its delegate. Such an
election may be accomplished by electronic or telephonic means which are not
otherwise prohibited by law and which are in accordance with procedures and
systems approved or arranged by the Committee or its delegates.

           5.2        Limitation on Employer Salary Reduction Contributions for
Highly Compensated Employees. For each Plan Year, the Plan shall satisfy the
nondiscrimination tests in section 401(k)(3) of the Code and the Treasury
Regulations promulgated thereunder. This Code section and regulations are hereby
incorporated by this reference.

                                       29
<PAGE>

                      (a)        Limitations. Notwithstanding the provisions of
Section 5.1, the Actual Deferral Percentage for the Highly Compensated Employees
with respect to any Plan Year shall bear a relationship to the Actual Deferral
Percentage for all other Eligible Employees for the Plan Year which meets either
of the following tests:

                                 (i)        The Actual Deferral Percentage for
           the group of eligible Highly Compensated Employees is not more than
           the Actual Deferral Percentage of all other Eligible Employees
           multiplied by 1.25, or

                                 (ii)       The excess of the Actual Deferral
           Percentage for the group of eligible Highly Compensated Employees
           over that of all other Eligible Employees is not more than 2
           percentage points, and the Actual Deferral Percentage for the group
           of eligible Highly Compensated Employees is not more than the Actual
           Deferral Percentage of all other Eligible Employees multiplied by 2.

                      (b)        Aggregate Limit. If one or more Highly
Compensated Employees are eligible for contributions that are tested under both
Section 4.5 and this Section 5.2, multiple use of the Actual Deferral Percentage
alternative limit set forth in Section 5.2(a)(ii) shall be limited so that the
disparity in the aggregated Actual Deferral Percentage and Actual Matching
Percentage of such Highly Compensated Employees does not exceed that of all
other Participants by more than the aggregate limit. For purposes of this
Section 5.2(b), the "aggregate limit" is determined by the greater of the
following:

           (1)        The sum of:

                      (A)        1.25 multiplied by the greater of (i) the
                                 Actual Deferral Percentage of the group of
                                 Participants who are not Highly Compensated
                                 Employees for the Plan Year, or (ii) the Actual
                                 Matching Percentage of the group of
                                 Participants who are not Highly Compensated
                                 Employees for the Plan Year, and

                      (B)        Two plus the lesser of (i) or (ii) above;
                                 provided, however, that this amount shall not
                                 exceed 2.0 multiplied by of the lesser of (i)
                                 or (ii) above.

           (2)        The sum of:

                      (A)        1.25 multiplied by the lesser of (a) the Actual
                                 Deferral Percentage of the group of
                                 Participants who are not Highly Compensated
                                 Employees for the Plan Year, and (b) the Actual
                                 Matching Percentage for the group of
                                 Participants who are not Highly Compensated
                                 Employees for the Plan Year; and

                                       30
<PAGE>

                      (B)        Two plus the greater of (a) and (b) in the
                                 immediately preceding subparagraph; provided,
                                 however, that this amount shall not exceed 2.0
                                 multiplied by the greater of (a) or (b) above.

Amounts in excess of the aggregate limit shall be treated as excess
contributions and adjusted as provided in Section 5.2(c). For purposes of
applying this multiple use limit, the Actual Matching Percentage and the Actual
Deferral Percentage shall be determined after any required distributions of
excess contributions and deferrals under Sections 4.5(c), 5.2(c), and 5.3, and
any recharacterizations of excess contributions under Section 5.2(c)(3).

                      (c)        Adjustments for Excess Contributions. If the
Actual Deferral Percentage for the Highly Compensated Employees exceeds or is
reasonably expected by the Committee to exceed the amounts allowed under Section
5.2(a), the Committee shall, in its sole and absolute discretion, do one or more
of the following:

           (1)        Prospective Reduction of Excess Contributions. As often as
           the Committee elects, and at any time during a Plan Year, it shall
           prospectively, and in the same proportion, reduce the amount of
           Considered Compensation to be deferred pursuant to Section 5.1(a) by
           each Highly Compensated Employee who has made an election pursuant to
           Section 5.1(a) until the Actual Deferral Percentage for Highly
           Compensated Employees will not exceed the limits of Section 5.2(a).

           (2)        (A) Refund of Excess Contributions. Refund the portion of
                      each Highly Compensated Employee's Employer Salary
                      Reduction Contribution that constitutes a portion of the
                      excess contribution (hereinafter defined) for the Plan
                      Year, plus earnings (or less losses) thereon for (i) the
                      Plan Year and (ii) if elected by the Committee, the
                      portion of the following year preceding the date of
                      distribution, until the Actual Deferral Percentage for the
                      Highly Compensated Employees does not exceed the limits of
                      Section 5.2(a) with all refunds from a Participant's
                      Employer Salary Reduction Contribution Account to be
                      charged first against Employer Salary Reduction
                      Contributions for the calendar year that includes the
                      first day of the Plan Year, and then, to the extent
                      necessary, charged against Employer Salary Reduction
                      Contributions for the calendar year that includes the last
                      day of the Plan Year. All such refunds shall be
                      distributed by the Trustee to the Employee within two and
                      one-half months after the close of the Plan Year in which
                      the excess contribution arose, if administratively
                      possible, and within 12 months after the close of such
                      Plan Year at the latest. For purposes of this Section
                      5.2(c), "excess contribution" shall mean, with respect to
                      any Plan Year, the excess of (i) the aggregate amount of
                      Employer Salary Reduction Contributions (and any other
                      amounts considered in determining the Actual Deferral
                      Percentage) actually paid over to the Trust on behalf of
                      Highly Compensated Employees for such Plan Year, over (ii)
                      the maximum amount of such Employer Salary Reduction
                      Contributions (and any other amounts considered in

                                       31
<PAGE>

                      determining the Actual Deferral Percentage) permitted
                      under the limitations of Section 5.2(a).

                      The amount of excess contributions for each Highly
                      Compensated Employee is to be determined by the following
                      leveling method, under which the Actual Deferral
                      Percentage of the Highly Compensated Employee with the
                      highest Employer Salary Reduction Contribution is reduced
                      to the extent required to (i) enable the Plan to satisfy
                      the limitations of Sections 5.2(a) and 5.2(b), or (ii)
                      cause such Highly Compensated Employee's Employer Salary
                      Reduction Contribution to equal the Employer Salary
                      Reduction Contribution of the Highly Compensated Employee
                      with the next highest Employer Salary Reduction
                      Contribution, whichever occurs first. This process must be
                      repeated until the Plan satisfies the limitations of
                      Sections 5.2(a) and 5.2(b).

                      The provisions of this Section 5.2(c)(2) shall be applied
                      after the provisions of Section 5.3 and any distributions
                      thereunder. Any distribution made pursuant to this Section
                      5.2(c)(2) may be made notwithstanding any other provision
                      of this Plan.

                      (B)        Determination of Earnings and Losses for Plan
                      Year. The earnings or losses allocable to excess
                      contributions for the applicable Plan Year shall be
                      determined by multiplying the total income (or loss)
                      allocable to the Participant's Employer Salary Reduction
                      Contribution Account for the applicable Plan Year by a
                      fraction, the numerator of which is the excess
                      contribution on behalf of the Participant for the
                      applicable Plan Year and the denominator of which is the
                      balance of the Participant's Employer Salary Reduction
                      Contribution Account on the last day of the applicable
                      Plan Year (prior to any refund or redistribution of excess
                      contributions), reduced by the income or gain (or
                      increased by the loss) allocable to such total amount for
                      the Plan Year. In lieu of the method described in this
                      Section, the Committee may calculate earnings and losses
                      hereunder under any other method authorized under
                      applicable law.

                      (C)        Determination of Income or Loss for Gap Period.
                      In the event the Committee determines to distribute such
                      income or credit such loss, the income or loss for the
                      period between the end of the applicable Plan Year and the
                      date of distribution of the excess contribution (the "gap
                      period") shall be equal to the actual income or loss
                      thereon during such period, or, of not readily
                      ascertainable, 10% of the income or loss determined under
                      Section 5.2(c)(2)(B) above multiplied by the number of
                      calendar months that have elapsed since the end of the
                      applicable Plan Year. Distributions occurring on or before
                      the 15th day of the month shall be treated as having been
                      made on the last day of the preceding month, and
                      distributions occurring after such 15th day shall be
                      treated as having been made on the first day of the next
                      month.

                                       32
<PAGE>

                      (D)        Income Allocable to Excess Contributions. The
                      income allocable to excess contributions, for purposes of
                      Sections 5.2(c)(2)(B) and 5.2(c)(2)(C), shall include all
                      earnings and appreciation, including such items as
                      interest, dividends, rent, royalties, gains from the sale
                      of property, appreciation in the value of stock, bonds,
                      annuity and life insurance contracts, and other property,
                      without regard to whether such appreciation has been
                      realized.

           (3)        Recharacterization of Excess Contributions. The Committee
           may reduce the portion of each Highly Compensated Employee's Employer
           Salary Reduction Contribution that constitutes a portion of the
           excess contribution (as defined and determined in accordance with
           Section 5.2(c)(2)(A)) for the Plan Year, plus earnings (or less
           losses) thereon for the Plan Year and the portion of the following
           year preceding the date of recharacterization (as determined under
           Section 5.2(c)(2)), until the Actual Deferral Percentage for the
           Highly Compensated Employees does not exceed the limits of Section
           5.2(a) and recharacterize the reduction amounts as Employee
           Contributions (and earnings thereon) and credit such recharacterized
           amounts to the appropriate Participants' Employee Contribution
           Account for the same Plan Year as the year in which the Employer
           Salary Reduction Contributions being recharacterized were made. Such
           recharacterizations shall be charged first against Employer Salary
           Reduction Contributions for the calendar year that includes the first
           day of the Plan Year, and then, to the extent necessary, charged
           against Employer Salary Reduction Contributions for the calendar year
           that includes the last day of the Plan Year.

                      The Employer or Committee shall report recharacterized
           excess contributions as Employee Contributions to the Internal
           Revenue Service and the Participant, by timely providing to the
           Employer and Participant such forms as the Commissioner of the
           Internal Revenue Service shall designate, and shall timely take such
           other action as the Commissioner of the Internal Revenue Service
           shall require. Recharacterization will be deemed to have occurred on
           the date on which the last of those Highly Compensated Employees with
           excess contributions to be recharacterized is notified in the manner
           specified in this Section 5.2(c)(3). However, notwithstanding
           anything to the contrary above, excess contributions may not be
           recharacterized after 2 1/2 months after the close of the Plan Year
           to which the recharacterization relates. The provisions of this
           Section 5.2(c)(3) shall be applied after the provisions of Section
           5.3 and any distributions thereunder. Any recharacterization made
           pursuant to this Section 5.2(c)(3) may be made notwithstanding any
           other provision of this Plan.

           5.3        Distribution of Excess Deferrals. If a Participant is
required to include in his gross income for a calendar year elective deferrals
(as defined in section 402(g)(3) of the Code) which exceed $10,000 (subject to
cost of living adjustments), such amounts shall be treated as "excess deferrals"
and shall be distributed to the Participant. The Committee shall distribute such
excess deferral, adjusted for any income or losses allocable to such amount
(determined in accordance with the principles of Section 5.2(b)(2)), for both
the Plan Year in question and the portion of the following year immediately
preceding the date of distribution (as determined under Section

                                       33
<PAGE>

5.2(c)(2)) not later than the first April 15th following the calendar year in
which the excess deferrals were made. Any distribution made pursuant to this
Section 5.3 may be made notwithstanding any other provision of this Plan.

--------------------------
End of Article V

                                       34
<PAGE>

                                   ARTICLE VI

                                   ALLOCATIONS

           6.1        Participant's Accounts. The Committee shall establish for
each Participant one or more of the Accounts described in Section 2.1, as
appropriate, to which shall be allocated the proper Employer and Employee
contributions, together with the income, gain, and losses allocable thereto and
less the distributions therefrom. The establishment of separate Accounts shall
not require a segregation of the Trust assets.

           6.2        Charging of Payments, Distributions and Loans. As of each
Valuation Date, all payments, distributions and Plan loans made under the Plan
since the immediately preceding Valuation Date to or for the benefit of a
Participant or his Beneficiary shall be charged to the proper Accounts of such
Participant.

           6.3        Allocation of Earnings and Losses to Accounts. The Trustee
shall, following the end of each Valuation Date, value all assets of the Plan,
allocate net gains or losses, and process additions to and withdrawals from
Account balances in the following manner:

                      (a)        The Trustee shall first compute the fair market
value of securities and/or the other assets comprising each investment fund
designated by the Committee for direction of investment by the Participants of
this Plan. Each Account balance shall be adjusted each business day by applying
the closing market price of the investment fund on the current business day to
the share/unit balance of the investment fund as of the close of business on the
current business day.

                      (b)        The Trustee shall then account for any requests
for additions or withdrawals made to or from a specific designated investment
fund by any Participant, including allocations of contributions and forfeitures.
In completing the valuation procedure described above, such adjustments in the
amounts credited to such accounts shall be made on the business day to which the
investment activity relates. Contributions received by the Trustee pursuant to
this Plan shall not be taken into account until the Valuation Date coinciding
with or next following the date such contribution was both actually paid to the
Trustee and allocated among the Accounts of Participants.

                      (c)        Notwithstanding paragraphs (a) and (b) above,
in the event a pooled investment fund is created as a designated fund for
Participant investment election in this Plan, valuation of the pooled investment
fund and allocation of earnings of the pooled investment fund shall be governed
by the Administrative Services Agreement for such pooled investment fund.

It is intended that this Section 6.3 operate to distribute among each
Participant Account in the Plan, all income of the Trust and changes in the
value of the assets of the Trust.

                                       35
<PAGE>

           6.4        Allocation of Contributions. With respect to Employer
Salary Reduction Contributions, as of each Valuation Date, and, with respect to
all other Employer contributions, as of the last Valuation Date for each Plan
Year (or more frequently if determined by the Committee), the Committee shall:

                      (a)        First, as of each Valuation Date, allocate to
each Participant's Employer Salary Reduction Contribution Account a portion of
the total Employer Salary Reduction Contributions that equals the amount by
which the Participant has elected, in accordance with Section 5.1, to defer a
portion of his Considered Compensation; provided that the amount allocated to
the Employer Salary Reduction Contribution Account of a Highly Compensated
Employee for a given Plan Year shall be subject to the limitations of Section
5.2.

                      (b)        Next, for each Participant (whether a Full-Time
Employee or a Part-Time Employee) who has completed at least one Year of
Eligibility Service at any time, either before or after first becoming a
Participant, allocate to each such Participant's Employer Matching Contribution
Account a portion of the total Employer Matching Contributions that equals the
percentage, if any, of such Participant's Employer Salary Reduction
Contributions (that is not subsequently distributed or recharacterized pursuant
to Sections 4.5, 5.2 or 5.3) that the Employer has elected to provide as an
Employer Matching Contribution or that equals the rate at which the Employer has
elected to provide Employer Matching Contributions; provided that the amount
allocated to the Employer Matching Contribution Account of a Highly Compensated
Employee for a given Plan Year shall be subject to the limitations of Section
4.5. A Participant shall be entitled to receive an allocation only of Employer
Matching Contributions made by the Employer for which he is an Employee. At the
time of making this allocation, any such Employer Matching Contributions that
were contributed to the Trust during the Plan Year on behalf of Participants
whose Salary Reduction Contributions are distributed or recharacterized pursuant
to Sections 4.5, 5.2 or 5.3 shall be treated as any other Employer contribution
for the same or subsequent Plan Year, as determined by the Committee in its
discretion.

                      (c)        Next, no later than the last Valuation Date for
each Plan Year, allocate to each Participant's Rollover Contribution Account the
amount of any Rollover Contributions such Participant made to the Plan that has
not previously been allocated to his Account.

                      (d)        Next, as of the last Valuation Date for each
Plan Year, allocate, for the Plan Year including such Valuation Date, Employer
Profit Sharing Contributions among the Employer Profit Sharing Contribution
Accounts of Participants who terminated employment with the Employer during the
Plan Year by reason of death, Total and Permanent Disability, or retirement, or
who completed at least 1000 Hours of Service for the Plan Year and who were
employed by an Employer on the last day of the Plan Year, such allocation to be
pro rata according to the ratio that each such Participant's Considered
Compensation for the Plan Year bears to the Considered Compensation of all
Participants entitled to such allocation of the Employer Profit Sharing
Contribution for such Plan Year; provided, however, that for purposes of
allocating Employer Profit Sharing Contributions pursuant to this Section
6.4(d), Considered Compensation paid to an Employee before he becomes a

                                       36
<PAGE>

Participant or after he ceases to be a Participant shall be disregarded. A
Participant shall be entitled to receive an allocation only of Employer Profit
Sharing Contributions made by the Employer for which he is an Employee.

                      (e)        (1)        (A)        Next, each Plan Year for
           which an Employer Nonelective Contribution is made, the Employers
           shall divide such contribution into one or more separate tiers, as
           determined in their sole discretion.

                                            (B)        If the Employer
           Nonelective Contribution is divided into more than one tier, each
           succeeding tier shall be allocated, as of the last Valuation Date of
           the Plan Year, to the Employer Salary Reduction Contribution Account
           of each non-Highly Compensated Employee entitled thereto by Section
           6.4(e)(2) who, after disregarding the Employees receiving an
           allocation from a previous tier, elected the lowest percentage of
           Employer Salary Reduction Contributions for such year, in the ratio
           that the Considered Compensation of each such non-Highly Compensated
           Employee bears to the Considered Compensation of all such non-Highly
           Compensated Employees who are entitled to receive an allocation from
           that tier.

                                            (C)        The allocation formula
           under this Section 6.4(e) shall be employed so that the contribution
           and allocation to each tier results in the Actual Deferral Percentage
           (or, at the election of the Committee, the Actual Matching
           Percentage) for that tier being raised by a certain percentage, as
           determined by the Employers, provided that the percentage increase
           for each succeeding tier shall in no event be greater than such
           increase for any preceding tier.

                                 (2)        Participants to Whom Employer
           Nonelective Contributions Shall be Allocated. The Employer
           Nonelective Contributions for any Plan Year shall be allocated among
           and credited to the Employer Salary Reduction Contribution Accounts
           of Eligible Employees who were not Highly Compensated Employees and:

                                            (A)        who are Participants on
           the last day of such Plan Year; provided, however, that any Employee
           who was a Participant during the Plan Year, who terminated employment
           with the Employer, and who, immediately thereafter, commenced
           employment with a Related Employer shall be eligible for an
           allocation of Employer Nonelective Contributions in such year, if
           employed by the Related Employer on the last day of the Plan Year;

                                            (B)        who were on Leave of
           Absence on the Valuation Date and who received Compensation from the
           Employer during the Plan Year; or

                                            (C)        who died, retired, or
           became permanently disabled during the Plan Year and who received
           Compensation from the Employer during that year.

                                       37
<PAGE>

                      (f)        Notwithstanding the foregoing provisions of
this Section 6.4, the allocations for any Participant shall not exceed the
amount determined pursuant to Section 6.8. If after the allocations provided for
above in this Section 6.4 any Employer contributions remain unallocated, such
remainder shall be held in a suspense account and used to reduce Employer
Nonelective Contributions, Employer Matching Contributions, or Employer Profit
Sharing Contributions in the following Plan Year(s).

           6.5        Dates Contributions Considered Made. For purposes of this
Article VI, the Employer Matching Contributions, Employer Nonelective
Contributions and Employer Profit Sharing Contributions under the Plan for any
Plan Year shall be considered to have been made on the last day of that year,
regardless of when paid to the Trustee. Employer Salary Reduction Contributions
and Employee Contributions under the Plan for any Plan Year shall be considered
to have been made on the Valuation Date to which the Participant elections
pursuant to Section 5.1(a) giving rise to the Employer Salary Reduction
Contributions, or through recharacterization of such contributions, giving rise
to Employee Contributions, relate.

           6.6        Valuation. Within a reasonable time after each calendar
quarter, the Trustee shall prepare or cause to be prepared a statement of the
condition of the Trust Fund, setting forth all investments, receipts, and
disbursements, and other transactions effected by it during such Allocation
Period, and showing all the assets of the Trust Fund and the cost and fair
market value thereof. This statement shall be delivered to the Committee. The
Committee shall then cause to be prepared, and shall deliver, as soon as
administratively practicable, to each Participant a report disclosing the status
of his Accounts in the Trust as of the last calendar quarter. The Trustee's
determination of the fair market value of the assets of the Trust Fund and the
Committee's charges or credits to Accounts shall be final and conclusive on all
persons ever interested hereunder.

           6.7        Equitable Allocations. If the Committee in good faith
determines that certain expenses of administration paid by the Trustee during
the Plan Year under consideration are not general, ordinary, and usual and
should not equitably be borne by all Participants, but should be borne only by
certain individual Participants on whose behalf specific expenses were incurred,
the net earnings and adjustments in value of the accounts shall be increased by
the amounts of such expenses, and the Committee shall make suitable adjustments
by debiting the particular Account or Accounts of such one or more Participants,
Former Participants, or Beneficiaries; provided, however, that any such
adjustment must be nondiscriminatory and consistent with the provisions of
section 401(a) of the Code.

                                       38
<PAGE>

           6.8        Limitation on Annual Additions.

                      (a)        General. Notwithstanding any other provision of
the Plan, the Annual Addition to a Participant's Accounts for any Limitation
Year may not exceed an amount equal to the lesser of:

                                 (i)        $30,000; or

                                 (ii)       25% of the Compensation of the
           Participant for the Limitation Year;

provided, however, that the percentage limitation described in Section
6.8(a)(ii) shall not apply to any contributions for post-retirement medical
benefits treated as Annual Additions under section 419A(f)(2) of the Code or any
other amount treated as an Annual Addition under section 415(l)(1) of the Code.

                      (b)        Additional Limitation - Related Plan. If a
Participant also participates in a Related Plan, any reductions required by
section 415 of the Code shall be made first from such Related Plan if such
Related Plan provides for the same, and, if not, the maximum amount allocable to
a Participant's Accounts for the Limitation Year as specified in Section 6.8(a)
shall be reduced by the amount of the Annual Addition made with respect to the
Participant for the Limitation Year under any Related Plan.

                      (c)        Additional Limitation - Defined Benefit Plan.
For Limitation Years beginning prior to January 1, 2000, if a Participant also
participates in one or more qualified defined benefit plans (as defined in
section 414(i) of the Code) maintained by the Employer or any Related Employer,
the maximum amount otherwise allocable to his Accounts under subparagraphs (a)
and (b) of this Section 6.8 shall be reduced to the extent necessary to ensure
that the sum of the "Defined Benefit Fraction" for the Limitation Year plus the
"Defined Contribution Fraction" for the Limitation Year does not exceed 1.0. The
Defined Benefit Fraction for a Limitation Year shall be a fraction (a) the
numerator of which shall be the projected annual benefit of the Participant
under such defined benefit plan or plans (determined as of the close of the
year) and (b) the denominator of which shall be an amount equal to the lesser
of: (i) the product of 1.25 multiplied by the dollar limitation in effect for
such year under section 415(b)(1)(A) of the Code or (ii) the product of 1.4
multiplied by the amount which may be taken into account for such year under
section 415(b)(1)(B) of the Code with respect to such Participant. The Defined
Contribution Fraction for a Limitation Year shall be a fraction (a) the
numerator of which shall be the sum of the annual additions (as defined in
section 415(c)(2) of the Code) to the Participant's accounts under all defined
contribution plans maintained by the Employer or Related Employer as of the
close of the Limitation Year, and (b) the denominator of which shall be the sum
of the lesser of the following amounts determined for each such plan for the
Limitation Year and for each prior year of service with the Employer: (i) the
product of 1.25 multiplied by the dollar limitation in effect for such year
under section 415(c)(1)(A) of the Code (determined without regard to section
415(c)(6) of the Code) or (ii) the product of 1.4 multiplied by

                                       39
<PAGE>

the amount that may be taken into account under section 415(c)(1)(B) of the Code
with respect to such individual under the defined contribution plans for the
Limitation Year.

Notwithstanding the foregoing, the provisions of this subsection (c) shall only
apply if such defined benefit plan or plans do not provide for a reduction of
benefits to ensure that the sum of the Defined Benefit Fraction for such
Limitation Year and the Defined Contribution Fraction for such Limitation Year
does not exceed 1.0.

                      (d)        Reduction of Employer Contribution. In the
event that this Section 6.8 requires that a reduction be made in the Annual
Addition to a Participant for a Limitation Year, such reduction shall be made
first by reducing the Employer Matching Contribution otherwise allocable to the
Participant for such Limitation Year. Notwithstanding any other provision of the
Plan, in the event that this Section 6.8 requires that a further reduction be
made in the Annual Additions to a Participant's Account for a Limitation Year,
such reduction may be made through a distribution of amounts that were
contributed to the Plan as Employer Salary Reduction Contributions, together
with a distribution of gains attributable to such Employer Salary Reduction
Contributions, to the extent that the distribution would reduce the excess
Annual Additions in the Participant's Account.

           6.9        Allocation Does Not Create Rights. No Participant shall
acquire any right to or interest in any specific asset of the Trust as a result
of the allocations provided for in the Plan.

--------------------------
End of Article VI

                                       40
<PAGE>

                                   ARTICLE VII

                  TERMINATION OF SERVICE - PARTICIPANT VESTING

           7.1        Normal Retirement. A Participant who remains in the
Service of the Employer after attaining his Normal Retirement Age shall continue
to participate in Employer contributions until the date of his actual
retirement. Upon attaining Normal Retirement Age while still in Service, his
Accrued Benefit shall be fully vested and nonforfeitable, and the Committee
shall direct the Trustee to make payment of the full value of the Participant's
Accrued Benefit to him at such times and in such manner as provided in Article
VIII or Article VIIIA hereof. The value of the Participant's Accrued Benefit
shall be determined as of the Valuation Date on which the Committee or its
delegate liquidates the Investment Fund investments made by the Participant in
anticipation of the distribution to the Participant. However, if Employer
contributions are allocated to the Participant's Accounts after such
Distribution Date for the Plan Year in which the Participant receives a
distribution on account of retirement, then the value of the Participant's
Accrued Benefit shall be adjusted to reflect such additional allocations.

           7.2        Early Retirement. Upon termination of Service upon or
after attaining Early Retirement Age, a Participant's Accrued Benefit shall be
fully vested and nonforfeitable, and the Committee shall direct the Trustee to
make payment of the full value of the Participant's Accrued Benefit to him at
such times and in such manner as provided in Article VIII or Article VIIIA
hereof. Notwithstanding the foregoing, there shall be no early retirement
benefit under the Plan for individuals who first became Participants after April
1, 1999. The value of the Participant's Accrued Benefit shall be determined as
of the Valuation Date on which the Committee or its delegate liquidates the
Investment Fund investments made by the Participant in anticipation of the
distribution to the Participant. However, if Employer contributions are
allocated to the Participant's Accounts after such Distribution Date for the
Plan Year in which the Participant receives a distribution on account of
retirement, then the value of the Participant's Accrued Benefit shall be
adjusted to reflect such additional allocations.

           7.3        Disability. A Participant who incurs a Total and Permanent
Disability shall be fully vested in his Accrued Benefit and shall have the full
value of such Accrued Benefit paid to him at such times and in such manner as
provided in Article VIII or Article VIIIA hereof. The value of a disabled
Participant's Accrued Benefit shall be determined as of the Valuation Date
immediately preceding the date on which the Committee or its delegate liquidates
the Investment Fund investments made by the Participant in anticipation of the
distribution to the Participant on account of Total and Permanent Disability.
However, if Employer contributions are allocated to the Participant's Accounts
after such Valuation Date for the Plan Year in which the Participant receives a
distribution on account of Total and Permanent Disability, then the value of the
Participant's Accrued Benefit shall be adjusted to reflect such additional
allocations.

                                       41
<PAGE>

           7.4        Death. Upon the death of a Participant, his Accounts shall
become fully vested and the Participant's Accrued Benefit, determined as of the
Valuation Date on which the Committee or its delegate liquidates the Investment
Fund investments made by the Participant in anticipation of the distribution,
shall be paid to the Participant's Beneficiary at such time and in such manner
as provided in Article VIII. However, if Employer contributions are allocated to
the Participant's Accounts after such Valuation Date for the Plan Year in which
the Beneficiary receives a distribution on account of the Participant's death,
then the value of the Participant's Accrued Benefit shall be adjusted to reflect
such additional allocations.

           7.5        Termination of Service Prior to Early or Normal
Retirement. If a Participant's employment terminates prior to his Early
Retirement or Normal Retirement for any reason other than death, an event
referred to in Section 16.4, or permanent disability, the portion of such
Participant's Employer Matching Contribution Account and Employer Profit Sharing
Contribution Account that shall be deemed to be part of the Participant's Vested
Accrued Benefit shall be determined according to the following schedule:

<TABLE>
<CAPTION>
                                                 PERCENT DEEMED
YEARS OF VESTING SERVICE                               VESTED
------------------------                               ------
<S>                                              <C>
Less than 2 years                                         0%
2 years but less than 3                                  25%
3 years but less than 4                                  50%
4 years but less than 5                                  75%
5 years or more                                         100%
</TABLE>

Notwithstanding the foregoing, the Account balance of a Participant whose
account in the Filene's Basement, Inc. Thrift Incentive Plan was transferred to
this Plan effective September 1, 2000 shall be 100% vested at all times after 3
Years of Vesting Service. A Participant shall be 100% vested at all times in
that portion of his Accrued Benefit attributable to his Employer Salary
Reduction Contribution Account, Employee Contribution Account and Rollover
Account.

The value of a Participant's Vested Accrued Benefit shall be determined as of
the Valuation Date coincident with or next preceding the date payment of such
Participant's Vested Accrued Benefit commences. Such payment shall be made at
such times and in such manner as provided in Article VIII. However, if Employer
contributions are allocated to the Participant's Accounts after such Valuation
Date, the value of the Participant's Accrued Benefit shall be adjusted to
reflect such additional allocations.

Notwithstanding the foregoing, a Participant whose account balance was
transferred to the Plan from the Filene's Basement, Inc. Thrift Incentive Plan
effective September 1, 2000 or from the Gramex Corporation 401(k) Profit Sharing
Plan effective July 1, 2000, shall be 100% vested at all times in the portion of
his Account consisting of such transferred assets.

                                       42
<PAGE>

           7.6        Years of Vesting Service. In the case of an Employee who
separates from Service and who resumes employment with the Employer, but not as
a Re-Employed Employee, years of Vesting Service prior to his resumption of
employment shall be disregarded. If a Participant has incurred five consecutive
One Year Breaks in Service, Service after such One Year Breaks in Service shall
not increase the Participant's nonforfeitable percentage in his Accrued Benefit
derived from Employer contributions that accrued prior to such five consecutive
One Year Breaks in Service.

           7.7        Forfeiture Occurs and Restoration of Non-Vested Accrued
Benefit.

                      (a)        Forfeiture Occurs. A Participant's Forfeiture
Amount, if any, shall cease to be part of his Accrued Benefit as of the earlier
to occur of (i) in the case where the Participant does not receive a
distribution of his entire Vested Accrued Benefit (or receives it after the
close of the second Plan Year following his termination of Service), on the last
day of the Plan Year in which the Participant first incurs five consecutive One
Year Breaks in Service as the result of the termination of his Service or (ii)
immediately upon receipt of his distribution if the Participant receives a
distribution of his entire Vested Accrued Benefit (including a deemed cash out
of $0) as the result of his termination of Service (provided such distribution,
if any, is made not later than the close of the second Plan Year following the
Participant's termination of Service). If only one of the events identified in
(i) and (ii) of the immediately preceding sentence occurs, the event that occurs
shall be deemed the first to occur. The Committee shall determine a
Participant's Accrued Benefit Forfeiture, if any, solely by reference to the
vesting schedule of Section 7.5. A Participant shall not forfeit any portion of
his Accrued Benefit for any cause other than that specified herein. Effective
January 1, 2001, Forfeiture Amounts shall be accounted for separately for each
group of Employers that are Related Employers.

                      (b)        Restoration of Non-Vested Accrued Benefit. In
the case of a Former Participant whose non-vested Account balance was forfeited
by reason of Section 7.7(a)(ii), if such individual returns to Service prior to
incurring five consecutive One Year Breaks in Service, such individual's
Forfeiture Amount shall be restored (unadjusted for any gains or losses) as part
of such individual's Accrued Benefit and credited to an Employer contribution
account, hereinafter called the "Restoration Account," if the Participant repays
to the Plan the full amount of the distribution prior to the earlier of (a) the
Plan's termination, or (b) the lapse of five years following the Participant's
reemployment by the Employer or a Related Employer (provided that the
Participant must be an Employee at the time of repayment). A Participant's
forfeiture incurred as a result of a deemed cash-out shall be automatically
restored if the Participant returns to Service prior to earlier of (a) the
Plan's termination, or (b) his incurring five consecutive One Year Breaks in
Service. As of the Valuation Date that immediately follows such repayment, and
prior to any allocation of Forfeitures or Employer contributions, there shall be
allocated to the Participant's Restoration Account an amount (the "Restoration
Amount") of the Trust Fund equal to the amount of his previously forfeited
non-Vested Accrued Benefit. The Restoration Amount shall be credited first
against Forfeitures arising for the Plan Year, and if such Forfeitures are not
sufficient to satisfy the Restoration Amount in full, the remainder of such
amount shall be satisfied out of Employer contributions for the Plan Year, which
contributions shall be supplemented for the Plan Year by an amount equal to such

                                       43
<PAGE>

remainder. Effective January 1, 2001, contributions to a Restoration Account for
an Employee of an Employer shall be credited only against Forfeiture Amounts
arising in connection with a Forfeiture by another Employee of that Employer or
a Forfeiture by an Employee of an Employer which is a Related Employer to the
Employer for whom the individual entitled to the Restoration Account is
employed. The Restoration Amount shall not be deemed an Annual Addition or
portion thereof for any Limitation Year. In addition, the Employer may and, if
necessary, shall make an Employer contribution for the purpose of restoring a
Participant's previously forfeited non-Vested Accrued Benefit even though the
Employer has no profits. The Committee shall give timely notice to any rehired
Employee, if such Employee is eligible to make a repayment, of his right to make
such repayment before the expiration of the periods of the occurrence of the
events specified above, and such notice shall also include an explanation of the
consequences of not making such repayment.

           7.8        Termination, Partial Termination, or Complete
Discontinuance of Employer Contributions. Notwithstanding any other provision in
this Plan, in the event of a termination or partial termination of the Plan, or
a complete discontinuance of Employer contributions under the Plan, all affected
Participants shall have a fully vested interest in their Accrued Benefit
determined as of the date of such event. The value of the Accrued Benefit shall
be determined on the date the Accrued Benefit becomes fully vested, as if such
date was the Valuation Date for the Limitation Year in which the termination,
partial termination, or complete discontinuance of Employer contributions
occurs. The Committee shall interpret and administer this Section 7.8
consistently with Section 16.4 and in accord with the intent and scope of the
Treasury Regulations issued under section 411(d)(3) of the Code.

--------------------------
End of Article VII

                                       44
<PAGE>

                                  ARTICLE VIII

                     TIME AND METHOD OF PAYMENT OF BENEFITS

           8.1        Time of Payment. Subject to other restrictions and
conditions stated herein, distributions of a Participant's Vested Accrued
Benefit shall be made at the times described in paragraphs (a), (b), (c) or (d)
below. Distributions shall commence as soon as administratively feasible.

                      (a)        Normal or Early Retirement. In the event of
normal retirement or early retirement described in Sections 7.1 and 7.2, payment
shall commence following the Participant's retirement.

                      (b)        Death or Disability. In the event of death or
disability of a Participant, payment shall commence after the Committee receives
proof of death or it determines that Total and Permanent Disability exists.

                      (c)        Other Separation from Service. Upon a
Participant's separation from Service for any reason other than retirement,
Total and Permanent Disability, or death, payments shall commence following
separation from Service.

                      (d)        Limitation on Time of Payment. Notwithstanding
any provision contained herein to the contrary, the Trustee shall commence
distribution of the Participant's Vested Accrued Benefit not later than 60 days
after the close of the Plan Year in which the latest of the following events
occurs:

                                 (i)        The date the Participant attains
           Normal Retirement Age;

                                 (ii)       The tenth anniversary of the year in
           which the Participant commenced participation in the Plan; or

                                 (iii)      The date the Participant terminates
           Service with his Employer.

Notwithstanding the provisions above to the contrary, the Vested Accrued Benefit
of each Participant (i) shall be distributed to such Participant not later than
the Required Commencement Date or (ii) shall be distributed, commencing not
later than the Required Commencement Date, in accordance with Treasury
regulations, over the life of such Participant or over the lives of such
Participant and his Beneficiary (or over a period not extending beyond the life
expectancy of such Participant or the life expectancy of such Participant and
his Beneficiary). If distributions under the Plan have commenced with respect to
a Participant and the Participant dies before his entire interest has been
distributed to him but after his Required Commencement Date (except in the case
of certain

                                       45
<PAGE>

annuities under Proposed Treasury regulation section 1.401(a)(9)-1 B-5(b), in
which case the Participant could have died before or after his Required
Commencement Date), the remaining portion of such interest shall be distributed
at least as rapidly as such interest would have been distributed to him under
the method of distribution in effect under the immediately preceding sentence at
the Participant's death.

If the Participant dies before the distribution of his interest has commenced in
accordance with (ii) of the first sentence of the above paragraph, or, except as
provided above, if distribution of the Participant's interest has commenced but
the Participant dies prior to his Required Commencement Date, then, except as
provided below, his entire interest shall be distributed to his Beneficiary by
December 31 of the calendar year which contains the fifth anniversary of the
date of the Participant's death. Notwithstanding the preceding sentence, unless
the designated Beneficiary elects to receive payments under the preceding
sentence, if any portion of the Participant's interest is payable to (or for the
benefit of) a designated Beneficiary, then such portion shall be distributed in
accordance with Treasury regulations over the life of such designated
Beneficiary or over a period not extending beyond the life expectancy of such
Beneficiary, commencing not later than December 31 of the calendar year
immediately following the calendar year in which the Participant died.
Notwithstanding the required commencement date in the preceding sentence, if the
designated Beneficiary is the surviving spouse of the Participant, the deceased
Participant's interest shall be distributed or commence to be distributed to
such surviving spouse on or before the later of the following: (1) December 31
of the calendar year immediately following the calendar year in which the
Participant died, and (2) December 31 of the calendar year in which the
Participant would have attained age 70 1/2. However, if the surviving spouse
dies before the distributions to such spouse commence (or before such
distributions are deemed to commence under section 1.401(a)(9)-1 C-6 of the
proposed Treasury regulations), the distribution of the interest of the deceased
Participant shall be made over such period, and shall begin at such time, as
would be required under the above rules, as if the surviving spouse were the
Participant. In applying this rule, the date of death of the surviving spouse
shall be substituted for the date of death of the Participant. However, in such
case, the special surviving spouse death distribution rules are not available to
the surviving spouse of the deceased Participant's surviving spouse. For
purposes of this Section 8.1(d), except in the case of a life annuity, the life
expectancy of the Participant and his spouse may be redetermined but not more
frequently than annually. In addition, pursuant to regulations prescribed by the
Secretary of the Treasury, any amount paid to a child of the Participant shall
be treated as if it had been paid to the surviving spouse of the Participant if
such amount will become payable to the surviving spouse upon such child's
attainment of majority (or other designated event permitted under regulations
prescribed by the Secretary of the Treasury). For the purposes of this
paragraph, the term "Beneficiary" shall only include individuals.
Notwithstanding the foregoing provisions of this paragraph, nothing in this
paragraph shall permit any Participant or Beneficiary to elect any form of
distribution not otherwise expressly permitted under this Plan; but rather, the
Committee may at any time modify any form of the distribution elected by a
Participant or Beneficiary to ensure compliance with this paragraph.

In addition to the above rules, any payments payable to the Participant or his
Beneficiary must also satisfy the minimum incidental death benefit rules of the
Treasury regulations under Code section

                                       46
<PAGE>

401(a)(9). Payments in the form of a life annuity for the life of the
Participant, or payments in the form of a qualified joint and survivor annuity
for the joint lives of the Participant and his spouse, shall automatically
satisfy these rules.

Rules that are similar to the above rules shall apply in the case that benefits
are provided through an annuity contract.

Notwithstanding any other provision herein to the contrary, distributions
hereunder will be made in accordance with the Treasury Regulations under Code
section 401(a)(9), including Treasury Regulation 1.401(a)(9)-2, and any Internal
Revenue Service rulings, announcements or notices promulgated under Code section
401(a)(9), including any grandfather or transitional rules thereunder.
Furthermore, any provisions contained herein which reflect Code section
401(a)(9) shall override any distribution options in the Plan inconsistent with
Code section 401(a)(9).

           8.2        Payment of Retirement or Disability Benefits. Within sixty
(60) days following the date of retirement, payment shall be made to the
Participant, but not without the written consent of the Participant if the
Participant's Account (including his Rollover Contribution Account) exceeds
$5,000 and the Participant has not attained Normal Retirement Age.

                      After all required accounting adjustments, payment of the
Participant's Accrued Benefit shall be made under one of the following methods
elected by the Participant:

                      (i)        By payment of all of the Participant's Accrued
Benefit in a lump sum, or

                      (ii)       By direct rollover of an amount that is an
eligible rollover distribution described in section 402(c)(4) of the Code to an
eligible retirement plan described in section 402(c)(8)(B) of the Code; provided
that the amount of the payment from the Plan is at least $200 or that the total
payments from the Plan to the Participant or Beneficiary are reasonably expected
to equal at least $200 during the current Plan Year.

                      (iii)      With regard to the balance, if any, of a
Participant's Account that is transferred to the Plan directly from the trustee
of the Savings and Profit Sharing Retirement Plan of Steinbach Stores, Inc. and
Participating Affiliated Companies (the "Steinbach Plan") in connection with the
conversion of certain Steinbach Stores, Inc. department stores into Value City
Department Stores, in annual cash installment payments over a period not
exceeding the lesser of (1) five years or (2) the life expectancy of the
Participant or the joint life expectancy of the Participant and his or her
beneficiary, as designated by the Participant, with each such installment
determined by dividing the nonforfeitable value of the Participant's accounts
attributable to the direct trustee-to-trustee transfer from the Steinbach Plan
to this Plan on the valuation date immediately preceding the date of payment by
the number of installments remaining to be paid. If the Participant dies after
commencing benefit payments hereunder but before receiving the entire Steinbach
Plan amount credited to his or her account, then the remaining balance shall be
paid in a single lump sum in cash to the Participant's beneficiary as soon as
practicable after the valuation date which next follows the Participant's death.

                                       47
<PAGE>

In the event that a Participant elects in accordance with this paragraph (iii)
to receive that portion of his or her account that consists of amounts
transferred from the Steinbach Plan in the form of annual installments, the
remaining portion of his or her account shall be distributed to the Participant
in one of the methods elected by the Participant as described in paragraphs (i)
and (ii) above. Notwithstanding the foregoing, the provisions of this paragraph
(iii) shall no longer apply after the date described in Prop. Treas. Reg.
Section 1.411(d)-4(e)(1)(ii) or any successor rule thereto.

           8.3        Payment of Benefits Following Separation From Service. In
the event a Participant separates from service prior to his Normal Retirement as
described in Section 7.1, for a reason other than his death or Total and
Permanent Disability while employed, benefits shall be paid as follows:

                      (a)        The payment of any benefit to a Participant
shall be made within sixty (60) days following the Participant's separation from
service, but not without the written consent of the Participant if the
Participant's Account exceeds $5,000. Such written consent shall not be required
after a Participant or Former Participant reaches Normal Retirement Age.

                      (b)        After all required accounting adjustments,
payment of the Participant's Accrued Benefit shall be made under one (1) or both
of the following methods elected by the Participant:

                                 (i)        By payment of all of the
           Participant's Accrued Benefit in a lump sum, or

                                 (ii)       By direct rollover of an amount that
           is an eligible rollover distribution described in section 402(c)(4)
           of the Code to an eligible retirement plan described in section
           402(c)(8)(B) of the Code; provided that the amount of the payment
           from the Plan is at least $200 or that the total payments from the
           Plan to the Participant or Beneficiary are reasonably expected to
           equal at least $200 during the current Plan Year.

           8.4        Pre-Retirement Death Benefits. In the event of the death
of a Participant prior to the commencement of benefit payments, there shall be
paid to the Participant's spouse or other named Beneficiary a death benefit
equal to the amount of the Participant's Account as of the Valuation Date on
which the Committee or its delegate liquidates the Investment Fund investments
made by the Participant in anticipation of the distribution. Any amount payable
to a non-spousal Beneficiary pursuant to this Section 8.4, shall be paid in the
form of a lump sum. Any amount payable to the spouse of a Participant pursuant
to this Section 8.4 shall be made under one (1) or both of the following methods
elected by the spouse:

                      (a)        By payment in a lump sum, or

                      (b)        By direct rollover to an eligible retirement
plan described in section 402(c)(8)(B) of the Code; provided that the amount of
the payment from the Plan is at least $200 or

                                       48
<PAGE>

that the total payments from the Plan to the Participant or Beneficiary are
reasonably expected to equal at least $200 during the current Plan Year.

           8.5        Pre-Retirement Spousal Death Benefit.

                      (a)        Notwithstanding any other provision of this
Plan or of any designation of beneficiary to the contrary, the death benefit
payable on account of any Participant who dies before the commencement of
payment of benefits under the Plan, shall be paid to the Participant's spouse,
or, if the Participant is not married, to the Participant's Beneficiary.

                      (b)        Notwithstanding the foregoing, a Participant
shall be given the opportunity to elect a Beneficiary or to change a named
Beneficiary at any time and any number of times prior to the date of death. An
election or a change in a prior election made by a married Participant shall not
be valid unless the Participant files with such election a Spousal Consent.

                      (c)        For purposes of the Plan, a Spousal Consent
means a written election by a Participant's spouse to permit the Participant to
elect a Beneficiary other than such Participant's spouse. Such Spousal Consent
shall include an acknowledgment by the spouse of the effect of the election on
the spouse's entitlement to any future benefits under the Plan. The signing of
the Spousal Consent shall be witnessed by a Plan representative or a Notary
Public. Any Spousal Consent shall be effective only with respect to the
particular spouse signing the Spousal Consent, and only for the benefit
specified therein. The Committee shall not require a Spousal Consent if it is
established to the satisfaction of the Committee that such consent cannot be
obtained because there is no spouse, because the spouse cannot be located, or
because of such other circumstances as the Secretary of the Treasury may by
regulations prescribe.

           8.6        Deferral of Payments. Should a Participant's Accounts be
retained in the Trust after the date on which his participation ends and he has
become a Former Participant, the Accounts may continue to be treated as a part
of the Trust Fund. The Accounts will be credited (or debited) with their share
of the net income (or loss) attributable to the investments of such Accounts but
shall not be credited with any further Employer contributions.

           8.7        Lump Sum Cashout and Special Limitation on Involuntary
Payment of Benefits. Notwithstanding the foregoing provisions of this Article
VIII, if upon termination of a Participant's Service the value of the
Participant's Vested Accrued Benefit does not exceed $5,000, the Committee shall
direct the Trustee to distribute the value of the Participant's Vested Accrued
Benefit (including a deemed distribution of $0) to the Participant or the
Participant's Beneficiary in a lump sum as soon after the termination of the
Participant's Service as is administratively feasible, regardless of the reason
for such termination (provided that, at the time of such distribution, the value
of such Vested Accrued Benefit does not exceed $5,000). If upon termination of a
Participant's Service for any reason other than death the then value of the
Participant's Vested Accrued Benefit exceeds $5,000, a Plan distribution may not
occur unless the Participant files a

                                       49
<PAGE>

request with the Committee or its administrative delegate for the payment of his
Vested Accrued Benefit or until the Participant or Former Participant reaches
Normal Retirement Age.

           8.8        Qualified Domestic Relations Orders. The Committee shall
establish reasonable procedures for determining the existence of a Qualified
Domestic Relations Order and to administer distributions under the same. In the
event that the Committee receives a written order that purports to be a
Qualified Domestic Relations Order, the following procedures shall apply:

                      (a)        The Committee shall promptly notify the
appropriate Participant and any purported Alternate Payee of the receipt of such
order and the Committee's procedures for determining whether such order is a
Qualified Domestic Relations Order.

                      (b)        During any period in which it is being
determined (by the Committee, by a court of competent jurisdiction, or
otherwise) if an order is a Qualified Domestic Relations Order, the Committee
shall direct the Trustee to segregate in a separate account or in an escrow
account the amount that would have been payable to the Alternate Payee during
such period if the order is determined to be a Qualified Domestic Relations
Order.

                      (c)        If the order (or modification thereof) is
determined to be a Qualified Domestic Relations Order within 18 months, the
Committee shall direct the Trustee to pay the segregated account (and any
earnings or interest thereon) or the balance held in the escrow account, as
applicable, to the person or persons entitled thereto.

                      (d)        If, within the aforesaid 18 month period, it is
determined that the order is not a Qualified Domestic Relations Order, or if
such determination has not been made, the Committee shall pay the amounts in the
said segregated account or escrow account, including interest, to the person(s)
who would have been entitled to such amounts if there had been no such order.

                      (e)        Any determination that a order is a Qualified
Domestic Relations Order which is made after the close of the aforesaid 18 month
period shall be applied prospectively only.

           8.9        Payment in the Event of Legal Disability. Payments to any
Participant, Former Participant, or Beneficiary shall be made to the recipient
entitled thereto in person or upon his personal receipt, in form satisfactory to
the Committee, except when the recipient entitled thereto shall be under a legal
disability, or, in the sole judgment of the Committee, shall otherwise be unable
to apply such payment in furtherance of his own interest and advantage. The
Committee may, in such event, in its sole discretion, direct all or any portion
of such payments to be made in any one or more of the following ways:

                      (a)        To such person directly;

                      (b)        To the guardian of his person or his estate;

                      (c)        To a relative or friend of such person, to be
expended for his benefit; or

                                       50
<PAGE>

                      (d)        To a custodian for such person under any
Uniform Gifts to Minors Act.

The decision of the Committee, in each case, will be final, binding, and
conclusive upon all persons ever interested hereunder. The Committee shall not
be obliged to see to the proper application or expenditure of any payment so
made. Any payment made pursuant to the power herein conferred upon the Committee
shall operate as a complete discharge of all obligations of the Trustee and the
Committee, to the extent of the distributions so made.

           8.10       Accounts Charged. The Committee shall charge all
distributions made to a Participant or to his Beneficiary from his Accounts
against the Accounts of the Participant when made.

           8.11       Payments Only from Trust Fund. All benefits of the Plan
shall be payable solely from the Trust Fund and neither the Employer, Committee,
nor Trustee shall have any liability or responsibility therefor except as
expressly provided herein.

           8.12       Unclaimed Account Procedure. Neither the Trustee nor the
Committee shall be obliged to search for or ascertain the whereabouts of any
Participant or Beneficiary. The Committee or its administrative delegate, by
first class mail addressed to his last known address of record with the
Committee or the Employer, shall notify any Participant that he is entitled to a
distribution under this Plan. If the Participant fails to claim his benefits or
make his whereabouts known in writing to the Committee within the earlier of (i)
the date that is immediately prior to three years (adjusted according to the
abandonment period of the escheat laws of the applicable state) after the date
of notification, or (ii) the date the Participant attains the Required
Commencement Date, the Plan benefit of such Participant will be treated as a
Forfeiture hereunder, provided that the benefit shall be reinstated in the event
that the Participant or his Beneficiary ever makes a claim therefor. Either upon
or prior to the occurrence of the Forfeiture under this Section 8.12, the
Committee or its delegate shall take reasonable steps to locate the Participant.
The Committee may request the Social Security Administration or the Internal
Revenue Service Disclosure Staff to notify the Participant (or his Beneficiary)
in accordance with the procedures it has established for this purpose. While
payment is pending, the Committee may direct the Trustee to hold the
Participant's benefits in a segregated account invested in U.S. Government
obligations, certificates of deposit, or other obligations providing a stated
rate of return. However, after a Forfeiture has occurred under this Section
8.12, a Participant or Beneficiary who seeks a reinstatement of the forfeited
amount shall only be entitled to the minimum return required by law (which may
be 0%). The segregated account shall be entitled to all income it earns and
shall bear all expense and loss it incurs. Any payment made pursuant to this
provision shall operate as a complete discharge of all obligations of the
Trustee and the Committee, to the extent of the distributions so made.

           8.13       Restrictions on Distributions. Notwithstanding anything to
the contrary above, a Participant's Employer Salary Reduction Contribution
Account, and any amounts in any other

                                       51
<PAGE>

employer contribution accounts attributable to Qualified Employer Contributions,
and any earnings thereon, shall not be distributed before the first to occur of
the following events:

                      (a)        the Participant's retirement;

                      (b)        his death;

                      (c)        his permanent disability;

                      (d)        his termination of employment;

                      (e)        his attainment of age 59 1/2;

                      (f)        with respect to a Participant's Employer Salary
Reduction Contributions and pre-1989 earnings thereon only, his incurring a
financial hardship;

                      (g)        the termination of the Plan, provided that
neither the Employer nor a Related Employer maintains a successor plan;

                      (h)        the disposition, to a corporation that is not a
Related Employer, of substantially all of the assets (within the meaning of Code
section 409(d)(2)) used by the Employer in the trade or business in which the
Participant is employed, provided that the Participant continues employment with
the transferee corporation and the Employer continues to maintain the Plan; or

                      (i)        the disposition, to a corporation that is not a
Related Employer, of the Employer's interest in a subsidiary in which the
Participant is employed, provided that the Participant continues employment with
the subsidiary and the Employer continues to maintain the Plan.

           A distribution may be made under (g), (h), or (i) above only if it
constitutes a total distribution of the Participant's entire account balance in
all Accounts and the account balances under any other profit-sharing plans of
the Employer or a Related Employer.

-------------------------
End of Article VIII

                                       52
<PAGE>

                                  ARTICLE VIIIA

                                TRANSITION RULES

           8A.1       Transition Benefits. The provisions of this Article VIIIA
shall apply to the portion of a Participant's Accrued Benefit attributable to
his account balance in the American Eagle Outfitters, Inc. Retirement Plan prior
to October 1, 1994 that has been merged into this Plan. The provisions of this
Article VIIIA shall also apply to the portion of a Participant's Accrued Benefit
attributable to his account balance in the Filene's Basement, Inc. Thrift
Incentive Plan or in the Gramex Corporation 401(k) Profit Sharing Plan to the
extent such amounts were transferred to this Plan in connection with the merger
of those Plans into this Plan effective September 1, 2000 and July 1, 2000,
respectively. The provisions of this Article VIIIA shall be applicable
notwithstanding the provisions of Article VIII; provided however, that to the
extent that a provision of Article VIII does not conflict with the transition
rules in this Article VIIIA (including but not limited to Section 8.1(d) of the
Plan), the provisions of Article VIII shall apply. Notwithstanding the
foregoing, the provisions of this Article VIIIA shall no longer apply after the
date described in Prop. Treas. Reg. Section 1.411(d)-4(e)(1)(ii) or any
successor rule thereto.

           8A.2       Forms of Retirement Benefit.

                      (a)        After all required accounting adjustments,
payment of the Participant's benefit attributable to the Participant's account
balance prior to October 1, 1994 shall be made under one of the following
methods:

                                 (i)        By payment in a lump sum,

                                 (ii)       By payment in the form of a
           Qualified Joint and Survivor Annuity (as defined in section 417(b) of
           the Code),

                                 (iii)      By payments over a period certain in
           monthly, quarterly, semiannual, or annual cash installments after
           first having:

                                            (A)        segregated the aggregate
           amount thereof in a separate federally insured savings account,
           certificate of deposit in a bank or savings and loan association,
           money market certificate or other liquid short-term security; or

                                            (B)        purchased a
           nontransferable annuity contract providing for such payment. The
           period over which such payment is to be made shall not extend beyond
           the Participant's life expectancy (or the life expectancy of the
           Participant and his designated Beneficiary),

                                       53
<PAGE>

                                 (iv)       By purchase of an annuity. However,
           such annuity may not be in any form that will provide for payment
           over a period extending beyond either the life of the Participant (or
           the lives of the Participant and his designated Beneficiary) or the
           life expectancy of the Participant (or the life expectancy of the
           Participant and his designated Beneficiary), or

                                 (v)        By direct rollover to an eligible
           retirement plan described in Section 402(c)(8)(B) of the Code;
           provided that the amount of the payment from the Plan is at least
           $200 or that the total payments from the Plan to the Participant or
           beneficiary are reasonably expected to equal at least $200 during the
           current Plan Year.

The Plan offers a Qualified Joint and Survivor Annuity or a Qualified
Preretirement Survivor Annuity (as defined in section 417(c) of the Code) with
regard to Participant account balances prior to October 1, 1994, and any
distribution attributable to such an account balance shall be in one of these
forms, as applicable, unless another form is elected by the Participant and his
spouse in accordance with the Plan. Notwithstanding the foregoing, the
distribution of a benefit attributable to the portion of a Participant's account
that exceeds the September 30, 1994 balance shall be made to the Participant or
his beneficiary only in a form described in Article VIII.

                      (b)        Unless otherwise elected as provided below, a
Participant who is married on the "annuity starting date" and who retires under
the Plan shall receive the value of his benefits attributable to his account
balance prior to October 1, 1994 in the form of a Qualified Joint and Survivor
Annuity which shall be equal in value to a single life annuity. Following the
Participant's death, such joint and survivor benefits shall continue to the
spouse during the spouse's lifetime at a rate equal to fifty (50%) percent of
the rate at which such benefits were payable to the Participant. The Participant
may, however, elect to receive a smaller annuity benefit with the continuation
of payments to the spouse at a rate of seventy-five (75%) or one hundred percent
(100%) of the rate payable to a Participant during his lifetime.

                      (c)        Any election to waive the Qualified Joint and
Survivor Annuity must be made by the Participant in writing during the election
period and be consented to by the Participant's spouse. Such spouse's consent
must acknowledge the effect of such election and be witnessed by a Plan
representative or a notary public. Such consent shall not be required if it is
established to the satisfaction of the Plan Administrator that the required
consent cannot be obtained because there is no spouse, the spouse cannot be
located, or other circumstances that may be prescribed by regulations issued by
the Internal Revenue Service. The election made by the Participant and consented
to by his spouse may be revoked by the Participant in writing without the
consent of the spouse at any time during the election period. Any new election
must comply with the requirements of this paragraph. A former spouse's waiver
shall not be binding on a new spouse.

                      (d)        The election period to waive the Qualified
Joint and Survivor Annuity shall be the 90 day period ending on the "annuity
starting date."

                                       54
<PAGE>

                      (e)        For purposes of this Section, the "annuity
starting date" means the first day of the first period for which an amount is
received as an annuity (whether by reason of retirement or disability).

                      (f)        With regard to the election, the Plan
Administrator shall provide the Participant within a reasonable period of time
before the "annuity starting date" (and consistent with regulations issued by
the Internal Revenue Service), a written explanation of:

                                 (i)        the terms and conditions of the
           Qualified Joint and Survivor Annuity;

                                 (ii)       the Participant's right to make an
           election to waive the Qualified Joint and Survivor Annuity;

                                 (iii)      the right of the Participant's
           spouse to consent to any election to waive the Qualified Joint and
           Survivor Annuity; and

                                 (iv)       the right of the Participant to
           revoke such election, and the effect of such revocation.

                      (g)        If the value of the Participant's vested
benefit is less than five thousand dollars ($5,000.00), the Plan Administrator
shall immediately distribute such benefit without such Participant's consent.
However, a Participant's vested benefit may not be paid without his written
consent if the value exceeds five thousand dollars ($5,000.00) and without the
consent in writing by such Participant's spouse to any such distribution.

                      (h)        If the Participant's entire interest is to be
distributed in other than a lump sum, then the amount to be distributed each
year must be at least an amount equal to the quotient obtained by dividing the
Participant's entire interest by the life expectancy of the Participant or the
joint and last survivor expectancy of the Participant and his designated
Beneficiary.

                      (i)        If the Plan Administrator distributes a
Participant's retirement benefit to him and his Beneficiaries over a period in
excess of the Participant's then life expectancy, the then present value of the
payments to be made over the period of the Participant's then life expectancy
must be more than fifty percent (50%) of the then present value of the total
payments to be made to the Participant and his Beneficiaries; provided, however,
that this paragraph shall not apply to a distribution in the form of a Qualified
Joint and Survivor Annuity.

                      (j)        For purposes of this Section, the life
expectancy of a Participant and a Participant's spouse (other than in the case
of a life annuity) may be redetermined, but not more frequently than annually,
and in accordance with such rules as may be prescribed by Treasury regulations.
Further, life expectancy and joint and last survivor expectancy shall be
computed using the return multiples of Regulation 1.72-9.

                                       55
<PAGE>

           8A.3       Distribution of Benefits Upon Death.

                      (a)        Unless otherwise elected as provided below, a
vested Participant who dies before the annuity starting date and who has a
surviving spouse shall have his death benefit attributable to his account
balance prior to October 1, 1994 paid to his surviving spouse in the form of a
Pre-Retirement Survivor Annuity. Payment of such benefit must commence by the
date the Participant would have attained the Normal Retirement Age under the
Plan, unless the surviving spouse elects a later date. Payment of a death
benefit attributable to the portion of a Participant's account that exceeds the
September 30, 1994 balance shall be made in the form of a single lump sum.

                      (b)        Any election to waive the Pre-Retirement
Survivor Annuity must be made by the Participant in writing during the election
period and shall require the spouse's consent in the same manner provided for in
Section 8A.2. A Participant may elect to take or not take a Pre-Retirement
Survivor Annuity and he may revoke such election any number of times during the
election period.

                      (c)        The election period to waive the Pre-Retirement
Survivor Annuity shall begin on the first day of the Plan Year in which the
Participant attains age thirty five (35) and end on the date of the
Participant's death. In the event a vested Participant separates from service
prior to the beginning of the election period, the election period shall begin
on the date of such separation from service.

                      (d)        With regard to the election, the Plan
Administrator shall provide each Participant within the period beginning either
the first day of the Plan Year in which the Participant attains age thirty-two
(32) or ending with the close of the Plan Year preceding the Plan Year in which
the Participant attains age thirty-five (35), a written explanation of the
Pre-Retirement Survivor Annuity. If the Participant enters the Plan after the
first day of the Plan Year in which the Participant attains age thirty-two (32),
the Administrator shall provide notice no later than the close of the second
Plan Year following the entry of the Participant into the Plan.

                      (e)        The Pre-Retirement Survivor Annuity provided
for in this Section shall apply only to Participants who are credited with an
Hour of Service under the American Eagle Outfitters, Inc. Retirement Plan on or
after December 31, 1986. Former Participants who are not credited with an Hour
of Service on or after December 31, 1986, shall be provided with rights to the
Pre-Retirement Survivor Annuity in accordance with Section 303(e)(2) of the
Retirement Equity Act of 1984.

                      (f)        If the value of the Pre-Retirement Survivor
Annuity is less than $5,000.00, the Plan Administrator may direct the immediate
distribution of such amount to the Participant's spouse. If the value exceeds
$5,000.00, an immediate distribution of the entire amount may be made to the
surviving spouse, provided such surviving spouse consents in writing to such
distribution.

                                       56
<PAGE>

                      (g)        In the event the death benefit attributable to
the Participant's account balance prior to October 1, 1994 is not paid in the
form of a Pre-Retirement Survivor Annuity, it shall be paid to the Participant's
Beneficiary by either of the following methods at the election of the
Beneficiary:

                                 (i)        one lump-sum payment in cash, or

                                 (ii)       payment in monthly, quarterly,
           semi-annual, or annual cash installments over a period to be
           determined at the election of the Beneficiary, and in installments as
           nearly equal as practicable.

The death benefit attributable to the portion of the Participant's account that
exceeds the September 30, 1994 balance shall be payable only in the form of a
single lump sum.

                      (h)        In the event the death benefit is payable in
installments, then, upon the death of the Participant, the Plan Administrator
shall direct the Trustee to segregate into a separate Trust Fund(s) the death
benefit, and the Trustee shall invest such segregated Trust Funds separately,
and the funds accumulated in such Trust Fund(s) shall be used for the payment of
the installments; provided, the Plan Administrator, in his sole discretion, may
at any time direct the Trustee to purchase for the benefit of the Participant's
Beneficiary an annuity with all monies or property held in the segregated Trust
Fund(s), provided such annuity preserves all benefit rights and features
applicable to such benefit under the Plan.

-------------------------
End of Article VIIIA

                                       57
<PAGE>

                                   ARTICLE IX

                            TOP HEAVY PLAN PROVISIONS

           9.1        Top Heavy Rules Applied. Notwithstanding any provisions of
this Plan to the contrary, if the Plan is a Top Heavy Plan during any Plan Year,
the provisions of this Article IX shall apply.

           9.2        Additional Definitions. The following definitions apply
only for purposes of this Article IX:

                      (a)        "Aggregation Employee" shall mean any employee
of the Aggregation Employer, including any leased employees (within the meaning
of section 414(n) of the Code). For this purpose, an individual formerly
employed by an Aggregation Single Employer shall be deemed an Aggregation
Employee.

                      (b)        "Aggregation Employer" shall mean the Employer
and all other employers aggregated pursuant to sections 414(b), 414(c), and
414(m) of the Code.

                      (c)        "Aggregation Single Employer" shall mean an
employer that sections 414(b), 414(c), and 414(m) of the Code require be
aggregated with the Employer and other employers and treated as a single
employer.

                      (d)        "Determination Date" shall mean, with respect
to any plan year, the last day of the preceding plan year, except in the case of
the first plan year, in which event the Determination Date shall be the last day
of such plan year. Whenever it is necessary to determine the value of accrued
benefits as of a given Determination Date, such value shall be determined as of
the Valuation Date that immediately precedes the Determination Date.

                      (e)        "Key Employee" shall mean any Aggregation
Employee or former Aggregation Employee (including any deceased employee) who at
any time during the current plan year or any of the four preceding plan years,
is or was:

                                 (i)        An officer of the Aggregation
           Employer having an annual Compensation greater than 50% of the dollar
           limitation in effect under section 415(b)(1)(A) of the Code for the
           calendar year in which the plan year ends;

                                 (ii)       One of the ten employees of an
           Aggregation Single Employer having annual compensation for the plan
           year from such Aggregation Single Employer of more than the dollar
           limitation in effect under section 415(c)(l)(A) of the Code and
           owning (or considered as owning within the meaning of section 318 of
           the Code) or having owned

                                       58
<PAGE>

           during the plan year containing the Determination Date or any of the
           four immediately preceding plan years both more than a 1/2% interest
           and the largest interests in such Aggregation Single Employer, and if
           two such employees have the same interest in the employer, the
           employee having the greater annual compensation from the employer
           shall be treated as having a larger interest;

                                 (iii)      A 5% owner of an Aggregation Single
           Employer; or

                                 (iv)       A 1% owner of an Aggregation Single
           Employer having Compensation of more than $150,000.

In addition, the term "Key Employee" shall mean the beneficiary of any
Aggregation Employee or former Aggregation Employee defined above in this
Section 9.2(e) as being a Key Employee.

For the purposes of determining which Aggregation Employees or former
Aggregation Employees, if any, are or were officers of the Aggregation Employer,
whether an individual is an officer shall be based on his responsibilities with
respect to the Aggregation Single Employer(s) by whom he is directly employed,
and of such individuals initially deemed officers, no more than 50 Aggregation
Employees, or, if lesser, the greater of three Aggregation Employees or 10% of
the Aggregation Employees of the Aggregation Employer, shall be treated as
officers. In addition, sole proprietorships, partnerships, associations,
corporations, trusts, and labor organizations may have officers; and any person
who is an administrative executive in regular and continued service shall be
deemed an officer, subject to the above limitations. For purposes of determining
the number of officers taken into account under clause (i), Aggregation
Employees that are described in section 414(q)(8) of the Code shall be excluded.

The number of employees that the Aggregation Employer has for the plan year
containing the Determination Date with respect to a plan shall be the greatest
number of employees the Aggregation Employer had during that plan year or any of
the preceding four plan years. A "5% owner" shall mean, if the Aggregation
Single Employer is a corporation, any person who owns (or is considered as
owning within the meaning of section 318 of the Code) more than 5% of the
outstanding stock of the Aggregation Single Employer or stock possessing more
than 5% of the total combined voting power of all stock of the Aggregation
Single Employer and, if the Aggregation Single Employer is not a corporation,
any employee who owns more than 5% of the capital or profits interest in the
Aggregation Single Employer. A "1% owner" shall mean, if the Aggregation Single
Employer is a corporation, any person who owns (or is considered as owning
within the meaning of section 318 of the Code) more than 1% of the outstanding
stock of the Aggregation Single Employer or stock possessing more than 1% of the
total combined voting power of all stock of the Aggregation Single Employer and,
if the Aggregation Single Employer is not a corporation, any employee who owns
more than 1% of the capital or profits interest in the Aggregation Single
Employer. For purposes of applying the attribution rules of section 318 of the
Code, section 318(a)(2)(C) of the Code shall be applied by substituting "5%" for
"50%" each time that term appears in said section. In the case of an entity
other than a corporation, ownership shall be attributed as under section 318 of
the Code,

                                       59
<PAGE>

except that capital or profits interests shall be substituted for stock
interests. If an employee's ownership interest in an employer changes during a
plan year, his ownership interest for such plan year is the largest interest he
owned at any time during the year. An Employee or individual who is not
described above as being a Key Employee, including a former Key Employee, is not
a Key Employee.

                      (f)        "Permissive Aggregation Group" shall mean a
plan or a group of plans that must be aggregated in the Required Aggregation
Group and any other plan or plans of an Aggregation Employer if the group would
continue to satisfy the requirements of sections 401(a)(4) and 410 of the Code
with such additional plan being taken into account. Benefits under such plans
shall be aggregated by adding together the present values of the accrued
benefits (determined separately for each plan as of each plan's Determination
Date) and adding together the results for each plan as of the Determination
Dates for such plans that fall within the same calendar year.

                      (g)        "Plan" shall mean a plan that satisfies the
requirements of section 401(a) of the Code.

                      (h)        "Plan Year" shall mean the plan year of a plan
of an Aggregation Single Employer.

                      (i)        "Required Aggregation Group" shall mean a group
of plans consisting of (i) each plan of the Aggregation Employer in which a Key
Employee participates during the plan year containing the Determination Date for
such plan or has participated during any of the immediately preceding four plan
years and (ii) any other plan of the Aggregation Employer that enables any of
such plans to satisfy the requirements of section 401(a)(4) or 410 of the Code.
Benefits under such plans shall be aggregated by adding together the present
values of the accrued benefits (determined separately for each plan as of each
plan's Determination Date) and adding together the results for each plan as of
the Determination Dates for such plans that fall within the same calendar year.

                      (j)        "Top Heavy Plan" shall mean the Plan for a
given Plan Year that the Plan is not a member of a Required Aggregation Group
(because there are no other plans that must be aggregated with the Plan), if the
sum (determined as of the Determination Date for the Plan) of the present value
of the cumulative Accrued Benefits (determined in accordance with 1.416-1 of the
Treasury Regulations) for Key Employees of the Employer exceeds 60% of a similar
sum determined for all Employees. If for a given Plan Year the Plan is a member
of a Required Aggregation Group, the Plan shall be a Top Heavy Plan for such
Plan Year if, as of the Plan's Determination Date for such Plan Year, both the
Required Aggregation Group and the Permissive Aggregation Group that include the
Plan are Top Heavy Groups (herein so called). A "Top Heavy Group" is any
Required Aggregation Group or Permissive Aggregation Group if the sum
(determined as of the Determination Dates for the plans in such group that fall
within the same calendar year) of (i) the present value of the accrued benefits
(determined in accordance with 1.416-1 of the Treasury Regulations) for Key
Employees under all defined benefit plans (within the meaning of section 414(j)
of the Code) included in such group and (ii) the accrued benefits (determined in
accordance with 1.416-1 of the

                                       60
<PAGE>

Treasury Regulations) of Key Employees under all defined contribution plans
(within the meaning of section 414(i) of the Code) included in such group
exceeds 60% of a similar sum determined for all Aggregation Employees. For the
purpose of determining the present value of the accrued benefit of any employee,
the present value shall be increased, as required by 1.416-1 of the Treasury
Regulations, by the aggregate distributions made with respect to such Employee
under the plan during the five year period ending on the Determination Date for
such plan, and under any terminated plan that, if it had not been terminated,
would have been included in the Required Aggregation Group. Notwithstanding the
foregoing provisions of this Section 9.2(j), if any individual has not performed
services for any employer maintaining the plan at any time during the 5-year
period ending on the Determination Date for such plan, any accrued benefit for
such individual (and the account of such individual) shall not be taken into
account.

Except to the extent provided in Regulations of the Secretary of the Treasury,
any rollover contribution (or similar transfer) initiated by an Employee and
made after December 31, 1983, to a plan shall not be taken into account with
respect to the transferee plan for purposes of determining whether such plan is
a Top Heavy Plan (or whether any aggregation group which includes such plan is a
Top Heavy Group). If any individual is not a Key Employee with respect to a plan
in the aggregation group for any plan year, but such individual was a Key
Employee with respect to a plan in the aggregation group for any prior plan
year, any accrued benefit for such Employee and the account of such employee
shall not be taken into consideration in making a determination of the top heavy
status of the plan. Each plan in a Top Heavy Group shall be deemed a Top Heavy
Plan.

                      (k)        "Super Top Heavy Plan" shall mean a Top Heavy
Plan if the plan would be a Top Heavy Plan if "(90%)" were substituted for "60%"
each place it appears in Section 9.2(j) above.

           9.3        Additional Limitation - Defined Benefit Plan.

                      (a)        Super Top Heavy Plan Years. For Limitation
Years beginning prior to January 1, 2000, if during a Plan Year this Plan is a
Super Top Heavy Plan and a Participant also participates in one or more
qualified defined benefit plans (within the meaning of section 414(j) of the
Code) maintained by the Employer or a Related Employer, the maximum amount
otherwise allocable to his Accounts under Section 6.4 for any Limitation Year
that contains any portion of the Plan Year during which this Plan is a Super Top
Heavy Plan shall be reduced to the extent necessary to ensure that the sum of
the Defined Benefit Fraction (within the meaning of Section 6.8(c)) for the
Limitation Year plus the Defined Contribution Fraction (within the meaning of
Section 6.8(c)) for the Limitation Year does not exceed 1.0. For this purpose
the Defined Benefit Fraction shall have a denominator that shall be an amount
equal to the lesser of: (i) the product of 1.0 multiplied by the dollar
limitation in effect for such year under section 415(b)(1)(A) of the Code or
(ii) the product of 1.4 multiplied by the amount that may be taken into account
for such year under section 415(b)(1)(B) of the Code with respect to such
Participant. The Defined Contribution Fraction shall have a denominator that
shall be the sum of the lesser of the following amounts determined for each
defined contribution plan maintained by the Employer or a Related Employer as of
the close of the Limitation Year and in which the Participant has an account for
the Limitation Year and for each

                                       61
<PAGE>

prior year of service with the Employer: (i) the product of 1.0 multiplied by
the dollar limitation in effect for such year under section 415(c)(1)(A) of the
Code (determined without regard to section 415(c)(6) of the Code) or (ii) the
product of 1.4 multiplied by the amount that may be taken into account under
section 415(c)(1)(B) of the Code with respect to such individual under such
defined contribution plans for the Limitation Year.

                      (b)        Top Heavy Plan Years. If during a Plan Year
this Plan is a Top Heavy Plan but not a Super Top Heavy Plan, the provisions of
Section 9.3(a) shall nevertheless be applicable to the Plan and the Plan shall
be deemed a Super Top Heavy Plan for the purposes of Section 9.3(a) if either of
the following conditions are satisfied:

           (1)        The Employer fails to make a contribution for the Plan
                      Year for the benefit of each non-Key Employee Participant
                      who is employed by the Employer on the last day of the
                      Plan Year; or

           (2)        The Employer's contribution for the Plan Year allocated to
                      any non-Key Employee's Employer contribution accounts,
                      when aggregated with the amounts of the Employer's
                      contributions for the Plan Year allocated to such non-Key
                      Employee's accounts under all other defined contribution
                      plans (within the meaning of section 414(i) of the Code)
                      maintained by the Employer, and when expressed as a
                      percentage of such non-Key Employee's Compensation for the
                      Plan Year, is less than the lesser of: (i) 4% or (ii) the
                      "highest applicable percentage for the Plan Year." For
                      purposes of this Section 9.3(b), the "highest applicable
                      percentage for the Plan Year" is the greatest percentage
                      that can be obtained with respect to the group of Key
                      Employee Participants for the Plan Year as a result of
                      dividing with respect to each Key Employee Participant (i)
                      the aggregate for the Plan Year of the Employer's
                      contributions allocated to such Key Employee Participant's
                      Employer Contribution Account and to such Key Employee
                      Participant's accounts under all other defined
                      contribution plans (within the meaning of section 414(i)
                      of the Code) maintained by the Employer by (ii) such Key
                      Employee Participant's Compensation for the Plan Year.

                      (c)        Special Rule. Notwithstanding the foregoing
provisions of this Section 9.3, if for any Plan Year the Plan is a Top Heavy
Plan or Super Top Heavy Plan, for Limitation Years beginning prior to January 1,
2000, the sum of the Defined Benefit Fraction (within the meaning of Section
6.8(c)) and the Defined Contribution Fraction (within the meaning of Section
6.8(c)) for a Limitation Year may in the case of a Participant exceed 1.0 (but
not l.25) if, but only if, there are no further benefit accruals for that
individual under any defined benefit plan (within the meaning of section 414(j)
of the Code) maintained by the Employer or a Related Employer and no further
annual additions (within the meaning of section 415(c)(2) of the Code) for that
individual under any defined contribution plan (within the meaning of section
414(i) of the Code) maintained by the Employer or any Related Employer until the
sum of such fractions satisfies the rules of section 415(e) of the Code using
the 1.0 factor for that individual.

                                       62
<PAGE>

           9.4        Minimum Benefit. Notwithstanding the provisions of Article
VI, and except as provided in the last paragraph of this Section 9.4, during any
Plan Year in which this Plan is a Top Heavy Plan, the Employer shall make an
aggregate contribution to this Plan and any Related Plan for the benefit of each
Participant who is an Employee and is not a Key Employee and who was in the
Service of the Employer on the last day of the Plan Year in an amount which when
allocated to the accounts of each Participant who is not a Key Employee and
expressed as a percentage of each such Participant's compensation, is equal to
or exceeds the lesser of: (i) 3% of such non-Key Employee Participant's
compensation; or (ii) a percentage of such non-Key Employee Participant's
compensation, such percentage being equal to the percentage at which
contributions and forfeitures are made under the Plan for such year for the Key
Employee for whom such percentage is the highest. The amount to be allocated to
non-Key Employee Participants pursuant to this Section 9.4 shall include any
amounts otherwise allocable under Section 6.4 (except for Employer Salary
Reduction Contributions) and shall not be in addition thereto. For purposes of
(ii) above, in determining the percentage at which contributions and forfeitures
are made under the Plan for the Key Employee for whom such percentage is the
highest, elective contributions on behalf of Key Employees are taken into
account. Employer Salary Reduction Contributions cannot be used to satisfy the
minimum contribution requirement for non-Key Employees under this Section 9.4.
An Employee who is not a Key Employee may not fail to accrue a minimum benefit
under this Section 9.4 because either (1) such Employee is otherwise excluded
from participation (or accrues no benefit) merely because the Employee's
Compensation is less than a stated amount or (2) the Employee is otherwise
excluded from participation (or accrued no benefit) merely because of a failure
to make mandatory Employee contributions.

In addition, notwithstanding the preceding provisions of this Section 9.4, the
following rules shall apply for purposes of determining whether the minimum
benefit provisions of this Section 9.4 have been satisfied in the event that
during a Plan Year the Employer maintains two or more qualified plans (within
the meaning of section 1.401-1(b) of the Treasury Regulations) that are Top
Heavy Plans or Super Top Heavy Plans for a Plan Year. If the Employer maintains
during a Plan Year two or more defined contribution plans (within the meaning of
section 414(i) of the Code), one of which is a money purchase pension plan
(within the meaning of section 1.401-1(b)(1)(i) of the Treasury Regulations),
the minimum Employer contribution and benefits required by this Section 9.4 on
behalf a Participant who is not a Key Employee and who participates in both the
money purchase pension plan and this Plan shall, unless provided otherwise in
the money purchase pension plan, be provided under the money purchase pension
plan to the extent such plan provides for an Employer contribution sufficient to
satisfy such minimum, and only to the extent that such minimum is not provided
under the money purchase pension plan shall any portion of such minimum
contribution and benefits be provided under this Plan. If the Participant
participates in two or more such defined contribution plans that are not money
purchase pension plans and one of such plans requires Employer contributions for
a plan year but the other plan does not require Employer contributions for a
plan year, the minimum Employer contribution and benefits required by this
Section 9.4 shall be provided under the plan that requires Employer
contributions, and only to the extent such minimum is not provided under such
plan shall such minimum be provided under the plan or plans that do not

                                       63
<PAGE>

require Employer contributions. If during a Plan Year, the Employer maintains
this Plan and a defined benefit plan (within the meaning of section 414(j) of
the Code) and a Participant who is not a Key Employee participates in both of
such plans, then if such Participant is entitled to accrue a benefit under such
defined benefit plan with respect to such Plan Year, and such Participant has
accrued a benefit equal to or in excess of 2% multiplied by his number of years
of Eligibility Service (as defined in Article III) multiplied by the
Participant's average compensation during the five consecutive year period
during which the Participant had the greatest aggregate compensation from the
Employer, the Employer shall not be required to provide for such Participant
under this Plan the minimum benefit otherwise required under this Section 9.4;
provided, however, that if this Plan requires or is amended to require an
Employer contribution for a Plan Year, the minimum benefit accrual under the
defined benefit plan shall be offset by the benefits provided under this Plan
for such Plan Year as provided in section 1.416-1, M-12, of the Treasury
Regulations. If for a Plan Year this Plan is a Top Heavy Plan, but not a Super
Top Heavy Plan, and the Employer makes contributions on behalf of a Participant
under both this Plan and a defined benefit plan (within the meaning of section
414(j) of the Code) and the Employer wishes to use a factor of 1.25 rather than
1.0 as a limitation on the sum of the Defined Contribution Fraction (within the
meaning of Section 6.8(c)) and Defined Benefit Fraction (within the meaning of
Section 6.8(c)) for a Limitation Year beginning before January 1, 2000, then the
defined benefit plan minimum benefit accrual specified above shall be increased
by one (1) percentage point (up to a maximum of ten percentage points) for each
Year of Eligibility Service (within the meaning of Section 2.62) within which a
Plan Year during which this Plan was a Top Heavy Plan or Super Top Heavy Plan
ended. Nothing in this Section 9.4 shall prohibit the Employer from making
contributions in excess of the minimums stated herein provided such
contributions are otherwise in accordance with the provisions of the Plan or
other plan pursuant to which they are made.

           9.5        Termination of Service Prior to Normal Retirement Age. If
during any Plan Year a Participant has performed at least one Hour of Service
for the Employer and the Plan is a Top Heavy Plan, such Participant shall have a
fully vested, non-forfeitable interest in his Accrued Benefit attributable to
his Employer Matching Contribution Account and Employer Profit Sharing
Contribution Account, should his Service with the Employer terminate prior to
his Normal Retirement Age for any reason other than death or permanent
disability, that is not less than as determined in accordance with the following
schedule:

<TABLE>
<CAPTION>
                                                     PERCENT DEEMED
YEARS OF VESTING SERVICE                                  VESTED
------------------------                                  ------
<S>                                                  <C>
Less than 2 years                                            0%
2 years but less than 3                                     20%
3 years but less than 4                                     40%
4 years but less than 5                                     60%
5 years or more                                            100%
</TABLE>

                                       64

<PAGE>

Notwithstanding any of the foregoing, if during any prior Plan Year the Plan was
a Top Heavy Plan and in any subsequent Plan Year the Plan ceases to be a Top
Heavy Plan, the rights of a Participant who had performed at least one Hour of
Service during the Period the Plan was a Top Heavy Plan in and to his Accrued
Benefit attributable to his Employer Matching Contribution Account shall not be
less than his vested rights during the period that the Plan was a Top Heavy
Plan. Provided, further, any Participant who has three or more Years of Service
at the beginning of a Plan Year in which the Plan ceases to be a Top Heavy Plan
shall have the right to elect, within a reasonable time of the beginning of the
Plan Year in which the Plan ceases to be a Top Heavy Plan, to have his
non-forfeitable percentage under this Plan computed in accordance with the
schedule applicable to Plan Years in which the Plan is a Top Heavy Plan. Any
election made under this Section 9.5 shall be made in the manner specified by
Section 12.5 as if such change in vesting schedule had been made by way of an
amendment.

--------------------------
End of Article IX

                                       65

<PAGE>

                                    ARTICLE X

                             IN-SERVICE WITHDRAWALS

        10.1     In-Service Withdrawal From Accounts. To the extent permitted by
Sections 10.2, 10.3 or 10.4, a Participant may withdraw any amount from his
Accounts not in excess of his Vested Accrued Benefit by filing a request to do
so with the Committee or its delegate. The actual payment of the amount to be so
withdrawn shall occur as soon as administratively feasible on or after such
date.

        10.2     Hardship Withdrawals.

                 (a) General. To the extent permitted below, a Participant shall
be entitled to make in-service withdrawals from his Accounts pursuant to this
Section 10.2, but only in the case and to the extent required by a Participant's
hardship. However, notwithstanding the above, in no event may a Participant make
a hardship withdrawal of any amount in his employer Matching Contribution
Account, Employer Nonelective Contribution Account, or Employer Profit Sharing
Account. In addition, a Participant may not make a hardship withdrawal from his
Employer Salary Reduction Contribution Account other than with respect to his
actual Employer Salary Reduction Contributions and pre-1989 earnings thereon;
thus, post-1988 earnings on Employer Salary Reduction Contributions cannot be
withdrawn. These same withdrawal limitations will apply to amounts that are
attributable to salary reduction contributions and qualified employer
contributions made to another plan in which the Participant participated that
are received by the Trust in a trust-to-trust transfer and are allocated to the
Participant's Rollover Contribution Account. For purposes of this Section,
"qualified employer contributions" means employer contributions that both (a)
qualify for aggregation for Code section 401(k) or 401(m) discrimination testing
purposes, pursuant to sections 401(k)(3)(1)(ii) or 401(m)(3) of the Code, and
(b) were in fact aggregated for such purposes.

                 For the purposes of this Section 10.2, "hardship" shall exist
if a withdrawal is necessary in light of immediate and heavy financial needs of
the Participant. Subject to the limitations stated herein, any amount withdrawn
shall be deemed withdrawn first from the Participant's Employee Contribution
Account, next from the Participant's Rollover Contribution Account, and,
finally, from the Participant's Employer Salary Reduction Contribution Account,
and no amount shall be deemed withdrawn from any subsequently listed Account
until the prior listed Accounts have been exhausted in full. The Participant
must request a withdrawal by written request delivered to the Committee. The
Participant must submit such proof of his hardship as the Committee may in its
sole and absolute discretion require. The Committee, in its sole discretion,
shall make the determination of the existence of financial hardship and the
amount required to be withdrawn to meet the need created by the hardship. Such
determination is to be made in a uniform and nondiscriminatory manner.

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<PAGE>

                 The determination of whether a Participant has an immediate
and heavy financial need and the amount necessary to satisfy such financial need
shall be made on the basis of all relevant facts and circumstances. A financial
need shall not fail to qualify as immediate and heavy merely because such need
was reasonably foreseeable or voluntarily incurred by the Participant. An
immediate and heavy financial need shall be automatically deemed to include the
following:

                 1.     Medical expenses described in Code section 213(d)
                        incurred by the Participant, the Participant's spouse,
                        or any dependents of the Participant (as defined in Code
                        section 152), or amounts necessary for these persons to
                        obtain medical care described in section 213(d) of the
                        Code;

                 2.     Purchase of a principal residence for the Participant,
                        but excluding mortgage payments;

                 3.     Payment of tuition and related educational fees (but not
                        room and board) for the next 12 months of post-secondary
                        education for the Participant, the Participant's spouse,
                        the Participant's children, or the Participant's
                        dependents;

                 4.     The need to prevent the (a) eviction of the Participant
                        from his or her principal residence, or (b) foreclosure
                        on the mortgage of the Participant's principal
                        residence; or

                 5.     Any other event described by the Internal Revenue
                        Service to be deemed a heavy and financial need.

                 The Committee, in its sole discretion, shall make the
determination of the existence of an immediate and heavy financial need. Such
determination is to be made in a uniform and nondiscriminatory manner. No
Participant shall have a right to request or seek the Employer to request an
individual ruling from the Internal Revenue Service on whether or not the
Participant's circumstances will qualify as an immediate and heavy financial
need. The amount of an immediate and heavy financial need may include any
amounts necessary to pay any federal, state or local income taxes or penalties
reasonably anticipated to result from the withdrawal.

                 (b) Withdrawal Necessary to Meet an Immediate and Heavy
Financial Need. The amount of a withdrawal may not exceed the amount required to
meet the immediate and heavy financial need that is not reasonably available
from other resources of the Participant. A withdrawal may be treated as
necessary to satisfy an immediate and heavy financial need if the Participant
represents in writing to the Committee that the need cannot be relieved through
any of the following resources:

                 1.     Through reimbursement or compensation by insurance or
                        otherwise;

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<PAGE>

                 2.     By reasonable liquidation of the Participant's assets,
                        to the extent such liquidation would not itself cause an
                        immediate and heavy financial need;

                 3.     By cessation of Employer Salary Reduction Contributions
                        or Employee Contributions under the Plan; or

                 4.     By other distributions or nontaxable (at the time of the
                        loan) loans from plans maintained by the Employer or
                        Related Employer or by any other employer, or by
                        borrowing from commercial sources on reasonable
                        commercial terms.

The Committee may rely upon the Participant's representations concerning
availability of resources as long as such reliance would not be unreasonable.
For purposes of this Section 10.2, the Participant's resources shall be deemed
to include those assets of his spouse and minor children that are reasonably
available to the Participant. However, property held for the Participant's child
under an irrevocable trust or under the Uniform Gifts to Minors Act will not be
treated as a resource of the Participant.

                 (c)    Suspension of Contributions. If a Participant obtains a
distribution under this Section 10.2, his Salary Reduction Contributions,
Employee Contributions and elective contributions and employee contributions to
all other plans maintained by the Employer or a Related Employer shall be
suspended for a period of twelve (12) months after the receipt of a hardship
distribution pursuant to this Article X. The other plans of the Employer or a
Related Employer to which this provision applies includes all qualified and
nonqualified plans of deferred compensation maintained by the Employer or a
Related Employer, other than the mandatory employee contribution portion of a
defined benefit plan, but does not include health or welfare benefit plans. Such
other plans also include cash or deferred arrangements that are part of a
cafeteria plan, within the meaning of section 125 of the Code. Contributions may
be recommenced following the twelve (12) month suspension period only after the
Participant has entered into a new salary reduction agreement pursuant to
Section 5.1 of the Plan.

                 (d)    No Redeposit of Hardship Withdrawal.  A Participant
shall not be permitted to recontribute to or redeposit in his Accounts any
portion of the amounts withdrawn by reason of hardship.

                 (e)    Limits on Contributions Have no Affect Upon Eligibility.
The fact that a Participant has received a hardship distribution and is
suspended from making further contributions under this Section 10.2 shall not,
alone, prevent the Participant from being an Eligible Employee for purposes of
determining the Actual Deferral Percentage and Actual Matching Percentage of the
Participant's appropriate group of Eligible Employees.

        10.3     Age 59 1/2. After the Participant attains age 59 1/2, the
Participant may elect to withdraw all or any portion of his Accrued Benefit
pursuant to the terms of Section 10.1.

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<PAGE>

        10.4     After Tax Contributions. A Participant may withdraw while in
service all or any portion of his or her account that consists of the balance of
After-Tax Contributions (as defined in the Savings and Profit Sharing Retirement
Plan of Steinbach Stores, Inc. and Participating Affiliated Companies (hereafter
the "Steinbach Plan")) and earnings thereon that were transferred in a direct
trustee-to-trustee transfer from the Steinbach Plan to this Plan in connection
with the conversion of certain Steinbach Stores, Inc. department stores into
Value City Department Stores. In addition, a Participant may withdraw in service
all or any portion of his or her account that consists of the balance of
Supplemental After-Tax Contributions or Rollover Contributions (as defined in
the Filene's Basement, Inc. Thrift Incentive Plan) that were transferred to this
Plan in a direct trustee-to-trustee transfer effective September 1, 2000.

--------------------------
End of Article X

                                       69
<PAGE>

                                   ARTICLE XI

                                      LOANS

        11.1     Loans to Participants: Basic Terms and Limits. The Trustee may
make a loan to any Participant that has been a Participant for at least one year
and whose Account balance is at least $2,000.00 (or any other person that must
be eligible for Plan loans under ERISA, the Code or regulations and rulings
promulgated thereunder) that is within the following limits:

                 (a)    The loan must be made out of the Participant's Accounts
and cannot exceed, when added to the outstanding balance of all other loans to
such Participant, the lesser of:

                        (i) $50,000, reduced by the excess, if any, of (i)
         the highest outstanding balance of loans to such Participant from the
         Plan during the 12 consecutive month period ending on the day before
         the date such loan is made, over (ii) the outstanding balance of loans
         to such Participant from the Plan on the day the loan is made, or

                        (ii) The greater of (i)  1/2 of the value of the
         Participant's Vested Accrued Benefit, or (ii) $10,000.

                 (b)    The limitation on loans that may be made from this Plan
shall be calculated to take into account the Participant's nonforfeitable
benefits and loans under all plans with which this Plan must be aggregated for
purposes of sections 414(b), (c), (m) and (o) of the Code, with all such plans
to be treated as a single plan and with the limitations above applying to the
total of all nonforfeitable benefits under all such plans. For purposes of this
Section, the value of a Participant's Vested Accrued Benefit shall be determined
as of the Valuation Date coincident with or immediately preceding the date the
loan is made.

                 (c)    No loan shall be made to a Participant unless the
Participant consents prior to the making of the loan to (1) the set-off of the
Participant's Vested Accrued Benefit upon acceleration or default under the
loan, and (2) the distribution or deemed distribution of all or a part of the
Participant's Account necessary to effect the set-off. For purposes of any
required consent, and any other applicable loan limitation, any renegotiation,
extension, renewal, or other revision of a loan shall be treated as a new loan
made on the date of the renegotiation, extension, renewal or revision.

                 (d)     All Participant loans other than loans used to acquire
the principal residence of the Participant shall, by their terms, be repaid
within five years from the dates on which they are made. All Participant loans
used to acquire the principal residence of the Participant shall, by their
terms, be repaid within twenty years from the dates on which they were made.

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<PAGE>

                 (e)    All loans shall be accelerated and immediately due in
full upon a Participant's termination of Service (unless such Participant is
otherwise mandatorily eligible for Plan loans under ERISA, the Code or
regulations and rulings promulgated thereunder). If the Participant does not
repay the loan at the time of acceleration, the Trustee shall have the right to
set-off, as described above.

                 (f)    All loans shall be made at interest rates then currently
prevalent for loans from a commercial lending institution under circumstances
similar to the circumstances under which the loan is being made, or at a
reasonable interest rate if such currently prevalent rate is not "reasonable"
under section 4975(d)(1)(D) of the Code. Except as may be allowed under
regulations promulgated by the Secretary of the Treasury, all loans shall be
made on the basis of substantially level amortization over the term of the loan,
with payments due not less frequently than quarterly.

                 (g)    The minimum amount of any loan shall be $1,000.00.

                 (h)    No more than two loans may be outstanding to a
Participant at any time, at least one to meet an immediate and heavy financial
need connected with the Participant's principal residence.

        11.2     Instruments and Security for Loans. Each loan hereunder shall
be evidenced by a promissory note and secured by a security agreement, mortgage,
deed of trust, or such other security instruments as the Committee may require.
All such instruments shall contain, in addition to the provisions specifically
required by this Article XI, such repayment, default, and remedial terms as may
be determined by the Committee.

                 (a)    Security for loans hereunder shall be provided by (1)
the pledge of a Participant's Vested Accrued Benefit (including any Company
Stock allocated to the Participant's Account) and (2) the pledge of such
additional collateral as the Committee may require in order for the loan to be
adequately secured. In determining the adequacy of the security for the loan, no
more than 50% of the present value of a Participant's Vested Accrued Benefit may
be considered as security for the outstanding balance of all Plan loans,
calculated immediately after the origination of a loan hereunder. Further, if
because of a decrease in the value of a Participant's Vested Accrued Benefit,
the Committee believes a loan to be inadequately secured, it shall either
require the Participant to post security in addition to the value of his Vested
Accrued Benefit or demand accelerated, including immediate, payment of the loan.
An assignment for security of a Participant's Vested Accrued Benefit shall be
limited as provided in Section 14.6 hereof.

                 (b)    The default provisions of the instruments relating to a
loan shall provide that upon default a loan may be set off against the
Participant's Accounts at the earliest time that is administratively feasible
and that is permitted by applicable law. Moreover, as a condition precedent to
obtaining a loan hereunder, each Participant must request and consent, in
writing, to a distribution from his Accounts to the fullest extent necessary and
permissible by law to effect such set-off. For purposes of setting off account
balances upon default of a Plan loan, Employee Contributions, but

                                       71
<PAGE>

not earnings on any such contributions unless otherwise required by law, may be
distributed at any time, and Employer Profit Sharing Contributions, Employer
Matching Contributions, and earnings on Employee Contributions, Employer Profit
Sharing Contributions and Employer Matching Contributions (but only to the
extent such contributions and earnings do not represent Qualified Employer
Contributions and earnings thereon) may be distributed when such funds have been
allocated to the Participant's Account for at least two years or if the
Participant has been a Participant for at least 60 months. Employer Salary
Reduction Contributions, Employer Nonelective Contributions, Qualified Employer
Contributions and earnings thereon, may only be distributed according to the
provisions of Section 8.13.

                 (c)    The Committee shall provide for the repayment of the
loan through payroll deduction over the term of the loan, and, except as
expressly provided otherwise in a Participant's promissory note, or as otherwise
restricted by law, any revocation or modification of a payroll deduction
authorization without the Committee's consent shall automatically constitute an
event of default under such loan. Each promissory note and security instrument
shall be delivered to the Trustee for the benefit of the borrowing Participant's
Accounts. The amount borrowed by a Participant shall be considered an investment
made by the Trustee from such Participant's Accounts in such combination thereof
as is appropriate. The interest on the loan shall be allocated to the
Participant's appropriate Accounts and any losses incurred as a result of the
making of the loan shall also be allocated to such Accounts.

        11.3     Loan Provisions Incorporated by Reference. For purposes of
satisfying the requirements of section 2550.408b-1(d) of the Labor Regulations,
the Committee shall adopt a Loan Procedures Document (herein so called) that
contains the following provisions:

                 (a)    A procedure for applying for loans.

                 (b)    The basis on which loans will be approved or denied that
are in addition to the conditions stated herein.

                 (c)    Limitations (if any) on the types and amount of loans
offered.

                 (d)    The types of collateral which may secure a Participant
loan.

This document, after being duly adopted by the Committee according to its normal
adoption procedures, shall be incorporated in the Plan by this reference as if
fully set forth herein. The Committee shall have the power to amend and modify
the Loan Procedures Document according to its rules for the same.

        11.4     Payment of Expenses. If a Participant's application for a loan
is approved, the Participant shall be required to pay all reasonable and
necessary expenses incurred in the making and

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<PAGE>

administration of the loan, including, but not limited to, attorney's fees. The
amount to be paid shall be determined by the Committee and shall be paid at the
time and in the form prescribed thereby.

--------------------------
End of Article XI

                                       73
<PAGE>

                                   ARTICLE XII

                       EMPLOYER ADMINISTRATIVE PROVISIONS

        12.1     Information. Each Employer shall, upon request or as may be
specifically required hereunder, furnish or cause to be furnished, all of the
information or documentation which is necessary or required by the Committee and
Trustee to perform their respective duties and functions under the Plan. Each
Employer's records as to the current information the Employer furnishes to the
Committee and Trustee shall be conclusive as to all persons.

        12.2     No Liability. Subject to Article XIII, the Company assumes no
obligation or responsibility to any of the Employees, Participants, or
Beneficiaries for any act of, or failure to act, on the part of the Committee or
the Trustee.

        12.3     Employer Action. Any action required of an Employer shall be by
resolution of its board of directors or other governing body.

        12.4     Indemnity. The Company shall indemnify and save harmless the
Committee, and the members of the Committee, and each of them, from and against
any and all loss resulting from liability to which the Committee, or the members
of the Committee, may be subjected by reason of any act or conduct (except
willful or reckless misconduct), in their official capacities in the
administration of the Plan or Trust or both, including all expenses reasonably
incurred in their defense, in case the Company fails to provide such defense.
The indemnification provisions of this Section shall not relieve any member of
the Committee from any liability either may have under ERISA for breach of a
fiduciary duty.

        12.5     Amendment to Vesting Schedule. Although the Employer reserves
the right to amend the vesting schedule at any time, the Employer shall not
amend the vesting schedule (and no amendment shall be effective) if the
amendment would reduce the nonforfeitable percentage of any Participant's
Accrued Benefit derived from Employer contributions (determined as of the later
of the date the Employer adopts the amendment, or the date the amendment becomes
effective) to a percentage less than the nonforfeitable percentage computed
under the Plan without regard to the amendment.

In the event the vesting schedule of this Plan is amended, any Participant who
has completed at least three years of Vesting Service may elect to have his
Accrued Benefit computed under the Plan without regard to such amendment by
notifying the Committee in writing during the election period hereinafter
described. The election period shall begin on the date such amendment is adopted
and shall end no earlier than the latest of the following dates:

                 (a)    The date which is 60 days after the day such amendment
is adopted;

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<PAGE>

                 (b)    The date which is 60 days after the day such amendment
becomes effective; or

                 (c)    The date which is 60 days after the day the Participant
is given written notice of such amendment by the Committee.

Any election made pursuant to this Section shall be irrevocable. The Committee,
as soon as practicable, shall forward a true copy of any amendment to the
vesting schedule to each affected Participant, together with an explanation of
the effect of the amendment, the appropriate form upon which the Participant may
make an election to remain under the vesting schedule provided under the Plan
prior to the amendment, and notice of the time within which the Participant must
make an election to remain under the prior vesting schedule.

--------------------------
End of Article XII

                                       75
<PAGE>

                                  ARTICLE XIII

                         COMMITTEE - ADMINISTRATION AND
                              INVESTMENT PROVISIONS

        13.1     Appointment of Committee. The Company shall appoint one or more
Committees to administer the Plan and direct Plan investments, the members of
which may or may not be Participants in the Plan. Each Committee shall consist
of such number of persons, not less than three (3), as shall from time to time
be determined by the Company. In the absence of such appointments, the Company
shall function as the Committee.

        13.2     Term. Each member of the Committee shall serve until his
successor is appointed. Any member of the Committee may be removed by the
Company, with or without cause, which shall have the power to fill any vacancy
which may occur. A Committee member may resign upon written notice to the
Company.

        13.3     Compensation. The members of the Committee shall serve without
compensation for services as such, but the Company shall pay all expenses of the
members of the Committee, including the expenses for any bond required under
section 412 of ERISA. To the extent such expenses are not paid by the Company,
they shall be paid by the Trustee from the Trust Fund.

        13.4     Powers of the Committee. Subject to Article XIV hereof, the
Committee shall have the following powers and duties:

                 (a)    To direct the administration of the Plan in accordance
with the provisions herein set forth;

                 (b)    To adopt rules of procedure and regulations necessary
for the administration of the Plan provided the rules are not inconsistent with
the terms of the Plan;

                 (c)    To determine all questions with respect to rights of
Employees, Participants, and Beneficiaries under the Plan, including but not
limited to rights of eligibility of an Employee to participate in the Plan, the
value of a Participant's Accrued Benefit, and the vested Accrued Benefit of each
Participant.

                 (d)    To enforce the terms of the Plan and the rules and
regulations it adopts;

                 (e)    To direct the Trustee with respect to the crediting and
distribution of the Trust and all other matters within its discretion as
provided in the Trust Agreement;

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<PAGE>

                 (f)    To direct the Trustee to transfer assets to another
trust which constitutes a qualified trust under section 401(a) of the Code and
to accept transfers of assets from other trusts which constitute qualified
trusts under sections 401(a) and 501(a) of the Code;

                 (g)    To review and render decisions with respect to a claim
for, (or denial of a claim for) a benefit under the Plan;

                 (h)    To furnish the Employer with information which the
Employer may require for tax or other purposes;

                 (i)    To engage the service of counsel (who may, if
appropriate, be counsel for the Employer) and agents whom it may deem advisable
to assist it with the performance of its duties;

                 (j)    To prescribe procedures to be followed by distributees
in obtaining benefits;

                 (k)    To receive from the Employer and from Employees such
information as shall be necessary for the proper administration of the Plan;

                 (l)    and of the receipts and disbursements of the Trust Fund
from the Trustee;

                 (m)    To maintain, or cause to be maintained, separate
Accounts in the name of each Participant to reflect the Participant's Accrued
Benefit under the Plan;

                 (n)    To select a secretary, who need not be a member of the
Committee;

                 (o)    To interpret and construe the Plan;

                 (p)    To direct the Trustee in the investment, reinvestment,
and disposition of the Trust Fund as provided in the Trust Agreement;

                 (q)    To receive and review reports of the financial condition
and of the receipts and disbursements of the Trust Fund from the Trustee;

                 (r)    To furnish the Company with information which the
Company may require for tax or other purposes;

                 (s)    To engage the services of an Investment Manager or
Managers (as defined in section 3(38) of the ERISA), each of whom shall have
full power and authority to manage, acquire or dispose (or direct the Trustee
with respect to acquisition or disposition) of any Plan asset under its control;
and

                                       77
<PAGE>

                 (t)    To interpret and construe the Plan with respect to the
investment, reinvestment and disposition of Plan assets.

                 (u)    To engage an Administrative Delegate who shall perform,
without discretionary authority or control, administrative functions within the
framework of policies, interpretations, rules, practices, and procedures made by
the Committee. Any action made or taken by the Administrative Delegate may be
appealed by an affected Participant to the Committee in accordance with the
claims or review procedures provided in Article XIV. Any decisions which call
for interpretations of Plan provisions not previously made by the Committee
shall be made only by the Committee. The Administrative Delegate shall not be
considered a fiduciary with respect to the services it provides. The term
"Administrative Delegate" shall mean one or more persons or institutions to
which the Committee has delegated certain administrative functions pursuant to a
written agreement.

Except as provided in Section 16.2, the Committee shall have no power to add to,
subtract from, or modify any of the terms of the Plan, or to change or add to
any benefits provided by the Plan, or to waive or fail to apply any requirements
of eligibility for a benefit under the Plan. Nonetheless, the Committee shall
have absolute discretion in the exercise of its powers in this Plan. All
exercises of power by the Committee hereunder shall be final, conclusive and
binding on all interested parties, unless found by a court of competent
jurisdiction, in a final judgment that is no longer subject to review or appeal,
to be arbitrary and capricious.

        13.5     Manner of Action. The decision of a majority of the members of
membership of the Committee, the remaining members of the respective Committee
may exercise any and all of the powers, authorities, duties, and discretion
conferred upon such Committee pending the filling of the vacancy. The Committee
may, but need not, call or hold formal meetings. Any decisions made or action
taken pursuant to written approval of a majority of the then members shall be
sufficient. Each Committee shall maintain adequate records of its decisions.

        13.6     Authorized Representative. Each Committee may authorize any one
of its members, or its secretary, to sign on its behalf any notices, directions,
applications, certificates, consents, approvals, waivers, letters, or other
documents. Each Committee must evidence this authority by an instrument signed
by all its respective members and filed with the Trustee.

        13.7     Exclusive Benefit. The Committee shall administer the Plan for
the exclusive benefit of the Participants and their Beneficiaries.

        13.8     Interested Member. No member of the Committee may decide or
determine any matter concerning the distribution, nature, or method of
settlement of his own benefits under the Plan unless there is only one person
acting alone in the capacity as the Committee.

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<PAGE>

        13.9     Funding Policy. The Committee shall review, not less often than
annually, all pertinent Employee information and Plan data in order to establish
the funding policy of the Plan and to determine the appropriate methods of
carrying out the Plan's objectives. The Committee shall communicate annually to
the Trustee and to the Plan Investment Manager(s) (herein so-called), if any,
the Plan's short-term and long-term financial needs so investment policy can be
coordinated with Plan financial requirements. The communication of such a
funding policy and method shall constitute a directive to the Trustee as to the
investment of the Trust Fund.

         13.10   Books and Records. The Committee shall maintain, or cause to be
maintained, records which will adequately disclose at all times the state of the
Trust Fund and of each separate interest therein. The books, forms, and methods
of accounting shall be the responsibility of the Committee.

--------------------------
End of Article XIII

                                       79
<PAGE>

                                   ARTICLE XIV

                      PARTICIPANT ADMINISTRATIVE PROVISIONS

        14.1     Beneficiary Designation. Subject to the limitations of Section
2.8, each Participant may from time to time designate, in writing, a Beneficiary
to whom the Trustee shall pay his Accrued Benefit in the Trust Fund in the event
of his death. The Committee shall prescribe the form for the written designation
of Beneficiary and, upon the Participant's filing the form with the Committee,
it shall revoke all designations filed prior to that date by the same
Participant.

        14.2     No Beneficiary Designation. Subject to the limitations of
Section 2.8, if a Participant fails to name a Beneficiary in accord with Section
14.1, or if the Beneficiary named by a Participant predeceases him or dies
before complete distribution of the Participant's interest in the Trust, then
the Trustee shall pay the Participant's Accrued Benefit in lump sum to the legal
representative or representatives of the estate of the last to die of the
Participant and his Beneficiary. The Committee, in its sole discretion, shall
direct the Trustee as to whom the Trustee shall make payment under this Section.

        14.3     Personal Data to Committee. Each Participant and Beneficiary
must furnish to the Committee evidence, data, or information as the Committee
considers necessary or desirable for the purpose of administering the Plan. The
provisions of this Plan are effective for the benefit of each Participant upon
the condition precedent that each Participant will promptly furnish full, true,
and complete evidence, data, and information when requested by the Committee,
provided the Committee shall advise each Participant of the effect of his
failure to comply with its request.

        14.4     Address for Notification. Each Participant and each Beneficiary
of a deceased Participant shall file with the Committee, in writing, his post
office address, and each subsequent change of such post office address. Any
payment or distribution hereunder, and any communication addressed to a
Participant or his Beneficiary, at the last address filed with the Committee, or
if no address has been filed, then the last address indicated on the records of
the Employer shall be deemed to have been delivered to the Participant or his
Beneficiary on the date that such distribution or communication is deposited in
the United States Mail, postage prepaid.

        14.5     Place of Payment and Proof of Continued Eligibility. Any check
representing payment hereunder and any communication addressed to an Employee, a
former Employee, a retired Employee, or Beneficiary at his last address filed
with the Committee, or if no such address has been filed, then at his last
address as indicated on the records of the Employer, shall be deemed to have
been delivered to such person on the date on which such check or communication
is deposited in the United States mail. If the Committee, for any reason, is in
doubt as to whether benefit payments are being received by the person entitled
thereto, it shall, by registered mail addressed to the person concerned, at his
address last known to the Committee, notify such person that all unmailed and

                                       80
<PAGE>

future retirement income payments shall be henceforth withheld until he provides
the Committee with evidence of his continued life and his proper mailing
address.

        14.6     Alienation. Except as specifically provided in Article XI for
Plan loans or under a Qualified Domestic Relations Order, no benefit payable
under the Plan shall be subject in any manner to alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any
kind, either voluntary or involuntary, prior to actually being received by the
person entitled to the benefit under the terms of the Plan. The Trust Fund shall
not in any manner be liable for, or subject to, the debts, contracts,
liabilities, engagements, or torts of any person entitled to benefits hereunder,
except to the extent that under a Qualified Domestic Relations Order the Trustee
is required to pay a portion of a Participant's Accrued Benefit to an Alternate
Payee. In the event an Employer or the Trustee receives written notice of an
adverse claim to a benefit distributable to a Participant, Former Participant or
Beneficiary, the Trustee may suspend payment(s) of such benefit until such
matter is resolved to the satisfaction of the Trustee.

        14.7     Litigation Against the Trust. If any legal action filed against
the Trustee, an Employer, or the Committee, or against any member or members of
the Committee or the Employer, by or on behalf of any Participant or
Beneficiary, results adversely to the Participant or to the Beneficiary, the
Trustee shall reimburse itself, the Employer, Committee, and any member or
members of the Committee or the Employer, all costs and fees expended by it or
them by surcharging all costs and fees against the sums payable under the Plan
to the Participant or to the Beneficiary, but only to the extent a court of
competent jurisdiction specifically authorizes and directs any such surcharges
and only to the extent permitted under section 401(a)(13) of the Code.

        14.8     Information Available. Any Participant in the Plan or any
Beneficiary may examine copies of the Plan description, latest annual report,
any bargaining agreement, this Plan and Trust, contract, or any other instrument
under which the Plan was established or is operated. The Committee will maintain
all of the items listed in this Section in its office, or in such other place or
places as it may designate from time to time in order to comply with the
regulations issued thereunder, for examination during reasonable business hours.
Upon the written request of a Participant or Beneficiary the Committee shall
furnish him with a copy of any item listed in this Section. The Committee may
make a reasonable charge to the requesting person for the copy so furnished.

        14.9     Beneficiary's Right to Information. A beneficiary's right to
(and the Committees', or a Trustee's duty to provide to the Beneficiary)
information or data concerning the Plan shall not arise until he first becomes
entitled to receive a benefit under the Plan.

        14.10     Claims Procedure. Prior to or upon becoming entitled to
receive a benefit hereunder, a Participant or Beneficiary shall file a claim for
such benefit with the Committee at the time and in the manner prescribed
thereby. However, subject to the restrictions of Section 8.7, the Committee may
direct the Trustee to commence payment of a Participant's or Beneficiary's
benefits hereunder

                                       81
<PAGE>

without requiring the filing of a claim therefor, if the Committee has knowledge
of such Participant's or Beneficiary's whereabouts.

        14.11     Appeal Procedure for Denial of Benefits. The committee shall
provide adequate notice in writing to any Participant or to any Beneficiary
("Claimant") whose claim for benefits under the Plan the Committee has denied.
Such notice must be sent within 30 days of the date the claim is received by the
Committee unless special circumstances require an extension of time for
processing the claim. Such extension shall not exceed 90 days and no extension
shall be allowed unless, within the initial 30 day period, the claimant is sent
an extension notice indicating the special circumstances requiring the extension
and specifying a date by which the Committee expects to render its decision. The
Committee's notice of denial to the Claimant shall set forth:

                 (a)    The specific reason or reasons for the denial;

                 (b)    Specific references to pertinent Plan provisions on
which the Committee based its denial;

                 (c)    A description of any additional material and information
needed for the Claimant to perfect his claim and an explanation of why the
material or information is needed;

                 (d)    A statement that the Claimant may:

                        (i)      Request a review upon written application to
         the Committee;

                        (ii)     Review pertinent Plan documents;

                        (iii)    Submit issues and comments in writing; and

                        (iv)     That any appeal the Claimant wishes to make of
         the adverse determination must be in writing to the Committee within 75
         days after receipt of the Committee's notice of denial of benefits. If
         such notice is not furnished and the claim has not been allowed within
         such 30 day period, such claim shall be deemed to have been denied.

                 (e)    The Committee's notice must further advise the Claimant
that his failure to appeal the action to the Committee in writing within the 75
day period (or, if no such denial was furnished, within 120 days after the
filing of the claim) will render the Committee's determination final, binding,
and conclusive.

If the Claimant should appeal to the Committee, he, or his duly authorized
representative, may submit, in writing, whatever issues and comments he, or his
duly authorized representative, feels are pertinent. The Committee shall
re-examine all facts related to the appeal and make a final determination as to
whether the denial of benefits is justified under the circumstances. The
Committee shall advise the Claimant in writing of its decision on his appeal,
the specific reasons for

                                       82
<PAGE>

the decision, and the specific Plan provisions on which the decision is based.
The notice of the decision shall be given within 60 days of the Claimant's
written request for review, unless special circumstances (such as a hearing)
would make the rendering of a decision within the 60-day period infeasible, but
in no event shall the Committee render a decision regarding the denial of a
claim for benefits later than 120 days after its receipt of a request for
review. No hearing shall be scheduled earlier than 10 days after the mailing of
notice to the Claimant that sets forth the date, time and place of the hearing.
If an extension of time for review is required because of special circumstances,
written notice of the extension shall be furnished to the claimant prior to the
date the extension period commences.

The Committee's notice of denial of benefits shall identify the name of each
member of the Committee and the name and address of the Committee member to whom
the Claimant may forward his appeal.

        14.12    No Rights Implied. Nothing contained in this Plan, or with
respect to the establishment of the Trust, or any modification or amendment to
the Plan or Trust, or in the creation of any Account, or the payment of any
benefit, shall give any Employee, Participant, or any Beneficiary any right to
continue employment, any legal or equitable right against an Employer, or
Employee of the Employer, or against the Trustee, or its agents or employees,
except as expressly provided by the Plan, the Trust or ERISA.

        14.13    Electronic Transactions. Salary reduction agreements and
cancellations or amendments thereto, investment elections, changes or transfers,
loans, withdrawal decisions, and any other decision or election by a Participant
(or a Beneficiary) under this Plan may be accomplished by electronic or
telephonic means which are not otherwise prohibited by law and which are in
accordance with procedures and/or systems approved or arranged by the Committee
or its delegates.

--------------------------
End of Article XIV

                                       83
<PAGE>

                                   ARTICLE XV

                                FIDUCIARY DUTIES

        15.1     Fiduciaries. The "Fiduciaries" of the Plan shall consist of the
following:

                 (a)    The Company;

                 (b)    The Committee;

                 (c)    The Trustee; and

                 (d)    Such other person or persons that are designated to
carry out fiduciary responsibilities under the Plan in accordance with Section
15.3(c) hereof.

Any person or group of persons may serve in more than one fiduciary capacity
with respect to the Plan. A Fiduciary may employ one or more persons to render
advice with regard to any responsibility such Fiduciary has under the Plan.

        15.2     Allocation of Responsibilities. The powers and responsibilities
of the Fiduciaries are hereby allocated as indicated below:

                 (a)    Company. The Company shall be responsible for all
functions assigned or reserved to it under the Plan and Trust Agreement. Any
authority assigned or reserved to the Company under the Plan and Trust Agreement
shall be exercised by resolution of the appropriate representatives of the
Company, or action by a delegate thereof.

                 (b)    Committee. The Committee shall have the responsibility
and authority to control the operation and administration of the Plan in
accordance with the terms of the Plan and Trust Agreement, except with respect
to duties and responsibilities specifically allocated to other fiduciaries. The
Committee shall have the authority to issue written directions to the Trustee to
the extent provided in the Trust Agreement. The Committee shall have the
responsibility and authority to control the investment of the Trust Fund in
accordance with the terms of the Plan and Trust Agreement, except with respect
to duties and responsibilities specifically allocated to other fiduciaries. The
Committee shall have the authority to issue written directions to the Trustee to
the extent provided in the Trust Agreement. The Trustee shall follow the
Committee's directions, unless it is clear that the actions to be taken under
those directions would be violations of applicable fiduciary standards or would
be contrary to the terms of the Plan or Trust Agreement.

                (c)     Trustee. The Trustee shall have the duties and
responsibilities set out in the Trust Agreement, subject, however, to direction
by the Committee as set out in the Trust Agreement.

                                       84
<PAGE>

                (d)     Allocations. Powers and responsibilities may be
allocated to other Fiduciaries in accordance with Section 15.3 hereof, or as
otherwise provided herein or in the Trust Agreement.

This Article is intended to allocate to each Fiduciary the individual
responsibility for the prudent execution of the functions assigned to it, and
none of such responsibilities or any other responsibility shall be shared by two
or more of such Fiduciaries unless such sharing shall be provided by a specified
provision of the Plan or Trust Agreement.

        15.3 Procedures for Delegation and Allocation of Responsibilities.
Fiduciary responsibilities may be allocated as follows:

                 (a)    The Committee may specifically allocate responsibilities
to a specified member or members of the Committee.

                 (b)    The Committee may designate a person or persons other
than a Fiduciary to carry out fiduciary responsibilities under the Plan (this
authority shall not cause any person or persons employed to perform ministerial
acts and services for the Plan to be deemed fiduciaries of the Plan).

                 (c)    The Committee may appoint an Investment Manager or
managers to manage (including the power to acquire and dispose of) the assets of
the Plan (or a portion thereof).

                 (d)    If at any time there be more than one Trustee serving
under the Trust Agreement, such Trustees may allocate specific responsibilities,
obligations, or duties among themselves in such manner as they shall agree.

Any allocation of responsibilities pursuant to this Section shall be made by
filing a written notice thereof with the Committee specifically designating the
person or persons to whom such responsibilities or duties are allocated and
specifically setting out the particular duties and responsibilities with respect
to which the allocation or designation is made.

        15.4     Allocation of Fiduciary Liability.

                 (a)    Co-Trustees. In the event that there are two or more
Trustees serving under the Trust Agreement, each should use reasonable care to
prevent a Co-Trustee from committing a breach of fiduciary responsibility and
they shall jointly manage and control assets of the Plan, except that in the
event of an allocation of responsibilities, obligations, or duties, a Trustee to
whom such responsibilities, obligations, or duties have not been allocated shall
not be liable to any person by reason of this Section, either individually or as
a Trustee, for any loss resulting to the Plan arising from the acts or omissions
on the part of the Trustee to whom such responsibilities, obligations, or duties
have been allocated.

                                       85
<PAGE>

                 (b)    Liability Where Allocation is in Effect. To the extent
that fiduciary responsibilities are specifically allocated by a Fiduciary, or
pursuant to the express terms hereof, to any person or persons, then such
Fiduciary shall not be liable for any act or omission of such person in carrying
out such responsibility except to the extent that the Fiduciary violated Section
15.4 hereof (i) with respect to such allocation or designation, (ii) with
respect to the establishment or implementation of the procedure for making such
an allocation or designation, (iii) in continuing the allocation or designation,
or (iv) the Fiduciary would otherwise be liable in accordance with this Section
15.4.

                 (c)    No Responsibility for Employer Action. Neither the
Trustee nor the Committees shall have any obligation nor responsibility with
respect to any action required by the Plan to be taken by the Employer, any
Participant or Eligible Employee, nor for the failure of any of the above
persons to act or make any payment or contribution, or to otherwise provide any
benefit contemplated under this Plan.

                 (d)    No Duty to Inquire. Neither the Trustee nor the
Committee shall have any obligation to inquire into or be responsible for any
action or failure to act on the part of the others.

                 (e)    Liability of Trustee Where Investment Manager Appointed.
If an Investment Manager has been appointed pursuant to Section 15.3 hereof,
neither the Trustee nor the Committee shall be liable for the acts or omissions
of such Investment Manager, or be under any obligation to invest or otherwise
manage any assets of the Plan which are subject to the management of such
Investment Manager.

                 (f)    Successor Fiduciary. No Fiduciary shall be liable with
respect to any breach of fiduciary duty if such breach was committed before he
became a Fiduciary or after he ceased to be a Fiduciary.

--------------------------
End of Article XV

                                       86
<PAGE>

                                   ARTICLE XVI

                    DISCONTINUANCE AMENDMENT AND TERMINATION

        16.1     Discontinuance. The Company shall have the right, at any time,
without prior notice and without cause, to suspend or discontinue its
contributions under the Plan.

        16.2     Amendment. The Company and the Committee shall both, have the
right at any time and from time to time, independently of one another, and
without prior notice and without cause, to amend the Plan in any manner deemed
necessary or advisable in order to qualify (or maintain qualification of) the
Plan and Trust under the provisions of section 401(a) of the Code. Moreover, the
Company shall have the right at any time and from time to time, without prior
notice and without cause, to amend the Plan in any other manner provided no
amendment shall:

                 (a)    Except as provided for in Section 4.6, authorize or
permit any of the Trust Fund (other than the part which is required to pay taxes
and administration expenses) to be used for or diverted to purposes other than
for the exclusive benefit of the Participants or their Beneficiaries;

                 (b)    Cause or permit any portion of the Trust Fund to revert
to or become the property of the Employer;

                 (c)    Increase duties or responsibilities of the Trustee or
the Committee without the written consent of the affected Trustee or the
affected member or members of the Committee.

The Company shall make all amendments in writing. Each amendment shall state the
date to which it is either retroactively or prospectively effective.

        16.3     Termination. The Company shall have the right, without prior
notice and without cause, to terminate the Plan at any time. The Plan shall
terminate upon the first to occur of the following:

                 (a)    The date terminated by action of the Company; or

                 (b)    The dissolution, merger, consolidation, or
reorganization of the Company or the sale by the Company of all or substantially
all of its assets, unless the successor or purchaser makes provision to continue
the Plan, in which event the successor or purchaser shall be substituted as the
Company under this Plan.

        16.4     Termination, Partial Termination, or Complete Discontinuance of
Employer Contributions. Notwithstanding any other provision in this Plan, in the
event of a termination or partial termination of the Plan, or a complete
discontinuance of Employer contributions under the

                                       87
<PAGE>

Plan, all affected Participants shall have a fully vested interest in their
Accrued Benefit determined as of the date of such event. The value of the
Accrued Benefit shall be determined on the date the Accrued Benefit becomes
fully vested, as if such date was the Valuation Date for the Limitation Year in
which the termination, partial termination, or complete discontinuance of
Employer contributions occurs. The Committee shall interpret and administer this
Section 16.4 consistently with Section 7.8 and in accord with the intent and
scope of the Treasury regulations issued under section 411(d)(3) of the Code.

        16.5     Procedure on Termination. In the event of termination of the
Plan or permanent discontinuance of Employer contributions, the Employer shall
cause any unallocated assets to be allocated to Participant Accounts in the
manner specified in the Treasury regulations promulgated under section 411 of
the Code. Moreover, the Company shall, in its sole discretion, authorize any one
of the following procedures:

                 (a)    Continue Plan. To continue the Plan in operation in all
respects until the Trustee has distributed all benefits under the Plan, except
that no further persons shall become Participants, no further Employer
contributions shall be made, all Accounts shall be fully vested, and no further
payments shall be made except in distribution of the Trust Fund and payment of
administration expenses; or

                 (b)    Liquidate Plan. Subject to the limitations contained
herein, to wind up and liquidate the Plan and Trust and distribute the assets
thereof, after deduction of all expenses, to the Participants, Former
Participants, and Beneficiaries in accordance with their respective Accounts as
then constituted. If the Employer makes no election before termination, then
this subsection (b) will govern distribution of the Trust Fund.

        16.6     Merger. The Trustee shall not consent to, or be a party to, any
merger or consolidation with another plan, or to a transfer of assets or
liabilities to another plan, unless immediately after the merger, consolidation,
or transfer, the surviving Plan, if it then terminated, would provide to each
Participant a benefit equal to or greater than the benefit each Participant
would have received had the Plan terminated immediately before the merger,
consolidation, or transfer.

        16.7     Notice of Change in Terms. The Committee, within the time
prescribed by ERISA and applicable regulations, shall furnish all Participants
and Beneficiaries a summary descriptive of any material amendment to the Plan or
notice of discontinuance of contributions or termination of the Plan and all
other information required by ERISA to be furnished without charge.

-------------------------
End of Article XVI

                                       88
<PAGE>

                                  ARTICLE XVII

                                    THE TRUST

        17.1     Purpose of the Trust Fund. A Trust Fund has been created and
will be maintained for the purposes of the Plan, and the assets thereof shall be
invested in accordance with the terms of the Trust Agreement. All contributions
will be paid into the Trust Fund, and all benefits under the Plan will be paid
from the Trust Fund.

        17.2     Appointment of Trustee. Trustee(s) shall be appointed by the
Company to administer the Trust Fund. The Trustee's obligations, duties, and
responsibilities shall be governed solely by the terms of the Trust Agreement.

        17.3     Exclusive Benefit of Participants. Subject to Section 4.6, the
Trust Fund will be used and applied only in accordance with the provisions of
the Plan to provide the benefits thereof, and no part of the corpus or income of
the Trust Fund shall be used for or diverted to purposes other than for the
exclusive benefit of the Participants and their Beneficiaries and with respect
to expenses of administration. The Company reserves the right to recover any
amounts held in a suspense account at the termination of the Trust Fund that
cannot be used to reduce Employer contributions in the year of termination
because of the limitations contained in Section 6.8 of the Plan and section 415
of the Code.

        17.4     Benefits Supported Only By the Trust Fund. Any person having
any claim under the Plan will look solely to the assets of the Trust Fund for
satisfaction.

        17.5     Rights to Trust Assets. No Employee shall have any right to, or
interest in, any assets of the Trust Fund upon termination of his employment or
otherwise, except as provided from time to time under this Plan, and then only
to the extent of the benefits payable under the Plan to such Employee out of the
assets of the Trust Fund. Except as otherwise may be provided under Title IV of
ERISA, all payments of benefits as provided for in this Plan shall be made
solely out of the assets of the Trust Fund and none of the Fiduciaries shall be
liable therefor in any manner.

        17.6     Restriction of Use of Trust Fund. Notwithstanding any other
provision of the Plan, no part of the corpus or income of the Trust Fund may be
used or diverted for expenses relating to settlor functions that arise from the
establishment, design or termination of the Plan.

--------------------------
End of Article XVII

                                       89
<PAGE>

                                  ARTICLE XVIII

                                  MISCELLANEOUS

        18.1     Execution of Receipts and Releases. Any payment to any
Participant, or to his legal representative or Beneficiary, in accordance with
the provisions of the Plan, shall to the extent thereof be in full satisfaction
of all claims hereunder against the Plan and Trust. The Committee may require
such Participant, legal representative, or Beneficiary, as a condition precedent
to such payment, to execute a receipt and release therefor in such form as it
shall determine.

        18.2     No  Guarantee of Interests. Neither the Trustee, the Committee,
nor the Company guarantee the Trust Fund from loss or depreciation. The Company
does not guarantee the payment of any money which may be or becomes due to any
person from the Trust Fund. The liability of the Committee and the Trustee to
make any payment from the Trust Fund is limited to the then available assets
of the Trust.

        18.3     Payment of Expenses. Except as provided below, all expenses
incident to the administration and protection of the Plan and Trust, including
but not limited to legal, accounting, and Trustee fees, may be paid by the
Employer, or, in the absence of such payments (which are not obligatory), shall
be paid from the Trust Fund, and until paid, shall constitute a first and prior
claim and lien against the Trust Fund. However, any and all expenses relating to
settlor functions that arise from the creation, design or termination of the
Plan must be paid by the Employer and may not be paid from the Trust Fund. The
extent, if any, to which an Employer elects to pay its allocable share of Plan
expenses may vary among Employers, and an Employer may elect to pay all or a
portion of such Plan expenses only for its own Employees, rather than for
Employees of all Employers maintaining the Plan.

        18.4     Employer Records. Records of an Employer as to an Employee's or
Participant's period of employment, termination of employment and the reason
therefor, leaves of absence, reemployment, and Compensation will be conclusive
on all persons, unless determined to be incorrect.

        18.5     Interpretations and Adjustments. To the extent permitted by
law, an interpretation of the Plan and a decision on any matter within a
Fiduciary's discretion made in good faith is binding on all persons. A
misstatement or other mistake of fact shall be corrected when it becomes known
and the person responsible shall make such adjustment on account thereof as he
considers equitable and practicable.

        18.6     Uniform Rules. In the administration of the Plan, uniform rules
will be applied to all Participants similarly situated.

                                       90
<PAGE>

        18.7     Evidence. Evidence required of anyone under the Plan may be by
certificate, affidavit, document, or other information which the person acting
on it considers pertinent and reliable, and signed, made or presented by the
proper party or parties.

        18.8     Severability. In the event any provision of the Plan shall be
held to be illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining provisions of the Plan, but shall be fully severable
and the Plan shall be construed and enforced as if the illegal or invalid
provision had never been included herein.

        18.9     Notice. Any notice required to be given herein by the Trustee,
an Employer, or the Committee, shall be deemed delivered, when (a) personally
delivered, or (b) placed in the United States mails, in an envelope addressed to
the last known address of the person to whom the notice is given.

        18.10    Waiver of Notice. Any person entitled to notice under the Plan
may waive the notice.

        18.11    Successors. The Plan shall be binding upon all persons entitled
to benefits under the Plan, their respective heirs and legal representatives,
upon each Employer, its successors and assigns, and upon the Trustee, the
Committee, and their successors.

        18.12    Headings. The titles and headings of Articles and Sections are
included for convenience of reference only and are not to be considered in
construction of the provisions hereof.

        18.13    Governing Law. All questions arising with respect to the
provisions of this Agreement shall be determined by application of the laws of
the State of Ohio except to the extent Ohio law is preempted by Federal statute.

        18.14    Qualified Military Service. Notwithstanding any other provision
of this Plan to the contrary, contributions, benefits and service credit with
respect to qualified military service will be provided in accordance with
Section 414(u) of the Code.

--------------------------
End of Article XVIII

                                       91
<PAGE>

                                   ARTICLE XIX

                             EMPLOYER PARTICIPATION

        19.1     Adoption by Employer. Subject to the further provisions of this
Article, any entity whether or not it is a member of the same controlled group
of corporations or trades or businesses under common control (as defined in
sections 414(b) or 414(c) of the Code) as the Company, now in existence or
hereafter formed or acquired, or is approved by the Company, and which is
otherwise legally eligible, may, with the consent and approval of the board of
directors of the Company, by formal resolution or decision of its own board of
directors, adopt the Plan and the Trust and, if deemed necessary by the Company,
execute an Adoption Agreement, for all or any classification of its employees.
Such adoption shall be effectuated and evidenced by a formal resolution of the
board of directors of the Company consenting to and containing or incorporating
by reference such formal resolution or decision of the adopting corporation. The
adoption resolution or decision shall become, as to such adopting corporation
and its employees, a part of the Plan as then or subsequently amended. It shall
not be necessary for the adopting corporation to sign or execute the Plan
document, but, if deemed necessary by the Company, such corporation must
complete and execute an Adoption Agreement. All Employers which have adopted the
Plan shall be identified on Schedule I. The effective date of the Plan for any
such adopting corporation shall be that stated in the resolution or decision of
adoption of the adopting corporation, and from and after such effective date,
the adopting corporation shall assume all the rights, obligations and
liabilities of an Employer hereunder. The administrative powers and control of
the Company, as now or hereafter provided in the Plan, including the Company's
sole right of amendment of the Plan and Trust and of appointment and removal of
the Committee, and Trustee, together with their successors, shall not be
diminished by reason of the participation of any such adopting corporation in
the Plan and Trust. For any period of time during which an Employer maintaining
the Plan is not a member of the same controlled group of corporations as the
Company or trades or businesses under common control with the Company, the
provisions of Section 413(c) of the Code shall apply.

        19.2     Withdrawal by Employer. Any Employer by action of its board of
directors and notice to the Company and the Trustee, may withdraw from the Plan
and Trust at any time without affecting other Employers not withdrawing, by
complying with the provisions of the Plan. Termination of the Plan as it relates
to an Employer upon its withdrawal shall be governed by the provisions of
Article XV. A withdrawing Employer may arrange for the continuation by itself or
its successor of this Plan and Trust in separate form for its own Employees with
such amendments, if any, as it may deem proper, or it may arrange for
continuation of the Plan and Trust by merger with an existing plan and trust
qualified under sections 401(a) and 501(a) of the Code and transfer of such
portion of the Trust assets as the Committee determines are allocable to the
Employer and its employees who are Participants. The Company may in its absolute
discretion, by resolution of its board of directors, terminate an Employer's
participation at any time when (1) in the Company's judgment such Employer fails
or refuses to discharge its obligations under the Plan following such

                                       92
<PAGE>

prior notice and opportunity to cure as may be appropriate under the
circumstances, or (2) in the Company's judgment, such Employer should not be
allowed to continue to participate.

        19.3     Adoption Contingent Upon Initial and Continued Qualification.
The adoption of the Plan and Trust by a corporation as provided in Section 19.1
is made contingent and subject to the condition precedent that the adopting
corporation meets all the statutory requirements for qualified plans under the
Code for its Employees. The adopting corporation may, or at the request of the
Company shall, request an initial letter of determination from the appropriate
District Director of Internal Revenue to the effect that the Plan and Trust, as
herein set forth or as amended with respect to the adopting corporation, satisfy
the requirements of the applicable federal statutes for tax qualification
purposes for such adopting corporation and its employees. In the event the Plan
or the Trust in its operation becomes disqualified for any reason as to such
adopting corporation and its employees, the portion of the Trust Fund allocable
to them shall be segregated as soon as is administratively feasible, pending
either (1) the prompt requalification of the Plan and Trust as to such
corporation and its employees to the satisfaction of the Internal Revenue
Service, so as not to affect the continued qualified status of the Plan and
Trust as to all other Employees, or (2) as provided in Section 19.2 above, the
prompt withdrawal of such corporation from this Plan and Trust and a
continuation by itself or its successor of a plan and a trust separately from
this Plan and Trust, or by merger with another existing qualified plan and trust
with a transfer of its said segregated portion of Trust assets, or (3) the
prompt termination of the Plan and Trust as to itself and its employees.

        19.4     No Joint Venture Implied. The adoption of the Plan by any
Employer shall not create a joint venture or partnership relation between it and
any other Employer. Any rights, duties, liabilities and obligations assumed or
incurred hereunder by any Employer, or imposed upon any Employer by the
provisions of the Plan, shall relate to and affect such Employer alone.

--------------------------
End of Article XIX

                                       93
<PAGE>

                                   ARTICLE XX

                                 SIGNATURE PAGE

        IN WITNESS WHEREOF, Schottenstein Stores Corporation has caused this
instrument to be executed on this 30th day of December, 2000, but to be
effective as of January 1, 2000.

                                               SCHOTTENSTEIN STORES CORPORATION

                                               By: /s/ George Dailey
                                                   -----------------------------

                                               Title: Director of Benefits
                                                      --------------------------

                                       94
<PAGE>

                                   SCHEDULE I

1)      Schottenstein Stores Corporation and designated Related Employers

2)      Value City Department Stores, Inc. and designated Related Employers

3)      American Eagle Outfitters, Inc. and designated Related Employers

                                       95<PAGE>
                                                                     EXHIBIT 4.3

                               THE MIDLAND COMPANY

                                     ISSUER,

                                       TO

                         U.S. BANK NATIONAL ASSOCIATION,

                                     TRUSTEE

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

                                    INDENTURE

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

                         DATED AS OF SEPTEMBER 17, 2003

                                 DEBT SECURITIES

<PAGE>

                         Reconciliation and Tie between
             Trust Indenture Act of 1939 (the "Trust Indenture Act")
                                  and Indenture

<TABLE>
<CAPTION>
Trust Indenture Act Section                                                  Indenture Section
---------------------------                                                  -----------------
<S>                                                                          <C>
Section 310(a)(1)..........................................................................6.7
   (a)(2)..................................................................................6.7
   (b).....................................................................................6.8
Section 312(a).............................................................................7.1
   (b).....................................................................................7.2
   (c).....................................................................................7.2
Section 313(a).............................................................................7.3
   (b)(2)..................................................................................7.3
   (c).....................................................................................7.3
   (d).....................................................................................7.3
Section 314(a).............................................................................7.4
   (c)(1)..................................................................................1.2
   (c)(2)..................................................................................1.2
   (e).....................................................................................1.2
   (f).....................................................................................1.2
Section 316(a) (last sentence).............................................................1.1
   (a)(1)(A).........................................................................5.2, 5.12
   (a)(1)(B)..............................................................................5.13
   (b).....................................................................................5.8
Section 317(a)(1)..........................................................................5.3
   (a)(2)..................................................................................5.4
   (b)....................................................................................10.3
Section 318(a).............................................................................1.8
</TABLE>

------------
Note:   This reconciliation and tie shall not, for any purpose, be deemed to be
        part of this Indenture.

                                       2
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                    <C>
Article 1  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION...........................1

        Section 1.1   Definitions............................................................1
        Section 1.2   Compliance Certificates and Opinions..................................10
        Section 1.3   Form of Documents Delivered to Trustee................................11
        Section 1.4   Acts of Holders.......................................................11
        Section 1.5   Notices, etc. to Trustee and Company..................................13
        Section 1.6   Notice to Holders of Securities; Waiver...............................14
        Section 1.7   Language of Notices...................................................15
        Section 1.8   Conflict with Trust Indenture Act.....................................15
        Section 1.9   Effect of Headings and Table of Contents..............................15
        Section 1.10  Successors and Assigns................................................15
        Section 1.11  Separability Clause...................................................15
        Section 1.12  Benefits of Indenture.................................................15
        Section 1.13  Governing Law.........................................................15
        Section 1.14  Legal Holidays........................................................15
        Section 1.15  Counterparts..........................................................16
        Section 1.16  Judgment Currency.....................................................16
        Section 1.17  No Security Interest Created..........................................16
        Section 1.18  Limitation on Individual Liability....................................16

Article 2  SECURITIES FORMS.................................................................17

        Section 2.1   Forms Generally.......................................................17
        Section 2.2   Form of Trustee's Certificate of Authentication.......................17
        Section 2.3   Securities in Global Form.............................................18

Article 3  THE SECURITIES...................................................................18

        Section 3.1   Amount Unlimited; Issuable in Series..................................18
        Section 3.2   Currency; Denominations...............................................22
        Section 3.3   Execution, Authentication, Delivery and Dating........................22
        Section 3.4   Temporary Securities..................................................24
        Section 3.5   Registration, Transfer and Exchange...................................25
        Section 3.6   Mutilated, Destroyed, Lost and Stolen Securities......................28
        Section 3.7   Payment of Interest and Certain Additional Amounts; Rights to
                      Interest and Certain Additional Amounts Preserved.....................29
        Section 3.8   Persons Deemed Owners.................................................30
        Section 3.9   Cancellation..........................................................31
        Section 3.10  Computation of Interest...............................................31

Article 4  SATISFACTION AND DISCHARGE OF INDENTURE..........................................31

        Section 4.1   Satisfaction and Discharge............................................31
        Section 4.2   Defeasance and Covenant Defeasance....................................33
        Section 4.3   Application of Trust Money............................................36
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                    <C>
Article 5  REMEDIES.........................................................................37

        Section 5.1   Events of Default.....................................................37
        Section 5.2   Acceleration of Maturity; Rescission and Annulment....................38
        Section 5.3   Collection of Debt and Suits for Enforcement by Trustee...............39
        Section 5.4   Trustee May File Proofs of Claim......................................40
        Section 5.5   Trustee May Enforce Claims without Possession of Securities or
                      Coupons...............................................................41
        Section 5.6   Application of Money Collected........................................41
        Section 5.7   Limitations on Suits..................................................42
        Section 5.8   Unconditional Right of Holders to Receive Principal and any
                      Premium, Interest and Additional Amounts..............................42
        Section 5.9   Restoration of Rights and Remedies....................................43
        Section 5.10  Rights and Remedies Cumulative........................................43
        Section 5.11  Delay or Omission Not Waiver..........................................43
        Section 5.12  Control by Holders of Securities......................................43
        Section 5.13  Waiver of Past Defaults...............................................44
        Section 5.14  Waiver of Usury, Stay or Extension Laws...............................44
        Section 5.15  Undertaking for Costs.................................................44

Article 6  THE TRUSTEE......................................................................45

        Section 6.1   Certain Rights of Trustee.............................................45
        Section 6.2   Notice of Defaults....................................................46
        Section 6.3   Not Responsible for Recitals or Issuance of Securities................46
        Section 6.4   May Hold Securities...................................................47
        Section 6.5   Money Held in Trust...................................................47
        Section 6.6   Compensation and Reimbursement........................................47
        Section 6.7   Corporate Trustee Required; Eligibility...............................48
        Section 6.8   Resignation and Removal; Appointment of Successor.....................48
        Section 6.9   Acceptance of Appointment by Successor................................50
        Section 6.10  Merger, Conversion, Consolidation or Succession to Business...........51
        Section 6.11  Appointment of Authenticating Agent...................................51

Article 7  HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY.................................53

        Section 7.1   Company to Furnish Trustee Names and Addresses of Holders.............53
        Section 7.2   Preservation of Information; Communications to Holders................53
        Section 7.3   Reports by Trustee....................................................53
        Section 7.4   Reports by Company; Rule 144A Information.............................54

Article 8  CONSOLIDATION, MERGER AND SALES..................................................55

        Section 8.1   Company May Consolidate, etc., Only on Certain Terms..................55
        Section 8.2   Successor Person Substituted for Company..............................55
</TABLE>

                                     ii

<PAGE>

<TABLE>
<S>                                                                                        <C>
Article 9  SUPPLEMENTAL INDENTURES..........................................................56

        Section 9.1   Supplemental Indentures without Consent of Holders....................56
        Section 9.2   Supplemental Indentures with Consent of Holders.......................57
        Section 9.3   Execution of Supplemental Indentures..................................58
        Section 9.4   Effect of Supplemental Indentures.....................................58
        Section 9.5   Reference in Securities to Supplemental Indentures....................58
        Section 9.6   Conformity with Trust Indenture Act...................................59
        Section 9.7   Notice of Supplemental Indenture......................................59

Article 10  COVENANTS.......................................................................59

        Section 10.1  Payment of Principal, any Premium, Interest and Additional Amounts....59
        Section 10.2  Maintenance of Office or Agency.......................................59
        Section 10.3  Money for Securities Payments to Be Held in Trust.....................60
        Section 10.4  Additional Amounts....................................................62
        Section 10.5  Limitation on Liens; Restriction on Sale-Leasebacks...................62
        Section 10.6  Legal Existence.......................................................64
        Section 10.7  Waiver of Certain Covenants...........................................64
        Section 10.8  Company Statement as to Compliance; Notice of Certain Defaults........64

Article 11  REDEMPTION OF SECURITIES........................................................65

        Section 11.1  Applicability of Article..............................................65
        Section 11.2  Election to Redeem; Notice to Trustee.................................65
        Section 11.3  Selection by Trustee of Securities to be Redeemed.....................65
        Section 11.4  Notice of Redemption..................................................66
        Section 11.5  Deposit of Redemption Price...........................................67
        Section 11.6  Securities Payable on Redemption Date.................................67
        Section 11.7  Securities Redeemed in Part...........................................68

Article 12  SINKING FUNDS...................................................................69

        Section 12.1  Applicability of Article..............................................69
        Section 12.2  Satisfaction of Sinking Fund Payments with Securities.................69
        Section 12.3  Redemption of Securities for Sinking Fund.............................69

Article 13  REPAYMENT AT THE OPTION OF HOLDERS..............................................70

        Section 13.1  Applicability of Article..............................................70

Article 14  SECURITIES IN FOREIGN CURRENCIES................................................70

        Section 14.1  Applicability of Article..............................................70
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>                                                                                       <C>
Article 15  MEETINGS OF HOLDERS OF SECURITIES...............................................71

        Section 15.1  Purposes for Which Meetings May Be Called.............................71
        Section 15.2  Call, Notice and Place of Meetings....................................71
        Section 15.3  Persons Entitled to Vote at Meetings..................................71
        Section 15.4  Quorum; Action........................................................72
        Section 15.5  Determination of Voting Rights; Conduct and Adjournment of
                      Meetings..............................................................72
        Section 15.6  Counting Votes and Recording Action of Meetings.......................73
</TABLE>

                                       iv

<PAGE>

        INDENTURE, dated as of September 17, 2003 (the "Indenture"), between THE
MIDLAND COMPANY, a corporation duly organized and existing under the laws of the
State of Ohio (hereinafter called the "Company"), having its principal executive
office located at 7000 Midland Boulevard, Amelia, Ohio 45202-2607 and U.S. BANK
NATIONAL ASSOCIATION, a national banking association duly organized and existing
under the laws of the State of Ohio (hereinafter called the "Trustee"), having
its Corporate Trust Office located at 425 Walnut Street, Cincinnati, Ohio 45202.

                                    RECITALS

        The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its senior unsecured
debentures, notes or other evidences of indebtedness (hereinafter called the
"Securities"), unlimited as to principal amount, to bear such rates of interest,
to mature at such time or times, to be issued in one or more series and to have
such other provisions as shall be fixed as hereinafter provided.

        The Company has duly authorized the execution and delivery of this
Indenture. All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.

        This Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder that are required to be part of this
Indenture and, to the extent applicable, shall be governed by such provisions.

        NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                    ARTICLE 1
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.1 Definitions.

        Except as otherwise expressly provided in or pursuant to this Indenture
or unless the context otherwise requires, for all purposes of this Indenture:

        (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;

<PAGE>

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

        (4) the words "herein", "hereof", "hereto" 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; and

        (5) the word "or" is always used inclusively (for example, the phrase "A
or B" means "A or B or both", not "either A or B but not both").

        Certain terms used principally in certain Articles hereof are defined in
those Articles.

        "Act", when used with respect to any Holders, has the meaning specified
in Section 1.4.

        "Additional Amounts" means any additional amounts which are required
hereby or by any Security, under circumstances specified herein or therein, to
be paid by the Company in respect of certain taxes, assessments or other
governmental charges imposed on Holders specified therein and which are owing to
such Holders.

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

        "Attributable Debt" means, as to any particular lease at any date as of
which the amount thereof is to be determined, the total net amount of rent
(discounted from the respective due dates thereof at the rate per annum set
forth or implicit in the terms of such lease, compounded semiannually) required
to be paid by the lessee under such lease during the remaining term thereof. The
net amount of rent required to be paid under any such lease for any such period
shall be the total amount of the rent payable by the lessee with respect to such
period, but may exclude amounts required to be paid on account of maintenance
and repairs, insurance, taxes, assessments, water rates and similar charges. In
the case of any lease that is terminable by the lessee upon the payment of a
penalty or other termination payment, such amount shall be the amount determined
assuming termination upon the first date such lease may be terminated (in which
case the amount shall also include the amount of the penalty or termination
payment, but no rent shall be considered as required to be paid under such lease
subsequent to the first date upon which it may be so terminated).

        "Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 6.11 to act on behalf of the Trustee to authenticate
Securities of one or more series.

                                       2
<PAGE>

        "Authorized Newspaper" means a newspaper, in an official language of the
place of publication or in the English language, customarily published on each
day that is a Business Day in the place of publication, whether or not published
on days that are Legal Holidays in the place of publication, and of general
circulation in each place in connection with which the term is used or in the
financial community of each such place. Where successive publications are
required to be made in Authorized Newspapers, the successive publications may be
made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any day that is a Business Day in the
place of publication.

        "Authorized Officer" means, when used with respect to the Company, the
Chief Executive Officer, the Chairman of the Board of Directors, the President,
Senior Vice President, any Vice President, the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Company.

        "Bearer Security" means any Security in the form established pursuant to
Section 2.1 which is payable to bearer.

        "Board of Directors" means the board of directors of the Company or any
committee of that board duly authorized to act generally or in any particular
respect for the Company hereunder.

        "Board Resolution" means a copy of one or more resolutions, certified by
the 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, delivered to the Trustee.

        "Business Day", with respect to any Place of Payment or other location,
means, unless otherwise specified with respect to any Securities pursuant to
Section 3.1, any day other than a Saturday, Sunday or other day on which banking
institutions in such Place of Payment or other location are authorized or
obligated by law, regulation or executive order to close.

        "Capital Stock" means, with respect to any Person, any and all shares,
interests, participations or other equivalents (however designated) in the
equity interests of such Person, including without limitation, (i) with respect
to a corporation, common stock, preferred stock and any other capital stock,
(ii) with respect to a partnership, partnership interests (whether general or
limited), and (iii) with respect to a limited liability company, limited
liability company interests.

        "Clearstream" means Clearstream Banking, societe anonyme, Luxembourg.

        "Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Securities Exchange Act of 1934, as
amended, 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.

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

                                       3
<PAGE>

        "Company Order" or "Company Request" means, respectively, a written
order or request, as the case may be, signed in the name of the Company by the
Chairman of the Board of Directors, the President, a Senior Vice President or a
Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary or
an Assistant Secretary, of the Company, and delivered to the Trustee.

        "Consolidated Net Worth" means at any time the consolidated
stockholders' equity of the Company and its Subsidiaries calculated on a
consolidated basis as of such time.

        "Consolidated Tangible Net Worth" means, as of any date, the difference
of (i) Consolidated Net Worth, minus (ii) to the extent included in determining
the amount under the foregoing clause (i), the net book value of goodwill, cost
in excess of fair value of net assets acquired, patents, trademarks, tradenames
and copyrights, treasury stock and all other assets which are deemed intangible
assets under generally accepted accounting principles.

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

        "Corporate Trust Office" means the principal corporate trust 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 5847 San Felipe, Suite 1050, Houston, Texas 77057.

        "Corporation" includes corporations and limited liability companies and,
except for purposes of Article 8, associations, companies and business trusts.

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

        "Currency", with respect to any payment, deposit or other transfer in
respect of the principal of or any premium or interest on or any Additional
Amounts with respect to any Security, means Dollars or any Foreign Currency in
which such payment, deposit or other transfer is required to be made by or
pursuant to the terms hereof or such Security and, with respect to any other
payment, deposit or transfer pursuant to or contemplated by the terms hereof or
such Security, means Dollars.

        "CUSIP number" means the alphanumeric designation assigned to a Security
by Standard & Poor's Corporation, CUSIP Service Bureau.

        "Debt" means indebtedness for borrowed money.

        "Defaulted Interest" has the meaning specified in Section 3.7.

        "Dollar" or "$" means a dollar or other equivalent unit of legal tender
for payment of public or private debts in the United States of America.

                                       4
<PAGE>

        "Domestic Subsidiary" means each present and future Subsidiary of
Midland which is not organized under the laws of a jurisdiction outside of the
United States.

        "EC Treaty" means the Treaty establishing the European Communities
(signed in Rome on 25 March 1957), as amended by the Treaty on European Union,
as amended (signed in Maastricht on 7 February 1992).

        "EMU" means European Economic and Monetary Union.

        "Euro" each means the lawful currency of the member states of the
European Union that adopt the single currency in accordance with the EC Treaty.

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

        "Event of Default" has the meaning specified in Section 5.1.

        "Foreign Currency" means any currency, currency unit or composite
currency, including, without limitation, the Euro, issued by the government of
one or more countries other than the United States of America or by any
recognized confederation or association of such governments.

        "Funded Debt" means Debt having a maturity of more than 12 months from
the date as of which the amount thereof is to be determined or having a maturity
of less than 12 months but by its terms being renewable or extendible beyond 12
months from such date at the option of the obligor.

        "Government Obligations" means securities which are (i) direct
obligations of the United States of America or the other government or
governments in the confederation which issued the Foreign Currency in which the
principal of or any premium or interest on such Security or any Additional
Amounts in respect thereof shall be payable, in each case where the payment or
payments thereunder are supported by the full faith and credit of such
government or governments or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America or such other government or governments, in each case where the timely
payment or payments thereunder are unconditionally guaranteed as a full faith
and credit obligation by the United States of America or such other government
or governments, and which, in the case of (i) or (ii), are not callable or
redeemable at the option of the issuer or issuers 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 or other amount with respect to 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 or the specific payment of interest on or principal of or other
amount with respect to the Government Obligation evidenced by such depositary
receipt.

        "Holder", in the case of any Registered Security, means the Person in
whose name such Security is registered in the Security Register and, in the case
of any Bearer Security, means the bearer thereof and, in the case of any Coupon,
means the bearer thereof.

                                       5
<PAGE>

        "Indenture" means this instrument as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and, with respect to any
Security, by the terms and provisions of such Security and any Coupon
appertaining thereto established pursuant to Section 3.1 (as such terms and
provisions may be amended pursuant to the applicable provisions hereof).

        "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", with respect to any Original Issue Discount Security which
by its terms bears interest only after Maturity, means interest payable after
Maturity and, when used with respect to a Security which provides for the
payment of Additional Amounts pursuant to Section 10.4, includes such Additional
Amounts.

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

        "Judgment Currency" has the meaning specified in Section 1.16.

        "Legal Holidays" has the meaning specified in Section 1.14.

        "Lien" means and includes any mortgage, pledge, lien, security interest,
conditional sale or other title retention agreement or other similar
encumbrance.

        "Maturity", 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 provided in or pursuant to this Indenture, whether at the Stated
Maturity or by declaration of acceleration, notice of redemption or repurchase,
notice of option to elect repayment or otherwise, and includes the Redemption
Date.

        "New York Banking Day" has the meaning specified in Section 1.16.

        "Office" or "Agency" with respect to any Securities, means an office or
agency of the Company maintained or designated in a Place of Payment for such
Securities pursuant to Section 10.2 or any other office or agency of the Company
maintained or designated for such Securities pursuant to Section 10.2 or, to the
extent designated or required by Section 10.2 in lieu of such office or agency,
the Corporate Trust Office of the Trustee.

        "Officers' Certificate" means a certificate signed by the Chairman of
the Board, the Chief Executive Officer, the President, a Senior Vice President
or a Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary
or an Assistant Secretary of the Company, that complies with the requirements of
Section 314(e) of the Trust Indenture Act and is delivered to the Trustee.

        "Opinion of Counsel" means a written opinion of counsel, who may be an
employee of or counsel for the Company or other counsel who shall be reasonably
acceptable to the Trustee,

                                       6
<PAGE>

that, if required by the Trust Indenture Act, complies with the requirements of
Section 314(e) of the Trust Indenture Act.

        "Original Issue Discount Security" means a Security issued pursuant to
this Indenture which provides for declaration of an amount less than the
principal face amount thereof to be due and payable upon acceleration pursuant
to Section 5.2.

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

        (a)    any such Security theretofore cancelled by the Trustee or the
               Security Registrar or delivered to the Trustee or the Security
               Registrar for cancellation;

        (b)    any such Security for whose payment at the Maturity thereof money
               in the necessary amount has been theretofore deposited pursuant
               hereto (other than pursuant to Section 4.2 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) 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 provision therefor satisfactory to
               the Trustee has been made;

        (c)    any such Security with respect to which the Company has effected
               defeasance pursuant to the terms hereof, except to the extent
               provided in Section 4.2; and

        (d)    any such Security which has 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, unless
               there shall have been presented to the Trustee proof satisfactory
               to it that such Security is held by a bona fide purchaser in
               whose hands such Security is a valid obligation of the Company;

        provided, however, that in determining whether the Holders of the
requisite principal amount of Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder or are
present at a meeting of Holders of Securities for quorum purposes, (i) the
principal amount of an Original Issue Discount Security that may be counted in
making such determination and that shall be deemed to be Outstanding for such
purposes shall be equal to the amount of the principal thereof that pursuant to
the terms of such Original Issue Discount Security would be declared (or shall
have been declared to be) due and payable upon a declaration of acceleration
thereof pursuant to Section 5.2 at the time of such determination, and (ii) the
principal amount of any Indexed Security that may be counted in making such
determination and that shall be deemed Outstanding for such purposes shall be
equal to the principal face amount of such Indexed Security at original
issuance, unless otherwise provided in or pursuant to this Indenture, and (iii)
the principal amount of a Security denominated in a Foreign Currency shall be
the Dollar equivalent, determined on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue Discount
Security, the Dollar equivalent on the date of original issuance of such
Security of the

                                       7
<PAGE>

amount determined as provided in (i) above) of such Security, and (iv)
Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or such other obligor, shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee shall be
protected in making any such determination or relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which a Responsible Officer of the Trustee actually knows to be so owned shall
be so disregarded. Securities so owned which shall have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee (A) the pledgee's right so to act with respect to
such Securities and (B) that the pledgee is not the Company or any other obligor
upon the Securities or any Coupons appertaining thereto or an Affiliate of the
Company or such other obligor.

        "Paying Agent" means any Person authorized by the Company to pay the
principal of, or any premium or interest on, or any Additional Amounts with
respect to, any Security or any Coupon on behalf of the Company.

        "Permitted Liens" has the meaning specified in Section 10.5.

        "Person" means any individual, Corporation, partnership, association,
joint venture, trust, or any other entity or organization, including government
or political subdivision or an agency or instrumentality thereof.

        "Place of Payment", with respect to any Security, means the place or
places where the principal of, or any premium or interest on, or any Additional
Amounts with respect to such Security are payable as provided in or pursuant to
this Indenture or such Security.

        "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
lost, destroyed, mutilated or stolen Security or any Security to which a
mutilated, destroyed, lost or stolen Coupon appertains shall be deemed to
evidence the same Debt as the lost, destroyed, mutilated or stolen Security or
the Security to which a mutilated, destroyed, lost or stolen Coupon appertains.

        "Principal Property" means, whether owned or leased on the date of the
indenture or thereafter acquired, each manufacturing or processing plant or
facility of the Company or any of its Subsidiaries located in the United States
of America.

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

        "Redemption Price", with respect to any Security or portion thereof to
be redeemed, means the price at which it is to be redeemed as determined by or
pursuant to this Indenture or such Security.

        "Registered Security" means any Security established pursuant to Section
2.1 which is registered in a Security Register.

                                       8
<PAGE>

        "Regular Record Date" for the interest payable on any Registered
Security on any Interest Payment Date therefor means the date, if any, specified
in or pursuant to this Indenture or such Security as the "Regular Record Date".

        "Required Currency" has the meaning specified in Section 1.16.

        "Responsible Officer" means with respect to the Trustee any officer
assigned by the Trustee to administer corporate trust matters and also means,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his or her knowledge of and familiarity with
the particular subject.

        "Security" or "Securities" means any note or notes, bond or bonds,
debenture or debentures, or any other evidences of Debt, as the case may be,
authenticated and delivered under this Indenture; provided, however, that, if at
any time there is more than one Person acting as Trustee under this Indenture,
"Securities", with respect to any such Person, shall mean Securities
authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee.

        "Security Register" or "Security Registrar" have the respective meanings
specified in Section 3.5.

        "Significant Subsidiary", means at any date of determination, any
Subsidiary of the Company that, together with its Subsidiaries, (i) for the most
recent fiscal quarter of the Company, accounted for more than 15% of the
consolidated revenues of the Company and its Subsidiaries or (ii) as of the end
of such fiscal quarter, was the owner of more than 25% of the consolidated
assets of the Company.

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

        "Stated Maturity", with respect to any Security or any installment of
principal thereof or interest thereon or any Additional Amounts with respect
thereto, means the date established by or pursuant to this Indenture or such
Security as the fixed date on which the principal of such Security or such
installment of principal or interest is, or such Additional Amounts are, due and
payable.

        "Subsidiary" of any Person means any corporation, limited liability
company or other business entity of which more than 50% of the total voting
power of the equity interests entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof
or any partnership of which more than 50% of the partnership interests
(considering all general and limited partnership interests as a single class)
is, in each case, at the time owned or controlled, directly or indirectly, by
such Person, one or more of the Subsidiaries of such Person, or combination
thereof.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended, and any reference herein to the Trust Indenture Act or a particular
provision thereof shall mean such Act or provision, as the case may be, as
amended or replaced from time to time or as supplemented

                                       9
<PAGE>

from time to time by rules or regulations adopted by the Commission under or in
furtherance of the purposes of such Act or provision, as the case may be.

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

        "United States", except as otherwise provided in or pursuant to this
Indenture or any Security, means the United States of America (including the
states thereof and the District of Columbia), its territories and possessions
and other areas subject to its jurisdiction.

        "U.S. Depository" or "Depository" means, with respect to any Security
issuable or issued in the form of one or more global Securities, the Person
designated as U.S. Depository by the Company in or pursuant to this Indenture,
which Person must be, to the extent required by applicable law or regulation, a
clearing agency registered under the Securities Exchange Act of 1934, as
amended, and, if so provided with respect to any Security, any successor to such
Person. If at any time there is more than one such Person, "U.S. Depository"
shall mean, with respect to any Securities, the qualifying entity which has been
appointed with respect to such Securities.

        "U.S. Alien", except as otherwise provided in or pursuant to this
Indenture or any Security, means any Person who, for United States Federal
income tax purposes, is a foreign corporation, a non-resident alien individual,
a non-resident alien fiduciary of a foreign estate or trust, or a foreign
partnership one or more of the members of which is, for United States Federal
income tax purposes, a foreign corporation, a non-resident alien individual or a
non-resident alien fiduciary of a foreign estate or trust.

        "Vice President", when used with respect to the Company or the Trustee,
means any vice president, whether or not designated by a number or a word or
words added before or after the title "Vice President".

Section 1.2  Compliance Certificates and Opinions.

        Except as otherwise expressly provided in this Indenture, upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company shall furnish to the Trustee 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
or any of them is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or
opinion need be furnished.

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

                                       10
<PAGE>

        (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 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 an Opinion of Counsel, provided
that such officer, after reasonable inquiry, has no reason to believe and does
not believe that the Opinion of Counsel with respect to the matters upon which
his certificate or opinion is based is erroneous. Any such 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 provided that such counsel, after reasonable inquiry, has no
reason to believe and does not believe that the certificate or opinion or
representations with respect to such matters are erroneous.

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

Section 1.4  Acts of Holders.

        (1) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by or pursuant to 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 an agent duly
appointed in writing. If, but only if, Securities of a series are issuable as
Bearer Securities, any request, demand, authorization, direction, notice,
consent, waiver or other action provided in or pursuant to this Indenture to be
given or taken by Holders of Securities of such series may, alternatively, be
embodied in and evidenced by the record of Holders of Securities of such series
voting in favor thereof, either in person or by proxies duly appointed in
writing, at any meeting of Holders of Securities of such series duly called and
held in accordance with the provisions of Article 15, or a combination of such

                                       11
<PAGE>

instruments and any such record. Except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments or record
or both are delivered to the Trustee and, where it is hereby expressly required,
to the Company. Such instrument or instruments and any such record (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the "Act" of the Holders signing such instrument or instruments or so voting
at any such meeting. Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any Person of a Security, shall
be sufficient for any purpose of this Indenture and (subject to Section 315 of
the Trust Indenture Act) conclusive in favor of the Trustee and the Company and
any agent of the Trustee or the Company, if made in the manner provided in this
Section. The record of any meeting of Holders of Securities shall be proved in
the manner provided in Section 15.6.

        Without limiting the generality of this Section 1.4, unless otherwise
provided in or pursuant to this Indenture, a Holder, including a U.S. Depository
that is a Holder of a global Security, may make, give or take, by a proxy or
proxies duly appointed in writing, any request, demand, authorization,
direction, notice, consent, waiver or other Act provided in or pursuant to this
Indenture to be made, given or taken by Holders, and a U.S. Depository that is a
Holder of a global Security may provide its proxy or proxies to the beneficial
owners of interests in any such global Security through such U.S. Depository's
standing instructions and customary practices.

        The Company shall fix a record date for the purpose of determining the
Persons who are beneficial owners of interest in any permanent global Security
held by a U.S. Depository entitled under the procedures of such U.S. Depository
to make, give or take, by a proxy or proxies duly appointed in writing, any
request, demand, authorization, direction, notice, consent, waiver or other Act
provided in or pursuant to this Indenture to be made, given or taken by Holders.
If such a record date is fixed, the Holders on such record date or their duly
appointed proxy or proxies, and only such Persons, shall be entitled to make,
give or take such request, demand, authorization, direction, notice, consent,
waiver or other Act, whether or not such Holders remain Holders after such
record date. No such request, demand, authorization, direction, notice, consent,
waiver or other Act shall be valid or effective if made, given or taken more
than 90 days after such record date.

        (2) The fact and date of the execution by any Person of any such
instrument or writing referred to in this Section 1.4 may be proved in any
reasonable manner; and the Trustee may in any instance reasonably require
further proof with respect to any of the matters referred to in this Section.

        (3) The ownership, principal amount and serial numbers of Registered
Securities held by any Person, and the date of the commencement and the date of
the termination of holding the same, shall be proved by the Security Register.

        (4) The ownership, principal amount and serial numbers of Bearer
Securities held by any Person, and the date of the commencement and the date of
the termination of holding the same, may be proved by the production of such
Bearer Securities or by a certificate executed, as depositary, by any trust
company, bank, banker or other depositary reasonably acceptable to the Company,
wherever situated, if such certificate shall be deemed by the Company and the
Trustee to be satisfactory, showing that at the date therein mentioned such
Person had on deposit with

                                       12
<PAGE>

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 certificate or
affidavit bearing a later date issued in respect of the same Bearer Security is
produced, or (ii) such Bearer Security is produced to the Trustee by some other
Person, or (iii) such Bearer Security is surrendered in exchange for a
Registered Security, or (iv) such Bearer Security is no longer Outstanding. The
ownership, principal amount and serial numbers of Bearer Securities held by the
Person so executing such instrument or writing and the date of the commencement
and the date of the termination of holding the same may also be proved in any
other manner which the Company and the Trustee deem sufficient.

        (5) If the Company shall solicit from the Holders of any Registered
Securities any request, demand, authorization, direction, notice, consent,
waiver or other Act, the Company may at its option (but is not obligated to), by
Board Resolution fix in advance a record date for the determination of Holders
of Registered Securities entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act. 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
Registered Securities of record at the close of business on such record date
shall be deemed to be Holders for the purpose 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 of Registered Securities shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture
not later than six months after the record date.

        (6) Any request, demand, authorization, direction, notice, consent,
waiver or other Act by 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 or suffered to be done by the Trustee, any Security
Registrar, any Paying Agent or the Company in reliance thereon, whether or not
notation of such Act is made upon such Security.

Section 1.5  Notices, etc. to Trustee and Company.

        Any request, demand, authorization, direction, notice, consent, waiver
or other 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 the Company shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing and
delivered in person or mailed by certified or registered mail, return receipt
requested to or with the Trustee at its Corporate Trust Office, or

        (2) the Company by the Trustee or any Holder shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if in
writing and mailed, first-class

                                       13
<PAGE>

postage prepaid, to the Company, addressed to the attention of its Treasurer,
with a copy to the attention of its General Counsel, at the address of its
principal office specified in the first paragraph of this instrument or at any
other address previously furnished in writing to the Trustee by the Company.

Section 1.6  Notice to Holders of Securities; Waiver.

        Except as otherwise expressly provided in or pursuant to this Indenture,
where this Indenture provides for notice to Holders of Securities of any event,

        (1) such notice shall be sufficiently given to Holders of Registered
Securities if in writing and mailed, first-class postage prepaid, to each Holder
of a Registered Security affected by such event, at his address as it appears in
the Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice; and

        (2) such notice shall be sufficiently given to Holders of Bearer
Securities, if any, if published in an Authorized Newspaper in The City of New
York and, if such Securities are then listed on any stock exchange outside the
United States, in an Authorized Newspaper in such city as the Company shall
advise the Trustee that such stock exchange so requires, on a Business Day at
least twice, the first such publication to be not earlier than the earliest date
and the second such publication not later than the latest date prescribed for
the giving of such notice.

        In any case where notice to Holders of Registered Securities is given by
mail, neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Registered Security 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. Any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given or provided. In
the case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.

        In case by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearers Securities as provided
above, then such notification to Holders of Bearer Securities as shall be given
with the approval of the Trustee shall constitute sufficient notice to such
Holders for every purpose hereunder. Neither failure to give notice by
publication to Holders of Bearer Securities as provided above, nor any defect in
any notice so published, shall affect the sufficiency of any notice mailed to
Holders of Registered Securities as provided above.

        Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders of Securities 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.

                                       14
<PAGE>

Section 1.7  Language of Notices.

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

Section 1.8  Conflict with Trust Indenture Act.

        If any provision hereof limits, qualifies or conflicts with any duties
under any required provision of the Trust Indenture Act, such required provision
shall control.

Section 1.9  Effect of Headings and Table of Contents.

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

Section 1.10  Successors and Assigns.

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

Section 1.11  Separability Clause.

        In case any provision in this Indenture, any Security or any Coupon
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 1.12  Benefits of Indenture.

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

Section 1.13  Governing Law.

        Pursuant to New York General Obligations Law 5-1401, this Indenture, the
Securities and any Coupons shall be governed by and construed in accordance with
the laws of the State of New York applicable to agreements made or instruments
entered into and, in each case, performed in said state.

Section 1.14  Legal Holidays.

        Unless otherwise specified in or pursuant to this Indenture or any
Securities, in any case where any Interest Payment Date, Stated Maturity or
Maturity of any Security shall be a Legal Holiday at any Place of Payment, then
(notwithstanding any other provision of this Indenture, any Security or any
Coupon other than a provision in any Security or Coupon that specifically

                                       15
<PAGE>

states that such provision shall apply in lieu hereof) payment need not be made
at such Place of Payment on such date, but such payment may be made on the next
succeeding day that is a Business Day at such Place of Payment with the same
force and effect as if made on the Interest Payment Date or at the Stated
Maturity or Maturity, and no interest shall accrue on the amount payable on such
date or at such time for the period from and after such Interest Payment Date,
Stated Maturity or Maturity, as the case may be, to such next succeeding
Business Day.

Section 1.15  Counterparts.

        This Indenture may be executed in several counterparts, each of which
shall be an original and all of which shall constitute but one and the same
instrument.

Section 1.16  Judgment Currency.

        The Company to the fullest extent that it may effectively do so under
applicable law, that (a) if for the purpose of obtaining judgment in any court
it is necessary to convert the sum due in respect of the principal of, or
premium or interest, if any, or Additional Amounts on the Securities of any
series (the "Required Currency") into a currency in which a judgment will be
rendered (the "Judgment Currency"), the rate of exchange used shall be the rate
at which in accordance with normal banking procedures the Trustee could purchase
in The City of New York the requisite amount of the Required Currency with the
Judgment Currency on the New York Banking Day preceding the day on which a final
unappealable judgment is given and (b) their respective obligations under this
Indenture to make payments in the Required Currency (i) shall not be discharged
or satisfied by any tender, or any recovery pursuant to any judgment (whether or
not entered in accordance with clause (a)), in any currency other than the
Required Currency, except to the extent that such tender or recovery shall
result in the actual receipt, by the payee, of the full amount of the Required
Currency expressed to be payable in respect of such payments, (ii) shall be
enforceable as an alternative or additional cause of action for the purpose of
recovering in the Required Currency the amount, if any, by which such actual
receipt shall fall short of the full amount of the Required Currency so
expressed to be payable and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. For purposes of the
foregoing, "New York Banking Day" means any day except a Saturday, Sunday or a
legal holiday in The City of New York or a day on which banking institutions in
The City of New York are authorized or obligated by law, regulation or executive
order to be closed.

Section 1.17  No Security Interest Created.

        Subject to the provisions of Section 10.5, nothing in this Indenture or
in any Securities, express or implied, shall be construed to constitute a
security interest under the Uniform Commercial Code or similar legislation, as
now or hereafter enacted and in effect in any jurisdiction where property of the
Company is or may be located.

Section 1.18  Limitation on Individual Liability.

        No recourse under or upon any obligation, covenant or agreement
contained in this Indenture or in any Security, or for any claim based thereon
or otherwise in respect thereof, shall be had against any incorporator,
shareholder, officer or director, as such, past, present or future, of the
Company, either directly or through the Company, whether by virtue of any
constitution,

                                       16
<PAGE>

statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture and the obligations
issued hereunder are solely corporate obligations, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, the
incorporators, shareholders, officers or directors, as such, of the Company, or
any of them, because of the creation of the indebtedness hereby authorized, or
under or by reason of the obligations, covenants or agreements contained in this
Indenture or in any Security or implied therefrom; and that any and all such
personal liability of every name and nature, either at common law or in equity
or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, shareholder, officer or director, as such,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or in any Security or implied therefrom, are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issuance of such Security.

                                   ARTICLE 2
                                SECURITIES FORMS

Section 2.1  Forms Generally.

        Each Registered Security, Bearer Security, Coupon and temporary or
permanent global Security issued pursuant to this Indenture shall be in the form
established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, shall have such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by or pursuant
to this Indenture or any indenture supplemental hereto and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing such Security or Coupon as evidenced by their execution of
such Security or Coupon.

        Unless otherwise provided in or pursuant to this Indenture or any
Securities, the Securities shall be issuable in registered form without Coupons
and shall not be issuable upon the exercise of warrants.

        Definitive Securities and definitive Coupons shall be printed in any
such manner as determined by the officers of the Company executing such
Securities or Coupons, as evidenced by their execution of such Securities or
Coupons.

Section 2.2  Form of Trustee's Certificate of Authentication.

        Subject to Section 6.11, the Trustee's certificate of authentication
shall be in substantially the following form:

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

                                       17
<PAGE>

                                       U.S. BANK NATIONAL ASSOCIATION,
                                                   as Trustee

                                       By:
                                          -------------------------------------
                                            Authorized Signatory

Section 2.3  Securities in Global Form.

        Unless otherwise provided in or pursuant to this Indenture or any
Securities, the Securities shall be issuable in temporary or permanent global
form. If Securities of a series shall be issuable in global form, any such
Security may provide that it or any number of such Securities shall represent
the aggregate amount of all Outstanding Securities of such series (or such
lesser amount as is permitted by the terms thereof) from time to time endorsed
thereon and may also provide that the aggregate amount of Outstanding Securities
represented thereby may from time to time be increased or reduced to reflect
exchanges. Any endorsement of any 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 in such manner and
by such Person or Persons as shall be specified therein or in the Company Order
to be delivered pursuant to Section 3.3 or 3.4 with respect thereto. Subject to
the provisions of Section 3.3 and, if applicable, Section 3.4, the Trustee shall
deliver and redeliver, in each case at the Company's expense, any Security in
permanent global form in the manner and upon instructions given by the Person or
Persons specified therein or in the applicable Company Order. If a Company Order
pursuant to Section 3.3 or 3.4 has been, or simultaneously is, delivered, any
instructions by the Company with respect to a Security in global form shall be
in writing but need not be accompanied by or contained in an Officers'
Certificate and need not be accompanied by an Opinion of Counsel.

        Notwithstanding the provisions of Section 3.7, unless otherwise
specified in or pursuant to this Indenture or any Securities, payment of
principal of, any premium and interest on, and any Additional Amounts in respect
of, any Security in temporary or permanent global form shall be made to the
Person or Persons specified therein.

        Notwithstanding the provisions of Section 3.8 and except as provided in
the preceding paragraph, the Company, the Trustee and any agent of the Company
or the Trustee shall treat as the Holder of such principal amount of Outstanding
Securities represented by a global Security (i) in the case of a global Security
in registered form, the Holder of such global Security in registered form, or
(ii) in the case of a global Security in bearer form, the Person or Persons
specified pursuant to Section 3.1.

                                    ARTICLE 3
                                 THE SECURITIES

Section 3.1  Amount Unlimited; Issuable in Series.

        The aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is unlimited. The Securities may be issued in
one or more series.

                                       18
<PAGE>

        With respect to any Securities to be authenticated and delivered
hereunder, there shall be established in or pursuant to a Board Resolution and
set forth in an Officers' Certificate, or established in one or more indentures
supplemental hereto,

        (1) the title of such Securities and the series in which such Securities
shall be included;

        (2) any limit upon the aggregate principal amount of the Securities of
such title or the Securities of such series which may be authenticated and
delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities of such series pursuant to Section 3.4, 3.5, 3.6, 9.5 or 11.7
or upon repayment in part of any Registered Security of such series pursuant to
Article 13);

        (3) if such Securities are to be issuable as Registered Securities, as
Bearer Securities or alternatively as Bearer Securities and Registered
Securities, and whether the Bearer Securities are to be issuable with Coupons,
without Coupons or both, and any restrictions applicable to the offer, sale or
delivery of the Bearer Securities and the terms, if any, upon which Bearer
Securities may be exchanged for Registered Securities and vice versa;

        (4) if any of such Securities are to be issuable in global form, when
any of such Securities are to be issuable in global form and (i) whether such
Securities are to be issued in temporary or permanent global form or both, (ii)
whether beneficial owners of interests in any such global Security may exchange
such interests for Securities of the same series and of like tenor and of any
authorized form and denomination, and the circumstances under which any such
exchanges may occur, if other than in the manner specified in Section 3.5, and
(iii) the name of the Depository and/or the U.S. Depository, as the case may be,
with respect to any such global Security;

        (5) if any of such Securities are to be issuable as Bearer Securities or
in global form, the date as of which any such Bearer Security or global Security
shall be dated (if other than the date of original issuance of the first of such
Securities to be issued);

        (6) if any of such Securities are to be issuable as Bearer Securities,
whether interest in respect of any portion of a temporary Bearer Security in
global form payable in respect of an Interest Payment Date therefor prior to the
exchange, if any, of such temporary Bearer Security for definitive Securities
shall be paid to any clearing organization with respect to the portion of such
temporary Bearer Security held for its account and, in such event, the terms and
conditions (including any certification requirements) upon which any such
interest payment received by a clearing organization will be credited to the
Persons entitled to interest payable on such Interest Payment Date;

        (7) the date or dates, or the method or methods, if any, by which such
date or dates shall be determined, on which the principal of such Securities is
payable;

        (8) the rate or rates at which such Securities shall bear interest, if
any, or the method or methods, if any, by which such rate or rates are to be
determined, the date or dates, if any, from which such interest shall accrue or
the method or methods, if any, by which such date or dates are to be determined,
the Interest Payment Dates, if any, on which such interest shall be

                                       19
<PAGE>
payable and the Regular Record Date, if any, for the interest payable on
Registered Securities on any Interest Payment Date, whether and under what
circumstances Additional Amounts on such Securities or any of them shall be
payable, the notice, if any, to Holders regarding the determination of interest
on a floating rate Security and the manner of giving such notice, and the basis
upon which interest shall be calculated if other than that of a 360-day year of
twelve 30-day months;

        (9) if in addition to or other than the Borough of Manhattan, The City
of New York, the place or places where the principal of, any premium and
interest on or any Additional Amounts with respect to such Securities shall be
payable, any of such Securities that are Registered Securities may be
surrendered for registration of transfer or exchange, any of such Securities may
be surrendered for conversion or exchange and notices or demands to or upon the
Company in respect of such Securities and this Indenture may be served, the
extent to which, or the manner in which, any interest payment or Additional
Amounts on a global Security on an Interest Payment Date, will be paid and the
manner in which any principal of or premium, if any, on any global Security will
be paid;

        (10) whether any of such Securities are to be redeemable at the option
of the Company and, if so, the date or dates on which, the period or periods
within which, the price or prices at which and the other terms and conditions
upon which such Securities may be redeemed, in whole or in part, at the option
of the Company;

        (11) whether the Company is obligated to redeem or purchase any of such
Securities pursuant to any sinking fund or analogous provision or at the option
of any Holder thereof and, if so, the date or dates on which, the period or
periods within which, the price or prices at which and the other terms and
conditions upon which such Securities shall be redeemed or purchased, in whole
or in part, pursuant to such obligation, and any provisions for the remarketing
of such Securities so redeemed or purchased;

        (12) the denominations in which any of such Securities that are
Registered Securities shall be issuable if other than denominations of $1,000
and any integral multiple thereof, and the denominations in which any of such
Securities that are Bearer Securities shall be issuable if other than the
denomination of $5,000;

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

        (14) if other than Dollars, the Foreign Currency in which payment of the
principal of, any premium or interest on or any Additional Amounts with respect
to any of such Securities shall be payable;

        (15) if the principal of, any premium or interest on or any Additional
Amounts with respect to any of such Securities are to be payable, at the
election of the Company or a Holder thereof or otherwise, in Dollars or in a
Foreign Currency other than that in which such Securities are stated to be
payable, the date or dates on which, the period or periods within which, and the
other terms and conditions upon which, such election may be made, and the time
and manner of

                                       20
<PAGE>

determining the exchange rate between the Currency in which such Securities are
stated to be payable and the Currency in which such Securities or any of them
are to be paid pursuant to such election, and any deletions from or
modifications of or additions to the terms of this Indenture to provide for or
to facilitate the issuance of Securities denominated or payable, at the election
of the Company or a Holder thereof or otherwise, in a Foreign Currency;

        (16) whether the amount of payments of principal of, any premium or
interest on or any Additional Amounts with respect to such Securities may be
determined with reference to an index, formula or other method or methods (which
index, formula or method or methods may be based, without limitation, on one or
more Currencies, commodities, equity securities, equity indices or other
indices), and, if so, the terms and conditions upon which and the manner in
which such amounts shall be determined and paid or payable;

        (17) any deletions from, modifications of or additions to the Events of
Default or covenants of the Company with respect to any of such Securities,
whether or not such Events of Default or covenants are consistent with the
Events of Default or covenants set forth herein;

        (18) whether either or both of Section 4.2(2) relating to defeasance or
Section 4.2(3) relating to covenant defeasance shall not be applicable to the
Securities of such series, or any covenants in addition to those specified in
Section 4.2(3) relating to the Securities of such series which shall be subject
to covenant of defeasance, and any deletions from, or modifications or additions
to, the provisions of Article 4 in respect of the Securities of such series;

        (19) whether any of such Securities are to be issuable upon the exercise
of warrants, and the time, manner and place for such Securities to be
authenticated and delivered;

        (20) if any of such Securities are to be issuable in global form and are
to be issuable in definitive form (whether upon original issue or upon exchange
of a temporary Security) only upon receipt of certain certificates or other
documents or satisfaction of other conditions, then the form and terms of such
certificates, documents or conditions;

        (21) if there is more than one Trustee, the identity of the Trustee and,
if not the Trustee, the identity of each Security Registrar, Paying Agent or
Authenticating Agent with respect to such Securities;

        (22) any transfer restrictions applicable to the Securities of the
series; and

        (23) any other terms of such Securities and any other deletions from or
modifications or additions to this Indenture in respect of such Securities.

         All Securities of any one series and all Coupons, if any, appertaining
to Bearer Securities of such series shall be substantially identical except as
to Currency of payments due thereunder, denomination and the rate of interest
thereon, or method of determining the rate of interest, if any, Maturity, and
the date from which interest, if any, shall accrue and except as may otherwise
be provided by the Company in or pursuant to the Board Resolution and set forth
in the Officers' Certificate or in any indenture or indentures supplemental
hereto pertaining to such series of Securities. The terms of the Securities of
any series may provide, without limitation, that the Securities shall be
authenticated and delivered by the Trustee on original issue from time to time

                                       21
<PAGE>

upon written order of persons designated in the Officers' Certificate or
supplemental indenture and that such persons are authorized to determine,
consistent with such Officers' Certificate or any applicable supplemental
indenture, such terms and conditions of the Securities of such series as are
specified in such Officers' Certificate or supplemental indenture. All
Securities of any one series need not be issued at the same time and, unless
otherwise so provided, a series may be reopened for issuances of additional
Securities of such series or to establish additional terms of such series of
Securities.

         If any of the terms of the Securities of any series shall be
established by action taken by or pursuant to a Board Resolution, the Board
Resolution shall be delivered to the Trustee at or prior to the delivery of the
Officers' Certificate setting forth the terms of such series.

Section 3.2       Currency; Denominations.

         Unless otherwise provided in or pursuant to this Indenture, the
principal of, any premium and interest on and any Additional Amounts with
respect to the Securities shall be payable in Dollars. Unless otherwise provided
in or pursuant to this Indenture, Registered Securities denominated in Dollars
shall be issuable in registered form without Coupons in denominations of $1,000
and any integral multiple thereof, and the Bearer Securities denominated in
Dollars shall be issuable in the denomination of $5,000. Securities not
denominated in Dollars shall be issuable in such denominations as are
established with respect to such Securities in or pursuant to this Indenture.

Section 3.3       Execution, Authentication, Delivery and Dating.

         Securities shall be executed on behalf of the Company under its
corporate seal reproduced thereon and attested by its Secretary or one of its
Assistant Secretaries. Coupons shall be executed on behalf of the Company by its
Chairman of the Board, a Vice Chairman, its Chief Executive Officer, its
President, its Treasurer, a Senior Vice President or a Vice President the
Treasurer or any Assistant Treasurer of the Company. The signature of any of
these officers on the Securities or any Coupons appertaining thereto may be
manual or facsimile.

         Securities and any Coupons appertaining thereto 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 and Coupons or did not hold such offices at the date
of original issuance of such Securities or Coupons.

         At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities, together with any Coupons
appertaining thereto, executed by the Company, to the Trustee for authentication
and, provided that the Board Resolution and Officers' Certificate or
supplemental indenture or indentures with respect to such Securities referred to
in Section 3.1 and a Company Order for the authentication and delivery of such
Securities have been delivered to the Trustee, the Trustee in accordance with
the Company Order and subject to the provisions hereof and of such Securities
shall authenticate and deliver such Securities. In authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities and any Coupons appertaining thereto, the Trustee

                                       22
<PAGE>

shall be entitled to receive, and (subject to Sections 315(a) through 315(d) of
the Trust Indenture Act) shall be fully protected in relying upon,

        (1)     an Opinion of Counsel to the effect that:

                (a) the form or forms and terms of such Securities and Coupons,
        if any, have been established in conformity with the provisions of this
        Indenture;

                (b) all conditions precedent to the authentication and delivery
        of such Securities and Coupons, if any, appertaining thereto, have been
        complied with and that such Securities and Coupons, when completed by
        appropriate insertions, executed under the Company's corporate seal and
        attested by duly authorized officers of the Company, delivered by duly
        authorized officers of the Company to the Trustee for authentication
        pursuant to this Indenture, and 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 legally
        valid and binding obligations of the Company, enforceable against the
        Company in accordance with their terms, except as enforcement thereof
        may be subject to or limited by bankruptcy, insolvency, reorganization,
        moratorium, arrangement, fraudulent conveyance, fraudulent transfer or
        other similar laws relating to or affecting creditors' rights generally,
        and subject to general principles of equity (regardless of whether
        enforcement is sought in a proceeding in equity or at law) and will
        entitle the Holders thereof to the benefits of this Indenture; such
        Opinion of Counsel need express no opinion as to the availability of
        equitable remedies; and

                (c) all laws and requirements in respect of the execution and
        delivery by the Company of such Securities and Coupons, if any, have
        been complied with;

and, to the extent that this Indenture is required to be qualified under the
Trust Indenture Act in connection with the issuance of such Securities, to the
further effect that:

                (d) this Indenture has been qualified under the Trust Indenture
        Act; and

        (2) an Officers' Certificate stating that all conditions precedent to
the execution, authentication and delivery of such Securities and Coupons, if
any, appertaining thereto, have been complied with and that, to the best
knowledge of the Persons executing such certificate, no event which is, or after
notice or lapse of time would become, an Event of Default with respect to any of
the Securities shall have occurred and be continuing.

         If all the Securities of any series are not to be issued at one time,
it shall not be necessary to deliver an Opinion of Counsel and an Officers'
Certificate at the time of issuance of each Security, but such opinion and
certificate, with appropriate modifications, shall be delivered at or before the
time of issuance of the first Security of such series. After any such first
delivery, any separate written request by an Authorized Officer of the Company
that the Trustee authenticate and deliver Securities of such series for original
issue will be deemed to be a certification by the Company that all conditions
precedent provided for in this Indenture relating to authentication and delivery
of such Securities continue to have been complied with.

                                       23
<PAGE>

         The Trustee shall not be required to authenticate or to cause an
Authenticating Agent to authenticate any Securities if the issue of such
Securities pursuant to this Indenture will affect the Trustee's own rights,
duties or immunities, as Trustee under the Securities and this Indenture or
otherwise in a manner which is not reasonably acceptable to the Trustee or if
the Trustee, being advised by counsel, determines that such action may not
lawfully be taken.

         Each Registered Security shall be dated the date of its authentication.
Each Bearer Security and any Bearer Security in global form shall be dated as of
the date specified in or pursuant to this Indenture.

         No Security or Coupon appertaining thereto shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose, unless
there appears on such Security a certificate of authentication substantially in
the form provided for in Section 2.2 or 6.11 executed by or on behalf of the
Trustee or by the Authenticating Agent by the manual signature of one of its
authorized officers. Such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder. Except as permitted by Section 3.6 or 3.7, the Trustee
shall not authenticate and deliver any Bearer Security unless all Coupons
appertaining thereto then matured have been detached and cancelled.

Section 3.4       Temporary Securities.

         Pending the preparation of definitive Securities, the Company may
execute and deliver to the Trustee and, upon Company Order, the Trustee shall
authenticate and deliver, in the manner provided in Section 3.3, temporary
Securities in lieu thereof which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued, in registered form or, if authorized in or pursuant to this
Indenture, in bearer form with one or more Coupons or without Coupons and with
such appropriate insertions, omissions, substitutions and other variations as
the officers of the Company executing such Securities may determine, as
conclusively evidenced by their execution of such Securities. Such temporary
Securities may be in global form.

         Except in the case of temporary Securities in global form, which shall
be exchanged in accordance with the provisions thereof, if temporary Securities
are issued, the Company shall cause definitive Securities to be prepared without
unreasonable delay. After the preparation of definitive Securities of the same
series and containing terms and provisions that are identical to those of any
temporary Securities, such temporary Securities shall be exchangeable for such
definitive Securities upon surrender of such temporary Securities at an Office
or Agency for such Securities, without charge to any Holder thereof. Upon
surrender for cancellation of any one or more temporary Securities (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 definitive Securities of authorized denominations of the same series
and containing identical terms and provisions; provided, however, that no
definitive Bearer Security, except as provided in or pursuant to this Indenture,
shall be delivered in exchange for a temporary Registered Security; and
provided, further, that a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions
set forth in or pursuant to this Indenture. Unless otherwise provided in or
pursuant to this Indenture with respect to a temporary global Security, until so
exchanged the temporary Securities of any

                                       24
<PAGE>

series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.

Section 3.5       Registration, Transfer and Exchange.

         With respect to the Registered Securities of each series, if any, the
Company shall cause to be kept a register (each such register being herein
sometimes referred to as the "Security Register") at an Office or Agency for
such series in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of the Registered
Securities of such series and of transfers of the Registered Securities of such
series. Such Office or Agency shall be the "Security Registrar" for that series
of Securities. Unless otherwise specified in or pursuant to this Indenture or
the Securities, the Trustee shall be the initial Security Registrar for each
series of Securities. The Company shall have the right to remove and replace
from time to time the Security Registrar for any series of Securities; provided
that no such removal or replacement shall be effective until a successor
Security Registrar with respect to such series of Securities shall have been
appointed by the Company and shall have accepted such appointment by the
Company. In the event that the Trustee shall not be or shall cease to be
Security Registrar with respect to a series of Securities, it shall have the
right to examine the Security Register for such series at all reasonable times.
There shall be only one Security Register for each series of Securities.

         Upon surrender for registration of transfer of any Registered Security
of any series at any Office or Agency for such 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 denominated as authorized in or pursuant to this Indenture, of a
like aggregate principal amount bearing a number not contemporaneously
outstanding and containing identical terms and provisions.

         At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series containing
identical terms and provisions, in any authorized denominations, and of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
any Office or Agency for such series. 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.

         If provided in or pursuant to this Indenture, with respect to
Securities of any series, at the option of the Holder, Bearer Securities of such
series may be exchanged for Registered Securities of such series containing
identical terms, denominated as authorized in or pursuant to this Indenture and
in the same aggregate principal amount, upon surrender of the Bearer Securities
to be exchanged at any Office or Agency for such series, 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 is furnished to them such security or indemnity

                                       25
<PAGE>

as they may require to save each of them and any agent of either of them
harmless. If thereafter the Holder of such Bearer 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
10.2, interest represented by Coupons shall be payable only upon presentation
and surrender of those Coupons at an Office or Agency for such series located
outside the United States. Notwithstanding the foregoing, in case a Bearer
Security of any series is surrendered at any such Office or Agency for such
series in exchange for a Registered Security of such series and like tenor 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 next
succeeding 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, shall 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 shall be payable only to the Holder of such Coupon when due in accordance
with the provisions of this Indenture.

         If provided in or pursuant to this Indenture with respect to Securities
of any series, at the option of the Holder, Registered Securities of such series
may be exchanged for Bearer Securities upon such terms and conditions as may be
provided in or pursuant to this Indenture with respect to such series.

         Whenever any Securities are surrendered for exchange as contemplated by
the immediately preceding two paragraphs, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.

         Notwithstanding the foregoing, except as otherwise provided in or
pursuant to this Indenture, any global Security in a series shall be
exchangeable for definitive Securities of such series only if (i) the Depository
is at any time unwilling, unable to continue as depository or if the Depositary
ceases to be eligible under this Indenture and a successor depository is not
appointed by the Company within 90 days of the date the Company is so informed
in writing, (ii) the Company executes and delivers to the Trustee a Company
Order to the effect that such global Security shall be so exchangeable, or (iii)
an Event of Default has occurred and is continuing with respect to the
Securities and the Holders of at least a majority in principal amount of the
Outstanding Securities of such series have requested definitive Securities. If
the beneficial owners of interests in a global Security are entitled to exchange
such interests for definitive Securities as the result of an event described in
clause (i), (ii) or (iii) of the preceding sentence, then without unnecessary
delay but in any event not later than the earliest date on which such interests
may be so exchanged, the Company shall deliver to the Trustee definitive
Securities in such form and denominations as are required by or pursuant to this
Indenture, and of the same series, containing identical terms and in aggregate
principal amount equal to the principal amount of such global Security, executed
by the Company. On or after the earliest date on which such interests may be so
exchanged, such global Security shall be surrendered from time to time

                                       26
<PAGE>

by the U.S. Depository or such other Depository as shall be specified in the
Company Order with respect thereto, and in accordance with instructions given to
the Trustee and the U.S. Depository or such other Depository, as the case may be
(which instructions shall be in writing but need not be contained in or
accompanied by an Officers' Certificate or be accompanied by an Opinion of
Counsel), as shall be specified in the Company Order with respect thereto to the
Trustee, as the Company's agent for such purpose, to be exchanged, in whole or
in part, for definitive Securities as described above without charge. The
Trustee shall authenticate and make available for delivery, in exchange for each
portion of such surrendered global Security, a like aggregate principal amount
of definitive Securities of the same series of authorized denominations and of
like tenor as the portion of such global Security to be exchanged, which (unless
such Securities are not issuable both as Bearer Securities and as Registered
Securities, in which case the definitive Securities exchanged for the global
Security shall be issuable only in the form in which the Securities are
issuable, as provided in or pursuant to this Indenture) shall be in the form of
Bearer Securities or Registered Securities, or any combination thereof, as shall
be specified by the beneficial owner thereof, but subject to the satisfaction of
any certification or other requirements to the issuance of Bearer Securities;
provided, however, that no such exchanges may occur during a period beginning at
the opening of business 15 days before any selection of Securities of the same
series to be redeemed and ending on the relevant Redemption Date; and provided,
further, that (unless otherwise provided in or pursuant to this Indenture) no
Bearer Security delivered in exchange for a portion of a global Security shall
be mailed or otherwise delivered to any location in the United States. Promptly
following any such exchange in part, such global Security shall be returned by
the Trustee to such Depository or the U.S. Depository, as the case may be, or
such other Depository or U.S. Depository referred to above in accordance with
the instructions of the Company referred to above. If a Registered Security is
issued in exchange for any portion of a global Security after the close of
business at the Office or Agency for such Security where such exchange occurs on
or after (i) any Regular Record Date for such Security and before the opening of
business at such Office or Agency on the next succeeding Interest Payment Date,
or (ii) any Special Record Date for such Security and before the opening of
business at such Office or Agency on the related proposed date for payment of
interest or Defaulted Interest, as the case may be, interest shall not be
payable on such Interest Payment Date or proposed date for payment, as the case
may be, in respect of such Registered Security, but shall be payable on such
Interest Payment Date or proposed date for payment, as the case may be, only to
the Person to whom interest in respect of such portion of such global Security
shall be payable in accordance with the provisions of this Indenture.

         All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company evidencing the same
debt and entitling the Holders thereof 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 or redemption shall (if so required by the Company or
the Security Registrar for such Security) be duly endorsed, or be accompanied by
a written instrument of transfer in form satisfactory to the Company and the
Security Registrar for such Security duly executed by the Holder thereof or his
attorney duly authorized in writing.

                                       27
<PAGE>

         No service charge shall be made for any registration of transfer or
exchange, or redemption of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge and any other
expenses (including fees and expenses of the Trustee) that may be imposed in
connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 3.4, 9.5 or 11.7 not involving any transfer.

         Except as otherwise provided in or pursuant to this Indenture, the
Company shall not be required (i) to issue, register the transfer of or exchange
any Securities during a period beginning at the opening of business 15 days
before the day of the selection for redemption of Securities of like tenor and
the same series under Section 11.3 and ending at the close of business on the
day of such selection, or (ii) to register the transfer of or exchange any
Registered Security so selected for redemption in whole or in part, except in
the case of any Security to be redeemed in part, the portion thereof not to be
redeemed, or (iii) to exchange any Bearer Security so selected for redemption
except, to the extent provided with respect to such Bearer Security, that such
Bearer Security may be exchanged for a Registered Security of like tenor and the
same series, provided that such Registered Security shall be immediately
surrendered for redemption with written instruction for payment consistent with
the provisions of this Indenture or (iv) to issue, register the transfer of or
exchange any Security which, in accordance with its terms, has been surrendered
for repayment at the option of the Holder, except the portion, if any, of such
Security not to be so repaid.

Section 3.6       Mutilated, Destroyed, Lost and Stolen Securities.

         If any mutilated Security or a Security with a mutilated Coupon
appertaining to it is surrendered to the Trustee, subject to the provisions of
this Section 3.6, the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a new Security of the same series containing
identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, with Coupons appertaining thereto corresponding
to the Coupons, if any, appertaining to the surrendered Security.

         If there be delivered to the Company and to the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security or 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 of any adverse claim or that such Security or Coupon
has been acquired by a bona fide purchaser, the Company shall execute and, upon
the Company's request the Trustee shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, 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 new Security of
the same series containing identical terms and of like principal amount and
bearing a number not contemporaneously outstanding, with Coupons appertaining
thereto corresponding to the Coupons, if any, appertaining to such destroyed,
lost or stolen Security or to the Security to which such destroyed, lost or
stolen Coupon appertains.

         Notwithstanding the foregoing provisions of this Section 3.6, in case
any 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, pay such Security or Coupon; provided, however, that
payment of principal of, any premium or interest on or any

                                       28
<PAGE>

Additional Amounts with respect to any Bearer Securities shall, except as
otherwise provided in Section 10.2, be payable only at an Office or Agency for
such Securities located outside the United States and, unless otherwise provided
in or pursuant to this Indenture, any interest on Bearer Securities and any
Additional Amounts with respect to such interest shall be payable only upon
presentation and surrender of the Coupons appertaining thereto.

         Upon the issuance of any new Security under this Section 3.6, 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, with any Coupons appertaining thereto issued
pursuant to this Section 3.6 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 a separate obligation of the Company, whether or not
the destroyed, lost or stolen Security and Coupons appertaining thereto 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 such series and any
Coupons, if any, duly issued hereunder.

         The provisions of this Section 3.6, as amended or supplemented pursuant
to this Indenture with respect to particular Securities or generally, shall be
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 and Certain Additional Amounts; Rights to
                  Interest and Certain Additional Amounts Preserved.

         Unless otherwise provided in or pursuant to this Indenture, any
interest on and any Additional Amounts with respect to any Registered Security
which shall be payable, and are punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name such Security
(or one or more Predecessor Securities) is registered as of the close of
business on the Regular Record Date for such interest.

         Unless otherwise provided in or pursuant to this Indenture, any
interest on and any Additional Amounts with respect to any Registered Security
which shall be payable, but shall not be punctually paid or duly provided for,
on any Interest Payment Date for such Registered Security (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holder thereof
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 Person in whose name such Registered Security (or a Predecessor Security
thereof) shall be registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest, which shall be fixed by the Company
in the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on such Registered Security,
the Special Record Date therefor and the date of the proposed payment, and at
the same time the

                                       29
<PAGE>

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 on or prior to the
date of the proposed payment, such money when so deposited to be held in trust
for the benefit of the Person entitled to such Defaulted Interest as in this
Clause provided. The Special Record Date for the payment of such Defaulted
Interest 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 notification to the
Trustee of the proposed payment. The Trustee shall, in the name and at the
expense of the Company, cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage
prepaid, to the Holder of such Registered Security (or a Predecessor Security
thereof) at his address as it appears in the Security Register not less than 10
days prior to such Special Record Date. The Trustee may, in its discretion, in
the name and at the expense of the Company cause a similar notice to be
published at least once in an Authorized Newspaper of general circulation in the
Borough of Manhattan, The City of New York, but such publication shall not be a
condition precedent to the establishment of such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid
to the Person in whose name such Registered Security (or a Predecessor Security
thereof) shall be 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 in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which such Security 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, such payment shall be deemed
practicable by the Trustee.

        Unless otherwise provided in or pursuant to this Indenture or the
Securities of any particular series pursuant to the provisions of this
Indenture, at the option of the Company, interest on Registered Securities that
bear interest may be paid by mailing a check to the address of the Person
entitled thereto as such address shall appear in the Security Register or by
transfer to an account maintained by the payee with a bank located in the United
States.

        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 a 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 in the
Security Register as the owner of such Registered Security for the purpose of
receiving payment of principal of, any premium and (subject to Section 3.5 and
3.7) interest on and any Additional Amounts with respect to such Registered
Security and for all other purposes whatsoever, whether or not any payment with
respect to such Registered Security shall be overdue, and none of the Company,
the Trustee or any agent of the Company, or the Trustee shall be affected by
notice to the contrary.

                                       30
<PAGE>

         The Company, the Trustee and any agent of the Company or the Trustee
may treat the bearer of any Bearer Security or the bearer of any Coupon as the
absolute owner of such Security or Coupon for the purpose of receiving payment
thereof or on account thereof and for all other purposes whatsoever, whether or
not any payment with respect to such Security or Coupon shall be overdue, and
none of the Company, the Trustee or any agent of the Company or the Trustee
shall be affected by notice to the contrary.

         No Holder of any beneficial interest in any global Security held on its
behalf by a Depository shall have any rights under this Indenture with respect
to such global Security, and such Depository may be treated by the Company, the
Trustee, and any agent of the Company or the Trustee as the owner of such global
Security for all purposes whatsoever. None of the Company, the Trustee, any
Paying Agent or the Security Registrar will have any responsibility or liability
for any aspect of the records relating to or payments made on account of
beneficial ownership interests of a global Security or for maintaining,
supervising or reviewing any records relating to such beneficial ownership
interests.

Section 3.9       Cancellation.

         All Securities and Coupons surrendered for payment, redemption,
registration of transfer, exchange or conversion or for credit against any
sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee, and any such Securities and Coupons, as well as
Securities and Coupons surrendered directly to the Trustee for any such purpose,
shall be cancelled promptly by the Trustee. The Company may at any time deliver
to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner
whatsoever, and all Securities so delivered shall be cancelled promptly by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities cancelled as provided in this Section, except as expressly permitted
by or pursuant to this Indenture. All cancelled Securities and Coupons held by
the Trustee shall be destroyed by the Trustee, unless by a Company Order, the
Company directs their return to it.

Section 3.10      Computation of Interest.

         Except as otherwise provided in or pursuant to this Indenture or in any
Security, interest on the Securities shall be computed on the basis of a 360-day
year of twelve 30-day months.

                                   ARTICLE 4
                     SATISFACTION AND DISCHARGE OF INDENTURE

Section 4.1       Satisfaction and Discharge.

         Upon the direction of the Company by a Company Order, this Indenture
shall cease to be of further effect with respect to any series of Securities
specified in such Company Order and any Coupons appertaining thereto, and the
Trustee, on receipt of a Company Order, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture as to such series, when

(1)      either

                                       31
<PAGE>

                (a) all Securities of such series theretofore authenticated and
        delivered and all Coupons appertaining thereto (other than (i) Coupons
        appertaining to Bearer Securities of such series surrendered in exchange
        for Registered Securities of such series and maturing after such
        exchange whose surrender is not required or has been waived as provided
        in Section 3.5, (ii) Securities and Coupons of such series which have
        been destroyed, lost or stolen and which have been replaced or paid as
        provided in Section 3.6, (iii) Coupons appertaining to Securities of
        such series called for redemption and maturing after the relevant
        Redemption Date whose surrender has been waived as provided in Section
        11.7, and (iv) Securities and Coupons of such series 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 10.3) 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, or

                        (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
                deposited or caused to be deposited with the Trustee as trust
                funds in trust for such purpose, money in the Currency in which
                such Securities are payable in an amount sufficient to pay and
                discharge the entire indebtedness on such Securities and any
                Coupons appertaining thereto not theretofore delivered to the
                Trustee for cancellation, including the principal of, any
                premium and interest on, and any Additional Amounts with respect
                to such Securities and any Coupons appertaining thereto, to the
                date of such deposit (in the case of Securities which have
                become due and payable) or to the Maturity thereof, as the case
                may be;

        (2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company with respect to the Outstanding Securities of such
series and any Coupons appertaining thereto; and

        (3) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel 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.

        In the event there are Securities of two or more series hereunder, the
Trustee shall be required to execute an instrument acknowledging satisfaction
and discharge of this Indenture only if requested to do so with respect to
Securities of such series as to which it is Trustee and if the other conditions
thereto are met.

                                       32
<PAGE>

         Notwithstanding the satisfaction and discharge of this Indenture with
respect to any series of Securities, the obligations of the Company to the
Trustee under Section 6.6 and, if money shall have been deposited with the
Trustee pursuant to clause (1)(b) of this Section, the obligations of the
Company and the Trustee with respect to the Securities of such series under
Sections 3.5, 3.6, 4.3, 10.2 and 10.3, with respect to the payment of Additional
Amounts, if any, with respect to such Securities as contemplated by Section 10.4
(but only to the extent that the Additional Amounts payable with respect to such
Securities exceed the amount deposited in respect of such Additional Amounts
pursuant to Section 4.1(1)(b)) shall survive.

Section 4.2       Defeasance and Covenant Defeasance.

        (1) Unless pursuant to Section 3.1, either or both of (i) defeasance of
the Securities of or within a series under Section 4.2(2) shall not be
applicable with respect to the Securities of such series or (ii) covenant
defeasance of the Securities of or within a series under Section 4.2(3) shall
not be applicable with respect to the Securities of such series, then such
provisions, together with the other provisions of this Section 4.2 (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 4.2(2) or Section 4.2(3) be applied to such Outstanding
Securities and any Coupons appertaining thereto upon compliance with the
conditions set forth below in this Section 4.2.

        (2) Upon the Company's exercise of the above option applicable to this
Section 4.2(2) with respect to any Securities of or within a series, the Company
shall be deemed to have been discharged from its obligations with respect to
such Outstanding Securities and any Coupons appertaining thereto on the date the
conditions set forth in Section 4.2(4) are satisfied (hereinafter,
"defeasance"). For this purpose, such defeasance means that the Company shall be
deemed to have paid and discharged the entire Debt represented by such
Outstanding Securities and any Coupons appertaining thereto, which shall
thereafter be deemed to be "Outstanding" only for the purposes of Section 4.2(5)
and the other Sections of this Indenture referred to in clauses (i) and (ii)
below, and to have satisfied all of its other obligations under such Securities
and any Coupons appertaining thereto, and under the Guarantee in respect
thereof, and this Indenture insofar as such Securities and any Coupons
appertaining thereto are concerned (and the Trustee, at the expense of the
Company shall execute proper instruments acknowledging the same), except for the
following which shall survive until otherwise terminated or discharged
hereunder: (i) the rights of Holders of such Outstanding Securities and any
Coupons appertaining thereto to receive, solely from the trust fund described in
Section 4.2(4) and as more fully set forth in such clause, payments in respect
of the principal of (and premium, if any) and interest, if any, on, and
Additional Amounts, if any, with respect to, such Securities and any Coupons
appertaining thereto when such payments are due, (ii) the obligations of the
Company and the Trustee with respect to such Securities under Sections 3.5, 3.6,
6.6, 10.2 and 10.3 and with respect to the payment of Additional Amounts, if
any, on such Securities as contemplated by Section 10.4 (but only to the extent
that the Additional Amounts payable with respect to such Securities exceed the
amount deposited in respect of such Additional Amounts pursuant to Section
4.2(4)(a) below), (iii) the rights, powers, trusts, duties and immunities of the
Trustee hereunder and (iv) this Section 4.2. The Company may exercise its option
under this Section

                                       33
<PAGE>

4.2(2) notwithstanding the prior exercise of its option under Section 4.2(3)
with respect to such Securities and any Coupons appertaining thereto.

        (3) Upon the Company's exercise of the option to have this Section
4.2(3) apply with respect to any Securities of or within a series, the Company
shall be released from its obligations under Section 10.5 and, to the extent
specified pursuant to any indenture supplement, any other covenant applicable to
such Securities, with respect to such Outstanding Securities and any Coupons
appertaining thereto on and after the date the conditions set forth in clause
(4) of this Section 4.2 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 any such 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 Outstanding 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(4) or 5.1(8) or
otherwise, as the case may be, but, except as specified above, the remainder of
this Indenture and such Securities and Coupons appertaining thereto shall be
unaffected thereby.

        (4) The following shall be the conditions to application of Section
4.2(2) or Section 4.2(3) to any Outstanding Securities of or within a series and
any Coupons appertaining thereto:

                (a) The Company shall irrevocably have deposited or caused to be
        deposited with the Trustee (or another trustee satisfying the
        requirements of Section 6.7 who shall agree to comply with the
        provisions of this Section 4.2 applicable to it) as trust funds in trust
        for the purpose of making the following payments, specifically pledged
        as security for, and dedicated solely to, the benefit of the Holders of
        such Securities and any Coupons appertaining thereto, (1) an amount in
        Dollars or in such Foreign Currency in which such Securities and any
        Coupons appertaining thereto are then specified as payable at Stated
        Maturity, or (2) Government Obligations applicable to such Securities
        and Coupons appertaining thereto (determined on the basis of the
        Currency in which such Securities and Coupons appertaining thereto are
        then specified as payable at Stated Maturity) which through the
        scheduled payment of principal and interest in respect thereof in
        accordance with their terms will provide, not later than one day before
        the due date of any payment of principal of (and premium, if any) and
        interest, if any, on such Securities and any Coupons appertaining
        thereto, money in an amount, or (3) a combination thereof, in any case,
        in an amount, sufficient, without consideration of any reinvestment of
        such principal and interest, in the opinion of a nationally recognized
        firm of independent public accountants expressed in a written
        certification thereof delivered to the Trustee, to pay and discharge,
        and which shall be applied by the Trustee (or other qualifying trustee)
        to pay and discharge, (y) the principal of (and premium, if any) and
        interest, if any, on such Outstanding Securities and any Coupons
        appertaining thereto at the Stated Maturity of such principal or
        installment of principal or premium or interest

                                       34
<PAGE>

        and (z) any mandatory sinking fund payments or analogous payments
        applicable to such Outstanding Securities and any Coupons appertaining
        thereto on the days on which such payments are due and payable in
        accordance with the terms of this Indenture and of such Securities and
        any Coupons appertaining thereto.

                (b) Such defeasance or covenant defeasance shall not result in a
        breach or violation of, or constitute a default under, this Indenture or
        any other material agreement or instrument to which the Company is a
        party or by which it is bound.

                (c) No Event of Default or event which with notice or lapse of
        time or both would become an Event of Default with respect to such
        Securities and any Coupons appertaining thereto shall have occurred and
        be continuing on the date of establishment of such trust and, with
        respect to defeasance only, at any time during the period ending on the
        91st day after the date of such deposit (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 clause (2) of this Section
        4.2, the Company shall have delivered to the Trustee an Opinion of
        Counsel stating that (i) the Company has received from the Internal
        Revenue Service a letter ruling, or there has been published by the
        Internal Revenue Service a Revenue 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 Outstanding
        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
        amounts, in the same manner and at the same times as would have been the
        case if such defeasance had not occurred.

                (e) In the case of an election under clause (3) of this Section
        4.2, the Company shall have delivered to the Trustee an Opinion of
        Counsel to the effect that the Holders of such Outstanding 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 Opinion
        of Counsel to the effect that, after the 91st day after the date of
        establishment of such trust, all money and Government Obligations (or
        other property as may be provided pursuant to Section 3.1) (including
        the proceeds thereof) deposited or caused to be deposited with the
        Trustee (or other qualifying trustee) pursuant to Section 4.2(4) to be
        held in trust will not be subject to any case or proceeding (whether
        voluntary or involuntary) in respect of the Company under any Federal or
        State bankruptcy, insolvency, reorganization or other similar law, or
        any decree or order for relief in respect of the Company issued in
        connection therewith.

                                       35
<PAGE>

                (g) 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 or covenant defeasance under Section 4.2(2)
        or Section 4.2(3) (as the case may be) have been complied with.

                (h) Notwithstanding any other provisions of this Section 4.2(4),
        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 pursuant to
        Section 3.1.

        (5) Unless otherwise specified in or pursuant to this Indenture or any
Security, if, after a deposit referred to in Section 4.2(4)(a) has been made,
(a) the Holder of a Security in respect of which such deposit was made is
entitled to, and does, elect pursuant to Section 3.1 or the terms of such
Security to receive payment in a Currency other than that in which the deposit
pursuant to Section 4.2(4)(a) has been made in respect of such Security, or (b)
a Conversion Event occurs in respect of the Foreign Currency in which the
deposit pursuant to Section 4.2(4)(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 (and premium, if any), and interest, if any, on, and
Additional Amounts, if any, with respect to, 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 in which such Security becomes
payable as a result of such election or Conversion Event based on (x) in the
case of payments made pursuant to clause (a) above, the applicable market
exchange rate for such Currency in effect on the second Business Day prior to
each payment date, or (y) with respect to a Conversion Event, the applicable
market exchange rate for such Foreign Currency in effect (as nearly as feasible)
at the time of the Conversion Event. The Company shall pay and indemnify the
Trustee (or other qualifying trustee, collectively for purposes of Section 4.3,
the "Trustee") against any tax, fee or other charge, imposed on or assessed
against the Government Obligations deposited pursuant to this Section 4.2 or the
principal or interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of such
Outstanding Securities and any Coupons appertaining thereto.

         Anything in this Section 4.2 to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request, any money or Government Obligations (or other property and any proceeds
therefrom) held by it as provided in clause (4) of this Section 4.2 which, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect a defeasance or covenant defeasance, as applicable, in accordance with
this Section 4.2.

Section 4.3       Application of Trust Money.

         Subject to the provisions of the last paragraph of Section 10.3, 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 4.1 or 4.2 in respect of any Outstanding Securities of any
series and any Coupons appertaining thereto shall

                                       36
<PAGE>

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 (and premium, if any) and interest
and Additional Amounts, if any; but such money and Government Obligations need
not be segregated from other funds except to the extent required by law.

                                   ARTICLE 5

                                    REMEDIES

Section 5.1       Events of Default.

         "Event of Default", wherever used herein with respect to Securities of
any series means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body),
unless such event is specifically deleted or modified in or pursuant to the
supplemental indenture, Board Resolution or Officers' Certificate establishing
the terms of such Series pursuant to this Indenture:

        (1) default in the payment of any interest on any Security of such
series, or any Additional Amounts payable with respect thereto, when such
interest becomes or such Additional Amounts become due and payable, and
continuance of such default for a period of 30 days;

        (2) default in the payment of the principal of or any premium on any
Security of such series, or any Additional Amounts payable with respect thereto,
when such principal or premium becomes or such Additional Amounts become due and
payable at their Maturity;

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

        (4) default in the performance, or breach, of any covenant or warranty
of the Company in this Indenture or the Securities (other than a covenant or
warranty a default in the performance or the breach of which is elsewhere in
this Indenture specifically dealt with or which has been expressly included in
this Indenture solely for the benefit of a series of Securities other than such
series), and continuance of such default or breach 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 such 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";

        (5) there occurs with respect to any issue or issues of Debt of the
Company (including an Event of Default under any other series of Securities),
the Company or any of its Subsidiaries having an outstanding principal amount of
$25,000,000 or more in the aggregate for all such issues of all such Persons,
whether such Debt exists on the date of this Indenture or shall

                                       37
<PAGE>

hereafter be created, (a) an event of default that has caused the holder thereof
to declare such Debt to be due and payable prior to its stated maturity and such
Debt has not been discharged in full or such acceleration has not been rescinded
or annulled within 30 days of such acceleration and/or (b) the failure to make a
principal payment at the final (but not any interim) fixed maturity and such
defaulted payment shall not have been made, waived or extended within 30 days of
such payment default;

        (6) the entry by a court having competent jurisdiction of:

                (a) a decree or order for relief in respect of the Company in an
        involuntary proceeding under any applicable bankruptcy, insolvency,
        reorganization or other similar law and such decree or order shall
        remain unstayed and in effect for a period of 60 consecutive days;

                (b) a decree or order adjudging the Company to be insolvent, or
        approving a petition seeking reorganization, arrangement, adjustment or
        composition of the Company, and such decree or order shall remain
        unstayed and in effect for a period of 60 consecutive days; or

                (c) a final and non-appealable order appointing a custodian,
        receiver, liquidator, assignee, trustee or other similar official of the
        Company, or of any substantial part of the property of the Company, or
        ordering the winding up or liquidation of the affairs of the Company.

        (7) the commencement by the Company of a voluntary proceeding under any
applicable bankruptcy, insolvency, reorganization or other similar law or of a
voluntary proceeding seeking to be adjudicated insolvent or the consent by the
Company to the entry of a decree or order for relief in an involuntary
proceeding under any applicable bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any insolvency proceedings against it, or
the filing by the Company of a petition or answer or consent seeking
reorganization, arrangement, adjustment or composition of the Company or relief
under any applicable law, or the consent by the Company to the filing of such
petition or to the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee or similar official of the Company or any
substantial part of the property of the Company, or the making by the Company of
an assignment for the benefit of creditors, or the taking of corporate action by
the Company in furtherance of any such action; or

        (8) any other Event of Default provided in or pursuant to this Indenture
with respect to Securities of such series.

Section 5.2       Acceleration of Maturity; Rescission and Annulment.

                  If an Event of Default with respect to Securities of any
series at the time Outstanding (other than an Event of Default with respect to
the Company specified in Section 5.1(7) or Section 5.1(8)) occurs and is
continuing, then the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Securities of such series may declare the principal of
all the Securities of such series, or such lesser amount as may be provided for
in the Securities of such series, to be due and payable immediately, by a notice
in writing to the Company (and to

                                       38
<PAGE>

the Trustee if given by the Holders), and upon any such declaration such
principal or such lesser amount shall become immediately due and payable.

         If an Event of Default with respect to the Company specified in Section
5.1(7) or Section 5.1(8) occurs, all unpaid principal of and accrued interest on
the Outstanding Securities of that series (or such lesser amount as may be
provided for in the Securities of such series) shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder of any Security of that series.

         At any time after a declaration of acceleration with respect to the
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 not less than a majority in principal amount of
the Outstanding Securities of such series, by written notice to the Company, and
the Trustee, may rescind and annul such declaration and its consequences if

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

                (a) all overdue installments of any interest on and Additional
        Amounts with respect to all Securities of such series and any Coupon
        appertaining thereto,

                (b) the principal of and any premium on any Securities of such
        series which have become due otherwise than by such declaration of
        acceleration and interest thereon and any Additional Amounts with
        respect thereto at the rate or rates borne by or provided for in such
        Securities,

                (c) to the extent that payment of such interest or Additional
        Amounts is lawful, interest upon overdue installments of any interest
        and Additional Amounts at the rate or rates borne by or provided for in
        such Securities, and

                (d) all sums paid or advanced by the Trustee hereunder and the
        reasonable compensation, expenses, disbursements and advances of the
        Trustee, its agents and counsel and all other amounts due the Trustee
        under Section 6.6; and

        (2) all Events of Default with respect to Securities of such series,
other than the non-payment of the principal of, any premium and interest on, and
any Additional Amounts with respect to Securities of such series which shall
have become due solely by such declaration of acceleration, shall have been
cured or waived as provided in Section 5.13.

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

Section 5.3       Collection of Debt and Suits for Enforcement by Trustee.

         The Company covenants that if

        (1) default is made in the payment of any installment of interest on or
any Additional Amounts with respect to any Security or any Coupon appertaining
thereto when such interest or

                                       39
<PAGE>

Additional Amounts shall have become 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 any premium on
any Security or any Additional Amounts with respect thereto at their Maturity,
the Company shall, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Holders of such Securities and any Coupons appertaining thereto,
the whole amount of money then due and payable with respect to such Securities
and any Coupons appertaining thereto, with interest upon the overdue principal,
any premium and, to the extent that payment of such interest shall be legally
enforceable, upon any overdue installments of interest and Additional Amounts at
the rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount of money 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 and all other
amounts due to the Trustee under Section 6.6.

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

         If an Event of Default with respect to Securities of any series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series
and any Coupons appertaining thereto 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 such Securities or in aid of the exercise of any power granted
herein or therein, or to enforce any other proper remedy.

Section 5.4       Trustee May File Proofs of Claim.

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

        (1) to file and prove a claim for the whole amount, or such lesser
amount as may be provided for in the Securities of any applicable series, of the
principal and any premium, interest and Additional Amounts owing and unpaid in
respect of the Securities and any Coupons appertaining thereto and to file such
other papers or documents as may be necessary or advisable

                                       40
<PAGE>

in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents or counsel) and of the Holders of Securities or any Coupons
appertaining thereto allowed in such judicial proceeding, and

        (2) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder of Securities or any Coupons to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders of Securities or any Coupons, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel and any other amounts due the
Trustee under Section 6.6.

         Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of a Security
or any Coupon any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or Coupons or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder of a
Security or any Coupon in any such proceeding.

Section 5.5       Trustee May Enforce Claims without Possession of Securities
                  or Coupons.

         All rights of action and claims under this Indenture or any of the
Securities or Coupons may be prosecuted and enforced by the Trustee without the
possession of any of the Securities or Coupons or the production thereof in any
proceeding relating thereto, and any such proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery or judgment, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, shall be for the ratable benefit of each and every Holder of the
Securities or Coupons in respect of which such judgment has been recovered.

Section 5.6       Application of Money Collected.

         Any money collected by the Trustee pursuant to this Article shall be
applied in the following order with respect to the Securities of such series, at
the date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal, or any premium, interest or Additional Amounts,
upon presentation of the Securities or Coupons of the applicable series, or
both, as the case may be, and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

                        FIRST: To the payment of all amounts due the Trustee and
                        any predecessor Trustee under Section 6.6;

                        SECOND: To the payment of the amounts then due and
                        unpaid upon the Securities and any Coupons of the
                        applicable series for principal and any premium,
                        interest and Additional Amounts in respect of which or
                        for the benefit of which such money has been

                                       41
<PAGE>

                        collected, ratably, without preference or priority of
                        any kind, according to the aggregate amounts due and
                        payable on such Securities and Coupons for principal and
                        any premium, interest and Additional Amounts,
                        respectively;

                        THIRD: The balance, if any, to the Company or, Person or
                        Persons entitled thereto.

Section 5.7       Limitations on Suits.

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

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

        (2) the Holders of not less than 25% in principal amount of the
Outstanding Securities of such series shall have made 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 such indemnity as
is reasonably satisfactory to the Trustee against the costs, expenses and
liabilities to be incurred in compliance with such request;

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

        (5) no direction inconsistent with such written request has been given
to the Trustee during such 60-day period by the Holders of a majority in
principal amount of the Outstanding Securities of such series;

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

Section 5.8    Unconditional Right of Holders to Receive Principal and any
               Premium, Interest and Additional Amounts.

         Notwithstanding any other provision in this Indenture, the Holder of
any Security or Coupon shall have the right, which is absolute and
unconditional, to receive payment of the principal of, any premium and (subject
to Section 3.5 and Section 3.7) interest on, and any Additional Amounts with
respect to such Security or payment of such Coupon, as the case may be, on the
respective Stated Maturity or Maturities therefor specified in such Security or
Coupon (or, in the case of redemption, on the Redemption Date or, in the case of
repayment at the option

                                       42
<PAGE>

of such Holder if provided in or pursuant to this Indenture, on the date such
repayment is due) and to institute suit for the enforcement of any such payment,
and such right shall not be impaired without the consent of such Holder.

Section 5.9       Restoration of Rights and Remedies.

         If the Trustee or any Holder of a Security or a Coupon 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 the Company, the Trustee and each such Holder shall, subject to any
determination in such proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Trustee and each such Holder shall continue as though no such proceeding had
been instituted.

Section 5.10      Rights and Remedies Cumulative.

         Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities or Coupons in the last
paragraph of Section 3.6, no right or remedy herein conferred upon or reserved
to the Trustee or to each and every Holder of a Security or a Coupon is intended
to be exclusive of any other right or remedy, and every right and remedy, to the
extent permitted by law, shall 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, to the extent permitted by law, prevent the
concurrent assertion or employment of any other appropriate right or remedy.

Section 5.11      Delay or Omission Not Waiver.

         No delay or omission of the Trustee or of any Holder of any Security or
Coupon to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of
Default or an acquiescence therein. Every right and remedy given by this Article
or by law to the Trustee or to any Holder of a Security or a Coupon may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by such Holder, as the case may be.

Section 5.12      Control by Holders of Securities.

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

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

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

                                       43
<PAGE>

        (3) such direction is not unduly prejudicial to the rights of the other
Holders of Securities of such series not joining in such action.

Section 5.13      Waiver of Past Defaults.

         The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series on behalf of the Holders of all the
Securities of such series and any Coupons appertaining thereto may waive any
past default hereunder with respect to such series and its consequences, except
a default

        (1) in the payment of the principal of, any premium or interest on, or
any Additional Amounts with respect to, any Security of such series or any
Coupons appertaining thereto, or

        (2) in respect of a covenant or provision hereof which under Article 9
cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series 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; but no such waiver shall extend to any subsequent or other
default or impair any right consequent thereon.

Section 5.14      Waiver of Usury, Stay or Extension Laws.

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

Section 5.15      Undertaking for Costs.

        All parties to this Indenture agree, and each Holder of any Security by
his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of any
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the provisions
of this Section 5.15 shall not apply to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the aggregate
more than 10% in principal amount of Outstanding Securities of any series, or to
any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest, if any, on or Additional Amounts,
if any, with respect to any Security on or after the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date, and, in the case of repayment, on or after the date
for repayment).

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<PAGE>

                                   ARTICLE 6

                                   THE TRUSTEE

Section 6.1       Certain Rights of Trustee.

         Subject to Sections 315(a) through 315(d) of the Trust Indenture Act:

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

        (2) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or a Company Order (in each case,
other than delivery of any Security, together with 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;

        (3) 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
shall be herein specifically prescribed) may, in the absence of bad faith on its
part, rely upon an Officers' Certificate;

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

        (5) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by or pursuant to this Indenture at the request or
direction of any of the Holders of Securities of any series or any Coupons
appertaining thereto pursuant to this Indenture, unless such Holders shall have
offered to the Trustee such security or indemnity as is reasonably satisfactory
to it against the costs, expenses and liabilities which might be incurred by it
in compliance with such request or direction;

        (6) 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,
coupon or other paper or document, but the Trustee, in its discretion, may but
shall not be obligated to 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, during
business hours and upon reasonable notice, the books, records and premises of
the Company, personally or by agent or attorney;

        (7) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be

                                       45
<PAGE>

responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder;

        (8) the Trustee shall not be liable for any action taken or error of
judgment made in good faith by a Responsible Officer or Responsible Officers of
the Trustee, unless it shall be proved that the Trustee was negligent, acted in
bad faith or engaged in willful misconduct;

        (9) the Authenticating Agent, Paying Agent, and Security Registrar shall
have the same protections as the Trustee set forth hereunder; and

        (10) the Trustee shall not be liable with respect to any action taken,
suffered or omitted to be taken by it in good faith in accordance with an Act of
the Holders hereunder, and, to the extent not so provided herein, with respect
to any act requiring the Trustee to exercise its own discretion, 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 or any Securities, unless it shall be proved that, in connection
with any such action taken, suffered or omitted or any such act, the Trustee was
negligent, acted in bad faith or engaged in willful misconduct.

Section 6.2       Notice of Defaults.

         Within 90 days after the occurrence of any default hereunder with
respect to the Securities of any series, the Trustee shall transmit by mail to
all Holders of Securities of such series entitled to receive reports pursuant to
Section 7.3(3), notice of such default hereunder actually known to a Responsible
Officer of the Trustee, unless such default shall have been cured or waived;
provided, however, that, except in the case of a default in the payment of the
principal of (or premium, if any), or interest, if any, on, or Additional
Amounts or any sinking fund or purchase fund installment with respect to, any
Security of such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the best interest of
the Holders of Securities and Coupons of such series; and provided, further,
that in the case of any default of the character specified in Section 5.1(4)
with respect to Securities of such series, no such notice to Holders shall be
given until at least 30 days after the occurrence thereof. For the purpose of
this Section, the term "default" means any event which is, or after notice or
lapse of time or both would become, an Event of Default with respect to
Securities of such series.

Section 6.3       Not Responsible for Recitals or Issuance of Securities.

         The recitals contained herein and in the Securities, except the
Trustee's certificate of authentication, and in any Coupons shall be taken as
the statements of the Company and neither the Trustee nor any Authenticating
Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or the Coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities
and perform its obligations hereunder and that the statements made by it in a
Statement of Eligibility on Form T-1, if necessary, supplied to the Company are
true and accurate, subject to the qualifications set forth therein. Neither the

                                       46
<PAGE>

Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of the Securities or the proceeds thereof.

Section 6.4       May Hold Securities.

        The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other Person that may be an agent of the Trustee or the
Company, in its individual or any other capacity, may become the owner or
pledgee of Securities or Coupons and, subject to Sections 310(b) and 311 of the
Trust Indenture Act, may otherwise deal with the Company with the same rights it
would have if it were not the Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other Person.

Section 6.5       Money Held in Trust.

        Except as provided in Section 4.3 and Section 10.3, money held by the
Trustee in trust hereunder need not be segregated from other funds except to the
extent required by law and shall be held uninvested. 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 6.6       Compensation and Reimbursement.

                  The Company agrees:

        (1) to pay to the Trustee from time to time reasonable compensation for
all services rendered by the Trustee hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust);

        (2) except as otherwise expressly provided herein, to reimburse the
Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this
Indenture or arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder (including the reasonable
compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to the
Trustee's negligence or bad faith; and

        (3) to indemnify the Trustee and its agents, officers, directors and
employees for, and to hold them harmless against, any loss, liability or expense
incurred without negligence or bad faith on their part, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses of defending themselves against any
claim or liability in connection with the exercise or performance of any of
their powers or duties hereunder, except to the extent that any such loss,
liability or expense was due to the Trustee's negligence or bad faith.

         As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a lien prior to the Securities of any
series upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the payment of principal of, and premium or
interest on or any Additional Amounts with respect to Securities or any Coupons
appertaining thereto.

                                       47
<PAGE>

         To the extent permitted by law, any compensation or expense incurred by
the Trustee after a default specified in or pursuant to Section 5.1 is intended
to constitute an expense of administration under any then applicable bankruptcy
or insolvency law. "Trustee" for purposes of this Section 6.6 shall include any
predecessor Trustee but the negligence or bad faith of any Trustee shall not
affect the rights of any other Trustee under this Section 6.6.

         The provisions of this Section 6.6 shall survive the satisfaction and
discharge of this Indenture or the earlier resignation or removal of the Trustee
and shall apply with equal force and effect to the Trustee in its capacity as
Authenticating Agent, Paying Agent or Security Registrar.

Section 6.7       Corporate Trustee Required; Eligibility.

         There shall at all times be a Trustee hereunder that is a Corporation
organized and doing business under the laws of the United States of America, any
state thereof or the District of Columbia, that is eligible under Section
310(a)(1) of the Trust Indenture Act to act as trustee under an indenture
qualified under the Trust Indenture Act and that has a combined capital and
surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture
Act) of at least $50,000,000, and that is subject to supervision or examination
by Federal or state authority. 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 6.8       Resignation and Removal; Appointment of Successor.

        (1) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee pursuant to Section 6.9.

        (2) The Trustee may resign at any time with respect to the Securities of
one or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 6.9 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 such
series.

        (3) The Trustee may be removed at any time with respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Securities of such series, delivered to the Trustee and the
Company.

        (4) If at any time:

                (a) the Trustee shall fail to comply with the obligations
        imposed upon it under Section 310(b) of the Trust Indenture Act with
        respect to Securities of any series after written request therefor by
        the Company or any Holder of a Security of such series who has been a
        bona fide Holder of a Security of such series for at least six months,
        or

                (b) the Trustee shall cease to be eligible under Section 6.7 and
        shall fail to resign after written request therefor by the Company or
        any such Holder, or

                                       48
<PAGE>

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

then, in any such case, (i) the Company, by or pursuant to a Board Resolution
may remove the Trustee with respect to all Securities or the Securities of such
series, or (ii) subject to Section 315(e) of the Trust Indenture Act, any Holder
of a Security 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 removal of the Trustee with
respect to all Securities of such series and the appointment of a successor
Trustee or Trustees.

        (5) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by or pursuant to
a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of such 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 6.9. If, within one year after such
resignation, removal or incapacity, 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
6.9, 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 of Securities and accepted
appointment in the manner required by Section 6.9, any Holder of a Security 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.

        (6) The Company shall give notice of each resignation and each removal
of the Trustee with respect to the Securities of any series and each appointment
of a successor Trustee with respect to the Securities of any series by mailing
written notice of such event by first-class mail, postage prepaid, to the
Holders of Registered Securities, if any, of such series as their names and
addresses appear in the Security Register and, if Securities of such series are
issued as Bearer Securities, by publishing notice of such event once in an
Authorized Newspaper in each Place of Payment located outside the United States.
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.

        (7) In no event shall any retiring Trustee be liable for the acts or
omissions of any successor Trustee hereunder.

                                       49
<PAGE>

Section 6.9  Acceptance of Appointment by Successor.

        (1) Upon the appointment hereunder of any successor Trustee with respect
to all Securities, such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties hereunder of the retiring Trustee; but, on the request
of the Company or such successor Trustee, such retiring Trustee, upon payment of
its charges, shall execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and,
subject to Section 10.3, shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder, subject nevertheless to its claim, if any, provided for in Section
6.6.

        (2) Upon the appointment hereunder of any 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 each successor Trustee shall accept such appointment
and which (1) shall contain such provisions as shall be necessary or desirable
to transfer and confirm to, and to vest in, 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, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust, 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 that no Trustee shall be responsible
for any notice given to, or received by, or any act or failure to act on the
part of any other Trustee hereunder, 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, such retiring Trustee
shall have no further responsibility for the exercise of rights and powers or
for the performance of the duties and obligations vested in the Trustee under
this Indenture with respect to the Securities of that or those series to which
the appointment of such successor Trustee relates other than as hereinafter
expressly set forth, and 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 such successor Trustee, such retiring Trustee, upon
payment of its charges with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates and subject to Section
10.3 shall duly assign, transfer and deliver to such successor Trustee, to the
extent contemplated by such supplemental indenture, the 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, subject
to its claim, if any, provided for in Section 6.6.

                                       50
<PAGE>

        (3) Upon request of any Person appointed hereunder as a 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 (1) or (2) of this Section, as the
case may be.

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

Section 6.10  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 of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
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 6.11  Appointment of Authenticating Agent.

        The Trustee may appoint one or more Authenticating Agents acceptable to
the Company with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of that or
those series issued upon original issue, exchange, registration of transfer,
partial redemption or partial repayment or pursuant to Section 3.6, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent.

        Each Authenticating Agent must be acceptable to the Company and, except
as provided in or pursuant to this Indenture, shall at all times be a
corporation that would be permitted by the Trust Indenture Act to act as trustee
under an indenture qualified under the Trust Indenture Act, is authorized under
applicable law and by its charter to act as an Authenticating Agent and has a
combined capital and surplus (computed in accordance with Section 310(a)(2) of
the Trust Indenture Act) of at least $50,000,000. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it 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 all or substantially all of
the corporate agency or corporate trust business of an

                                       51
<PAGE>

Authenticating Agent, shall be the successor of such Authenticating Agent
hereunder, provided such Corporation shall be otherwise eligible under this
Section, without the execution or filing of any paper or any further act on the
part of the Trustee or the Authenticating Agent.

        An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and 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 may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall (i) mail written notice
of such appointment by first-class mail, postage prepaid, to all Holders of
Registered Securities, if any, of the series with respect to which such
Authenticating Agent shall serve, as their names and addresses appear in the
Security Register, and (ii) if Securities of the series are issued as Bearer
Securities, publish notice of such appointment at least once in an Authorized
Newspaper in the place where such successor Authenticating Agent has its
principal office if such office is located outside the United States. Any
successor Authenticating Agent, upon acceptance of its appointment hereunder,
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

        The Company agrees to pay each Authenticating Agent from time to time
reasonable compensation for its services under this Section. If the Trustee
makes such payments, it shall be entitled to be reimbursed for such payments,
subject to the provisions of Section 6.6.

        The provisions of Section 3.8, 6.3 and 6.4 shall be applicable to each
Authenticating Agent.

        If an Authenticating Agent is appointed with respect to one or more
series of Securities 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 in substantially the
following form:

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

                                          U.S. BANK NATIONAL ASSOCIATION,
                                                    as Trustee

                                          By:
                                              ----------------------------------
                                                as Authenticating Agent

                                          By:
                                              ----------------------------------
                                                Authorized Signatory

        If all of the Securities of any series may not be originally issued at
one time, and if the Trustee does not have an office capable of authenticating
Securities upon original issuance located in a Place of Payment where the
Company wishes to have Securities of such series

                                       52
<PAGE>

authenticated upon original issuance, the Trustee, if so requested in writing
(which writing need not be accompanied by or contained in an Officers'
Certificate by the Company), shall appoint in accordance with this Section an
Authenticating Agent having an office in a Place of Payment designated by the
Company with respect to such series of Securities.

                                    ARTICLE 7
                HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 7.1   Company to Furnish Trustee Names and Addresses of Holders.

        In accordance with Section 312(a) of the Trust Indenture Act, the
Company shall furnish or cause to be furnished to the Trustee

        (1) semi-annually with respect to Securities of each series not later
than June 30 and December 31 of the year or upon such other dates as are set
forth in or pursuant to the Board Resolution or indenture supplemental hereto
authorizing such series, a list, in each case in such form as the Trustee may
reasonably require, of the names and addresses of Holders as of the applicable
date, and

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

provided, however, that so long as the Trustee is the Security Registrar no such
list shall be required to be furnished.

Section 7.2   Preservation of Information; Communications to Holders.

        The Trustee shall comply with the obligations imposed upon it pursuant
to Section 312 of the Trust Indenture Act.

        Every Holder of Securities or Coupons, by receiving and holding the
same, agrees with the Company and the Trustee that neither the Company, the
Trustee, any Paying Agent or any Security Registrar shall be held accountable by
reason of the disclosure of any such information as to the names and addresses
of the Holders of Securities in accordance with Section 312(c) of the Trust
Indenture Act, regardless of the source from which such information was derived,
and that the Trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under Section 312(b) of the Trust Indenture
Act.

Section 7.3  Reports by Trustee.

        (1) Within 60 days after March 1 of each year commencing with the first
March 1 following the first issuance of Securities pursuant to Section 3.1, if
required by Section 313(a) of the Trust Indenture Act, the Trustee shall
transmit, pursuant to Section 313(c) of the Trust Indenture Act, a brief report
dated as of such March 1 with respect to any of the events specified in said
Section 313(a) which may have occurred since the later of the immediately
preceding March 1 and the date of this Indenture.

                                       53
<PAGE>

        (2) The Trustee shall transmit the reports required by Section 313(a) of
the Trust Indenture Act at the times specified therein.

        (3) Reports pursuant to this Section shall be transmitted in the manner
and to the Persons required by Sections 313(c) and 313(d) of the Trust Indenture
Act.

Section 7.4  Reports by Company; Rule 144A Information.

        The Company, pursuant to Section 314(a) of the Trust Indenture Act,
shall:

        (1) file with the Trustee, within 15 days after the Company is required
to file the same with the Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of
the foregoing as the Commission may from time to time by rules and regulations
prescribe) which the Company may be required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934,
as amended; or, if the Company is not required to file information, documents or
reports pursuant to either of said Sections, then it shall file with the Trustee
and the Commission, in accordance with rules and regulations prescribed from
time to time by the Commission, such of the supplementary and periodic
information, documents and reports which may be required pursuant to Section 13
of the 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;

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

        (3) transmit 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 the Company pursuant to Section 7.4(1) and Section 7.4(2) as may
be required by rules and regulations prescribed from time to time by the
Commission.

        In addition, in the event that the offer and sale of the Securities of
any series has not been registered under the Securities Act of 1933, as amended,
in reliance on Section 4(2) thereof, the Company agrees that, in order to render
such Securities eligible for resale pursuant to Rule 144A, while any of such
Securities remain outstanding and "restricted securities" (within the meaning of
Rule 144(a)(3) under the Securities Act of 1933, as amended), the Company will
make available, upon request, to any Holder or owner of Securities or
prospective purchasers of Securities the information specified in Rule
144A(d)(4) with respect to the Company, unless such information is furnished to
the Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934, as amended.

                                       54
<PAGE>

                                   ARTICLE 8
                         CONSOLIDATION, MERGER AND SALES

Section 8.1  Company May Consolidate, etc., Only on Certain Terms.

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

        (1) in case the Company shall consolidate with or merge into another
Person or convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to any Person, the Person formed by such
consolidation or into which the Company is merged or the Person which acquires
by conveyance or transfer, or which leases, the properties and assets of the
Company as an entirety or substantially as an entirety shall be a Corporation
organized and existing under the laws of the United States of America, any state
thereof or the District of Columbia and shall expressly assume, by an indenture
(or indentures, if at such time there is more than one Trustee) supplemental
hereto, executed by the successor Person and delivered to the Trustee, the due
and punctual payment of the principal of, any premium and interest on and any
Additional Amounts with respect to all the Securities and the performance of
every obligation in this Indenture and the Outstanding Securities on the part of
the Company to be performed or observed;

        (2) immediately after giving effect to such transaction and treating any
indebtedness which becomes an obligation of the Company or a Subsidiary as a
result of such transaction as having been incurred by the Company or such
Subsidiary at the time of such transaction, no Event of Default or event which,
after notice or lapse of time, or both, would become an Event of Default, shall
have occurred and be continuing; and

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

Section 8.2  Successor Person Substituted for Company.

                Upon any consolidation by the Company with or merger of the
Company into any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety to any Person
in accordance with Section 8.1, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor Person had been named as the Company herein;
and thereafter, except in the case of a

                                       55
<PAGE>

lease, the predecessor Person shall be released from all obligations and
covenants under this Indenture, the Securities and the Coupons.

                                   ARTICLE 9
                             SUPPLEMENTAL INDENTURES

Section 9.1  Supplemental Indentures without Consent of Holders.

        Without the consent of any Holders of Securities or Coupons, the Company
(when authorized by or pursuant to a Board Resolution) and the Trustee, at any
time and from time to time, may enter into one or more indentures supplemental
hereto, for any of the following purposes:

        (1) to evidence the succession of another Person to the Company, and the
assumption by any such successor of the covenants of the Company contained
herein and in the Securities; or

        (2) to add to the covenants of the Company for the benefit of the
Holders of all or any series of Securities (as shall be specified in such
supplemental indenture or indentures) or to surrender any right or power herein
conferred upon the Company; or

        (3) to add to or change any of the provisions of this Indenture to
provide that Bearer Securities may be registrable as to principal, to change or
eliminate any restrictions on the payment of principal of, any premium or
interest on or any Additional Amounts with respect to Securities, to permit
Bearer Securities to be issued in exchange for Registered Securities, to permit
Bearer Securities to be exchanged for Bearer Securities of other authorized
denominations or to permit or facilitate the issuance of Securities in
uncertificated form, provided any such action shall not adversely affect the
interests of the Holders of Outstanding Securities of any series or any Coupons
appertaining thereto in any material respect; or

        (4) to establish the form or terms of Securities of any series and any
Coupons appertaining thereto as permitted by Section 2.1 and Section 3.1; or

        (5) 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 6.9;
or

        (6) to cure any ambiguity or to correct or supplement any provision
herein which may be defective or inconsistent with any other provision herein,
or to make any other provisions with respect to matters or questions arising
under this Indenture which shall not adversely affect the interests of the
Holders of Securities of any series then Outstanding or any Coupons appertaining
thereto in any material respect; or

        (7) to add to, delete from or revise the conditions, limitations and
restrictions on the authorized amount, terms or purposes of issue,
authentication and delivery of Securities, as herein set forth; or

                                       56
<PAGE>

        (8) to add any additional Events of Default with respect to all or any
series of Securities (as shall be specified in such supplemental indenture); or

        (9) to supplement any of the provisions of this Indenture to such extent
as shall be necessary to permit or facilitate the defeasance and discharge of
any series of Securities pursuant to Article 4, provided that any such action
shall not adversely affect the interests of any Holder of an Outstanding
Security of such series and any Coupons appertaining thereto or any other
Outstanding Security or Coupon in any material respect; or

        (10) to secure the Securities pursuant to Section 10.5 or otherwise; or

        (11) to amend or supplement any provision contained herein or in any
supplemental indenture, provided that no such amendment or supplement shall
materially adversely affect the interests of the Holders of any Securities then
Outstanding.

Section 9.2  Supplemental Indentures with Consent of Holders.

                With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company (when authorized by or pursuant to a Company's Board
Resolution) and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of Securities of such series
under this Indenture or of the Securities of such series; provided, however,
that no such supplemental indenture, without the consent of the Holder of each
Outstanding Security affected thereby, shall

        (1) change the Stated Maturity of the principal of, or any premium or
installment of interest on or any Additional Amounts with respect to, any
Security, or reduce the principal amount thereof or the rate (or modify the
calculation of such rate) of interest thereon or any Additional Amounts with
respect thereto, or any premium payable upon the redemption thereof or
otherwise, or change the obligation of the Company to pay Additional Amounts
pursuant to Section 10.4 (except as contemplated by Section 8.1(1) and permitted
by Section 9.1(1)), 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 the amount
thereof provable in bankruptcy pursuant to Section 5.4, change the redemption
provisions or adversely affect the right of repayment at the option of any
Holder as contemplated by Article 13, or change the Place of Payment, Currency
in which the principal of, any premium or interest on, or any Additional Amounts
with respect to any Security 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, in the case
of repayment at the option of the Holder, on or after the date for repayment),
in each case, as provided herein, or

        (2) reduce the percentage in principal amount of the Outstanding
Securities of any series, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for any
waiver (of compliance with certain provisions of

                                       57
<PAGE>

this Indenture or certain defaults hereunder and their consequences) provided
for in this Indenture, or reduce the requirements of Section 15.4 for quorum or
voting, or

        (3) modify any of the provisions of this Section, Section 15.3 or
Section 10.8, except to increase any such percentage or to provide that certain
other provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each Outstanding Security affected thereby.

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

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

Section 9.3  Execution of Supplemental Indentures.

        As a condition to executing, or accepting the additional trusts created
by, any supplemental indenture permitted by this Article or the modifications
thereby of the trust created by this Indenture, the Trustee shall be provided,
and (subject to Section 315 of the Trust Indenture Act) 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 and an
Officers' Certificate stating that all conditions precedent to the execution of
such supplemental indenture have been fulfilled. 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 9.4  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 a Security theretofore or thereafter authenticated and delivered hereunder
and of any Coupon appertaining thereto shall be bound thereby.

Section 9.5  Reference in Securities to Supplemental Indentures.

        Securities 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 of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.

                                       58
<PAGE>

Section 9.6  Conformity with Trust Indenture Act.

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

Section 9.7  Notice of Supplemental Indenture.

        Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to Section 9.2, the Company shall transmit to
the Holders of Outstanding Securities of any series affected thereby a notice
setting forth the substance of such supplemental indenture.

                                   ARTICLE 10
                                    COVENANTS

Section 10.1  Payment of Principal, any Premium, Interest and Additional
Amounts.

        The Company covenants and agrees for the benefit of the Holders of the
Securities of each series that it will duly and punctually pay the principal of,
any premium and interest on and any Additional Amounts with respect to the
Securities of such series in accordance with the terms thereof, any supplement
hereto any Coupons appertaining thereto and this Indenture. Any interest due on
any Bearer Security on or before the Maturity thereof, and any Additional
Amounts payable with respect to such interest, shall be payable only upon
presentation and surrender of the Coupons appertaining thereto for such interest
as they severally mature.

Section 10.2  Maintenance of Office or Agency.

        The Company shall maintain in each Place of Payment for any series of
Securities an Office or Agency where Securities of such series (but not Bearer
Securities, except as otherwise provided below, unless such Place of Payment is
located outside the United States) may be presented or surrendered for payment,
where Securities of such series may be surrendered for registration of transfer
or exchange, and where notices and demands to or upon the Company in respect of
the Securities of such series relating thereto and this Indenture may be served.
If Securities of a series are issuable as Bearer Securities, the Company shall
maintain, subject to any laws or regulations applicable thereto, an Office or
Agency in a Place of Payment for such series which is located outside the United
States where Securities of such series and any Coupons appertaining thereto may
be presented and surrendered for payment; provided, however, that if the
Securities of such series are listed on The Stock Exchange of the United Kingdom
and the Republic of Ireland or the Luxembourg Stock Exchange or any other stock
exchange located outside the United States and such stock exchange shall so
require, a Company shall maintain a Paying Agent in London, Luxembourg or any
other required city located outside the United States, as the case may be, so
long as the Securities of such series are listed on such exchange. The Company
will give prompt written notice to the Trustee of the location, and any change
in the location, of such Office or Agency. If at any time the Company shall fail
to maintain any such required Office or Agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee,
except that Bearer Securities of such series and any Coupons appertaining
thereto may be presented and surrendered for payment at the place

                                       59
<PAGE>

specified for the purpose with respect to such Securities as provided in or
pursuant to this Indenture, and the Company appoints the Trustee as its agent to
receive all such presentations, surrenders, notices and demands.

        Except as otherwise provided in or pursuant to this Indenture, no
payment of principal, premium, interest or Additional Amounts with respect to
Bearer Securities shall be made at any Office or Agency in the United States or
by check mailed to any address in the United States or by transfer to an account
maintained with a bank located in the United States; provided, however, if
amounts owing with respect to any Bearer Securities shall be payable in Dollars,
payment of principal of, any premium or interest on and any Additional Amounts
with respect to any such Security may be made at the Corporate Trust Office of
the Trustee or any Office or Agency designated by the Company in the Borough of
Manhattan, The City of New York, if (but only if) payment of the full amount of
such principal, premium, interest or Additional Amounts at all offices outside
the United States maintained for such 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 of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an Office
or Agency in each Place of Payment for Securities of any series for such
purposes. The Company shall give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other Office or Agency. Unless otherwise provided in or pursuant to this
Indenture, the Company hereby designates as the Place of Payment for each series
of Securities the Borough of Manhattan, The City of New York, and initially
appoints the corporate trust office of the Trustee located at St. Paul,
Minnesota, the Office or Agency of the Company in the Borough of Manhattan, The
City of New York for such purpose. The Company may subsequently appoint a
different Office or Agency in the Borough of Manhattan, The City of New York or
any other Place of Payment for the Securities of any series.

Section 10.3  Money for Securities Payments to Be Held in Trust.

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

        Whenever the Company shall have one or more Paying Agents for any series
of Securities, it shall, on or prior to each due date of the principal of, any
premium or interest on or any Additional Amounts with respect to any Securities
of such series, deposit with any Paying

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Agent a sum (in the currency or currencies, currency unit or units or composite
currency or currencies described in the preceding paragraph) sufficient to pay
the principal or any premium, interest or Additional Amounts so becoming due,
such sum to be held in trust for the benefit of the Persons entitled thereto,
and (unless such Paying Agent is the Trustee) the Company will promptly notify
the Trustee of its action or failure so to act.

        The Company shall 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 shall:

        (1) hold all sums held by it for the payment of the principal of, any
premium or interest on or any Additional Amounts with respect to Securities of
such 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 provided in or
pursuant to this Indenture;

        (2) give the Trustee notice of any default by the Company (or any other
obligor upon the Securities of such series) in the making of any payment of
principal, any premium or interest on or any Additional Amounts with respect to
the Securities of such series; and

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

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

        Except as otherwise provided herein or pursuant hereto, any money
deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, any premium or interest on or any
Additional Amounts with respect to any Security of any series or any Coupon
appertaining thereto and remaining unclaimed for two years after such principal
or any such premium or interest or any such Additional Amounts shall have 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 or any Coupon appertaining thereto 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 in the case of
Bearer Securities cause to be published once, in an Authorized Newspaper in each
Place of Payment for such series or in the case of Registered Securities to be
mailed to Holders of such Registered Securities of such series, 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 or mailing nor shall
it be later than two years after such principal and any premium or interest or
Additional Amounts shall have become

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due and payable, any unclaimed balance of such money then remaining will be
repaid to the Company.

Section 10.4  Additional Amounts.

        If any Securities of a series provide for the payment of Additional
Amounts, the Company agrees to pay to the Holder of any such Security or any
Coupon appertaining thereto Additional Amounts as provided in or pursuant to
this Indenture or such Securities. Whenever in this Indenture there is
mentioned, in any context, the payment of the principal of or any premium or
interest on, or in respect of, any Security of any series or any Coupon or the
net proceeds received on the sale or exchange of any Security of any series,
such mention shall be deemed to include mention of the payment of Additional
Amounts provided by the terms of such series established hereby or pursuant
hereto to the extent that, in such context, Additional Amounts are, were or
would be payable in respect thereof pursuant to such terms, and express mention
of the payment of Additional Amounts (if applicable) in any provision hereof
shall not be construed as excluding the payment of Additional Amounts in those
provisions hereof where such express mention is not made.

        Except as otherwise provided in or pursuant to this Indenture or the
Securities of the applicable series, if the Securities of a series provide for
the payment of Additional Amounts, at least 10 days prior to the first Interest
Payment Date with respect to such series of Securities (or if the Securities of
such series shall not bear interest prior to Maturity, the first day on which a
payment of principal is made), and at least 10 days prior to each date of
payment of principal or interest if there has been any change with respect to
the matters set forth in the below-mentioned Officers' Certificate, the Company
shall furnish to the Trustee and the principal Paying Agent or Paying Agents, if
other than the Trustee, an Officers' Certificate instructing the Trustee and
such Paying Agent or Paying Agents whether such payment of principal of and
premium, if any, or interest on the Securities of such series shall be made to
Holders of Securities of such series or the Coupons appertaining thereto who are
U.S. Aliens without withholding for or on account of any tax, assessment or
other governmental charge described in the Securities of such series. If any
such withholding shall be required, then such Officers' Certificate shall
specify by country the amount, if any, required to be withheld on such payments
to such Holders of Securities or Coupons, and the Company agrees to pay to the
Trustee or such Paying Agent the Additional Amounts required by the terms of
such Securities. The Company covenants to indemnify the Trustee and any Paying
Agent for, and to hold them harmless against, any loss, liability or expense
reasonably incurred without negligence or bad faith on their part arising out of
or in connection with actions taken or omitted by any of them in reliance on any
Officers' Certificate furnished pursuant to this Section.

Section 10.5  Limitation on Liens; Restriction on Sale-Leasebacks.

        (1) The Company will not, and will not permit any Subsidiary to, engage
in the sale or transfer by the Company or any Subsidiary of any Principal
Property to a person (other than the Company or a Subsidiary) and the taking
back by the Company or any Subsidiary, as the case may be, of a lease of such
Principal Property, unless:

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<PAGE>

                (a) the Company or such Subsidiary could incur Debt secured by a
        Lien on the Principal Property to be leased, in an amount equal to the
        Attributable Debt with respect to such sale-leaseback transaction,
        without equally and ratably securing the Securities of the applicable
        series;

                (b) such sale-leaseback transaction involves a lease for a
        period, including renewals, of not more than three years; or

                (c) the Company or such Subsidiary, within a one-year period
        after such sale-leaseback transaction, applies or causes to be applied
        an amount not less than the net proceeds from such sale-leaseback
        transaction to the prepayment, repayment, redemption, reduction or
        retirement (other than pursuant to any mandatory sinking fund,
        redemption or prepayment provision) of Funded Debt.

                Notwithstanding the foregoing restrictions, the Company may, and
may permit any Subsidiary to, create, assume, incur, or suffer to exist any Lien
other than a Permitted Lien upon any Principal Property or upon any shares of
Capital Stock or Debt of any Subsidiary owning or leasing any Principal Property
to secure Debt incurred or guaranteed by the Company or any Subsidiary (other
than the applicable series of Securities) or effect any sale-leaseback
transaction of a Principal Property that is not excepted by Section 10.5(1)(a)
through Section 10.5(1)(c), inclusive, without equally and ratably securing the
Securities of the applicable series provided that, after giving effect thereto,
the aggregate principal amount of outstanding Debt (other than the applicable
series of Securities) secured by Liens, other than Permitted Liens upon
Principal Property, plus the Attributable Debt from sale-leaseback transactions
of Principal Property, not so excepted, do not exceed 15% of Consolidated
Tangible Net Worth

        "Permitted Liens" means

                (d) Liens for taxes, assessments or governmental charges or
        levies on property if the same shall not at the time be delinquent or
        thereafter can be paid without penalty, or are being contested in good
        faith and by appropriate proceedings and for which adequate reserves
        shall have been established in accordance with GAAP;

                (e) Liens imposed by law, such as landlord's, carriers',
        warehousemen's and mechanics' Liens and other similar Liens arising in
        the ordinary course of business that secure payment of obligations not
        more than 60 days past due or that are being contested in good faith by
        appropriate proceedings and for which adequate reserves have been in
        accordance with GAAP;

                (f) Liens arising out of pledges or deposits under worker's
        compensation laws, unemployment insurance, old age pensions, or other
        social security or retirement benefits, or similar legislation (other
        than Liens in favor of the Pension Benefit Guaranty Corporation); or
        good faith deposits in connection with bids, tenders, contracts (other
        than for the payment of Debt) or leases or subleases to which such
        Person is a party, or deposits to secure public or statutory obligations
        of such Person or deposits of cash or United States government bonds to
        secure surety or appeal bonds to which such Person is

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<PAGE>

        a party, or deposits as security for contested taxes or import duties or
        for the payment of rent, in each case incurred in the ordinary course of
        business;

                (g) utility easements, building restrictions and such other
        encumbrances or charges against real property as are of a nature
        generally existing with respect to properties of a similar character and
        that do not in any material way affect the marketability of the same or
        interfere with the use thereof in the business of the Company or its
        Subsidiaries;

                (h) Liens existing on the date of the original issuance of the
        applicable series of Securities, provided that no increase in the
        principal amount secured thereby is permitted; and

                (i) any extension, renewal or replacement (or successive
        extensions, renewals or replacements) in whole or in part of any Lien
        referred to in the foregoing clauses, provided, however, that the
        principal amount of Debt so secured thereby shall not exceed the
        principal amount of Debt so secured prior to such extension, renewal or
        replacement and that such extension, renewal or replacement Lien shall
        be limited to all or a part of the assets that secured the Lien so
        extended, renewed or replaced (plus improvements and construction on
        such real property).

Section 10.6  Legal Existence.

                Subject to Article 8, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect its legal
existence and that of each Subsidiary and their respective rights (charter and
statutory) and franchises; provided, however, that the foregoing shall not
obligate the Company or any Subsidiary to preserve any such right or franchise
if the Company shall determine that the preservation thereof is no longer
desirable in the conduct of its business or the business of the Company or such
Subsidiary and that the loss thereof is not disadvantageous in any material
respect to any Holder.

Section 10.7  Waiver of Certain Covenants.

        The Company may omit in any particular instance to comply with any term,
provision or condition set forth in Section 10.5 with respect to the Securities
of any series if before the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Securities of such series, by
Act of such Holders, either shall waive such compliance in such instance or
generally shall have waived compliance with such term, provision or condition,
but no such waiver shall extend to or affect such term, provision or condition
except to the extent so expressly waived, and, until such waiver shall become
effective, the obligations of the Company and the duties of the Trustee in
respect of any such term, provision or condition shall remain in full force and
effect.

Section 10.8  Company Statement as to Compliance; Notice of Certain Defaults.

        (1) The Company shall deliver to the Trustee, within 120 days after the
end of each fiscal year, a written statement (which need not be contained in or
accompanied by an Officers'

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Certificate) signed by the principal executive officer, the principal financial
officer or the principal accounting officer of the Company, stating that

                (a) a review of the activities of the Company during such year
        and of its performance under this Indenture has been made under his or
        her supervision, and

                (b) to the best of his or her knowledge, based on such review,
        (a) the Company has complied with all the conditions and covenants
        imposed on it under this Indenture throughout such year, or, if there
        has been a default in the fulfillment of any such condition or covenant,
        specifying each such default known to him or her and the nature and
        status thereof, and (b) no event has occurred and is continuing which
        is, or after notice or lapse of time or both would become, an Event of
        Default, or, if such an event has occurred and is continuing, specifying
        each such event known to him and the nature and status thereof.

        (2) The Company shall deliver to the Trustee, within five days after the
occurrence thereof, written notice of any Event of Default or any event which
after notice or lapse of time or both would become an Event of Default pursuant
to clause (4) of Section 5.1.

        (3) The Trustee shall have no duty to monitor the Company's compliance
with the covenants contained in this Article 10 other than as specifically set
forth in this Section 10.8.

                                   ARTICLE 11
                            REDEMPTION OF SECURITIES

Section 11.1  Applicability of Article.

        Redemption of Securities of any series at the option of the Company as
permitted or required by the terms of such Securities shall be made in
accordance with the terms of such Securities and (except as otherwise provided
herein or pursuant hereto) this Article.

Section 11.2  Election to Redeem; Notice to Trustee.

        The election of the Company to redeem any Securities shall be evidenced
by or pursuant to a Board Resolution. In case of any redemption at the election
of the Company of (a) less than all of the Securities of any series or (b) all
of the Securities of any series, with the same issue date, interest rate or
formula, Stated Maturity and other terms, the Company shall, at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall
be satisfactory to the Trustee), notify the Trustee of such Redemption Date and
of the principal amount of Securities of such series to be redeemed.

Section 11.3  Selection by Trustee of Securities to be Redeemed.

        If less than all of the Securities of any series with the same issue
date, interest rate or formula, Stated Maturity and other terms are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee from the Outstanding
Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the
selection

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<PAGE>

for redemption of portions of the principal amount of Registered Securities of
such series; provided, however, that no such partial redemption shall reduce the
portion of the principal amount of a Registered Security of such series not
redeemed to less than the minimum denomination for a Security of such series
established herein or pursuant hereto.

        The Trustee shall promptly notify the Company and the Security Registrar
(if other than itself) in writing of the Securities selected for redemption and,
in the case of any Securities selected for partial redemption, the principal
amount thereof to be redeemed.

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

Section 11.4  Notice of Redemption.

        Notice of redemption shall be given in the manner provided in Section
1.6, not less than 30 nor more than 60 days prior to the Redemption Date, unless
a shorter period is specified in the Securities to be redeemed, to the Holders
of Securities to be redeemed. Failure to give notice by mailing in the manner
herein provided to the Holder of any Registered Securities designated for
redemption as a whole or in part, or any defect in the notice to any such
Holder, shall not affect the validity of the proceedings for the redemption of
any other Securities or portion thereof.

        Any notice that is mailed to the Holder of any Registered Securities in
the manner herein provided shall be conclusively presumed to have been duly
given, whether or not such Holder receives the notice.

        All notices of redemption shall state:

        (1) the Redemption Date,

        (2) the Redemption Price,

        (3) if less than all Outstanding Securities of any series are to be
redeemed, the identification (and, in the case of partial redemption, the
principal amount) 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 of such Security will receive,
without charge, a new Security or Securities of authorized denominations for the
principal amount thereof remaining unredeemed,

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

        (6) the place or places where such Securities, together (in the case of
Bearer Securities) with all Coupons appertaining thereto, if any, maturing after
the Redemption Date,

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<PAGE>

are to be surrendered for payment of the Redemption Price and any accrued
interest and Additional Amounts pertaining thereto,

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

        (8) 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 date fixed for redemption 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,

        (9) if Bearer Securities of any series are to be redeemed and no
Registered Securities of such series are to be redeemed, and if such Bearer
Securities may be exchanged for Registered Securities not subject to redemption
on the Redemption Date pursuant to Section 3.5 or otherwise, the last date, as
determined by the Company, on which such exchanges may be made, and

        (10) the CUSIP number or the Euroclear or Clearstream reference numbers
of such Securities, if any (or any other numbers used by a Depository to
identify such Securities).

        A notice of redemption published as contemplated by Section 1.6 need not
identify particular Registered Securities to be redeemed.

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

Section 11.5  Deposit of Redemption Price.

        On or prior to any Redemption Date, the Company shall deposit, with
respect to the Securities of any series called for redemption pursuant to
Section 11.4, 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 10.3) an amount of money in the applicable Currency sufficient to pay
the Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date, unless otherwise specified pursuant to Section 3.1 or in the
Securities of such series) any accrued interest on and Additional Amounts with
respect thereto, all such Securities or portions thereof which are to be
redeemed on that date.

Section 11.6  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 such
interest appertaining to any Bearer Securities so to be redeemed, except to the
extent provided below, shall be void. Upon surrender of any such Security for
redemption in accordance with said notice, together with all Coupons, if any,
appertaining thereto maturing after the Redemption Date, such Security shall be
paid by the Company at the Redemption Price,

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<PAGE>

together with any accrued interest and Additional Amounts to the Redemption
Date; provided, however, that, except as otherwise provided in or pursuant to
this Indenture or the Bearer Securities of such series, installments of interest
on Bearer Securities whose Stated Maturity is on or prior to the Redemption Date
shall be payable only upon presentation and surrender of Coupons for such
interest (at an Office or Agency located outside the United States except as
otherwise provided in Section 10.2), and provided, further, that, except as
otherwise specified in or pursuant to this Indenture or the Registered
Securities of such series, installments of interest on Registered Securities
whose Stated Maturity is on or prior to the Redemption Date shall be payable to
the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the Regular Record Dates therefor
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
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 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 any interest or Additional Amounts represented by Coupons shall be
payable only upon presentation and surrender of those Coupons at an Office or
Agency for such Security located outside of the United States except as
otherwise provided in Section 10.2.

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

Section 11.7  Securities Redeemed in Part.

        Any Registered Security which is to be redeemed only in part shall be
surrendered at any Office or Agency for such Security (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of transfer
in form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing) and the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Registered Security or Securities of the
same series, containing identical terms and provisions, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Security so
surrendered. If a Security in global form is so surrendered, the Company shall
execute, and the Trustee shall authenticate and deliver to the U.S. Depository
or other Depository for such Security in global form as shall be specified in
the Company Order with respect thereto to the Trustee, without service charge, a
new Security in global form in a denomination equal to and in exchange for the
unredeemed portion of the principal of the Security in global form so
surrendered.

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                                   ARTICLE 12
                                  SINKING FUNDS

Section 12.1  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 permitted or
required in or pursuant to this Indenture or any Security of such series issued
pursuant to this Indenture.

        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 such 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 12.2. 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 and this Indenture.

Section 12.2  Satisfaction of Sinking Fund Payments with Securities.

        The Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of any series to be made pursuant to the
terms of such Securities (1) deliver Outstanding Securities of such series
(other than any of such Securities previously called for redemption or any of
such Securities in respect of which cash shall have been released to the
Company), together in the case of any Bearer Securities of such series with all
unmatured Coupons appertaining thereto, and (2) apply as a credit Securities of
such series which have been redeemed either at the election of the Company
pursuant to the terms of such series of Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, provided that such series of 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. If, as a result of the delivery or credit
of Securities of any series in lieu of cash payments pursuant to this Section
12.2, the principal amount of Securities of such series to be redeemed in order
to satisfy the remaining sinking fund payment shall be less than $100,000, the
Trustee need not call Securities of such series for redemption, except upon
Company Request, and such cash payment shall be held by the Trustee or a Paying
Agent and applied to the next succeeding sinking fund payment, provided,
however, that the Trustee or such Paying Agent shall at the request of the
Company from time to time pay over and deliver to the Company any cash payment
so being held by the Trustee or such Paying Agent upon delivery by the Company
to the Trustee of Securities of that series purchased by the Company having an
unpaid principal amount equal to the cash payment requested to be released to
the Company.

Section 12.3  Redemption of Securities for Sinking Fund.

        Not less than 75 days prior to each sinking fund payment date for any
series of Securities, the Company shall deliver to the Trustee an Officers'
Certificate specifying the amount of the

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<PAGE>

next ensuing mandatory 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 of Securities of that series pursuant to Section 12.2,
and the optional amount, if any, to be added in cash to the next ensuing
mandatory sinking fund payment, and will also deliver to the Trustee any
Securities to be so credited and not theretofore delivered. If such Officers'
Certificate shall specify an optional amount to be added in cash to the next
ensuing mandatory sinking fund payment, the Company shall thereupon be obligated
to pay the amount therein specified. Not less than 60 days before each such
sinking fund payment date the Trustee shall select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 11.3 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 11.4. Such notice
having been duly given, the redemption of such Securities shall be made upon the
terms and in the manner stated in Section 11.6 and Section 11.7.

                                   ARTICLE 13
                       REPAYMENT AT THE OPTION OF HOLDERS

Section 13.1  Applicability of Article.

        Securities of any series which are repayable at the option of the
Holders thereof before their Stated Maturity shall be repaid in accordance with
the terms of the Securities of such series. The repayment of any principal
amount of Securities pursuant to such option of the Holder to require repayment
of Securities before their Stated Maturity, for purposes of Section 3.9, shall
not operate as a payment, redemption or satisfaction of the Debt represented by
such Securities unless and until the Company, at its option, shall deliver or
surrender the same to the Trustee with a directive that such Securities be
cancelled. Notwithstanding anything to the contrary contained in this Section
13.1, in connection with any repayment of Securities, the Company may arrange
for the purchase of any Securities by an agreement with one or more investment
bankers or other purchasers to purchase such Securities by paying to the Holders
of such Securities on or before the close of business on the repayment date an
amount not less than the repayment price payable by the Company on repayment of
such Securities, and the obligation of the Company to pay the repayment price of
such Securities shall be satisfied and discharged to the extent such payment is
so paid by such purchasers.

                                   ARTICLE 14

                        SECURITIES IN FOREIGN CURRENCIES

Section 14.1  Applicability of Article.

        Whenever this Indenture provides for (i) any action by, or the
determination of any of the rights of, Holders of Securities of any series in
which not all of such Securities are denominated in the same Currency, or (ii)
any distribution to Holders of Securities, in the absence of any provision to
the contrary in the form of Security of any particular series or pursuant to
this Indenture or the Securities, any amount in respect of any Security
denominated in a Currency other than Dollars shall be treated for any such
action or distribution as that amount of Dollars that could be obtained for such
amount on such reasonable basis of exchange and as of the record

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date with respect to Registered Securities of such series (if any) for such
action, determination of rights or distribution (or, if there shall be no
applicable record date, such other date reasonably proximate to the date of such
action, determination of rights or distribution) as the Company may specify in a
written notice to the Trustee.

                                   ARTICLE 15
                        MEETINGS OF HOLDERS OF SECURITIES

Section 15.1  Purposes for Which Meetings May Be Called.

        A meeting of Holders of Securities of any series may be called at any
time and from time to time pursuant to this Article to make, give or take any
request, demand, authorization, direction, notice, consent, waiver or other Act
provided by this Indenture to be made, given or taken by Holders of Securities
of such series.

Section 15.2  Call, Notice and Place of Meetings.

        (1) The Trustee may at any time call a meeting of Holders of Securities
of any series for any purpose specified in Section 15.1, to be held at such time
and at such place in the Borough of Manhattan, The City of New York, or, if
Securities of such series have been issued in whole or in part as Bearer
Securities, in London or in such place outside the United States as the Trustee
shall determine. Notice of every meeting of Holders of Securities of any series,
setting forth the time and the place of such meeting and in general terms the
action proposed to be taken at such meeting, shall be given, in the manner
provided in Section 1.6, not less than 21 nor more than 180 days prior to the
date fixed for the meeting.

        (2) In case at any time the Company (by or pursuant to a Board
Resolution), or the Holders of at least 10% in principal amount of the
Outstanding Securities of any series shall have requested the Trustee to call a
meeting of the Holders of Securities of such series for any purpose specified in
Section 15.1, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed
notice of or made the first publication of the notice of such meeting within 21
days after receipt of such request (whichever shall be required pursuant to
Section 1.6) or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the Company or the Holders of Securities of such series in
the amount above specified, as the case may be, may determine the time and the
place in the Borough of Manhattan, The City of New York, or, if Securities of
such series are to be issued as Bearer Securities, in London for such meeting
and may call such meeting for such purposes by giving notice thereof as provided
in clause (1) of this Section.

Section 15.3 Persons Entitled to Vote at Meetings.

        To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.

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Section 15.4  Quorum; Action.

        The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for any meeting of
Holders of Securities of such series. In the absence of a quorum within 30
minutes after the time appointed for any such meeting, the meeting shall, if
convened at the request of Holders of Securities of such series, be dissolved.
In any other case the meeting may be adjourned for a period of not less than 10
days as determined by the chairman of the meeting prior to the adjournment of
such meeting. In the absence of a quorum at any reconvened meeting, such
reconvened meeting may be further adjourned for a period of not less than 10
days as determined by the chairman of the meeting prior to the adjournment of
such reconvened meeting. Notice of the reconvening of any adjourned meeting
shall be given as provided in Section 15.2(1), except that such notice need be
given only once not less than five days prior to the date on which the meeting
is scheduled to be reconvened. Notice of the reconvening of an adjourned meeting
shall state expressly the percentage, as provided above, of the principal amount
of the Outstanding Securities of such series which shall constitute a quorum.

        Except as limited by the proviso to Section 9.2, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted only by the affirmative vote of the Holders
of a majority in principal amount of the Outstanding Securities of that series;
provided, however, that, except as limited by the proviso to Section 9.2, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other Act which this Indenture expressly provides may
be made, given or taken by the Holders of a specified percentage, which is less
than a majority, in principal amount of the Outstanding Securities of a series
may be adopted at a meeting or an adjourned meeting duly reconvened and at which
a quorum is present as aforesaid by the affirmative vote of the Holders of such
specified percentage in principal amount of the Outstanding Securities of such
series.

        Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the Coupons
appertaining thereto, whether or not such Holders were present or represented at
the meeting.

Section 15.5  Determination of Voting Rights; Conduct and Adjournment of
Meetings.

        (1) Notwithstanding any other provisions of this Indenture, the Trustee
may make such reasonable regulations as it may deem advisable for any meeting of
Holders of Securities of such series in regard to proof of the holding of
Securities of such series and of the appointment of proxies and in regard to the
appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall deem appropriate.
Except as otherwise permitted or required by any such regulations, the holding
of Securities shall be proved in the manner specified in Section 1.4 and the
appointment of any proxy shall be proved in the manner specified in Section 1.4
or by having the signature of the person executing the proxy witnessed or
guaranteed by any trust company, bank or banker authorized by Section 1.4 to
certify to the holding of Bearer Securities. Such regulations may provide that
written instruments appointing

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proxies, regular on their face, may be presumed valid and genuine without the
proof specified in Section 1.4 or other proof.

        (2) The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Holders of Securities as provided in Section 15.2(2), in which
case the Company or the Holders of Securities of the series calling the meeting,
as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by
vote of the Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting.

        (3) At any meeting, each Holder of a Security of such series or proxy
shall be entitled to one vote for each $1,000 principal amount of Securities of
such series held or represented by him; provided, however, that no vote shall be
cast or counted at any meeting in respect of any Security challenged as not
Outstanding and ruled by the chairman of the meeting to be not Outstanding. The
chairman of the meeting shall have no right to vote, except as a Holder of a
Security of such series or proxy.

        (4) Any meeting of Holders of Securities of any series duly called
pursuant to Section 15.2 at which a quorum is present may be adjourned from time
to time by Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting; and the
meeting may be held as so adjourned without further notice.

Section 15.6  Counting Votes and Recording Action of Meetings.

        The vote upon any resolution submitted to any meeting of Holders of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in triplicate of all votes cast at the meeting. A record, at least in
triplicate, of the proceedings of each meeting of Holders of Securities of any
series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 15.2 and, if
applicable, Section 15.4. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

                                     * * * *

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                IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, all as of the day and year first above written.

                               THE MIDLAND COMPANY
                               as Issuer

                               By: /s/ John I. Von Lehaman
                                  --------------------------------------------
                                     John I. Von Lehaman
                                     Executive Vice President, Chief Financial
                                     Officer & Secretary

                               U.S. BANK NATIONAL ASSOCIATION

                               By: /s/ Robert T. Jones
                                  --------------------------------------------
                                   Robert T. Jones,
                                   Vice President & Trust Officer

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