Document:

<PAGE>
                                                                    EXHIBIT 4(e)

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

                         SEARS ROEBUCK ACCEPTANCE CORP.

                                       AND

                           BNY MIDWEST TRUST COMPANY,

                                     TRUSTEE

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

                                    INDENTURE
                          DATED AS OF OCTOBER 1, 2002

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

================================================================================
<PAGE>
                         SEARS ROEBUCK ACCEPTANCE CORP.

                                    INDENTURE

                          DATED AS OF OCTOBER 1, 2002

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

                               TABLE OF CONTENTS*

<TABLE>
<CAPTION>
                                                                                 PAGE
                                                                                 ----
<S>                                                                              <C>

PARTIES ...................................................................          1

RECITALS ..................................................................          1

                                            ARTICLE I
                                  DEFINITIONS OF CERTAIN TERMS
   Section 1.1.    Definitions ............................................        I-1
                   Affiliate ..............................................        I-1
                   Authenticating Agent....................................        I-1
                   Board...................................................        I-1
                   Business Day............................................        I-1
                   Certified Resolution....................................        I-1
                   Commission..............................................        I-1
                   Company.................................................        I-1
                   Currency................................................        I-1
                   Defaulted Interest......................................        I-1
                   Depository..............................................        I-2
                   Dollar..................................................        I-2
                   Eligible Obligations....................................        I-2
                   Euro ...................................................        I-2
                   Fixed Charge Coverage and Ownership Agreement...........        I-2
                   Fixed Charge Coverage Ratio ............................        I-2
                   Foreign Currency........................................        I-2
                   Global Security.........................................        I-3
                   Holder .................................................        I-3
                   Indenture...............................................        I-3
                   Interest................................................        I-3
                   Interest Payment Date...................................        I-3
                   Market Exchange Rate....................................        I-3
                   Maturity ...............................................        I-3
                   Officers' Certificate...................................        I-3
                   Opinion of Counsel. ....................................        I-4
                   Original Issue Discount Security........................        I-4
                   Outstanding ............................................        I-4
                   Person..................................................        I-4
                   Redemption Date.........................................        I-4
                   Redemption Price........................................        I-4
                   Regular Record Date.....................................        I-5
                   Responsible Officer.....................................        I-5
                   Sears...................................................        I-5
                   Securities..............................................        I-5
                   Security Register ......................................        I-5
                   Special Record Date ....................................        I-5
</TABLE>

----------

      *  This table of contents shall not, for any purpose, be deemed to be a
         part of the Indenture.

                                       i
<PAGE>
<TABLE>
<S>                                                                             <C>
                   Stated Maturity ........................................        I-5
                   Subsidiary; Voting Stock................................        I-5
                   Trustee.................................................        I-5
                   U.S. Government Obligations ............................        I-6
   SECTION 1.2.    Trust Indenture Act definitions controlling.............        I-6

                                           ARTICLE II
                                         THE SECURITIES
   SECTION 2.1.    Amount Unlimited; Issuable in Series; Forms Generally;
                        Form of Trustee's Certificate of Authentication....       II-1
   SECTION 2.2.    Denominations...........................................       II-3
   SECTION 2.3.    Execution, Authentication, Delivery and Dating .........       II-3
   SECTION 2.4.    Temporary Securities ...................................       II-4
   SECTION 2.5.    Registration, Registration of Transfer and Exchange. ...       II-4
   SECTION 2.6.    Mutilated, Destroyed, Lost and Stolen Securities .......       II-5
   SECTION 2.7.    Payment of Interest; Interest Rights Preserved..........       II-6
   SECTION 2.8.    Persons Deemed Owners ..................................       II-7
   SECTION 2.9.    Cancellation............................................       II-7
   SECTION 2.10.   Securities Issuable as a Global Security ...............       II-7
   SECTION 2.11.   Currency of Payments in Respect of Securities ..........       II-8
   SECTION 2.12.   Availability of Currency of Payment in Respect of
                        Securities ........................................       II-8

                                           ARTICLE III
                                    COVENANTS OF THE COMPANY
   SECTION 3.1.    Payment of principal and interest ......................      III-1
   SECTION 3.2.    Maintenance of office or agency for notices and demands       III-1
   SECTION 3.3.    File certain reports and information with the Trustee
                        and the Securities And Exchange Commission ........      III-1
                   Transmit to Holders summaries of certain documents filed
                        with the Trustee ..................................      III-2
                   Furnish list of Holders to the Trustee..................      III-2
   SECTION 3.4.    File statement by officers annually with the Trustee....      III-2
   SECTION 3.5.    Duties of paying agent..................................      III-2
   SECTION 3.6.    Certain restrictions....................................      III-3

                                           ARTICLE IV
                                    REDEMPTION OF SECURITIES
   SECTION 4.1.    Applicability of Article................................       IV-1
   SECTION 4.2.    Election to Redeem; Notice to Trustee...................       IV-1
   SECTION 4.3.    Selection by Trustee of Securities to Be Redeemed.......       IV-1
   SECTION 4.4.    Notice of Redemption....................................       IV-1
   SECTION 4.5.    Deposit of Redemption Price.............................       IV-2
   SECTION 4.6.    Securities Payable on Redemption Date...................       IV-2
   SECTION 4.7.    Securities Redeemed in Part.............................       IV-2

                                            ARTICLE V
                                          SINKING FUNDS
   SECTION 5.1.    Applicability of Article................................        V-1
   SECTION 5.2.    Satisfaction of Sinking Fund Payments with Securities...        V-1
   SECTION 5.3.    Redemption of Securities for Sinking Fund...............        V-1

                                           ARTICLE VI
                                      REMEDIES UPON DEFAULT
   SECTION 6.1.    Defaults defined -- acceleration of maturity upon
                        default -- waiver of default.......................       VI-1
</TABLE>

                                       ii
<PAGE>
<TABLE>
<S>                                                                             <C>
   SECTION 6.2.    Covenant of Company to pay to Trustee whole amount due
                        on default in payment of principal or interest --
                        Trustee may recover judgment for whole amount due
                        -- application of moneys received by the Trustee...       VI-3
   SECTION 6.3.    Trustee may enforce rights of action without possession
                        of Securities......................................       VI-4
   SECTION 6.4.    Delays or omissions not to impair any rights or powers
                        accruing upon default..............................       VI-4
   SECTION 6.5.    In event of default Trustee may protect and enforce its
                        rights by appropriate proceedings -- holders of a
                        majority in principal amount of Securities of a
                        particular series may waive default................       VI-5
   SECTION 6.6.    Holders of a majority in principal amount of Securities
                        of a particular series may direct exercise of
                        remedies...........................................       VI-5
   SECTION 6.7.    Limitation on suits by Holders..........................       VI-5
   SECTION 6.8.    No Securities owned or held by or for the account of the
                        Company to be deemed outstanding for purpose of
                        payment or distribution............................       VI-6
   SECTION 6.9.    Company and Trustee restored to former position on
                        discontinuance or abandonment of proceedings.......       VI-6

                                           ARTICLE VII
                                     CONCERNING THE HOLDERS
   SECTION 7.1.    Evidence of action by Holders...........................      VII-1
   SECTION 7.2.    Proof of execution of instruments and holding of
                        Securities.........................................      VII-1
   SECTION 7.3.    Who may be deemed owners of Securities..................      VII-2
   SECTION 7.4.    Securities owned by Company or its affiliates
                        disregarded for certain purposes...................      VII-2
   SECTION 7.5.    Action by Holders binds future Holders..................      VII-2

                                          ARTICLE VIII
                            IMMUNITY OF INCORPORATORS, SHAREHOLDERS,
                                     OFFICERS AND DIRECTORS
   SECTION 8.1.    No recourse against incorporators or others.............     VIII-l

                                   ARTICLE IX
                          MERGER, CONSOLIDATION OR SALE
   SECTION 9.1.    Merger, consolidation, sale or conveyance of property
                        not prohibited except under certain conditions --
                        execution of supplemental indenture ...............       IX-1
   SECTION 9.2.    Rights and duties of successor corporation..............       IX-1
                   Issuance of Securities by successor corporation.........       IX-1
   SECTION 9.3.    Opinion of Counsel to Trustee...........................       IX-1

                                    ARTICLE X
                             CONCERNING THE TRUSTEE
   SECTION 10.1.   Acceptance of Trust ....................................        X-l
                   Trustee not relieved from liability for negligence or
                        misconduct.........................................        X-l
                   Trustee not responsible for validity or execution of
                        Indenture or of Securities or for recitals in
                        Indenture or Securities............................        X-l
                   Trustee may rely upon documents believed genuine -- may
                        consult with counsel -- may accept officers'
                        certificates -- may require indemnity -- not to be
                        liable for action taken in good faith..............        X-2
                   Prior to default and after curing of defaults Trustee
                        not bound to investigate unless requested by
                        Holders of majority in principal amount of
                        Securities of a series -- may require
                        indemnification....................................        X-2
                   Trustee may execute trusts or powers directly or by
                        attorneys..........................................        X-3
   SECTION 10.2.   Trustee to be entitled to compensation -- Trustee not to
                        be accountable for
</TABLE>

                                      iii
<PAGE>
<TABLE>
<S>                                                                             <C>
                        application of proceeds -- moneys held by Trustee
                        to be trust funds..................................        X-3
   SECTION 10.3.   Trustee to give Holders notice of default...............        X-3
   SECTION 10.4.   Trustee acquiring conflicting interest must eliminate it
                        or resign; Definition of conflicting interest;
                        Definition of certain terms........................        X-3
                   Calculation of percentages of securities................        X-7
   SECTION 10.5.   Eligibility of Trustee..................................        X-8
   SECTION 10.6.   Resignation or removal of Trustee.......................        X-9
   SECTION 10.7.   Acceptance by successor Trustee.........................        X-9
   SECTION 10.8.   Successor to Trustee by merger or consolidation.........        X-10
   SECTION 10.9.   Limitations on right of Trustee as a creditor to obtain
                        payment of certain claims..........................       X-10
   SECTION 10.10.  Trustee to make annual report to Holders................       X-14
                   Trustee to make other reports to Holders................       X-14
                   Holders to whom reports to be transmitted...............       X-15
   SECTION 10.11.  Preservation of information by Trustee..................       X-15
                   Trustee to give certain information to Holders upon
                        application........................................       X-15
   SECTION 10.12.  Trustee or an Authenticating Agent may hold Securities
                        and otherwise deal with Company....................       X-16
   SECTION 10.13.  Trustee may comply with any rule, regulation or order of
                        the Securities and Exchange Commission.............       X-16
   SECTION 10.14.  Authenticating Agent....................................       X-16

                                   ARTICLE XI
                             SUPPLEMENTAL INDENTURES
   SECTION 11.1.   Purposes for which supplemental indentures may be
                        entered into without consent of Holders............       XI-1
   SECTION 11.2.   Modification of Indenture with consent of Holders of a
                        majority in principal amount of Securities of any
                        series.............................................       XI-2
   SECTION 11.3.   Effect of supplemental indentures.......................       XI-2
   SECTION 11.4.   Securities may bear notation of changes.................       XI-3
   SECTION 11.5.   Trustee may rely upon Opinion of Counsel................       XI-3
   SECTION 11.6.   Instruments of further assurance........................       XI-3

                                   ARTICLE XII
                               MEETINGS OF HOLDERS
   SECTION 12.1.   Purposes for which meetings may be called...............      XII-1
   SECTION 12.2.   Manner of calling meetings..............................      XII-1
   SECTION 12.3.   Call of meetings by Company or Holders..................      XII-1
   SECTION 12.4.   Who may attend and vote at meetings.....................      XII-2
   SECTION 12.5.   Regulations may be made by Trustee -- conduct of the
                        meeting -- voting rights -- adjournment............      XII-2
   SECTION 12.6.   Manner of voting at meetings and record to be kept......      XII-3
   SECTION 12.7.   Exercise of rights of Trustee or Holders may not be
                        hindered or delayed by call of meeting of Holders..      XII-3

                                  ARTICLE XIII
                     SATISFACTION AND DISCHARGE OF INDENTURE
                             OR CERTAIN OBLIGATIONS
   SECTION 13.1.   Satisfaction and discharge of Indenture.................     XIII-1
   SECTION 13.2.   Deposits for payment or redemption of Securities to be
                        held in trust......................................     XIII-1
   SECTION 13.3.   Repayment of moneys held by Trustee; Repayment of moneys
                        held by paying agent...............................     XIII-2
   SECTION 13.4.   Defeasance of Securities of any series..................     XIII-2
   SECTION 13.5.   Application of Trust Money..............................     XIII-4
</TABLE>

                                       iv
<PAGE>
<TABLE>
<S>                                                                             <C>
                                   ARTICLE XIV
                            MISCELLANEOUS PROVISIONS
   SECTION 14.1.   Rights under Indenture limited to the parties and
                        Holders of Securities..............................      XIV-1
   SECTION 14.2.   Certificate of independent accountants conclusive.......      XIV-1
   SECTION 14 3    Remaining provisions not affected by invalidity of any
                        other provisions-required provisions of Trust
                        Indenture Act of 1939, as amended, to control......      XIV-1
   SECTION 14.4    Company released from Indenture requirements if entitled
                        to have Indenture cancelled........................      XIV-1
   SECTION 14.5.   Date of execution.......................................      XIV-1
   SECTION 14.6.   Officers' certificates and Opinions of Counsel to be
                        furnished Trustee..................................      XIV-1
   SECTION 14.7.   Payments and deposits due other than on a Business Day..      XIV-2
   SECTION 14.8.   Presentation of notices and demands.....................      XIV-2
   SECTION 14.9.   Successors and assigns bound by Indenture...............      XIV-3
   SECTION 14.10.  Descriptive headings for convenience only...............      XIV-3
   SECTION 14.11.  Indenture may be executed in counterparts...............      XIV-3
   SECTION 14.12.  Controlling law.........................................      XIV-3
   TESTIMONIUM
   SIGNATURES AND SEALS
   ACKNOWLEDGMENTS
</TABLE>

                                       v
<PAGE>
                         SEARS ROEBUCK ACCEPTANCE CORP.

                    RECONCILIATION AND TIE BETWEEN INDENTURE

                          DATED AS OF OCTOBER 1, 2002

                                       AND

                     TRUST INDENTURE ACT OF 1939, AS AMENDED

<TABLE>
<CAPTION>
     TRUST INDENTURE ACT SECTION                 INDENTURE SECTION
<S>                                             <C>
               310(a)(1)                               10.5
                 (a)(2)                                10.5
                 (a)(3)                           Not applicable
                 (a)(4)                           Not applicable
                 (a)(5)                                10.5
                 (b)                                 10.4,10.5
                 (c)                              Not applicable
               311(a)                              10.9 (a), (c)
                 (b)                                 10.9 (b)
                 (c)                              Not applicable
               312(a)                              3.3(d), 10.11
                 (b)                                   10.11
                 (c)                                   10.11
               313(a)                                10.10 (a)
                 (b)(1)                           Not applicable
                 (b)(2)                              10.10 (b)
                 (c)                                 10.10 (c)
                 (d)                                 10.10 (c)
               314(a)(1)                              3.3 (a)
                 (a)(2)                               3.3 (b)
                 (a)(3)                               3.3 (c)
                 (a)(4)                                 3.4
                 (b)                              Not applicable
                 (c)                                   14.6
                 (d)                              Not applicable
                 (e)                                   14.6
                 (f)                               Not required
               315(a)(l)                           10.1 (a), (b)
                 (a)(2)                         10.1 (a), (b), (d)
                 (b)                                   10.3
                 (c)                                 10.1 (a)
                 (d)                               10.1 (a), (b)
                 (e)                                    6.7
               316(a)(1A)                               6.6
                 (a)(1B)                                6.5
                 (a)(2)                            Not required
                 (b)                                    6.7
                 (c)                                    7.1
               317(a)(1)                                6.2
                 (a)(2)                                 6.2
                 (b)                                    3.5
               318(a)                                  14.3
</TABLE>

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

                                       vi
<PAGE>
      INDENTURE, dated as of the 1st day of October 2002, between SEARS ROEBUCK
ACCEPTANCE CORP. (hereinafter called the "Company"), a corporation organized and
existing under the laws of the State of Delaware, and BNY MIDWEST TRUST COMPANY
(hereinafter called the "Trustee"), an Illinois trust company, as Trustee:

                             RECITALS OF THE COMPANY

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

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

      NOW, THEREFORE, THIS INDENTURE WITNESSETH:

      For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities or of series
thereof, as follows:
<PAGE>
                                    ARTICLE I

                          DEFINITIONS OF CERTAIN TERMS

      SECTION 1.1. Unless the context otherwise requires, the terms defined in
this Article I shall for all purposes of this Indenture and of any indenture
supplemental hereto have the meaning herein specified, the following definitions
to be equally applicable to both the singular and plural forms of any of the
terms herein defined:

Affiliate

      An "Affiliate" of a specified Person shall mean another Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such first Person.

Authenticating Agent

      The term "Authenticating Agent" shall mean any Authenticating Agent
appointed by the Trustee pursuant to Section 10.14.

Board

      The term "Board" or "Board of Directors" shall mean the Board of Directors
of the Company or the Executive Committee of such Board.

Business Day

      The term "Business Day" shall mean each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a legal holiday for banking institutions in any
of the City of Wilmington, the City of Chicago, The City of New York or the city
in which the principal corporate trust office of the Trustee is located.

Certified Resolution

      The term "Certified Resolution" shall mean a copy of a resolution
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.

Commission

      The term "Commission" shall mean the Securities and Exchange Commission.

Company

      The term "Company" shall mean Sears Roebuck Acceptance Corp. and, subject
to the provisions of Article IX, shall also include its successors and assigns.

Currency

      The term "Currency" shall mean Dollars or Foreign Currency.

Defaulted Interest

      The term "Defaulted Interest" shall have the meaning specified in Section
2.7.

                                      I-1
<PAGE>
Depository

      The term "Depository" shall mean, with respect to Securities of any series
for which the Company shall determine that such Securities will be issued in
whole or in part as one or more Global Securities, The Depository Trust Company,
New York, New York, another clearing agency or any successor registered under
the Securities Exchange Act of 1934, as amended, or other applicable statute or
regulation, which, in each case, shall be designated by the Company pursuant to
either Section 2.1 or 2.10.

Dollar

      The term "Dollar" shall mean the currency issued by the government of the
United States.

Eligible Obligations

      The term "Eligible Obligations" shall mean obligations as a result of the
deposit of which (along with the simultaneous deposit, if any, of money or U.S.
Government Obligations or both) the relevant series of Securities will be rated
in the highest generic long term debt rating category assigned by one or more
nationally recognized rating agencies to debt with respect to which the issuer
thereof has been released from its obligations to the same extent that the
Company has been released from its obligations under this Indenture pursuant to
Section 13.4 hereof.

Euro

      The term "Euro" shall mean the lawful currency of the member states of the
European Economic and Monetary Union, pursuant to the Treaty establishing the
European Community, as amended by the Treaty on European Union.

Fixed Charge Coverage and Ownership Agreement

      The term "Fixed Charge Coverage and Ownership Agreement" shall mean the
letter agreement between the Company and Sears dated September 24, 2002.

Fixed Charge Coverage Ratio

      The term "Fixed Charge Coverage Ratio" shall mean, for any period, the
Company's ratio of earnings to fixed charges, determined for such period in
accordance with Item 503(d) of Regulation S-K promulgated by the Commission, as
in effect on the date hereof.

Foreign Currency

      The term "Foreign Currency" shall mean either (i) a currency issued by the
government of any country other than the United States, including the Euro, or
(ii) any composite currency the value of which is determined by reference to the
values of the currencies of any group of countries.

                                      I-2
<PAGE>
Global Security

      The term "Global Security" shall mean, with respect to any series of
Securities, a Security executed by the Company and authenticated and held by the
Trustee as agent for the Depository or delivered pursuant to the Depository's
instruction, all in accordance with this Indenture and pursuant to a Company
order, which (i) shall be registered in the name of the Depository or its
nominee and (ii) shall constitute, and shall be denominated in an amount equal
to the aggregate principal amount of, all or part of the Outstanding Securities
of such series.

Holder

      The terms "Holder", "Holder of Securities" or other similar terms, shall
mean the person in whose name a particular Security shall be registered on the
books of the Company kept for that purpose in accordance with the terms hereof,
and the word "majority", used in connection with the terms "Holder", "Holder of
Securities", or other similar terms, shall signify the "majority in principal
amount" whether or not so expressed.

Indenture

      The term "Indenture" shall mean this instrument as originally executed or,
if amended or supplemented as herein provided, as so amended or supplemented,
and shall include the terms of particular series of Securities established as
contemplated by Section 2.1.

Interest

      The term "Interest", when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, shall mean
interest payable after Maturity.

Interest Payment Date

      The term "Interest Payment Date", when used with respect to any Security,
shall mean the Stated Maturity of any installment of interest on the Security.

Market Exchange Rate

      The "Market Exchange Rate" on a given date for a given foreign currency
shall mean the noon buying rate in New York City for cable transfers in such
currency as certified for customs purposes by the Federal Reserve Bank of New
York on such date.

Maturity

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

Officers' Certificate

      The term "Officers' Certificate" shall mean a certificate signed by the
Chairman of the Board, the Chief Executive Officer, the President or any Vice
President and by the Vice President,

                                      I-3
<PAGE>
Finance, Treasurer or any Assistant Treasurer or the Secretary or any Assistant
Secretary of the Company.

Opinion of Counsel

      The term "Opinion of Counsel" shall mean an opinion in writing signed by
legal counsel (who may be counsel to the Company) acceptable to the Trustee.

Original Issue Discount Security

      The term "Original Issue Discount Security" shall mean any Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 6.1.

Outstanding

       The term "outstanding" or "principal amount outstanding", when used with
respect to the Securities, shall not, except as otherwise provided herein,
include (i) Securities held by the Company or any Affiliate of the Company in
its treasury, or (ii) Securities for the payment or redemption of which moneys
in the necessary amount shall have been deposited in trust with the Trustee,
provided that if such Securities are to be redeemed prior to the Maturity
thereof, notice of such redemption shall have been duly given or provision
satisfactory to the Trustee shall have been made for giving such notice, or
(iii) Securities in lieu of or in substitution for which other Securities shall
have been authenticated and delivered pursuant to the terms of Section 2.3, or
(iv) Securities theretofore cancelled by the Trustee or delivered to the Trustee
for cancellation. The term "outstanding" or "principal amount outstanding", when
used with respect to indebtedness other than the Securities, shall not include
any such indebtedness held by the Company in its treasury or for the payment or
redemption of which moneys in the necessary amount shall have been deposited in
trust or set aside and segregated in trust by the Company, provided that, if
such other indebtedness is to be redeemed prior to the maturity thereof, any
notice of such redemption required by the terms thereof shall have been duly
given or provision satisfactory to the trustee shall have been made for giving
such notice.

Person

      The term "Person" shall mean an individual, corporation, partnership,
limited liability company, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political
subdivision thereof.

Redemption Date

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

Redemption Price

      The term "Redemption Price" shall mean the amount payable for the
redemption of any Security on the Redemption Date, and shall always include
interest accrued and unpaid to the Redemption Date, unless otherwise
specifically provided.

                                      I-4
<PAGE>
Regular Record Date

      The term "Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series shall mean the date specified for
that purpose as contemplated by Section 2.1.

Responsible Officer

      The term "Responsible Officer", when used with respect to the Trustee,
shall mean the chairman of the board of directors, the president, every vice
president (whether or not designated by a number or a word or words added before
or after the title "vice president"), the secretary, every trust officer, every
assistant secretary or any other officer or assistant officer of the Trustee
customarily performing functions similar to those performed by the persons who
at the time shall be such officers, or to whom any corporate trust matter is
referred because of his knowledge of and familiarity with the particular
subject.

Sears

      The term "Sears" shall mean Sears, Roebuck and Co.

Securities

      The term "Securities" shall mean any Securities authenticated and
delivered under this Indenture.

Security Register

      The term "Security Register" shall have the meaning specified in Section
2.5.

Special Record Date

      The term "Special Record Date" for the payment of any Defaulted Interest
shall mean a date fixed by the Trustee pursuant to Section 2.7.

Stated Maturity

      The term "Stated Maturity", when used with respect to any Security or any
installment of interest thereon, shall mean the date specified in such Security
as the fixed date on which the principal of such Security or such installment of
interest is due and payable.

Subsidiary; Voting Stock

      The term "Subsidiary" shall mean any corporation of which shares of Voting
Stock entitled to elect a majority of the directors are at the time owned
directly or indirectly by the Company and its other Subsidiaries. The term
"Voting Stock" shall mean outstanding shares of stock having voting power for
the election of directors, whether at all times or only so long as no senior
class of stock has such voting power because of default in dividends or some
other default.

Trustee

      The term "Trustee" shall mean the party named as such above until a
successor becomes such pursuant hereto and thereafter shall mean or include each
party who is then a trustee hereunder, and if at any time there is more than one
such party, "Trustee" as used with respect to the Securities of any series shall
mean the Trustee with respect to Securities of that series. If Trustees with
respect to different series of Securities are trustees hereunder, nothing herein
shall constitute the Trustees as co-trustees of the same trust, and each Trustee
shall be the trustee of a

                                      I-5
<PAGE>
trust separate and apart from any trust administered by any other Trustee with
respect to a different series of Securities.

U.S. Government Obligations

      The term "U.S. Government Obligations" shall mean securities which are (i)
direct obligations of the United States of America for the payment of which its
full faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which, in either case, are
not callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank or trust company as custodian with
respect to any such U.S. Government Obligations or a specific payment of
interest on or principal of any such U.S. Government Obligations held by such
custodian for the account of the holder of a depository 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 depository receipt from
any amount received by the custodian in respect of the U.S. Government
Obligations or the specific payment of interest on or principal of the U.S.
Government Obligations evidenced by such depository receipt.

      SECTION 1.2. All terms used in this Indenture which are defined in the
Trust Indenture Act of 1939, as amended, or which are by reference therein
defined in the Securities Act of 1933, as amended (except as herein otherwise
expressly provided or unless the context otherwise requires), shall have the
meanings assigned to such terms in the Trust Indenture Act of 1939, as amended,
and the Securities Act of 1933, as amended, as they were respectively in force
at the date of this Indenture.

                                      I-6
<PAGE>
                                   ARTICLE II

                                 THE SECURITIES

      SECTION 2.1. (a) 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. There shall be
established in or pursuant to a resolution of the Board and set forth in an
Officers' Certificate, or established in one or more indentures supplemental
hereto, prior to the issuance of Securities of any series,

         (1) the title of the Securities of the series (which shall distinguish
   the Securities of the series from all other Securities);

         (2) any limit upon the aggregate principal amount of the Securities of
   the series which may be authenticated and delivered under this Indenture
   (except for Securities authenticated and delivered upon registration of
   transfer of, or in exchange for, or in lieu of, other Securities of the
   series pursuant to Section 2.4, 2.5, 2.6, 4.7 or 11.4);

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

         (4) the rate or rates (which may be fixed or variable) per annum at
   which the Securities of the series shall bear interest, if any, the date or
   dates from which such interest shall accrue, the date or dates on which
   payment of such interest shall commence, the Interest Payment Dates on which
   such interest shall be payable and the Regular Record Date for the interest
   payable on any Interest Payment Date;

         (5) if other than as set forth in Section 3.2, the place or places
   where the principal of (and premium, if any, on) and interest, if any, on
   Securities of the series shall be payable;

         (6) the period or periods within which, the price or prices at which
   and the terms and conditions upon which Securities of the series may be
   redeemed, in whole or in part, at the option, or as an obligation, of the
   Company;

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

         (8) the terms, if applicable, of conversion or exchange for other
   securities, at the option of the Company or the Holder, of Securities of the
   series;

         (9) any subordination provisions;

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

         (11) if other than the principal amount thereof, the portion of the
   principal amount of Securities of the series which shall be payable upon
   declaration of acceleration of the Maturity thereof pursuant to Section 6.1;

         (12) the terms of any warrants attached to the Securities of the
   series;

                                      II-1
<PAGE>
         (13) the currency or currencies, including composite currencies, in
   which the Securities may be purchased and in which principal of (and premium,
   if any) and interest, if any, on the Securities of the series shall be
   payable (if other than Dollars);

         (14) if the amount of payments of principal of (and premium, if any) or
   interest, if any, on the Securities of the series may be determined with
   reference to an index, the manner in which such amounts shall be determined;

         (15) provisions, if any, for the defeasance of Securities of a
   particular series (including provisions permitting defeasance of less than
   all Securities of a particular series), which provisions may be in addition
   to, in substitution for, in subtraction from, or in modification of (or any
   combination of the foregoing) the provisions of Article Thirteen;

         (16) whether the Securities of the series are issuable in whole or in
   part as one or more Global Securities and, in such case, the identity of the
   Depository for such Global Security or Securities; and

         (17) any other terms of the series (which terms shall not be
   inconsistent with the provisions of this Indenture but which may modify or
   delete any such provision of this Indenture insofar as it applies to such
   series; provided that no term thereof shall be modified or deleted if imposed
   by operation of subsection (c) of Section 318 of the Trust Indenture Act of
   1939, as amended, and provided further that any modification or deletion of
   the rights, duties or immunities of the Trustee shall have been consented to
   in writing by the Trustee).

If any of the foregoing terms are not available at the time such resolutions are
adopted, or such Officers' Certificate or any supplemental indenture is
executed, such resolutions, Officers' Certificate or supplemental indenture may
reference the document or documents to be created in which such terms will be
set forth prior to the issuance of such Securities.

      All Securities of any one series shall be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to
such resolution of the Board and set forth in such Officers' Certificate or in
any such indenture supplemental hereto.

      If any of the terms of the series are established by action taken pursuant
to a resolution of the Board, a copy of an appropriate record of such action
shall be included in the Officers' Certificate setting forth the terms of the
series.

      (b) The Securities of each series shall be in substantially the form as
shall be established by or pursuant to a resolution of the Board or in one or
more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with any law or with any rules made pursuant thereto or with
any rules of any securities exchange or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution of the Securities.

      The definitive Securities shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as determined
by the officers executing such Securities, as evidenced by their execution of
such Securities.

      (c) The Trustee's certificate of authentication on all Securities shall be
in substantially the following form:

                                      II-2
<PAGE>
      This is one of the Securities of the series referred to in the
within-mentioned Indenture.

                                                      as Trustee

                                            By ______________________________

                                                    Authorized Officer

      SECTION 2.2. The Securities of each series shall be issuable in registered
form without coupons in such denominations as shall be specified as contemplated
by Section 2.1. In the absence of any contrary provisions with respect to the
Securities of any series, the Securities of such series shall be issuable in
denominations of $1,000 and any integral multiple thereof and shall be payable
only in Dollars.

      SECTION 2.3. The Securities shall be executed on behalf of the Company by
any two of its Chairman of the Board, its Chief Executive Officer, its President
or one of its Vice Presidents, under its corporate seal reproduced thereon. The
signature of any of these officers on the Securities may be manual or facsimile.

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

      At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a written order of the
Company signed by its Chairman of the Board, its Chief Executive Officer, its
President or one of its Vice Presidents for the authentication and delivery of
such Securities, and the Trustee in accordance with such order shall
authenticate and deliver such Securities. If the form or terms of the Securities
of the series have been established in or pursuant to one or more resolutions of
the Board as permitted by Section 2.1, in authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to
Section 10.1) shall be fully protected in relying upon, an Opinion of Counsel
stating,

            (a) if the form and terms of such Securities have been established
      by or pursuant to a resolution of the Board as permitted by Section 2.1,
      that such form and terms have been established in conformity with the
      provisions of this Indenture; and

            (b) that such Securities, when authenticated and delivered by the
      Trustee and issued by the Company in the manner and subject to any
      conditions specified in such Opinion of Counsel, will constitute valid and
      binding obligations of the Company in accordance with their terms, subject
      to insolvency, bankruptcy, reorganization and other laws relating to or
      affecting the enforcement of creditors' rights or by general equity
      principles.

                                      II-3
<PAGE>
      The Trustee shall have the right to decline to authenticate and deliver
any Securities under this Section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken or if the Trustee in good
faith by its board of directors or trustees, executive committee, or a trust
committee of directors or trustees and/or responsible officers shall determine
(i) that such action would expose the Trustee to liability to existing Holders,
or (ii) in the case of Securities designated pursuant to one or more resolutions
of the Board as permitted by Section 2.1, that such action would affect the
Trustees' own rights, duties or immunities under this Indenture or otherwise.

      Each Security shall be dated the date of its authentication.

      No Security 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 herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder and is entitled to the
benefits of this Indenture.

      SECTION 2.4. Pending the preparation of definitive Securities of any
series, the Company may execute, and upon a written order of the Company signed
by its Chairman of the Board, its Chief Executive Officer, its President or one
of its Vice Presidents, the Trustee shall authenticate and deliver, temporary
Securities 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 and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their
execution of such Securities.

      If temporary Securities of any series are issued, the Company will cause
definitive Securities of that series to be prepared without unreasonable delay.
After the preparation of definitive Securities of such series, the temporary
Securities of such series shall be exchangeable for definitive Securities of
such series, without charge to the Holder, upon surrender of the temporary
Securities of such series at the office or agency of the Company for that series
to be maintained in accordance with the provisions of Section 3.2. Upon
surrender for cancellation of any one or more temporary Securities of any series
the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Securities of the same
series of authorized denominations. Until so exchanged the temporary Securities
of any series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.

      SECTION 2.5. The Company shall keep or cause to be kept a register for
each series of Securities issued hereunder (herein called a "Security Register")
at any office or agency of the Company to be maintained in accordance with the
provisions of Section 3.2 in which, subject to such reasonable regulations as it
may prescribe, the Company shall provide for the registration of Securities and
of transfers of Securities. The Security Register shall be in written form or
capable of being converted into written form within a reasonable time. Unless
otherwise specifically designated by the Company in a written notice to the
Trustee, the Security Register shall be maintained at the principal corporate
trust office of the Trustee.

      Upon surrender for registration of transfer of any Security of any series
at the office or agency for that series to be maintained in accordance with the
provisions of Section 3.2, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the

                                      II-4
<PAGE>
designated transferee or transferees, one or more Securities of the same series,
of any authorized denominations and of a like aggregate principal amount and
Stated Maturity and bearing a number not contemporaneously outstanding.

      At the option of the Holder, Securities of any series may be exchanged for
other Securities of the same series, of any authorized denominations and of a
like aggregate principal amount and Stated Maturity and bearing a number not
contemporaneously outstanding upon surrender of the Securities to be exchanged
at such office or agency. Whenever any Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.

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

      Every Security presented or surrendered for registration of transfer or
for exchange shall be duly endorsed, or be accompanied by a written instrument
of transfer in form satisfactory to the Company duly executed, by the Holder
thereof or his attorney duly authorized in writing.

      No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Sections 2.4, 4.7 or 11.4, not involving any transfer.

      The Company shall not be required (i) to issue, register the transfer of
or exchange Securities of any series during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of
Securities of that series selected for redemption under Section 4.3 and ending
at the close of business on the day of such mailing, or (ii) to register the
transfer of or exchange any Security theretofore designated for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

      SECTION 2.6. If any mutilated Security is surrendered to the Trustee, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a Security of the same series and principal amount and Stated Maturity
and bearing a number not contemporaneously outstanding.

      If there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a Security of the same series and principal amount and Stated Maturity
and bearing a number not contemporaneously outstanding.

      In case any such mutilated, destroyed, lost or stolen Security has become
or is about to become due and payable, the Company in its discretion may,
instead of issuing a Security in substitution of such Security, pay such
Security, provided the conditions set forth in the next preceding paragraph are
satisfied.

      Upon the issuance of any Security pursuant to this Section, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses, including counsel fees, of the Company and the

                                      II-5
<PAGE>
Trustee, any Authenticating Agent, and any paying agent or Security registrar
connected therewith and in addition a further sum not exceeding two dollars for
each Security so issued in substitution.

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

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

      SECTION 2.7. Each installment of interest on any Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall be paid only to or upon the written order of the Person in whose name
that Security is registered at the close of business on the Regular Record Date
for such interest.

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

            (1) the Company may elect to make payment of any Defaulted Interest
      to the Persons in whose names the Securities of such series are registered
      at the close of business on a Special Record Date for the payment of such
      Defaulted Interest, which shall be fixed in the following manner: (a) the
      Company shall notify the Trustee in writing of the amount of Defaulted
      Interest proposed to be paid on each Security of such series and the date
      of the proposed payment which shall be at least 20 days from the date of
      such notice, and at the same time the Company shall deposit with the
      Trustee an amount of money equal to the aggregate amount proposed to be
      paid in respect of such Defaulted Interest or shall make arrangements
      satisfactory to the Trustee for such deposit prior to the date of the
      proposed payment, such money when deposited to be held in trust for the
      benefit of the Persons entitled to such Defaulted Interest as in this
      clause provided; (b) thereupon the Trustee shall fix a Special Record Date
      for the payment of such Defaulted Interest which shall be not more than 15
      days and not less than 10 days prior to the date of the proposed payment
      and not less than 10 days after the receipt by the Trustee of the notice
      of the proposed payment; and (c) the Trustee shall promptly notify the
      Company of such Special Record Date and, in the name and at the expense of
      the Company, shall cause notice of the proposed payment of such Defaulted
      Interest and the Special Record Date therefor to be mailed, first-class
      postage prepaid, to each Holder of Securities of such series at his
      address as it appears in the Security Register, not less than 10 days
      prior to such Special Record Date. Notice of the proposed payment of such
      Defaulted Interest and the Special Record Date therefor having been so
      mailed, such Defaulted Interest shall be paid to the Persons in whose
      names the Securities of such series are registered at the close of
      business on such Special Record Date; or

            (2) the Company may make payment of any Defaulted Interest on the
      Securities of any series in any other lawful manner not inconsistent with
      the requirements of any securities

                                      II-6
<PAGE>
      exchange on which such Securities may be listed, and upon such notice as
      may be required by such exchange, if, after notice given by the Company to
      the Trustee of the proposed payment pursuant to this clause, such manner
      of payment shall be deemed practicable by the Trustee.

      Subject to the foregoing provisions of this Section, 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 2.8. Prior to due presentment of a 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 Security is registered upon the Security
Register as the owner of such Security for the purpose of receiving payment of
principal of (and premium, if any, on) and (subject to Section 2.7) interest on
such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.

      Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee, or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the
Depository or its nominee, or impair, as between the Depository and holders of
beneficial interests in any Global Security, the operation of customary
practices governing the exercise of the rights of the Depository as holder of
such Global Security, including without limitation the granting of proxies or
other authorization, direction, notice, consent, waiver or other action which a
Holder is entitled to give or take under this Indenture.

      SECTION 2.9. All Securities surrendered for payment) redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall be delivered to the Trustee and shall be promptly cancelled by it.
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 promptly cancelled 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 this Indenture. All cancelled
Securities held by the Trustee shall be disposed of as directed by a written
order of the Company signed by its Chairman of the Board, its President or one
of its Vice Presidents.

      SECTION 2.10. (a) If the Company shall establish pursuant to Section 2.1
that the Securities of a particular series are to be issued in whole or in part
as one or more Global Securities, then the Company shall execute and the Trustee
shall, in accordance with Section 2.3 and the order of the Company delivered to
the Trustee thereunder, authenticate and deliver, one or more Global Securities
which (i) shall constitute, and shall be denominated in an amount equal to the
aggregate principal amount of, all or part of the outstanding Securities of such
series, (ii) shall be registered in the name of the Depository or its nominee,
(iii) shall be held by the Trustee as agent for the Depository or delivered
pursuant to the Depository's instruction and (iv) shall bear a legend
substantially to the following effect: "Except as otherwise provided in Section
2.10 of the Indenture, this Security may be transferred, in whole but not in
part, only to another nominee of the Depository or to a successor Depository or
to a nominee of such successor Depository."

                                      II-7
<PAGE>
      (b) Notwithstanding any other provision (other than Section 2.10(c)) of
this Section 2.10 or of Section 2.5, the Global Securities of a series may be
transferred, in whole but not in part and in the manner provided in Section 2.5,
only to another nominee of the Depository for such series, or to a successor
Depository for such series selected or approved by the Company or to a nominee
of such successor Depository.

      (c) If (i) the Company advises the Trustee in writing that the Depository
is no longer willing or able to discharge properly its responsibilities with
respect to any Securities of any series represented by one or more Global
Securities, and the Trustee or the Company is unable to locate a qualified
successor, or (ii) the Company, at its option, advises the Trustee in writing
that it has determined that any Securities of any series represented by one or
more Global Securities shall no longer be represented by one or more Global
Securities, then in either event the Company will execute, and the Trustee, upon
receipt of an Officers' Certificate evidencing such determination by the
Company, will authenticate and deliver, Securities of such series in definitive
registered form without coupons, in authorized denominations, and in an
aggregate principal amount equal to the principal amount of such Global
Securities in exchange for such Global Securities. Upon the exchange of Global
Securities for such Securities in definitive registered form without coupons, in
authorized denominations, the Global Securities shall be cancelled by the
Trustee and the provisions of this Section 2.10 shall no longer be applicable to
such Securities. Such Securities in definitive registered form issued in
exchange for Global Securities pursuant to this Section 2.10(c) shall be
registered in such names and in such authorized denominations as the Depository,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Securities to the
Persons in whose names such Securities are so registered.

      SECTION 2.11. (a) Except as otherwise specified pursuant to Section 2.1,
payment of the principal of (and premium, if any) and interest on Securities of
any series will be made in Dollars.

      (b) For purposes of any provision of this Indenture where the Holders of
outstanding Securities of a series may perform an act which requires that a
specified percentage of the outstanding Securities of such series perform such
act and for purposes of any decision or determination by the Trustee of amounts
due and unpaid for the principal (and premium, if any) and interest on the
outstanding Securities of such series in respect of which moneys are to be
disbursed ratably, the principal of (and premium, if any) and interest on the
outstanding Securities of such series denominated in a Foreign Currency will be
the amount in Dollars based upon the Market Exchange Rate for such Foreign
Currency on the latest date for which such rate was established on or before the
date for determining the Holders entitled to perform such act, or the date of
such decision or determination by the Trustee, as the case may be.

      SECTION 2.12. If the principal of (and premium, if any) and interest on
any Securities is payable in a Foreign Currency and such Foreign Currency is not
available for payment due to the imposition of exchange controls or other
circumstances beyond the control of the Company, then the Company shall be
entitled to satisfy its obligations to Holders under this Indenture by making
such payment in Dollars on the basis of the Market Exchange Rate for such
Foreign Currency on the latest date for which such rate was established on or
before the date on which payment is due. Any payment made pursuant to this
Section 2.12 in Dollars where the required payment is in a Foreign Currency
shall not constitute a default under this Indenture.

                                      II-8
<PAGE>
                                   ARTICLE III

                            COVENANTS OF THE COMPANY

      Subject to the provisions of Section 13.4, so long as Securities are
outstanding hereunder, the Company covenants for the benefit of each series of
Securities that:

      SECTION 3.1. The Company will punctually pay the principal (premium, if
any) and interest, if any, to become due in respect of all the Securities of
that series according to the terms of the Securities of that series and this
Indenture. Such interest on Securities shall be payable without presentation of
such Securities and (subject to the provisions of Section 2.7) only to or upon
the written order of the Holders of such Securities. Except as otherwise
specified as contemplated by Section 2.1 for Securities of any series, payments
of interest shall be made either, at the option of the Company, by check mailed
to the address of the person entitled thereto as such address shall appear on
the Security Register for that series, or at any one or more of the offices or
agencies of the Company maintained in accordance with Section 3.2.

      SECTION 3.2. The Company will maintain in the Borough of Manhattan of The
City of New York, and may maintain in the city in which the principal executive
offices of the Company are located or the city in which the principal corporate
trust office of the Trustee is located, an office or agency where, except as
otherwise provided herein, the Securities of that series may be presented for
payment, an office or agency where the Securities of that series may be
presented for registration of transfer and for exchange as provided in this
Indenture and an office or agency where notices and demands to or upon the
Company in respect of such Securities or of this Indenture may be served. Until
otherwise designated by the Company in a written notice to the Trustee, such
office or agency in the Borough of Manhattan of The City of New York for all of
the above purposes shall be 101 Barclay Street, New York, New York 10286,
Attention: Corporate Trust Administration.

      SECTION 3.3. The Company will

            (a) 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 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
      copies of such portions thereof as may be prescribed by the Commission
      under the provisions of the Trust Indenture Act of 1939, as amended); or,
      if the Company is not required to file with the Commission information,
      documents or reports pursuant to either Section 13 or Section 15(d) of the
      Securities Exchange Act of 1934, as amended, then the Company will file
      with the Trustee and will file with the Commission, in accordance with
      rules and regulations prescribed by the Commission, such of the
      supplementary and periodic information, documents and reports 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 in such rules and regulations;

            (b) file with the Trustee and the Commission, in accordance with the
      rules and regulations prescribed from time to time by the Commission, such
      additional information, documents and reports with respect to compliance
      by the Company with the

                                     III-1
<PAGE>
      conditions and covenants provided for in this Indenture as may be required
      by such rules and regulations, including, in the case of annual reports,
      if required by such rules and regulations, certificates or opinions of
      independent public accountants, conforming to the requirements of Section
      14.6, as to compliance with conditions or covenants, compliance with which
      is subject to verification by accountants;

            (c) transmit to the Holders of that series of Securities, in the
      manner and to the extent provided in subdivision (c) of Section 10.10
      hereof, such summaries of any information, documents and reports required
      to be filed with the Trustee pursuant to the provisions of subdivisions
      (a) and (b) of this Section 3.3 as may be required by the rules and
      regulations of the Commission under the provisions of the Trust Indenture
      Act of 1939, as amended; and

            (d) furnish or cause to be furnished to the Trustee semi-annually
      not later than each Interest Payment Date for each series of Securities,
      provided that interest on such Securities is payable at least
      semi-annually, and at such other times as the Trustee may request in
      writing, within 30 days after receipt by the Company of any such request,
      a list in such form as the Trustee may reasonably require containing all
      information in the possession or control of the Company or of any paying
      agent, other than the Trustee, as to the names and addresses of the
      Holders of such series of Securities obtained since the date as of which
      the next previous list, if any, was furnished. Any such list may be dated
      as of a date not more than 15 days prior to the time such information is
      furnished or caused to be furnished, and need not include information
      received after such date.

      SECTION 3.4. Within 120 days after the close of each fiscal year of the
Company ending after the date hereof, the Company will file with the Trustee a
statement signed by the Chairman of the Board, the Chief Executive Officer or
its President or any Vice President and by the Treasurer or any Assistant
Treasurer or the Secretary or any Assistant Secretary of the Company (provided,
that one of such signatories shall be the Company's principal executive officer,
principal financial officer or principal accounting officer), stating that in
the course of the performance by the signers of their duties as officers of the
Company they would normally obtain knowledge of any default by the Company in
the performance or fulfillment of any covenant, agreement or condition contained
in this Indenture, and stating whether or not they have obtained knowledge of
any such default, and, if so, specifying each such default of which the signers
have knowledge and the nature thereof. For purposes of this Section 3.4,
"default" shall mean any default defined in Section 6.1 hereof, irrespective of
the giving of any specified notice and excluding any periods of grace provided
for therein.

      SECTION 3.5. The Company will cause any paying agent which it may appoint,
other than the Trustee, to execute and deliver to the Trustee an instrument in
which such agent shall agree with the Trustee,

            (a) that it will hold all sums held by it as such agent for the
      payment of the principal of and premium, if any, or interest on the
      Securities of that series (whether such sums have been paid to it by the
      Company or by any other obligor on such Securities) in trust for the
      benefit of the Holders of such Securities or of the Trustee, as the case
      may be,

            (b) that it will give the Trustee notice of any failure by the
      Company (or by any other obligor on such Securities) to make any payment
      of the principal (and premium, if any, on) or interest on such Securities
      when the same shall be due and payable, and (c) that in the

                                     III-2
<PAGE>
      case of a default by the Company hereunder, that it will deliver to the
      Trustee any sums then held by it in respect of the Securities.

            If the Company acts as its own paying agent, it will, on or before
      each due date of principal (and premium, if any) or of any installment of
      interest on such Securities, set aside and segregate and hold in trust for
      the benefit of the Holders of such Securities or the Trustee a sum
      sufficient to pay such principal (and premium, if any) or interest and
      will notify the Trustee of such action.

      SECTION 3.6. The Company will:

            (a) maintain a Fixed Charge Coverage Ratio for any fiscal quarter of
      not less than 1.10;

            (b) cause Sears to continue to own and to hold all legal title to
      and beneficial interest in all of the outstanding voting stock of the
      Company;

            (c) cause Sears to observe and perform in all material respects all
      covenants or agreements of Sears contained in the Fixed Charge Coverage
      and Ownership Agreement; and

            (d) not amend, waive, terminate or otherwise modify any provision of
      the Fixed Charge Coverage and Ownership Agreement.

                                     III-3
<PAGE>
                                   ARTICLE IV

                            REDEMPTION OF SECURITIES

      SECTION 4.1. Securities of any series which are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except
as otherwise specified as contemplated by Section 2.1 for Securities of any
series) in accordance with this Article.

      SECTION 4.2. The election of the Company to redeem any Securities shall be
evidenced by an Officers' Certificate. In case of any redemption at the election
of the Company of less than all the Securities of any series, the Company shall,
at least 45 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. In the case of any redemption of Securities which is subject to any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers' Certificate evidencing compliance with such restriction.

      SECTION 4.3. If less than all the Securities of any series are to be
redeemed, the particular Securities to be redeemed shall be selected 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 for redemption of portions (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof, if
less than all the Securities of that series are to be redeemed on the applicable
Redemption Date) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of
that series.

      The Trustee shall promptly notify the Company in writing of the Securities
selected for redemption and, in the case of the 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 amount of such Securities which has been or is to be redeemed.

      SECTION 4.4. Notice of redemption shall be given by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the
Redemption Date, to each Holder of Securities to be redeemed, at his address
appearing in the Security Register.

      All notices of redemption shall state:

            (1) the Redemption Date;

            (2) the Redemption Price;

            (3) if less than all the outstanding Securities of any series are to
      be redeemed, the identification (and, in the case of partial redemption,
      the principal amount) of the particular Securities to be redeemed;

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

                                      IV-1
<PAGE>
            (5) the place or places where such Securities are to be surrendered
      for payment of the Redemption Price; and

            (6) that the redemption is for a sinking fund, if such is the case.

      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.

      Any notice which is mailed in the manner herein provided shall be
conclusively presumed to be duly given, whether or not the Holder receives such
notice; any failure to give such notice by mail or any defect in such notice to
the Holder of a particular Security designated for redemption as a whole or in
part shall not affect the validity of the proceedings for the redemption of any
other Security.

      SECTION 4.5. On or prior to any Redemption Date, the Company shall deposit
with the Trustee or with a paying agent (or, if the Company is acting as its own
paying agent, segregate and hold in trust as provided in Section 3.5) an amount
of money sufficient to pay the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities which are to be redeemed on that date.

      SECTION 4.6. 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 on the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender
of any such Security for redemption in accordance with said notice, such
Security shall be paid by the Company at the Redemption Price, together with
accrued interest to the Redemption Date; provided, however, that installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Securities, registered as such at the close of
business on the relevant Regular or Special Record Dates according to their
terms and the provisions of Section 2.7.

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

      SECTION 4.7. Any Security which is to be redeemed only in part shall be
surrendered at the office or agency of the Company to be maintained pursuant to
Section 3.2 (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
to 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 Security or Securities of the same series and Stated Maturity 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 and bearing a number not contemporaneously
outstanding. If a Global Security is so surrendered such new Security or
Securities so issued shall be a Global Security or Global Securities.

                                      IV-2
<PAGE>
                                    ARTICLE V

                                  SINKING FUNDS

      SECTION 5.1. The provisions of this Article shall be applicable to any
sinking fund for the retirement of Securities of a series except as otherwise
specified as contemplated by Section 2.1 for Securities of such series.

      The minimum amount of any sinking fund payment provided for by the terms
of Securities of any series is herein referred to as a "mandatory sinking fund
payment", and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "optional sinking
fund payment". Unless otherwise 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 5.2. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series.

      SECTION 5.2. The Company (1) may deliver outstanding Securities (including
for purposes of this clause (1) any Securities held by the Company in its
treasury) of a series (other than any previously called for redemption) and (2)
may, by written notice to the Trustee, apply as a credit Securities of a series
which have been redeemed either at the election of the Company pursuant to the
terms of such Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to the
Securities of such series required to be made pursuant to the terms of such
Securities; provided, however, that such Securities have not been previously so
credited. Such Securities shall be credited for such purpose by the Trustee at
the Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.

      SECTION 5.3. Not less than 45 days prior to each sinking fund payment date
for any series of Securities, the Company will deliver to the Trustee an
Officers' Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by crediting Securities of that series
pursuant to Section 5.2 and will also deliver to the Trustee any Securities to
be delivered pursuant to clause (1) of Section 5.2. Not less than 30 days before
each such sinking fund payment date the Trustee shall select or cause to be
selected the Securities to be redeemed upon such sinking fund payment date in
the manner specified in Section 4.3 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 4.4. Such notice having been duly given, the redemption of
such Securities shall be made upon the terms and in the manner stated in
Sections 4.6 and 4.7.

                                      V-1
<PAGE>
                                   ARTICLE VI

                              REMEDIES UPON DEFAULT

      SECTION 6.1. Subject to the provisions of Section 2.12, the following
events are hereby defined for all purposes of this Indenture with respect to
Securities of any series (except where the term is otherwise defined for
specific purposes) as "defaults":

            (a) Failure to pay the principal of (and premium, if any, on) any of
      the Securities of that series, when and as the same shall become due and
      payable, whether at Stated Maturity thereof, by call for redemption or
      otherwise; or

            (b) Failure to pay any installment of interest on any of the
      Securities of that series, when and as the same shall become payable as
      therein expressed, and such failure shall continue for a period of 30 days
      (it being understood that if the entire amount of such payment of interest
      is deposited by the Company with the Trustee, or with another paying agent
      duly appointed hereunder, before the expiration of such period of 30 days,
      such default shall no longer be considered to be continuing under this
      Indenture); or

            (c) Failure to perform or observe any other of the covenants,
      conditions or agreements on the part of the Company in this Indenture
      (other than a covenant, condition or agreement a default in whose
      performance or whose breach is elsewhere in this Section specifically
      dealt with or which has expressly been included in this Indenture solely
      for the benefit of series of Securities other than that series) or in the
      Securities of that series contained, and such failure shall continue for a
      period of 60 days after written notice to the Company from the Trustee or
      to the Company and to the Trustee from the Holders of not less than a
      majority of the Securities of that series then outstanding under this
      Indenture; or

            (d) Except as a result of compliance with any court order to which
      the Company or Sears is subject or any applicable law or any government
      decree, if an event of default as defined in any mortgage, indenture or
      instrument, under which there may be issued, or by which there may be
      secured or evidenced, any indebtedness for borrowed money of the Company
      or of Sears (including this Indenture), whether such indebtedness now
      exists or shall hereafter be created, shall happen and shall result in
      such indebtedness becoming or being declared due and payable prior to the
      date on which it would otherwise become due and payable, and such
      acceleration shall not be rescinded or annulled within 30 days after
      written notice to the Company from the Trustee or to the Company and to
      the Trustee from the Holders of not less than a majority of the Securities
      of that series then outstanding under this Indenture; provided, however,
      that it shall not be a default hereunder if the principal amount of
      indebtedness the maturity of which, if so accelerated is less than
      $100,000,000; provided, further, that if, prior to a declaration of
      acceleration of the maturity of the Securities then outstanding or the
      entry of judgment in favor of the Trustee in a suit pursuant to Section
      6.2, such default shall be remedied or cured by the Company or Sears or
      waived by the holders of such indebtedness, or such indebtedness shall be
      discharged, then the default hereunder by reason thereof shall be deemed
      likewise to have been thereupon remedied, cured or waived without further
      action upon the part of either the Trustee or any of the Holders of the
      Securities; or

                                      VI-1

<PAGE>

           (e) If the Company shall file a petition commencing a voluntary case
        under any chapter of the Federal bankruptcy laws; or the Company shall
        file a petition or answer or consent seeking reorganization,
        arrangement, adjustment, or composition under any other similar
        applicable Federal law, or shall consent to the filing of any such
        petition, answer, or consent; or the Company shall appoint, or consent
        to the appointment of a custodian, receiver, liquidator, trustee,
        assignee, sequestrator or other similar official in bankruptcy or
        insolvency of it or of any substantial part of its property; or shall
        make an assignment for the benefit of creditors, or shall admit in
        writing its inability to pay its debts generally as they become due; or

           (f) If any order for relief against the Company shall have been
        entered by a court having jurisdiction in the premises under any chapter
        of the Federal bankruptcy laws, and such order shall have continued
        undischarged or unstayed for a period of 120 days; or a decree or order
        by a court having jurisdiction in the premises shall have been entered
        approving as properly filed a petition seeking reorganization,
        arrangement, adjustment, or composition of the Company under any other
        similar applicable Federal law, and such decree or order shall have
        continued undischarged or unstayed for a period of 120 days; or a decree
        or order of a court having jurisdiction in the premises for the
        appointment of a custodian, receiver, liquidator, trustee, assignee,
        sequestrator, or other similar official in bankruptcy or insolvency of
        the Company or of any substantial part of its property, or for the
        winding up or liquidation of its affairs, shall have been entered, and
        such decree or order shall have remained in force undischarged or
        unstayed for a period of 120 days; or

            (g) Any other default provided with respect to Securities of that
        series.

    If one or more defaults with respect to Securities of any series shall
happen and be continuing, then, and in each and every such case, either the
Trustee, by notice in writing to the Company, or the Holders of not less than a
majority in principal amount of the Securities of that series then outstanding,
by notice in writing to the Company and to the Trustee, may declare due and
payable, if not already due and payable, the principal amount (or, if the
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount as may be specified in the terms of that series) of all
of the Securities of that series; and upon any such declaration all Securities
of that series shall become and be immediately due and payable, anything in this
Indenture or in any of such Securities contained to the contrary
notwithstanding. This provision, however, is subject to the condition that if,
at any time after the principal (or portion thereof) of the Securities of that
series shall have been declared due and payable, and prior to the Stated
Maturity of the principal thereof, all arrears of interest upon all such
Securities (with interest so far as may be lawful on any overdue installments of
interest at the rate specified in such Securities) and the expenses of the
Trustee, its agents or attorneys shall be paid by or for the account of the
Company, and all defaults as aforesaid (other than the payment of principal
which has been so declared due and payable) shall have been made good or secured
to the satisfaction of the Trustee and provision deemed by the Trustee to be
adequate shall be made therefor, then and in every such case the Trustee shall,
upon the written request of the Holders of a majority in principal amount of the
Securities of that series then outstanding, delivered to the Company and to the
Trustee, waive such default and its consequences and rescind or annul such
declaration; but no such waiver shall extend to or affect any subsequent
default, or impair any right consequent thereon.

                                      VI-2
<PAGE>

    Notwithstanding the foregoing, to the extent the Company shall have been
relieved of any of its obligations under this Indenture with respect to
Securities of any series pursuant to Section 13.4 hereof, the failure of the
Company to perform any such obligations as to which it has been relieved shall
not constitute a default as contemplated by this Indenture.

    SECTION 6.2. In case the Company:

        (a) shall fail to pay any installment of interest on any Security of any
    series when and as it shall become payable and such failure shall have
    continued for a period of 30 days (it being understood that if the entire
    amount of such payment of interest is deposited by the Company with the
    Trustee, or with another paying agent duly appointed hereunder, before the
    expiration of such period of 30 days, such default shall no longer be
    considered to be continuing under this Indenture); or

        (b) shall fail to pay the principal, or portion thereof, of (or premium,
    if any, on) any Security of any series when it shall have become due and
    payable, whether at the Stated Maturity thereof, by call for redemption, by
    declaration as authorized by this Indenture (unless annulled pursuant to
    Section 6.1), or otherwise;

then, upon demand of the Trustee, the Company shall pay to the Trustee, for the
benefit of the Holders of the Securities of that series then outstanding, the
whole amount which then shall have become due on all such Securities for
principal (or premium, if any) or interest, as the case may be, including
interest at the rate specified in the Securities of that series on overdue
principal (and premium, if any) and, so far as may be lawful, on overdue
installments of interest; and in case the Company shall fail to pay the same
forthwith upon such demand, the Trustee in its own name and as trustee of an
express trust, shall be entitled to recover judgment for the whole amount so due
and unpaid against the Company or any other obligor on the Securities of that
series. The right of the Trustee to recover such judgment shall not be affected
by the exercise of any other right, power or remedy for the enforcement of the
provisions of this Indenture.

    The Trustee shall be entitled and empowered, either in its own name or as
trustee of an express trust, or as attorney-in-fact for the Holders of the
Securities of any series, or in any one or more of such capacities, to file such
proof of debt, amendment of proof of debt, claim, petition or other document as
may be necessary or advisable in order to have the claims of the Trustee and of
the Holders of the Securities of that series allowed in any equity receivership,
insolvency, bankruptcy, liquidation, readjustment, reorganization or other
judicial proceedings relative to the Company or any other obligor on such
Securities or their creditors, or affecting their property. The Trustee is
hereby irrevocably appointed (and the successive respective Holders of the
Securities of that series by taking and holding the same shall be conclusively
deemed to have so appointed the Trustee) the true and lawful attorney-in-fact of
the respective Holders of the Securities of that series, with authority to make
and file in the respective names of the Holders of such Securities, or on behalf
of the Holders of the Securities of that series as a class, subject to deduction
from any such claims of the amounts of any claims filed by any of the Holders of
the Securities of that series themselves, any proof of debt, amendment of proof
of debt, claim, petition or other document in any such proceeding and to receive
payment of any sums becoming distributable on account thereof, and to execute
any such other papers and documents and to do and perform any and all such acts
and things including participating as a member of any official or unofficial
committee of creditors acting with respect to such proceeding for and on behalf
of such holders of the Securities of that series, as may be necessary or
advisable in the opinion of

                                      VI-3
<PAGE>
the Trustee in order to have the respective claims of the Trustee and of the
Holders of the Securities of that series allowed in any such proceedings, and to
receive payment of or on account of such claims; provided, however, that nothing
contained in this Indenture shall be deemed to give the Trustee any right to
accept or consent to any plan of reorganization or otherwise by action of any
character in any such proceedings to waive or change in any way any right of any
Holder.

    Any moneys received by the Trustee under this Section 6.2 shall be applied
in the order following, at the date or dates fixed by the Trustee for the
distribution of such moneys, upon presentation of the several Securities of any
series, and stamping thereon the payment, if only partially paid, and upon
surrender thereof if fully paid:

         First: To the payment of costs and expenses of collection, and
     reasonable compensation to the Trustee, its agents, attorneys and counsel,
     and of all other expenses incurred, and all advances made, by the Trustee
     except as a result of its negligence or willful misconduct;

         Second: In case the principal of (and premium, if any, on) the
     outstanding Securities of that series shall not have become due and be
     unpaid, to the payment of interest on the Securities of that series, in the
     order of the maturity of the installments of such interest, with interest,
     so far as may be lawful, upon the overdue installments of interest at the
     rate specified in the Securities of that series, such payments to be made
     ratably to the persons entitled thereto, without discrimination or
     preferences;

         Third: In case the principal of (or premium, if any, on) the
     outstanding Securities of that series shall have become due, by declaration
     or otherwise, to the payment of the whole amount then owing and unpaid upon
     such Securities of that series for principal (and premium, if any) and
     interest, with interest at the rate specified in the Securities of that
     series on the overdue principal (and premium, if any) and, so far as may be
     lawful, on the overdue installments of interest; and in case such moneys
     shall be insufficient to pay in full the whole amount so due and unpaid
     upon such Securities, then to the payment of such principal (and premium,
     if any) and interest, without preference or priority of principal over
     interest, or of interest over principal or of any installment of interest
     over any other installment of interest, ratably to the aggregate of such
     principal and accrued and unpaid interest;

         Fourth: In case the Trustee shall retain possession of any funds after
     all obligations of the Company hereunder have been fully paid and
     satisfied, such funds shall be paid to the Company, its successors or
     assigns;

 provided, however, that when interest alone is to be paid, the Trustee at its
 election may waive presentation of the Securities of that series.

    SECTION 6.3. All rights of action under this Indenture or any of the
Securities outstanding hereunder, enforceable by the Trustee, may be enforced by
the Trustee without possession of any of the Securities or the production
thereof at the trial or other proceeding relative thereto, and any such suit or
proceedings instituted by the Trustee shall be brought for the ratable benefit
of the Holders of the Securities in respect of which any judgment has been
recovered, subject to the provisions of this Indenture.

     SECTION 6.4. No delay or omission of the Trustee or of the Holders of any
 Securities to exercise any rights or powers accruing upon any default shall
 impair any such right or power, or

                                      VI-4
<PAGE>
 shall be construed to be a waiver of any such default or acquiescence therein;
 and every power and remedy given by this Article to the Trustee or the Holders
 may be exercised from time to time and as often as may be deemed expedient by
 the Trustee or by the Holders.

     SECTION 6.5. If any one or more defaults shall happen and be continuing,
 the Trustee may, in its discretion, proceed to protect and enforce the rights
 vested in it by this Indenture by such appropriate judicial proceedings as the
 Trustee, being advised by its counsel, shall deem most effectual to protect and
 enforce any of said rights, either by suit in equity or by action at law or by
 proceeding in bankruptcy or otherwise, whether for the specific performance of
 any covenant or agreement contained in the Indenture or in aid of the exercise
 of any power granted in the Indenture, or to enforce any other legal or
 equitable right vested in the Trustee by this Indenture or by law.

     Provided the Securities of any series shall not then be due and payable by
 reason of a declaration pursuant to Section 6.1 hereof, the Holders of a
 majority in principal amount of the Securities of that series at the time
 outstanding may on behalf of the Holders of all of such Securities waive any
 past default hereunder and its consequences, except a default in the payment of
 interest on or the principal of (or premium, if any, on) any of such
 Securities. In the case of any such waiver, the Company, the Trustee and the
 Holders of such Securities shall be restored to their former positions and
 rights hereunder, respectively; but no such waiver shall extend to any
 subsequent or other default or impair any right consequent thereon.

    SECTION 6.6. The Holders of a majority in principal amount of the Securities
of any series then outstanding shall have the right, by an instrument in writing
executed and delivered to the Trustee, to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or of
exercising any power or trust conferred upon the Trustee under this Indenture;
provided, however, that subject to the provisions of Section 10.1 of this
Indenture, the Trustee shall have the right to decline to follow any such
direction if the Trustee being advised by counsel determines that the action or
proceeding so directed may not lawfully be taken or if the Trustee in good faith
shall by responsible officers determine that the action or proceeding so
directed would involve the Trustee in liability.

    SECTION 6.7. No Holder of any Security of any series shall have the right to
institute any suit, action or proceeding, in equity or at law, for the execution
of any trust or power hereof, or for the enforcement of any other remedy under
or upon this Indenture, unless such Holder previously shall have given to the
Trustee written notice of default with respect to the Securities of that series,
and unless also the Holders of a majority in principal amount of the Securities
of that series then outstanding shall have made written request upon the Trustee
and shall have afforded to it a reasonable opportunity either to proceed to
exercise the powers hereinbefore granted or to institute such action, suit or
proceeding in its own name, and shall have offered to the Trustee security and
indemnity satisfactory to it against the costs, expenses and liabilities to be
incurred therein or thereby, and the Trustee shall have refused or neglected to
comply with such request within a reasonable time; it being understood and
intended that no one or more Holders of Securities of that series shall have any
right in any manner whatever hereunder or under the Securities of that series by
his or their action to enforce any right hereunder except in the manner herein
provided, and that all proceedings hereunder, at law or in equity, shall be
instituted, had and maintained in the manner herein provided and for the ratable
benefit of all Holders of such Securities. Nothing herein contained shall,
however, affect or impair the right which is absolute and unconditional, of any
Holder of any Security to institute suit to enforce the

                                      VI-5
<PAGE>
payment of the principal of (or premium, if any, on) and interest on his
Security at and after the respective due dates expressed in such Security
(including Maturity by call for redemption, declaration (unless annulled
pursuant to Section 6.1 hereof) of the acceleration of the Maturity of such
principal (or premium if any, on) or interest, or otherwise), or the obligation
of the Company, which is also absolute and unconditional, to pay the principal
of (or premium, if any, on) and interest on each of the Securities of that
series to the respective Holders thereof at the times and places in the
Securities expressed.

    Anything to the contrary notwithstanding contained in this Section 6.7, the
parties to this Indenture agree and each Holder of any Security of any series 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 an
undertaking to pay the costs of such suit, and 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 merit and good faith of the
claims or defenses made by such party litigant; provided, however, that the
provisions of this paragraph shall not apply to any suit instituted, directly or
through an agent or agents, 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 the Securities of any series outstanding or to any suit instituted by
any Holder for the enforcement of the payment of the principal of (or premium,
if any, on) or interest on his Securities of that series at and after the
respective due dates of such principal (premium, if any) or interest expressed
in his Securities of that series.

    SECTION 6.8. No Securities of any series which are known by the Trustee to
be owned or held by, for the account of or for the benefit of, the Company or
any other obligor under this Indenture or any Affiliate of the Company or of
such other obligor (other than Securities of that series pledged in good faith
which would be deemed outstanding under the provisions of Section 7.4) shall be
deemed outstanding for the purpose of any payment or distribution provided for
in this Article.

    SECTION 6.9. If the Trustee or any Holder shall have proceeded to enforce
any right under this Indenture, and such proceedings shall have been
discontinued or abandoned because of waiver, or for any other reason, or shall
have been determined adversely to the Trustee or such Holder, then, and in any
such case, the Company and the Trustee and such Holder or Holders shall each be
restored to its former position and rights hereunder, and all rights, remedies
and powers of the Trustee and the Holders shall continue as though no such
proceedings had been taken.

                                      VI-6
<PAGE>
                                   ARTICLE VII
                             CONCERNING THE HOLDERS

    SECTION 7.1. Whenever in this Indenture it is provided that the Holders of a
specified percentage or a majority in aggregate principal amount of the
Securities of any series may take any action (including the making of any demand
or request, the giving of any notice, consent or waiver or the taking of any
other action) the fact that at the time of taking any such action the Holders of
such specified percentages have joined therein may be evidenced (a) by any
instrument or any number of instruments of similar tenor executed by Holders of
Securities of that series in person or by attorney or proxy appointed in
writing, or (b) by the record of the Holders of Securities of that series voting
in favor thereof at any meeting of such Holders duly called and held in
accordance with the provisions of Article XII, or (c) by a combination of such
instrument or instruments and any such record of such a meeting of such Holders.
The Company or the Trustee may (and in case of any action taken by Holders of a
specified percentage or majority in aggregate principal amount of the Securities
of any series pursuant to Section 6.1 or 6.6 hereof, the Trustee shall) set a
record date and time for purposes of determining the identity of Holders of any
series entitled to vote or consent to any action, which record date shall be the
later of 30 days prior to the first solicitation of such consent or the date of
the most recent list of Holders of such series of Securities furnished to the
Trustee prior to such solicitation pursuant to Section 3.3(d) hereof. If the
Company or the Trustee sets such a record date, only those persons who are
registered Holders of such Securities at the record date and time so fixed shall
be entitled to vote or consent with respect to such action whether or not they
are Holders at the time of such vote or consent.

    SECTION 7.2. Subject to the provisions of Section 10.1, proof of the
execution of any instrument by a Holder of Securities of any series or his
attorney or proxy and proof of the holding by any person of any of the
Securities of that series shall be sufficient for any purpose of this Indenture
if made in the following manner:

        (a) The fact and date of the execution by any such person of any
     instrument may be proved by the certificate of any notary public, or other
     officer of any jurisdiction of or within the United States of America
     authorized to take acknowledgments of deeds to be recorded in such
     jurisdiction, that the person executing such instrument acknowledged to him
     the execution thereof, or by an affidavit of a witness to such execution
     sworn to before any such notary or other such officer. Where such execution
     is by an officer of a corporation or association or a member of a
     partnership on behalf of such corporation, association or partnership, such
     certificate or affidavit shall also constitute sufficient proof of his
     authority.

        (b) The ownership of Securities of that series shall be proved by the
    Security Register with respect to such Securities or by a certificate of any
    duly appointed registrar thereof.

    The Trustee shall not be bound to recognize any person as a Holder of
Securities of any series unless and until his authority to vote the Securities
held by him is proved in the manner in this Article VII provided.

    The record of any Holders' meeting shall be proved in the manner provided in
Section 12.6.

    The Trustee may require such additional proof of any matter referred to in
this Section 7.2 as it shall deem necessary.

                                     VII-1
<PAGE>

    SECTION 7.3. The Company, the Trustee, any Authenticating Agent, any paying
agent and any Security registrar may deem and treat the person in whose name any
Security shall be registered upon the Security Register as the absolute owner of
such Security (whether or not such Security shall be overdue and notwithstanding
any notice of ownership or writing thereon made by anyone other than the Company
or any Security registrar) for the purpose of receiving payment of or on account
of the principal of (premium, if any, on) and interest on such Security and for
all other purposes; and neither the Company nor the Trustee nor any
Authenticating Agent nor any paying agent nor any Security registrar shall be
affected by any notice to the contrary. All such payments so made to any such
registered Holder for the time being or upon his order shall be valid and, to
the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for moneys payable upon any such Security.

    SECTION 7.4. In determining whether the Holders of the requisite aggregate
principal amount of Securities of any series have concurred in any direction,
consent or waiver under this Indenture, Securities of that series which are
owned by or held by or for the account of or interest of the Company or any
other obligor upon the Securities of that series, or any Affiliate of the
Company or of any other obligor upon the Securities of that series, shall be
disregarded and deemed not to be outstanding for the purpose of any such
determination, except that for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, consent or waiver only
Securities of that series which the Trustee knows are so owned or held shall be
so disregarded. The Securities of that series so owned or held which have been
pledged in good faith may be regarded as outstanding for the purposes of this
Section 7.4 if the pledgee shall establish to the satisfaction of the Trustee
the pledgee's right to vote such Securities and that the pledgee is not an
Affiliate of the Company or of any such other obligor. In case of a dispute as
to such right, any decision by the Trustee taken upon the advice of counsel
shall be full protection to the Trustee.

    SECTION 7.5. Any demand, request, waiver, consent or vote of the Holder of
any Security of any series shall be conclusive and binding upon such Holder and
upon all future Holders and owners of such Security, and of any Security issued
in exchange therefor or in place thereof, irrespective of whether or not any
notation in regard thereto is made upon such Security. Any action taken by the
Holders of the majority or percentage in aggregate principal amount of the
Securities of that series specified in this Indenture in connection with such
action shall be conclusively binding upon the Company, the Trustee and the
Holders of all the Securities of that series.

                                     VII-2
<PAGE>

                                  ARTICLE VIII

                    IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
                             OFFICERS AND DIRECTORS

    SECTION 8.1. No recourse under or upon any obligation, covenant or agreement
of this Indenture, or of any Security of any series, or for any claim based
thereon or otherwise in respect thereof, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company,
whether by virtue of any constitution, 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, stockholders, officers or
directors, as such, of the Company or of any successor corporation, 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 of the Securities of any series or implied therefrom; and
that any and all such personal liability, 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, stockholder, 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 of any series 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 issue of such Securities.

                                     VIII-1
<PAGE>

                                   ARTICLE IX

                          MERGER, CONSOLIDATION OR SALE

    SECTION 9.1. Nothing in this Indenture shall prevent any consolidation or
merger of the Company with or into any other corporation, or any consolidation
or merger of any other corporation with or into the Company, or any sale or
transfer of its assets and liabilities substantially as an entirety to any other
corporation lawfully entitled to acquire the same; provided, however, that, so
long as Securities are outstanding hereunder, the Company covenants and agrees,
that any such consolidation, merger, sale or transfer shall be upon the
condition that the due and punctual payment of the principal of (or premium, if
any, on) and interest on, all the Securities according to their tenor, and the
due and punctual performance and observance of all the terms, covenants and
conditions of this Indenture to be kept or performed by the Company shall, by an
indenture supplemental hereto, executed and delivered to the Trustee, be assumed
by the corporation (if other than the Company) formed by or resulting from any
such consolidation or merger, or which shall have received the transfer of the
assets and liabilities of the Company substantially as an entirety, just as
fully and effectually as if such successor corporation had been the original
party of the first part hereto; and in the event of any such sale or transfer
the predecessor Company may be dissolved, wound up and liquidated at any time
thereafter.

    SECTION 9.2. Every such successor corporation upon executing an indenture
supplemental hereto, as provided in Section 9.1, in form satisfactory to the
Trustee, shall succeed to and be substituted for the Company with the same
effect as if it had been named herein as the Company; and any order, certificate
or resolution of officers of the Company or the Board provided for in this
Indenture may be made by like officials of such successor corporation. Such
successor corporation may thereupon cause to be signed, either in its own name
or in the name of the Company, with such suitable reference, if any, to such
consolidation, merger, sale or transfer as may be required by the Trustee, any
or all of the Securities of any series which shall not theretofore have been
signed by the Company and authenticated by the Trustee or an Authenticating
Agent on its behalf; and upon the written order of such successor corporation in
lieu of the Company, and subject to all the terms, conditions and restrictions
herein prescribed with respect to the authentication and delivery of the
Securities of any series, the Trustee or an Authenticating Agent on its behalf
shall authenticate and deliver any and all Securities of that series which shall
have been previously signed by the proper officers of the Company and delivered
to the Trustee or an Authenticating Agent on its behalf for authentication, and
any of such Securities which such successor corporation shall thereafter, in
accordance with the provisions of this Indenture, cause to be signed and
delivered to the Trustee or an Authenticating Agent on its behalf for such
purpose. All Securities of that series so authenticated and delivered shall in
all respects have the same rank as the Securities of that series theretofore or
thereafter authenticated and delivered in accordance with the terms of this
Indenture.

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

    SECTION 9.3. The Trustee may receive and shall, subject to the provisions of
Section 10.1 of this Indenture, be fully protected in relying upon an Opinion of
Counsel or an Officers' Certificate as conclusive evidence that any supplemental
indenture executed under the foregoing Section 9.1 complies with the foregoing
conditions and provisions of this Article.

                                      IX-1
<PAGE>

                                    ARTICLE X

                             CONCERNING THE TRUSTEE

    SECTION 10.1. (a) The Trustee undertakes, prior to default and after the
curing of all defaults which may have occurred, to perform such duties and only
such duties as are specifically set forth in this Indenture, and in case of
default (but only during the continuance thereof) to exercise such of the rights
and powers vested in it by this Indenture, and to use the same degree of care
and skill in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

    The Trustee, upon receipt of any resolution, certificate, statement,
opinion, report, document, order or other instrument furnished to the Trustee
pursuant to any provision of this Indenture, shall examine them to determine
whether they conform to the requirements of this Indenture.

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

        (i) prior to default hereunder and after the curing of all defaults
    which may have occurred, the Trustee shall not be liable except for the
    performance of such duties as are specifically set forth in this Indenture,
    and no implied covenants or obligations shall be read into this Indenture
    against the Trustee but the duties and obligations of the Trustee, prior to
    default and after the curing of all defaults which may have occurred, shall
    be determined solely by the express provisions of this Indenture;

        (ii) prior to default hereunder and after the curing of all defaults
    which may have occurred, and in the absence of bad faith on the part of the
    Trustee, the Trustee may conclusively rely, as to the truth of the
    statements and the correctness of the opinions expressed therein, upon
    certificates or opinions conforming to the requirements of this Indenture;

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

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

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

    (c) The Trustee shall not be responsible for the validity, sufficiency or
the execution by the Company of this Indenture, or of any indentures
supplemental hereto, or of the Securities of any series, or for the recitals
herein or in the Securities contained (such recitals being made solely by the
Company).

                                      X-1
<PAGE>

    (d) Subject to the limitations contained in subdivisions (a) and (b) of this
Section 10.1:

        (i) the Trustee may rely and shall be protected in acting or refraining
    from acting upon any resolution, certificate, opinion, notice, consent,
    request, order, appraisal, report, bond or other paper or document believed
    by it to be genuine and to have been signed or presented by the proper party
    or parties;

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

        (iii) whenever in the administration of this Indenture, prior to a
    default hereunder and after the curing of all defaults which may have
    occurred, the Trustee shall deem it necessary or desirable that a matter be
    proved or established prior to taking or suffering any action hereunder,
    such matter (unless other evidence in respect thereof be herein specifically
    prescribed) may be deemed to be conclusively proved and established by an
    Officers' Certificate delivered to the Trustee, and such certificate shall
    be full warrant to the Trustee for any action taken or suffered by it under
    the provisions of this Indenture upon the faith thereof;

        (iv) the Trustee shall be under no obligation to exercise any of the
    trusts or powers hereof at the request, order or direction of any of the
    Holders of Securities of any series, pursuant to the provisions of this
    Indenture, unless such Holders shall have offered to the Trustee security or
    indemnity satisfactory to it against the costs, expenses and liabilities to
    be incurred therein or thereby; and

        (v) the Trustee shall not be liable for any action taken by it in good
    faith and believed by it to be authorized or within the discretion or power
    conferred upon it by this Indenture.

    (e) Subject to the provisions of subdivision (b) of this Section 10.1, prior
to a default hereunder and after the curing of all defaults which may have
occurred, the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, opinion, notice,
consent, request, order, appraisal, report, bond or other document or instrument
unless requested in writing so to do by the Holders of not less than a majority
in principal amount of the Securities of any series then outstanding; provided,
however, that if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it without negligence or
bad faith in the making of such investigation is, in the opinion of the Trustee
(subject to the provisions of subdivisions (a) and (b) of this Section 10.1),
not reasonably assured to the Trustee by the security afforded to it by the
terms of this Indenture, the Trustee may require reasonable indemnity against
such costs, expenses or liabilities as a condition to so proceeding; and
provided further, that nothing in this subdivision (e) shall require the Trustee
to give the Holders of such Securities any notice other than that required by
Section 10.3 hereof. The reasonable expense of every such examination shall be
paid by the Company or, if paid by the Trustee, shall be repaid by the Company
upon demand.

    (f) 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 responsible for any misconduct or negligence on the
part of any agent or attorney appointed with due care by it hereunder.

                                      X-2
<PAGE>

    SECTION 10.2. The Trustee shall be entitled to reasonable compensation
(which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) for services rendered by it in
the execution of the trusts hereby created. The Company also agrees to indemnify
the Trustee for and hold it harmless against loss, liability or expense incurred
without negligence or bad faith on the part of the Trustee arising out of or in
connection with the acceptance or administration of this trust, including the
costs and expenses of defending against any claim of liability in the premises.
The Trustee shall have a first lien on all moneys coming into its possession
hereunder, for the payment to it of its compensation and for the repayment to it
of all expenses and disbursements payable by the Company hereunder.

    The Trustee shall not be accountable for the use or application by the
Company of any Securities of any series authenticated and delivered hereunder or
of the proceeds of such Securities, or for the use or application of any moneys
paid over by the Trustee in accordance with any provision of this Indenture, or
for the use or application of any moneys received by any paying agent.

    All moneys received by the Trustee under or pursuant to any provision of
this Indenture shall constitute trust funds for the purposes for which they were
paid or are held, but need not be segregated in any manner from any other moneys
and may be deposited by the Trustee, under such conditions as may be prescribed
by law, in its general banking department, and the Trustee shall not be liable
for any interest thereon, except that, so long as the Company is not in default
hereunder, the Trustee will allow and credit to the Company interest, if any,
upon such moneys at such rate as may then be customary for similar deposits.

    SECTION 10.3. The Trustee shall give to the Holders of Securities of any
series notice, in the manner and to the extent provided in subdivision (c) of
Section 10.10, of the happening of all defaults known to it with respect to
Securities of such series, within 90 days after the occurrence thereof unless
such defaults shall have been cured before the giving of such notice; but,
except in the case of a default resulting from the failure to make any payment
of principal of, premium, if any, on or interest on the Securities of such
series, or in the payment of any sinking or purchase fund installment of such
series, the Trustee may withhold the giving of 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 determines that the
withholding of such notice is in the interest of the Holders of Securities of
such series. For the purposes of this Section 10.3, the term "default" shall
mean any default defined in Section 6.1, irrespective of the giving of any
specified notice and excluding any periods of grace provided for therein.
Notwithstanding anything to the contrary herein, the Trustee shall only be
deemed to have notice of an event of default (other the pursuant to Sections 6.
l(a) and (b)) when a Vice President, Assistant Vice President or the officer
specifically assigned to administer the Trustee's duties under this Indenture
has actual notice of such event of default.

    SECTION 10.4. If the Trustee has or shall acquire any conflicting interest
as defined in this Section 10.4, with respect to the Securities of any series it
shall, within 90 days after ascertaining that it has such conflicting interest
if the default (as defined in Section 10.3) to which such conflicting interest
relates has not been cured or duly waived or otherwise eliminated before the end
of such 90-day period, either eliminate such conflicting interest or, except as
otherwise provided below, resign with respect to the Securities of that series,
such resignation to become effective upon the appointment of a successor trustee
and such successor's acceptance of such appointment, and the Company shall take
prompt steps to have a successor appointed in the manner provided in Section
10.6. Except in the case of a default (as defined in Section 10.3) in

                                      X-3
<PAGE>
the payment of the principal of (or premium, if any) or interest on any such
Security, or in the payment of any sinking or purchase fund installment, the
Trustee shall not be required to resign as otherwise provided by this Section if
the Trustee shall have sustained the burden of proving, on application to the
Commission and after opportunity for hearing thereon, that: (i) the default (as
defined in Section 10.3) may be cured or waived during a reasonable period and
under the procedures described in such application; and (ii) a stay of the
Trustee's duty to resign will not be inconsistent with the interests of Holders
of such Securities. The filing of such an application shall automatically stay
the performance of the duty to resign until the Commission orders otherwise. For
the purposes of this Section 10.4 the Trustee shall be deemed to have a
conflicting interest with respect to the Securities of any series if such
Securities are in default (as defined in Section 10.3) and:

        (1) the Trustee is trustee under another indenture under which any other
    securities, or certificates of interest or participation in any other
    securities, of the Company are outstanding, or is trustee for more than one
    outstanding series of securities under a single indenture of the Company,
    unless such other indenture is a collateral trust indenture under which the
    only collateral consists of Securities issued and outstanding under this
    Indenture, provided that there shall be excluded from the operation of this
    paragraph other series under such indenture and any indenture or indentures
    under which other securities or certificates of interest or participation in
    other securities of the Company are outstanding if (i) such other indenture
    or indentures (and all series of securities issuable thereunder) are wholly
    unsecured and rank equally and such other indenture or indentures (and such
    series) are hereafter qualified under the Trust Indenture Act of 1939, as
    amended, unless the Commission shall have found and declared by order
    pursuant to subsection (b) of Section 305 or subsection (c) of Section 307
    of the Trust Indenture Act of 1939, as amended, that differences exist
    between the provisions of this Indenture (or such series) and the provisions
    of such other indenture or indentures (or such series) which are so likely
    to involve a material conflict of interest as to make it necessary in the
    public interest or for the protection of investors to disqualify the Trustee
    from acting as such under this Indenture and under such other indenture or
    indentures, or (ii) the Company shall have sustained the burden of proving,
    on application to the Commission and after opportunity for hearing thereon,
    that the trusteeship under this Indenture and such other indenture or under
    more than one outstanding series under a single indenture is not so likely
    to involve a material conflict of interest as to make it necessary in the
    public interest or for the protection of investors to disqualify the Trustee
    from acting as such under this Indenture and under such other indenture or
    indentures;

        (2) the Trustee or any of its directors or executive officers is an
    underwriter for the Company;

        (3) the Trustee directly or indirectly controls or is directly or
    indirectly controlled by or is under direct or indirect common control with
    an underwriter for the Company;

        (4) the Trustee or any of its directors or executive officers is a
    director, officer, partner, employee, appointee or representative of the
    Company or of an underwriter (other than the Trustee itself) for the Company
    who is currently engaged in the business of underwriting, except that (A)
    one individual may be a director and/or an executive officer of the Trustee
    and a director and/or an executive officer of the Company, but may not be at
    the same time an executive officer of both the Trustee and of the Company,
    and (B) if and so long as the number of directors of the Trustee in office
    is more than nine, one additional individual may be a director and/or an
    executive officer of the Trustee and a director of the Company, and (C) the
    Trustee may be designated by the Company or by any underwriter for the
    Company

                                      X-4
<PAGE>
    to act in the capacity of transfer agent, registrar, custodian, paying
    agent, fiscal agent, escrow agent, or depositary, or in any other similar
    capacity, or, subject to the provisions of subdivision (1) of this Section
    10.4, to act as trustee, whether under an indenture or otherwise;

        (5) 10% or more of the voting securities of the Trustee is beneficially
    owned either by the Company or by any director, partner or executive officer
    of the Company or 20% or more of such voting securities is beneficially
    owned, collectively, by any two or more of such persons; or 10% or more of
    the voting securities of the Trustee is beneficially owned either by an
    underwriter for the Company or by any director, partner or executive officer
    of any such underwriter, or is beneficially owned, collectively, by any two
    or more such persons;

        (6) the Trustee is the beneficial owner of, or holds as collateral
    security for an obligation which is in default as hereinafter in this
    Section 10.4 defined, (A) 5% or more of the voting securities or 10% or more
    of any other class of security of the Company, not including the Securities
    issued under this Indenture and the securities issued under any other
    indenture of the Company under which the Trustee is also trustee, or (B) 10%
    or more of any class of security of any underwriter for the Company;

        (7) the Trustee is the beneficial owner of, or holds as collateral
    security for an obligation which is in default as hereinafter in this
    Section 10.4 defined, 5% or more of any voting securities of any person who,
    to the knowledge of the Trustee, owns 10% or more of the voting securities
    of, or controls directly or indirectly or is under direct or indirect common
    control with, the Company;

        (8) the Trustee is the beneficial owner of, or holds as collateral
    security for an obligation which is in default as hereinafter in this
    Section 10.4 defined, 10% or more of any class of security of any person
    who, to the knowledge of the Trustee, owns 50% or more of the voting
    securities of the Company;

        (9) the Trustee owns, on the date of such default (as defined in Section
    10.3) or any anniversary of such default while such default remains
    outstanding, in the capacity of executor, administrator, testamentary or
    inter vivos trustee, guardian, committee or conservator, or in any other
    similar capacity, an aggregate of 25% or more of the voting securities, or
    of any class of security, of any person, the beneficial ownership of a
    specified percentage of which would have constituted a conflicting interest
    under subdivisions (6), (7), or (8) of this Section 10.4. As to any such
    securities of which the Trustee acquired ownership through becoming
    executor, administrator or testamentary trustee of an estate which included
    them, the provisions of the preceding sentence shall not apply, for a period
    of not more than two years from the date of such acquisition, to the extent
    that such securities included in such estate do not exceed 25% of such
    voting securities or 25% of any such class of security. Promptly after the
    date of any such default and annually in each succeeding year that the
    Securities of any series remain in default, the Trustee shall make a check
    of its holdings of such securities in any of the above mentioned capacities
    as of such dates. If the Company fails to make payment in full of principal
    of, or premium, if any, on or interest on any of the Securities issued
    under this Indenture when and as the same becomes due and payable, and such
    failure continues for 30 days thereafter, the Trustee shall make a prompt
    check of its holdings of such securities in any of the above mentioned
    capacities as of the date of the expiration of such 30-day period, and after
    such date, notwithstanding the foregoing

                                      X-5
<PAGE>
    provisions of this subdivision (9), all such securities so held by the
    Trustee, with sole or joint control over such securities vested in it,
    shall, but only so long as such failure shall continue, be considered as
    though beneficially owned by the Trustee, for the purposes of subdivisions
    (6), (7), and (8) of this Section 10.4; or

        (10) except under the circumstances described in paragraphs (1), (3),
    (4), (5) or (6) of Section 10.9(b), the Trustee shall be or become a
    creditor of the Company.

    In determining whether the Trustee has a conflicting interest with respect
to any series of Securities under this Section 10.4, each other series of
Securities will be treated as having been issued under an indenture other than
this Indenture unless such series of Securities rank equally and are wholly
unsecured.

    The specification of percentages in subdivisions (5) to (9), inclusive, of
this Section 10.4 shall not be construed as indicating that the ownership of
such percentages of the securities of a person is or is not necessary or
sufficient to constitute direct or indirect control for the purposes of
subdivision (3) or (7) of this Section 10.4.

    For the purposes of subdivisions (6), (7), (8), and (9) of this Section
10.4, (A) the term "security" and "securities" shall include only such
securities as are generally known as corporate securities, but shall not include
any note or other evidence of indebtedness issued to evidence an obligation to
repay moneys lent to a person by one or more banks, trust companies, or banking
firms, or any certificate of interest or participation in any such note or
evidence of indebtedness; (B) an obligation shall be deemed to be in default
when a default in payment of principal shall have continued for 30 days or more,
and shall not have been cured; and (C) the Trustee shall not be deemed the owner
or holder of (i) any security which it holds as collateral security (as trustee
or otherwise) for an obligation which is not in default as defined in clause (B)
above, or (ii) any security which it holds as collateral security under this
Indenture, irrespective of any default hereunder, or (iii) any security which it
holds as agent for collection, or as a custodian, escrow agent or depositary, or
in any similar representative capacity.

    Except as provided in the next preceding paragraph, the word "security" or
"securities" as used in this Section 10.4 shall mean any note, stock, treasury
stock, security future, bond, debenture, evidence of indebtedness, certificate
of interest or participation in any profit-sharing agreement, collateral trust
certificate, pre-organization certificate or subscription, transferable share,
investment contract, voting-trust certificate, certificate of deposit for a
security, fractional undivided interest in oil, gas, or other mineral rights,
any put, call, straddle, option, or privilege on any security, certificate of
deposit, or group or index of securities (including any interest therein or
based on the value thereof), or any put, call, straddle, option or privilege
entered into on a national securities exchange relating to foreign currency, or,
in general, any interest or instrument commonly known as a "security", or any
certificate of interest or participation in, temporary or interim certificate
for, receipt for, guarantee of, or warrant or right to subscribe to or purchase,
any of the foregoing.

    For the purposes of this Section 10.4:

        (I) The term "underwriter" when used with reference to the Company shall
    mean every person who, within one year prior to the time as of which the
    determination is made, has purchased from the Company with a view to, or has
    offered or sold for the Company in connection with, the distribution of any
    security of the Company outstanding at such time, or has participated or has
    had a direct or indirect participation in any such undertaking, or has
    participated or has had a participation in the direct or indirect
    underwriting of any such undertaking, but such term shall not include a
    person whose interest was limited to a

                                      X-6
<PAGE>

    commission from an underwriter or dealer not in excess of the usual and
    customary distributors' or sellers' commission.

        (II) The term "director" shall mean any director of a corporation or any
    individual performing similar functions with respect to any organization
    whether incorporated or unincorporated.

        (III) The term "person" shall mean an individual, a corporation, a
    partnership, an association, a joint-stock company, a trust, an
    unincorporated organization, or a government or political subdivision
    thereof. As used in this paragraph, the term "trust" shall include only a
    trust where the interest or interests of the beneficiary or beneficiaries
    are evidenced by a security.

        (IV) The term "voting security" shall mean any security presently
    entitling the owner or holder thereof to vote in the direction or management
    of the affairs of a person, or any security issued under or pursuant to any
    trust, agreement, or arrangement whereby a trustee or trustees or agent or
    agents for the owner or holder of such security are presently entitled to
    vote in the direction or management of the affairs of a person.

        (V) The term "Company" shall mean any obligor upon the Securities.

        (VI) The term "executive officer" shall mean the president, every vice
    president, every trust officer, the cashier, the secretary, and the
    treasurer of a corporation, and any individual customarily performing
    similar functions with respect to any organization whether incorporated or
    unincorporated but shall not include the chairman of the board of directors.

    The percentages of voting securities and other securities specified in this
Section 10.4 shall be calculated in accordance with the following provisions:

           (a) A specified percentage of the voting securities of a person means
        such amount of the outstanding voting securities of such person as
        entitles the holder or holders thereof to cast such specified percentage
        of the aggregate votes which the holders of all the outstanding voting
        securities of such person are entitled to cast in the direction or
        management of the affairs of such person.

           (b) A specified percentage of a class of securities of a person means
        such percentage of the aggregate amount of securities of the class
        outstanding.

           (c) The term "amount", when used in regard to securities, means the
        principal amount if relating to evidences of indebtedness, the number of
        shares if relating to capital shares, and the number of units if
        relating to any other kind of security.

           (d) The term "outstanding" means issued and not held by or for the
        account of the issuer. The following securities shall not be deemed
        outstanding within the meaning of this definition:

               (1) securities of an issuer held in a sinking fund relating to
           securities of the issuer of the same class;

               (2) securities of an issuer held in a sinking fund relating to
           another class of securities of the issuer, if the obligation
           evidenced by such other class of securities is not in default as to
           principal or interest or otherwise;

                                      X-7
<PAGE>
               (3) securities pledged by the issuer thereof as security for an
           obligation of the issuer not in default as to principal or interest
           or otherwise;

               (4) securities held in escrow if placed in escrow by the issuer
           thereof;

        provided, however, that any voting securities of an issuer shall be
        deemed outstanding if any person other than the issuer is entitled to
        exercise the voting rights thereof.

           (e) A security shall be deemed to be of the same class as another
        security if both securities confer upon the holder or holders thereof
        substantially the same rights and privileges, provided, however, that,
        in the case of secured evidences of indebtedness, all of which are
        issued under a single indenture, differences in the interest rates or
        maturity dates of various series thereof shall not be deemed sufficient
        to constitute such series different classes, and provided, further,
        that, in the case of unsecured evidences of indebtedness, differences in
        the interest rates or maturity dates thereof shall not be deemed
        sufficient to constitute them securities of different classes, whether
        or not they are issued under a single indenture.

    SECTION 10.5. There shall at all times be at least one corporate Trustee
under this Indenture which shall be a bank or trust company in good standing,
organized and doing business under the laws of the United States, or any state
thereof or a corporation or other person permitted to act as trustee by the
Commission, and having a combined capital and surplus of not less than
$20,000,000, which is authorized under the laws of the jurisdiction of
incorporation to exercise corporate trust powers and is subject to supervision
or examination by Federal or state authority. No obligor upon the Securities or
Affiliate of such obligor shall serve as Trustee. If the Trustee or any
successor publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, the
combined capital and surplus of the Trustee or of such successor Trustee shall
be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If the Trustee shall at any time cease to
satisfy the foregoing qualifications, then the Trustee shall resign within 30
days thereafter, such resignation to become effective upon the appointment of a
successor Trustee and such successor's acceptance of such appointment. If the
Trustee shall fail or refuse to resign within such 30-day period, or if the
Trustee has or shall acquire any conflicting interest of the character specified
in Section 10.4 with respect to the Securities of one or more series and shall
fail or refuse either to eliminate such conflicting interest or to resign within
the period in Section 10.4 provided in respect of such resignation, then (i) the
Trustee shall, within 10 days after the expiration of such period, transmit
notice of such failure or refusal to the Holders of Securities of any such
series in the manner and to the extent provided in subdivision (c) of Section
10.10; and (ii) any Holder of Securities of such series, who has been the bona
fide Holder of a Security of such series for at least six months, may, subject
to the provisions of the last paragraph of Section 6.7 hereof, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee, and the appointment of a successor,
if the Trustee fails, after written request therefor by such Holder of
Securities of such series, to comply with the provisions of Section 10.4.

                                      X-8
<PAGE>
    SECTION 10.6. The Trustee may resign and be discharged from the trust hereby
created with respect to the Securities-of one-or more-series by giving notice
thereof to the Company specifying the date when such resignation-shall take
effect, and by giving notice thereof to the Holders of Securities of such
series, in the manner and to the extent provided in subdivision (c) of Section
10.10. Except as otherwise provided in Sections 10.4 and 10.5, such resignation
shall take effect on the date specified in such notice unless previously, a
successor Trustee shall have. been appointed as hereinafter provided, in which
event such resignation shall take effect upon the appointment of such successor
Trustee.

    The Trustee may be at removed any time with respect to the Securities of any
series by an instrument or instruments in writing delivered to the Trustee and
to the Company signed by the Holders of a majority in principal amount of the
Securities of that series then outstanding or by their duly authorized
attorneys-in-fact.

    In case the Trustee shall resign or be removed or otherwise shall become
incapable of acting as Trustee, with respect to the Securities of one or more
series, a successor Trustee may be appointed by the Holders of a majority in
principal amount of the Securities of any series then outstanding by an
instrument or instruments in writing filed with the Company and with the Trustee
and signed by such Holders or by their duly authorized attorneys-in-fact, or, in
the case of the removal of the Trustee pursuant to the provisions of Section
10.5, by any court of competent jurisdiction acting pursuant to the provisions
of Section 10.5; but until a new trustee shall be appointed by the Holders of
Securities of that series or a court of competent jurisdiction as herein
authorized, the Company, by an instrument executed by order of its Board, shall
appoint a Trustee to fill the vacancy. Every such successor Trustee so appointed
by the Holders of Securities of that series, by a court of competent
jurisdiction or by the Company, shall be a bank or trust company meeting the
requirements provided in Section 10.5.

    If in a proper case no appointment of a successor Trustee with respect to
the Securities of any series shall be made pursuant to the foregoing provisions
of this Article within six months after a vacancy shall have occurred in the
office of Trustee, the Holder of any Security of that series or any retiring
Trustee may apply to any court of competent jurisdiction to appoint a successor
Trustee. The court may thereupon, after such notice, if any, as it may deem
proper and prescribe, appoint a successor Trustee.

    SECTION 10.7. (a) Any successor Trustee appointed under any of the methods
herein provided with respect to all Securities shall execute, acknowledge and
deliver to its predecessor Trustee and to the Company an instrument in writing
accepting such appointment hereunder and thereupon such successor Trustee,
without any further act, deed or conveyance, shall become fully vested with the
rights, powers, trusts, duties and obligations of its predecessor in the trust
hereunder with like effect as if originally named as Trustee hereunder. The
predecessor Trustee shall, nevertheless, at the written request of the successor
Trustee, pay over to the successor Trustee all moneys at the time held by it
hereunder; and the Company and the predecessor Trustee, upon payment or
provision therefor of any amounts then due the predecessor Trustee pursuant to
the provisions of Section 10.2, shall execute and deliver such instruments and
do such other things as may reasonably be required for more fully and certainly
vesting and confirming in the successor Trustee all such rights, powers, trusts,
duties and obligations. The Company shall promptly give notice of the
appointment of such successor Trustee to the Holders of all Securities in the
manner and to the extent provided in subdivision (c) of Section 10.10.

    (b) In case of the appointment hereunder of a successor Trustee with respect
to the Securities of one or more (but not all) series under any of the methods
herein provided, the Company, the predecessor Trustee and each successor Trustee
with respect to the Securities of one or more series 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

                                      X-9
<PAGE>
or desirable to transfer and confirm to, and to vest in, each successor Trustee
all the rights, powers, trusts and duties of the predecessor Trustee with
respect to the Securities of that or those series to which the appointment of
such successor Trustee relates, (2) if the predecessor 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 predecessor Trustee with respect to the Securities of that or those
series as to which the predecessor Trustee is not retiring shall continue to be
vested in the predecessor 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 and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee; and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the predecessor Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the predecessor Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates; but, on
request of the Company or any successor Trustee, such predecessor Trustee shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such predecessor Trustee hereunder with respect to the Securities
of that or those series to which the appointment of such successor Trustee
relates. The Company shall promptly give notice of the appointment of such
successor Trustee with respect to one or more (but not all) series of Securities
to the Holders of such series in the manner and to the extent provided in
subdivision (c) of Section 10.10.

    SECTION 10.8. Any corporation into which the Trustee or any successor to it
in the trust created by this Indenture may be merged or converted, or with which
it or any successor to it may be consolidated, or any corporation resulting from
any merger, conversion or consolidation to which the Trustee or any successor to
it shall be a party, shall be the successor Trustee under this Indenture without
the execution or filing of any instruments or any further act on the part of any
of the parties hereto.

    SECTION 10.9. (a) Subject to the provisions of subdivision (b) of this
Section 10.9, if the Trustee, in its individual capacity, shall be or shall
become a creditor, directly or indirectly, secured or unsecured, of the Company
or of any other obligor upon the Securities of any series (other than a
relationship of the nature specified in subdivision (b) of this Section 10.9)
within three months prior to a default (as defined in subdivision (c) of this
Section 10.9) or subsequent to such a default, then, unless and until such
default shall be cured, the Trustee shall set apart and hold in a special
account for the benefit of the Trustee individually, the Holders of the
Securities and the holders of other indenture securities (as defined in
subdivision (c) of this Section 10.9):

        (1) an amount equal to any and all reductions in the amount due and
    owing upon any claim as such creditor in respect of principal or interest,
    effected after the beginning of such three months' period and valid as
    against the Company and its other creditors, except any such reduction
    resulting from the receipt or disposition of any property described in
    paragraph (2) of this subdivision, or from the exercise of any right of
    set-off which the Trustee could have exercised if a petition in bankruptcy
    had been filed by or against the Company upon the date of such default; and

                                      X-10
<PAGE>

        (2) all property received by the Trustee in respect of any claim as such
    creditor, either as security therefor, or in satisfaction or composition
    thereof, or otherwise, after the beginning of such three months' period, or
    an amount equal to the proceeds of any such property, if disposed of,
    subject, however, to the rights, if any, of the Company and its other
    creditors in such property or such proceeds.

    Nothing herein contained, however, shall affect the right of the Trustee:

        (A) to retain for its own account (i) payments made on account of any
    such claim by any person (other than the Company) who is liable thereon, and
    (ii) the proceeds of the bona fide sale of any such claim by the Trustee to
    a third person, and (iii) distributions made in cash, securities or other
    property in respect of claims filed against the Company in bankruptcy or
    receivership or in proceedings for reorganization pursuant to the Federal
    bankruptcy laws or applicable state law;

        (B) to realize, for its own account, upon any property held by it as
    security for any such claim, if such property was so held prior to the
    beginning of such three months' period;

        (C) to realize, for its own account, but only to the extent of the claim
    hereinafter mentioned, upon any property held by it as security for any such
    claim, if such claim was created after the beginning of such three months'
    period and such property was received as security therefor simultaneously
    with the creation thereof, and if the Trustee shall sustain the burden of
    proving that at the time such property was so received the Trustee had no
    reasonable cause to believe that a default as defined in subdivision (c) of
    this Section 10.9 would occur within three months; or

        (D) to receive payment on any claim referred to in paragraph (B) or (C),
    against the release of any property held as security for such claim as
    provided in paragraph (B) or (C), as the case may be, to the extent of the
    fair value of such property.

    For the purposes of paragraphs (B), (C) and (D), property substituted after
the beginning of such three months' period for property held as security at the
time of such substitution shall, to the extent of fair value of the property
released, have the same status as the property released, and, to the extent that
any claim referred to in any of such paragraphs is created in renewal of or in
substitution for or for the purpose of repaying or refunding any pre-existing
claim of the Trustee as such creditor, such claim shall have the same status as
such pre-existing claim.

    If the Trustee shall be required to account, the funds and property held in
such special account and the proceeds thereof shall be apportioned between the
Trustee, the Holders of Securities of any series and the holders of other
indenture securities in such manner that the Trustee, the Holders of Securities
of any series and the holders of other indenture securities realize, as a result
of payments from such special account and payments of dividends on claims filed
against the Company in bankruptcy or receivership or in proceedings for
reorganization pursuant to the Federal bankruptcy laws or applicable state law,
the same percentage of their respective claims, figured before crediting to the
claim of the Trustee anything on account of the receipt by it from the Company
of the funds and property in such special account and before crediting to the
respective claims of the Trustee, the Holders of Securities of any series and
the holders of other indenture securities dividends on claims filed against the
Company in bankruptcy or receivership or in proceedings for reorganization
pursuant to the Federal bankruptcy laws or applicable state law, but after
crediting thereon receipts on account of the

                                      X-11
<PAGE>
indebtedness represented by their respective claims from all sources other than
from such dividends and from the funds and property so held in such special
account. As used in this paragraph, with respect to any claim, the term
"dividends" shall include any distribution with respect to such claim, in
bankruptcy or receivership or in proceedings for reorganization pursuant to the
Federal bankruptcy laws or applicable state law, whether such distribution is
made in cash, securities, or other property, but shall not include any such
distribution with respect to the secured portion, if any, of such claim. The
court in which such bankruptcy, receivership or proceeding for reorganization is
pending shall have jurisdiction (i) to apportion between the Trustee, the
Holders of Securities of any series, and the holders of other indenture
securities, in accordance with the provisions of this paragraph, the funds and
property held in such special account and the proceeds thereof, or (ii) in lieu
of such apportionment, in whole or in part, to give to the provisions of this
paragraph due consideration in determining the fairness of the distributions to
be made to the Trustee, the Holders of Securities of any series, and the holders
of other indenture securities, with respect to their respective claims, in which
event it shall not be necessary to liquidate or to appraise the value of any
securities or other property held in such special account or as security for any
such claim, or to make a specific allocation of such distributions as between
the secured and unsecured portions of such claims, or otherwise to apply the
provisions of this paragraph as a mathematical formula.

    Any trustee who has resigned or been removed after the beginning of such
three months' period shall be subject to the provisions of this subsection as
though such resignation or removal had not occurred. If any trustee has resigned
or been removed prior to the beginning of such three months' period, it shall be
subject to the provisions of this subdivision if and only if the following
conditions exist --

        (i) the receipt of property or reduction of claim which would have given
    rise to the obligation to account, if such trustee had continued as Trustee,
    occurred after the beginning of such three months' period; and

        (ii) such receipt of property or reduction of claim occurred within
    three months after such resignation or removal.

    (b) There shall be excluded from the operation of subdivision (a) of this
Section 10.9 a creditor relationship arising from --

        (1) the ownership or acquisition of securities issued under any
    indenture, or any security or securities having a maturity of one year or
    more at the time of acquisition by the Trustee; and for the purposes of this
    clause the term "security" shall mean any note, stock, treasury stock,
    security future, bond, debenture, evidence of indebtedness, certificate of
    interest or participation in any profit-sharing agreement, collateral-trust
    certificate, pre-organizatin certificate or subscription, transferable
    share, investment contract, voting-trust certificate, certificate of deposit
    for a security, fractional undivided interest in oil, gas, or other mineral
    rights, any put, call, straddle, option, or privilege on any security,
    certificate of deposit, or group or index of securities (including any
    interest therein or based on the value thereof), or any put, call, straddle,
    option, or privilege entered into on a national securities exchange
    relating to foreign currency, or, in general, any interest or instrument
    commonly known as a "security" or any certificate of interest or
    participation in, temporary or interim certificate for, receipt for
    guarantee of, or warrant or right to subscribe to or purchase, any of the
    foregoing;

        (2) advances authorized by a receivership or bankruptcy court of
    competent jurisdiction, or by this Indenture, for the purpose of preserving
    any property which shall at any time be subject to the lien of this
    Indenture or discharging tax liens or other prior liens or encumbrances on
    the trust estate, if notice of such advance and of the circumstances
    surrounding the making thereof is given to the Holders of Securities of the
    applicable series as provided in Section 10.10;

                                      X-12
<PAGE>

         (3) disbursements made in the ordinary course of business in the
     capacity of trustee under an indenture, transfer agent, registrar,
     custodian, paying agent, fiscal agent or depositary, or other similar
     capacity;

         (4) an indebtedness created as a result of services rendered or
     premises rented; or an indebtedness created as a result of goods or
     securities sold in a cash transaction as defined in subdivision (c) of this
     Section 10.9;

         (5) the ownership of stock or of other securities of a corporation
     organized under the provisions of Section 25(a) of the Federal Reserve Act,
     as amended, which is directly or indirectly a creditor of the Company; or

        (6) the acquisition, ownership, acceptance or negotiation of any drafts,
     bills of exchange, acceptances or obligations which fall within the
     classification of self-liquidating paper as defined in subdivision (c) of
     this Section 10.9.

     (c) As used in this Section 10.9:

        (1) the term "default" shall mean any failure to make payment in full of
     the principal of (or premium, if any, on) or interest on any of the
     Securities or upon the other indenture securities when and as such
     principal, premium, if any, or interest becomes due and payable;

        (2) the term "other indenture securities" shall mean securities upon
     which the Company is an obligor (as defined in the Trust Indenture Act of
     1939, as amended) outstanding under any other indenture (A) under which the
     Trustee is also trustee, (B) which contains provisions substantially
     similar to the provisions of subdivision (a) of this Section 10.9, and (C)
     under which a default (as defined under such indenture) exists at the time
     of the apportionment of the funds and property held in said special
     account;

        (3) the term "cash transaction" shall mean any transaction in which full
     payment for goods or securities sold is made within seven days after
     delivery of the goods or securities in currency or in checks or other
     orders drawn upon banks or bankers and payable upon demand;

        (4) the term "self-liquidating paper" shall mean any draft, bill of
    exchange, acceptance or obligation which is made, drawn, negotiated or
    incurred by the Company for the purpose of financing the purchase,
    processing, manufacture, shipment, storage or sale of goods, wares or
    merchandise and which is secured by documents evidencing title to,
    possession of, or a lien upon the goods, wares or merchandise or the
    receivables or proceeds arising from the sale of the goods, wares or
    merchandise previously constituting the security, provided the security is
    received by the Trustee simultaneously with the creation of the creditor
    relationship with the Company arising from the making, drawing, negotiating
    or incurring of the draft, bill of exchange, acceptance or obligation; and

        (5) the term "Company" shall mean any obligor upon the Securities at the
    time in question.

    SECTION 10.10. (a) The Trustee shall, so long as any Securities of any
series are outstanding hereunder, transmit to the Holders, as hereinafter
provided, within 60 days after May 15 of each year, beginning with the year
2003, a brief report as of such May 15 with respect to any of the following
events which may have occurred within the previous twelve months (but if no such
event has occurred within such period no report need be transmitted) --

                                      X-13
<PAGE>

        (1) any change to the eligibility under Section 10.5 and qualification
    under Section 10.4 of the Trustee to serve as Trustee under this Indenture;

        (2) the creation of or any material change to a relationship specified
    in subsections (1) through (10) of the first paragraph of Section 10.4
    hereof;

        (3) the character and amount of any advances (and if the Trustee elects
    so to state the circumstances surrounding the making thereof) made by it as
    Trustee which remain unpaid on the date of such report, and for the
    reimbursement of which it claims or may claim a lien or charge, prior to
    that of the Securities, on property or funds held or collected by it as a
    Trustee, except that the Trustee shall not be required (but may elect) to
    state such advances if such advances so remaining unpaid aggregate not more
    than 1/2 of 1% of the principal amount of the Securities outstanding on such
    date;

        (4) any change to the amount, interest rate and maturity date of all
    other indebtedness owing to it in its individual capacity, on the date of
    such report, by the Company or any other obligor under this Indenture, with
    a brief description of any property held as collateral security therefor,
    except an indebtedness based upon a creditor relationship arising in any
    manner described in paragraph (2), (3), (4) or (6) of subdivision (b) of
    Section 10.9;

        (5) any change to the property and funds physically in the possession of
    the Trustee in such capacity on the date of such report;

        (6) any release, or release and substitution, of property subject to the
    lien of this Indenture, and any consideration therefor, which it has not
    previously reported;

        (7) any additional issue of Securities which it has not previously
    reported; and

        (8) any action taken by the Trustee in the performance of its duties
    under this Indenture which it has not previously reported and which in the
    opinion of the Trustee materially affects the Securities or the trust
    estate, except action in respect of a default, notice of which has been or
    is to be withheld by the Trustee in accordance with Section 10.3.

    (b) The Trustee shall, so long as any Securities of any series shall be
outstanding hereunder, also transmit to the Holders, as hereinafter provided,
within the times hereinafter specified, a brief report with respect to the
character and amount of any advances (and if the Trustee so elects to state the
circumstances surrounding the making thereof) made by the Trustee, as such,
since the date of the last report transmitted pursuant to the provisions of
subdivision (a) of this Section 10.10 (or if no such report has been so
transmitted, since the date of the execution of this Indenture), for the
reimbursement of which it claims or may claim a lien or charge prior to that of
the Securities, on the trust estate or on property or funds held or collected by
the Trustee, as such, and which it has not previously reported pursuant to this
paragraph, if such advances remaining unpaid at any time aggregate more than 10%
of the principal amount of Securities outstanding at such time, such report to
be so transmitted within 90 days after such time.

    (c) All reports required by this Section 10.10, and all other reports or
notices which are required by any other provision of this Indenture to be
Transmitted in accordance with the provisions of this Section, shall be
transmitted by mail, first class postage pre-paid to all Holders, as the names
and addresses of such Holders appear upon the Security Register, and to such
holders as have, within the two years preceding such transmission, filed their
names and addresses with the Trustee for that purpose.

    The Trustee shall, at the time of the transmission to the Holders of any
report or notice pursuant to this Section 10.10, file a copy thereof with each
stock exchange, if any, upon which

                                      X-14
<PAGE>
the Securities are listed and with the Commission. The Company will notify the
Trustee when Securities are listed on a stock exchange.

    SECTION 10.11. The Trustee shall preserve, in as current a form as is
reasonably practicable, all information furnished it pursuant to subdivision (d)
of Section 3.3 hereof, or received by it as paying agent hereunder. The Trustee
may destroy (1) any information so furnished to it by the Company upon receipt
of new information from the Company, (2) any information received by it as a
paying agent, by delivering to itself, as Trustee, not earlier than 45 days
after an interest payment date on the Securities, a list containing the names
and addresses of the Holders of Securities obtained from such information since
the delivery of the last previous list, if any, and (3) any list delivered to
itself, as Trustee, which was compiled from information received by it as paying
agent upon the receipt of a new list so delivered.

    Within five business days after receipt by the Trustee of a written
application by any three or more Holders of Securities stating that the
applicants desire to communicate with other Holders with respect to their rights
under this Indenture or under the Securities, and accompanied by a copy of the
form of proxy or other communication which such applicants proposed to transmit,
and by reasonable proof that each such applicant has owned a Security or
Securities for a period of at least six months preceding such application, the
Trustee shall, at its election, either (1) afford to such applicants access to
all information so furnished to or received by the Trustee and not destroyed
pursuant to the provisions of this Section 10.11, or (2) inform such applicants
as to the approximate number of Holders according to the most recent information
so furnished to or received by the Trustee, and as to the approximate cost of
mailing to the Holders the form of proxy or other communication, if any,
specified in such application. If the Trustee shall elect not to afford to such
applicants access to such information, the Trustee shall, upon the written
request of such applicants, mail to all Holders whose names and addresses are
contained in the then current information filed with the Trustee as aforesaid,
copies of the form of proxy or other communication which is specified in such
request, with reasonable promptness after a tender to the Trustee of the
material to be mailed and the payment, or provision for the payment, of the
reasonable expenses of such mailing, unless within five days after such tender,
the Trustee shall mail to such applicants, and file with the Commission,
together with a copy of the material to be mailed, a written statement to the
effect that, in the opinion of the Trustee, such mailing would be contrary to
the best interest of the Holders or would be in violation of applicable law.
Such written statement shall specify the basis of such opinion. If the
Commission, after granting opportunity for a hearing upon the objections
specified in said written statement and on notice to the Trustee, shall enter an
order refusing to sustain any of such objections, or if, after the entry of an
order sustaining one or more of such objections, the Commission shall find,
after notice and opportunity for a hearing, that all objections sustained have
been met and shall enter an order so declaring, the Trustee shall comply with
such determination with reasonable promptness after such determination and the
renewal of the aforesaid tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

    Neither the Company nor the Trustee nor any Authenticating Agent nor any
paying agent nor any Security registrar shall be liable or accountable to the
Company or to any Holder by reason of disclosure of any such information as to
the names and addresses of Holders in accordance with the provisions of this
Section 10.11, regardless of the source from which such information was derived,
nor by reason of the mailing of any material pursuant to a request made under
this Section 10.11.

                                      X-15
<PAGE>
    SECTION 10.12. The Trustee or any Authenticating Agent or any paying agent
or Security registrar in its individual or any other capacity may buy, own, hold
and sell any of the Securities or any other evidences of indebtedness or other
securities, whether heretofore or hereafter created or issued, of the Company or
any Subsidiary or Affiliate of the Company with the same rights it would have if
it were not Trustee, Authenticating Agent, paying agent or Security registrar;
and any Authenticating Agent and, subject to the provisions of this Article X,
the Trustee may engage or be interested in any financial or other transaction
with the Company or any Subsidiary or Affiliate, including, without limitation,
secured and unsecured loans to the Company or any Subsidiary or Affiliate, and
may maintain any and all other general banking and business relations with the
Company and any Subsidiary or Affiliate, and may act as trustee under an
indenture with respect to indebtedness thereof, with like effect and in the same
manner and to the same extent as if the Trustee were not a party to this
Indenture; and no implied covenant shall be read into this Indenture against the
Trustee in respect of any such matters.

    SECTION 10.13. The Trustee may comply in good faith with any rule,
regulation or order of the Commission made pursuant to the terms and provisions
of the Trust Indenture Act of 1939, as amended, and shall be fully protected in
so doing notwithstanding that such rule, regulation or order may thereafter be
amended or rescinded or determined by judicial or other authority to be invalid
for any reason, but nothing herein contained shall require the Trustee to take
any action or omit to take any action in accordance with such rule, regulation
or order, except as otherwise required by subdivisions (a) and (b) of Section
10.1.

    SECTION 10.14. At any time when any of the Securities remain outstanding
there may be an Authenticating Agent with respect to one or more series of
Securities appointed by the Trustee to act on its behalf and subject to its
direction in connection with the authentication of the Securities of such series
as set forth in Articles II, IV, V, IX and XI. Such Authenticating Agent shall
be acceptable to the Company and shall at all times be a corporation organized
and doing business under the laws of the United States or of any State or
Territory or of the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$20,000,000, and being subject to supervision or examination by Federal, State,
Territorial, or District of Columbia authority and (if there be such a
corporation willing and able to act as Authenticating Agent on reasonable and
customary terms) having its principal office and place of business in the State
of Delaware or in the Borough of Manhattan of The City of New York. If such
corporation publishes reports of conditions at least annually, pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section 10.14 the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.

    Any corporation into which any 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 any Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency business
of any Authenticating Agent, shall continue to be the Authenticating Agent
without the execution or filing of any paper or any further act on the part of
the Trustee or such Authenticating Agent.

    Any Authenticating Agent with respect to one or more series of Securities
may at any time resign by giving written notice of resignation to the Trustee
and to the Company. The Trustee may at any time terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon receiving such a notice of

                                      X-16
<PAGE>
resignation or upon such a termination, or in case at any time any
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 10.14, the Trustee may appoint a successor
Authenticating Agent with respect to any series of Securities which shall be
acceptable to the Company, shall give written notice of such appointment to the
Company, and the Company shall mail notice of such appointment to all Holders of
Securities of the series with respect to which such Authenticating Agent will
serve, as the names and addresses of such Holders appear upon the Security
Register. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers, duties and
responsibilities of its predecessor hereunder, with like effect as if originally
named as Authenticating Agent herein. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section 10.14.

    The Trustee agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services, and the Trustee shall be entitled to
be reimbursed for such payments subject to the provisions of Section 10.2. An
Authenticating Agent shall have no responsibility or liability for any action
taken by it as such at the direction of the Trustee. If an appointment is made
pursuant to this Section, the Securities shall have endorsed thereon, in
addition to the Trustee's Certificate, an Authenticating Agent's Certificate in
the following form:

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

                                              ----------------------------------
                                                    As Authenticating Agent
                                           By:
                                              ----------------------------------
                                                     Authorized Officer

                                      X-17
<PAGE>

                                   ARTICLE XI

                             SUPPLEMENTAL INDENTURES

    SECTION 11.1. The Company, when authorized by resolution of its Board, and
the Trustee, subject to the conditions and restrictions in this Indenture
contained, may from time to time and at any time enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act of 1939 as then in effect) for one or more of the following
purposes:

        (a) to evidence the succession of another corporation to the Company, or
    successive successions, and the assumption by the successor corporation of
    the covenants, agreements and obligations of the Company pursuant to Article
    IX;

        (b) to add to the covenants and agreements of the Company for the
    benefit of the Holders of all or any series of Securities (and if such
    covenants and agreements are for the benefit of less than all series of
    Securities, stating that such covenants and agreements are expressly being
    included solely for the benefit of such series), and to surrender any right
    or power herein reserved to or conferred upon the Company;

        (c) to add to or change any of the provisions of this Indenture to such
    extent as shall be necessary to permit or facilitate the issuance of
    Securities in bearer form, registrable or not registrable as to principal,
    and with or without interest coupons;

        (d) to change or eliminate any of the provisions of this Indenture,
    provided that any such change or elimination (i) shall become effective only
    when there is no Security outstanding of any series created prior to the
    execution of such supplemental indenture which is entitled to the benefit of
    such provision or (ii) shall not apply to any such outstanding Security;

        (e) to establish the form or terms of Securities of any series as
    permitted by Section 2.1;

        (f) 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
    10.7(b);

        (g) to cure any ambiguity or to correct or supplement any defective or
    inconsistent provision contained in this Indenture or in any supplemental
    indenture; or

        (h) to make such provisions with respect to matters or questions arising
    under this Indenture as may be necessary or desirable and not inconsistent
    with this Indenture.

    The Trustee is hereby authorized to join with the Company in the execution
of any supplemental indenture authorized or permitted by the terms of this
Indenture, to make any further appropriate agreements and stipulations which may
be therein contained, but the Trustee 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.

    Any supplemental indenture authorized by the provisions of this Section 11.1
may be executed by the Company and the Trustee without the consent of the
Holders of any of the Securities at the time outstanding, notwithstanding any of
the provisions of Section 11.2.

                                      XI-1
<PAGE>

    SECTION 11.2. With the consent (evidenced as provided in Section 7.1) of the
Holders (or persons entitled to vote, or to give consents respecting the same)
of not less than a majority in principal amount of the outstanding Securities of
each series affected by such supplemental indenture, the Company, when
authorized by a resolution of its Board, and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act of 1939 as then in
effect) for the purpose of adding any provisions to or modifying or altering in
any manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying or altering in any manner the rights and
obligations of the Holders of such Securities and of the Company; provided,
however, that no such supplemental indenture shall (i) change the Stated
Maturity of the principal of (premium, if any, on), or the interest on, any
Security, or reduce the principal amount of (premium, if any, on), or the rate
of interest on any Security, or change the Currency in which the principal of
(and premium, if any) or interest on such Securities is denominated or payable,
or reduce the amount of the principal of an Original Issue Discount Security
that would be payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 6.1 without the consent of the Holder of each outstanding
Security so affected, or (ii) reduce the aforesaid percentage of Securities of
any series the Holders of which are required to consent to any such supplemental
indenture, without the consent of the Holders of each outstanding Security
affected thereby.

    A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or 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.

    Upon the request of the Company accompanied by a Certified Resolution
authorizing the execution of any such supplemental indenture and upon the filing
with the Trustee of evidence of the consent of Holders of Securities affected
thereby as aforesaid, the Trustee shall join with the Company in the execution
of such supplemental indenture unless such supplemental indenture affects the
"Trustee's own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion, but shall not be obligated to,
enter into such supplemental indenture.

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

    Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section 11.2 the
Company shall mail, first class postage prepaid, to the Holders of the
Securities affected thereby at their last addresses as they shall appear upon
the Security Register, a notice, setting forth in general terms the substance of
such supplemental indenture. Any failure of the Company to mail such notice, or
any defect therein, shall not, however, in any way impair or affect the validity
of any such supplemental indenture.

    SECTION 11.3. Upon the execution of any supplemental indenture pursuant to
the provisions of this Article XI, or of Section 9.1, this Indenture shall be
and be deemed to be modified and amended in accordance therewith and the
respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the

                                      XI-2
<PAGE>
Holders of Securities affected thereby shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

    SECTION 11.4. Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to the provisions of this
Article XI, or after any action taken at a Holders' meeting pursuant to Article
XII, may bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture or as to any action taken at any
such meeting; and in such case, suitable notation may be made upon outstanding
Securities affected thereby after proper presentation and demand. If the Company
shall so determine, Securities of any series so modified as to conform, in the
opinion of the Trustee and the Board, to any modification or alteration of this
Indenture contained in any such supplemental indenture, or to any action taken
at any such meeting, may be prepared by the Company, authenticated by the
Trustee or an Authenticating Agent on its behalf and delivered in exchange for
outstanding Securities of such series upon demand of and without cost to, the
Holders thereof, upon surrender of such Securities.

    SECTION 11.5. The Trustee may receive and shall, subject to the provisions
of Section 10.1, be fully protected in relying upon an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this
Article XI is authorized or permitted by the terms of this Indenture and that it
is not inconsistent therewith.

    SECTION 11.6. Nothing in this Article contained shall affect or limit the
right or obligation of the Company to execute and deliver to the Trustee any
instrument of further assurance or other instrument which elsewhere in this
Indenture it is provided shall be delivered to the Trustee.

                                      XI-3
<PAGE>

                                   ARTICLE XII

                               MEETINGS OF HOLDERS

    SECTION 12.1. A meeting of Holders of any series of Securities may be called
at any time and from time to time pursuant to the provisions of this Article XII
for any of the following purposes:

        (1) to give any notice to the Company or to the Trustee, or to give any
    direction to the Trustee or to waive or consent to the waiving of any
    default hereunder and its consequences, or to take any other action
    authorized to be taken by such Holders pursuant to any of the provisions of
    Article VI;

        (2) to remove the Trustee or appoint a successor trustee pursuant to the
    provisions of Article X;

        (3) to consent to the execution of an indenture or indentures
    supplemental hereto pursuant to the provisions of Section 11.2; or

        (4) to take any other action authorized to be taken by or on behalf of
    the Holders of any specified aggregate principal amount of the Securities of
    that series under any other provision of this Indenture, or authorized or
    permitted by law.

    SECTION 12.2. The Trustee may at any time call a meeting of Holders of
Securities of any series to take any action specified in Section 12.1, to be
held at such time and at such place in any of the city in which the principal
executive offices of the Company are located, the City of Wilmington, Delaware,
the city in which the principal corporate trust office of the Trustee is
located, the City of Chicago or in the Borough of Manhattan of The City of New
York, as the Trustee shall determine. Notice of every meeting of such Holders,
setting forth the time and place of such meeting and in general terms the action
proposed to be taken at such meeting, shall be mailed by the Trustee, first
class postage prepaid, to the Company, and to the Holders of Securities of that
series at their last addresses as they shall appear upon the Security Register,
not less than 20 nor more than 60 days prior to the date fixed for the meeting.

    Any meeting of the Holders of Securities of any series shall be valid
without notice if the Holders of all Securities of that series then outstanding
are present in person or by proxy, or if notice is waived before or after the
meeting by the Holders of all outstanding Securities of that series, and if the
Company and the Trustee are either present by duly authorized representatives or
have, before or after the meeting, waived notice.

    SECTION 12.3. In case at any time the Company, pursuant to resolution of its
Board, or Holders of not less than a majority in aggregate principal amount of
the Securities of any series then outstanding, shall have requested the Trustee
to call a meeting of Holders of Securities of that series to take any action
specified in Section 12.1, by written request setting forth in reasonable detail
the action proposed to be taken at the meeting, and the Trustee shall not have
mailed the notice of such meeting within 20 days after receipt of such request,
then the Company or such Holders in the amount above specified may determine the
time and the place in any of the city in which the principal executive offices
of the Company are located, the City of Wilmington, Delaware, the city in which
the principal corporate trust office of the Trustee is located, the City of
Chicago or in the Borough of Manhattan of The City of New York, for such meeting
and may call such meeting for the purpose of taking such action, by mailing or
causing to be mailed notice thereof as provided in Section 12.2.

                                     XII-1
<PAGE>

    SECTION 12.4. To be entitled to vote at any meeting of Holders of Securities
of any series a person shall (a) be a registered Holder of one or more
Securities of that series, or (b) be a person appointed by an instrument in
writing as proxy for the registered Holder or Holders of Securities of that
series. The only persons who shall be entitled to be present or to speak at any
meeting of Holders shall be the persons entitled to vote at such meeting and
their counsel and any representatives of the Trustee and its counsel and any
representatives of the Company and its counsel.

     SECTION 12.5. 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 any series, in regard to proof of the
 holding of Securities of that series and of the appointment of proxies, and in
 regard to the appointment and duties of inspectors of votes, and 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 think
 fit. Unless otherwise determined by-the Company pursuant to Section 7.1, such
 regulations may fix a record date and time for purposes of determining the
 registered Holders of any series of Securities entitled to vote at such
 meeting, which record date shall be (i) the later of 30 days prior to the first
 solicitation of the vote at such meeting or the date of the most recent list of
 Holders furnished to the Trustee prior to such solicitation pursuant to Section
 3.3(d) hereof or (ii) such other date determined by the Trustee. If the
 Trustee sets such a record date only those persons who are registered Holders
 of such Securities at the record date and time so fixed shall be entitled to
 vote at such meeting whether or not they shall be such Holders at the time of
 the meeting. Such regulations may further provide that written instruments
 appointing proxies, regular on their face, may be presumed valid and genuine
 without the proof specified in Section 7.2 or other proof. Except as otherwise
 permitted or required by any such regulations, the holding of such Securities
 shall be proved in the manner specified in Section 7.2 and the appointment of
 any proxy shall be proved in the manner specified in Section 7.2 or by having
 the signature of the person executing the proxy witnessed or guaranteed by any
 bank, banker or trust company satisfactory to the Trustee.

     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 of any series as provided in Section 12.3,
 in which case the Company or such Holders 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 Holders of
 a majority in principal amount of the Securities of that series represented at
 the meeting and entitled to vote.

     Subject to the provisions of Section 7.4, at any meeting each Holder of
 Securities of any series or proxy shall be entitled to one vote for each $1,000
 principal amount at Stated Maturity (or the Dollar equivalent thereof based
 upon the Market Exchange Rate on the latest date for which such rate was
 established on or before the date for determining the Holders entitled to
 perform such act, if the principal amount of any Securities of any series is
 denominated in any Foreign Currency) of Securities of that series, provided,
 however, that no vote shall be cast or counted at any meeting in respect of any
 Securities of that series 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 other than by virtue of Securities of that series
 held by him or instruments in writing as aforesaid duly designating him as the
 person to vote on behalf of other

                                     XII-2
<PAGE>
such Holders. At any meeting of Holders of Securities of that series, the
presence of persons holding or representing any number of such Securities shall
be sufficient for a quorum. Any meeting of such Holders duly called pursuant to
the provisions of Section 12.2 or 12.3 may be adjourned from time to time by
vote of the Holders of a majority in principal amount of the Securities of that
series represented at the meeting and entitled to vote, and the meeting may be
held as so adjourned without further notice.

     SECTION 12.6. 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 that series or of
 their representatives by proxy and the principal amount of the Securities of
 that series voted by the ballot. 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 duplicate of all votes cast at
 the meeting. A record in duplicate of the proceedings of each meeting of
 Holders 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 mailed as provided in Section 12.2. The record
 shall be signed and verified by the affidavits of the permanent chairman and
 secretary of the meeting and one of the duplicates shall be delivered to the
 Company and the other 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.

    SECTION 12.7. Nothing in this Article XII contained shall be deemed or
construed to authorize or permit, by reason of any call of a meeting of Holders
of Securities of any series or any rights expressly or impliedly conferred
hereunder to make such call, any hindrance or delay in the exercise of any right
or rights conferred upon or reserved to the Trustee or to the Holders of
Securities of that series under any of the provisions of this Indenture or of
such Securities.

                                     XII-3
<PAGE>
                                  ARTICLE XIII

                     SATISFACTION AND DISCHARGE OF INDENTURE
                             OR CERTAIN OBLIGATIONS

    SECTION 13.1. If (a) the Company shall deliver to the Trustee for
cancellation all Securities theretofore authenticated (other than any Securities
which shall have been destroyed, lost or stolen and in lieu of or in
substitution for which other Securities shall have been authenticated and
delivered) and not theretofore cancelled, or (b) all the Securities not
theretofore cancelled or delivered to the Trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable at their
Stated Maturity within one year or are to be called for redemption within one
year under arrangements satisfactory to the Trustee for the giving of notice of
redemption, and the Company shall deposit with the Trustee as trust funds the
entire amount sufficient to pay at Stated Maturity or upon redemption all of the
Securities (other than any Securities which shall have been destroyed, lost or
stolen and in lieu of or in substitution for which other Securities shall have
been authenticated and delivered) not theretofore cancelled or delivered to the
Trustee for cancellation, including principal (and premium, if any) and interest
due or to become due to such date of Stated Maturity or Redemption Date, as the
case may be, but, excluding, however, the amount of any moneys for the payment
of principal of (and premium, if any, on) or interest on the Securities
theretofore deposited with the Trustee and (1) repaid by the Trustee to the
Company in accordance with the provisions of Section 13.3, or (2) paid by the
Trustee to any State pursuant to its unclaimed property or similar laws, and if
in either case the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company, then this Indenture shall cease to be of
further effect, and the Trustee, on demand of the Company accompanied by an
Officers' Certificate and an Opinion of Counsel, each stating that in the
opinion of the signers all conditions precedent to the satisfaction and
discharge of this Indenture have been complied with, and at the cost and expense
of the Company, shall execute proper instruments acknowledging satisfaction of
and discharging this Indenture. The Company agrees to reimburse the Trustee for
any costs or expenses thereafter reasonably and properly incurred by the Trustee
in connection with the Indenture or the Securities, and any such obligation for
reimbursement shall survive this Indenture.

    SECTION 13.2. Any moneys, U.S. Government Obligations, and Eligible
Obligations which at any time shall be deposited by the Company or on its behalf
with the Trustee or any paying agent (other than the Company) for the purpose of
paying or redeeming any of the Securities shall be held in trust and applied by
the Trustee to the payment, to the Holders of the particular Securities for the
payment or redemption of which such moneys have been deposited, of all sums due
and to become due thereon for principal (and premium, if any) and interest, or
analogous payments as contemplated by Section 13.4, upon presentation and
surrender of such Securities at the office of the Trustee or any paying agent,
all subject, however, to the provisions hereinafter contained in this Article
XIII. Neither the Company nor the Trustee (except as provided in Section 10.2)
nor any paying agent shall be required to pay interest on any moneys so
deposited.

    The Company shall pay and shall indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against U.S. Government Obligations or
Eligible Obligations deposited pursuant to Section 13.4 or the interest and
principal received in respect of such obligations other than any payable by or
on behalf of Holders.

                                     XIII-1
<PAGE>

    The Trustee shall deliver or pay to the Company from time to time upon the
request of the Company any money, U.S. Government Obligations, or Eligible
Obligations held by it as provided in Section 13.4 which, in the opinion of any
independent firm of public accountants of recognized standing selected by the
Board expressed in a written certification thereof delivered to the Trustee, are
then in excess of the amount thereof which then would have been required to be
deposited for the purpose for which such money, U.S. Government Obligations, or
Eligible Obligations were deposited or received.

    SECTION 13.3. Any moneys deposited with the Trustee or any paying agent
remaining unclaimed by the Holders of Securities for three years after the date
upon which the principal of (premium if any, on) or interest on such Securities
shall have become due and payable, shall be repaid to the Company by the Trustee
or such paying agent, upon demand, and such Holders shall thereafter be entitled
to look only to the Company for payment thereof; provided, however, that, before
being required to make any such payment to the Company, the Trustee may, at the
expense of the Company, cause to be mailed to the Holders of such Securities, at
their last addresses as they appear on the Security Register, notice that such
moneys remain unclaimed and that, after a date named in said notice, the balance
of such moneys then unclaimed will be returned to the Company.

    Upon the satisfaction and discharge of this Indenture as to the Securities
of any series, all moneys then held by any paying agent other than the Trustee
hereunder shall, upon demand of the Company, be repaid to it and thereupon such
paying agent shall be released from all further liability with respect to such
moneys.

    SECTION 13.4. Except as otherwise provided in this Section 13.4 or pursuant
to Section 2.1, the Company may terminate its obligations as to the Securities
of any series if:

        (a) all Securities of such series previously authenticated and delivered
    (other than destroyed, lost or stolen Securities which have been replaced or
    Securities which are paid pursuant to Section 3.1 or Securities for whose
    payment money or securities have theretofore been held in trust and
    thereafter repaid to the Company, as provided in Sections 13.2 and 13.3)
    have been delivered to the Trustee for cancellation and the Company has paid
    all sums payable by it hereunder; or

        (b)(l) the Company has irrevocably deposited or caused to be deposited
    with the Trustee or a paying agent (and conveyed all right, title and
    interest for the benefit of the Holders, under the terms of an irrevocable
    trust agreement in form and substance satisfactory to the Trustee, as trust
    funds in trust solely for the benefit of the Holders for that purpose), (A)
    money in an amount sufficient, or (B) U.S. Government Obligations (if the
    Securities of the series are denominated in Dollars) or Eligible Obligations
    (if the Securities of the series are denominated in a Foreign Currency)
    maturing as to principal and interest in such amounts and at such times as
    are sufficient in the opinion of a nationally recognized firm of independent
    public accountants expressed in a written certification thereof delivered to
    the Trustee (without consideration of any reinvestment of such interest), or
    (C) a combination thereof in an amount sufficient, to pay principal (and
    premium, if any) and interest on the outstanding Securities of such series
    on the dates such installments are due to redemption or maturity, and any
    mandatory sinking fund payments or analogous payments applicable to such
    outstanding Securities;

                                     XIII-2
<PAGE>

        (2) such deposit as described in this Section 13.4 will not result in a
    breach or violation of, or constitute a default under, any other agreement
    or instrument to which the Company is a party or by which it is bound;

        (3) no defaults as defined in Section 6.1 shall have occurred and be
    continuing on the date of such deposit, and no default under Section 6. l(e)
    or 6. l(f) shall have occurred and be continuing on the 91st day after such
    date;

        (4) the Company shall have delivered to the Trustee (i) either (A) a
    ruling received from the Internal Revenue Service to the effect that the
    Holders of the Securities of such series will not recognize income, gain or
    loss for Federal income tax purposes as a result of the Company's exercise
    of its option under this Section 13.4 and will be subject to Federal income
    tax on the same amount and in the same manner and at the same times as would
    have been the case if such option had not been exercised, or (B) an Opinion
    of Counsel by recognized counsel who is not an employee of the Company to
    the same effect as the ruling described in clause (A) and (ii) an Opinion of
    Counsel to the effect that, after the passage of 90 days following the
    deposit, (x) the trust funds will not be subject to the effect of any
    applicable bankruptcy, insolvency, reorganization or similar laws affecting
    creditors' rights generally, or (y) if a court was to rule under any such
    law in any case or proceeding that the trust funds remained property of the
    Company (AA) assuming such trust funds remained in the Trustee's possession
    prior to such court ruling to the extent not paid to Holders of Securities
    of such series, the Trustee will hold, for the benefit of the Holders of
    such Securities, a valid and perfected security interest in such trust funds
    that is not avoidable in bankruptcy or otherwise, and (BB) the Holders of
    Securities will be entitled to receive adequate protection of their
    interests in such trust funds if such trust funds are used;

        (5) the Company has paid or caused to be paid all sums then payable by
    the Company hereunder and under such Securities; and

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

    Notwithstanding the foregoing clause (b) prior to the end of the 90-day
period referred to in subclause (b)(4)(ii) above, none of the Company's
obligations under this Indenture shall be discharged, and subsequent to the end
of such 90-day period only the Company's obligations in Sections 2.5, 2.6, 3.1,
3.2, 10.2 and 13.2 shall survive until the Securities of such series are no
longer outstanding. If and when a ruling from the Internal Revenue Service or
Opinion of Counsel referred to in subclause (b)(4)(i) above is able to be
provided specifically without regard to, and not in reliance upon, the
continuance of the Company's obligations under Section 3.1, then the Company's
obligations under such Section 3.1 shall cease upon delivery to the Trustee of
such ruling or Opinion of Counsel and compliance with the other conditions
precedent provided for herein relating to the satisfaction and discharge of this
Indenture with respect to Securities of such series.

    After any such irrevocable deposit the Trustee upon request shall
acknowledge in writing the discharge of the Company's obligations under the
Securities of such series and this Indenture with respect to such Securities
except for those surviving obligations specified above.

                                     XIII-3
<PAGE>

    SECTION 13.5. The Trustee or a paying agent (other than the Company) shall
hold, in trust, the money, U.S. Government Obligations or Eligible Obligations
deposited with it pursuant to Section 13.4 hereof. The Trustee or paying agent
shall have been irrevocably instructed to apply the deposited money and the
proceeds from the U.S. Government Obligations or Eligible Obligations in
accordance with the terms of this Indenture and the terms of the Securities of
the series to the payment of principal (and premium, if any) and interest on
such Securities.

                                     XIII-4
<PAGE>

                                   ARTICLE XIV

                            MISCELLANEOUS PROVISIONS

    SECTION 14.1. Nothing in this Indenture, expressed or implied, is intended
or shall be construed to confer upon, or to give to, any person or corporation,
other than the parties hereto, their successors and assigns, and the Holders of
the Securities of any series, any right, remedy or claim under or by reason of
this Indenture or any provisions hereof; and the provisions of this Indenture
are for the exclusive benefit of the parties hereto, their successors and
assigns, any Authenticating Agent or paying agent and the Holders of the
Securities of any series.

    SECTION 14.2. Unless otherwise specifically provided, the certificate or
opinion of any independent firm of public accountants of recognized standing
selected by the Board shall be conclusive evidence of the correctness of any
computation made under the provisions of this Indenture. The Company shall
furnish to the Trustee upon its request a copy of any such certificate or
opinion.

    SECTION 14.3. In case any one or more of the provisions contained in this
Indenture or in the Securities of any series shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Indenture, but
this Indenture shall be construed as if such invalid or illegal or unenforceable
provisions had never been contained herein.

    If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by operation of subsection (c) of Section 318 of the Trust
Indenture Act of 1939, as amended, the imposed duties shall control.

    SECTION 14.4. Whenever in this Indenture the Company shall be required to do
or not to do anything so long as any of the Securities of any series shall be
outstanding, the Company shall, notwithstanding any such provision, not be
required to comply with such provisions if it shall be entitled to have this
Indenture satisfied and discharged pursuant to the provisions hereof, even
though in either case the Holders of any of the Securities of that series shall
have failed to present and surrender them for payment pursuant to the terms of
this Indenture.

    SECTION 14.5. Although this Indenture, for convenience and for the purpose
of reference, is dated as of October 1, 2002, the actual date of execution
by the Company and by the Trustee is as indicated by their respective
acknowledgments hereto annexed.

    SECTION 14.6. Unless otherwise expressly provided, any order, notice,
request, demand, certificate or statement of the Company required or permitted
to be made or given under any provision hereof shall be sufficiently executed if
signed by its Chairman of the Board, its Chief Executive Officer, its President
or one of its Vice Presidents and by its Vice President, Finance, its Treasurer
or one of its Assistant Treasurers or its Secretary or one of its Assistant
Secretaries.

    Upon any application, demand or request by the Company to the Trustee to
take any action under any of the provisions of this Indenture, the Company shall
furnish to the Trustee an Officers' Certificate stating that all conditions
precedent, if any (including any covenants compliance with which constitutes a
condition precedent), provided for in this Indenture relating to the proposed
action, have been complied with, and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent have been complied with.

    Each certificate or opinion by or on behalf of the Company with respect to
compliance with a condition or covenant provided for in this Indenture (other
than certificates provided pursuant to

                                     XIV-1
<PAGE>

Section 3.4 of this Indenture) shall include (l)a statement that the person
making such certificate or opinion has read such covenant or condition; (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 such person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

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

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

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

     SECTION 14.7. If any Interest Payment Date or other payment date shall fall
 on a day other than a Business Day, then any payment or deposit by or on behalf
 of the Company required under the terms hereof to be made on such date may be
 made instead on the next succeeding Business Day with the same force and effect
 as if made on such date.

     SECTION 14.8. All notices to or demands upon the Trustee shall be in
 writing and may be served or presented, and such demands may be made, at the
 designated office of the Trustee, c/o The Bank of New York, 101 Barclay St.,
 Floor 8W, New York, NY, 10286, attention: Corporate Trust Administration. Any
 notice to or demand upon the Company shall be deemed to have been sufficiently
 given or served by the Trustee or any Holder for all purposes, by being mailed
 by registered mail addressed to the Company, attention of the President, at
 3711 Kennett Pike, Greenville, DE, 19807, or at such other address as may be
 filed in writing by the Company with the Trustee.

                                     XIV-2
<PAGE>

     SECTION 14.9. All the covenants, promises and agreements in this Indenture
 contained by or on behalf of the Company, or by or on behalf of the Trustee,
 shall bind and inure to the benefit of their respective successors and assigns,
 whether so expressed or not.

     SECTION 14.10. The descriptive headings of the several Articles of this
 Indenture are inserted for convenience only and shall not control or affect the
 meaning or construction of any of the provisions hereof.

     SECTION 14.11. This Indenture may be simultaneously executed in any number
 of counterparts, each of which when so executed and delivered shall be an
 original; but such counterparts shall together constitute but one and the same
 instrument.

     SECTION 14.12. This Indenture shall be governed in accordance with the
 internal laws of the State of Delaware.

                                     XIV-3
<PAGE>

     IN WITNESS WHEREOF, SEARS ROEBUCK ACCEPTANCE CORP. has caused this
Indenture to be signed in its corporate name by its President, and its corporate
seal to be affixed hereto and attested to by one of its Assistant Secretaries,
and BNY MIDWEST TRUST COMPANY has caused this Indenture to be signed in its
corporate name by one of its Assistant Vice Presidents and impressed with its
corporate seal, and attested to by one of its Assistant Treasurers, all as of
the day and year first above written.

                                           SEARS ROEBUCK ACCEPTANCE CO.

                                           By /s/ Keith E. Trost
                                             _________________________________

(CORPORATE SEAL)

Attest:

/s/ George F. Slook
__________________________________

                                           BNY MIDWEST TRUST COMPANY

                                           By /s/ M Callahan
                                             __________________________________

(CORPORATE SEAL)

 Attest:

/s/ L garcia
_______________________________

<PAGE>

STATE OF DELAWARE    }
                     }   SS.:
COUNTY OF NEW CASTLE }

    I, DOLORES L. SMALLWOOD, a Notary Public in and for the County and State
aforesaid, DO HEREBY CERTIFY THAT KEITH E. TROST, the President, and GEORGE F.
SLOOK, an Assistant Secretary, of SEARS ROEBUCK ACCEPTANCE CORP., who are
personally known to me to be the same persons whose names are subscribed to the
foregoing Indenture as such President and Assistant Secretary, appeared before
me this day in person, and acknowledged that they signed, sealed and delivered
the said Indenture as their free and voluntary act, and as the free and
voluntary act of said Company for the uses and purposes therein set forth, and
caused the corporate seal of said Company to be thereto affixed.

    GIVEN under my hand and notarial seal, this 1st day of October, 2002.

                                                /s/ Dolores L. Smallwood
                                                _______________________________
                                                           Notary Public

                                                 My Commission Expires: 8/14/05

                                                            [SEAL]

<PAGE>
 STATE OF ILLINOIS    }
                      }   SS.:
 COUNTY OF COOK       }

    I, K. Gibson, a Notary Public in and for the County and State aforesaid,
 DO HEREBY CERTIFY that Mary Callahan, an Assistant Vice President, and Linda
 Garcia, an Assistant Treasurer, of BNY MIDWEST TRUST COMPANY, Trustee under the
 foregoing Indenture, who are personally known to me to be the same persons
 whose names are subscribed to the foregoing instrument as such and appeared
 before me this day in person, and acknowledged that they signed, sealed and
 delivered the said Indenture as their free and voluntary act, and as the free
 and voluntary act of said corporation for the uses and purposes therein set
 forth, and caused the corporate seal of said corporation to be thereto affixed.

    GIVEN under my hand and notarial seal, this 1st day of October, 2002.

                                                           /s/ K. Gibson
                                                   _____________________________
                                                           Notary Public

                                                   My Commission Expires: 7/8/08

                                                               [SEAL]<PAGE>
                                                                    EXHIBIT 4(f)

                             SEARS, ROEBUCK AND CO.
                                3333 Beverly Road
                         Hoffman Estates, Illinois 60179

                               September 24, 2002

Sears Roebuck Acceptance Corp.
3711 Kennett Pike
Greenville, Delaware 19807

Ladies and Gentlemen:

         It is presently proposed that Sears Roebuck Acceptance Corp. ("SRAC")
enter into an Indenture (the "Indenture") with BNY Midwest Trust Company dated
on or about the date hereof in the form filed or to be filed with the Securities
and Exchange Commission as an exhibit to Registration Statement No. 333-92082.
Subject to the provisions contained in the Indenture, SRAC will be required to
maintain a Fixed Charge Coverage Ratio (as defined in the Indenture) for any
fiscal quarter of not less than 1.10 and SRAC has agreed to cause Sears, Roebuck
and Co. ("Sears") to continue to own and hold all legal title to and beneficial
interest in all of the outstanding voting stock of SRAC.

         This is to confirm our agreement ("Fixed Charge Coverage and Ownership
Agreement") that Sears will (a) pay SRAC such amounts which, together with any
other earnings available to SRAC therefor, are sufficient for SRAC to maintain a
Fixed Charge Coverage Ratio for any fiscal quarter of not less than 1.10 as long
as SRAC is required by the provisions of the Indenture relating to any
outstanding Securities (as defined in the Indenture) to maintain such Fixed
Charge Coverage Ratio and (b) continue to own and to hold all legal title to and
beneficial interest in all of the outstanding voting stock of SRAC as long as
SRAC is required by the provisions of the Indenture to cause Sears to own and
hold such title and interest.

         This agreement is made for the benefit of the holders of outstanding
Securities (the "Holders"). SRAC will cause Sears to observe and perform in all
material respects all covenants or agreements of Sears contained in this
agreement. Sears agrees that any Holder may bring a direct and immediate action
against Sears to enforce Sears' obligations hereunder.

                                       1
<PAGE>

Sears Roebuck Acceptance Corp.
September 24, 2002
Page Two

         If the foregoing satisfactorily sets forth the terms and conditions of
our agreement please indicate your acceptance thereof by the signature of a duly
authorized officer in the space provided below and on the duplicate original of
this letter which is enclosed.

                                       Very truly yours,

                                       SEARS, ROEBUCK AND CO.

                                       By:  /s/ Paul J. Liska
                                           -------------------------------
                                                Paul J. Liska
                                                Executive Vice President
                                                and Chief Financial Officer

Accepted:
SEARS ROEBUCK ACCEPTANCE CORP.

By:  /s/ Keith E. Trost
   -----------------------------
         Keith E. Trost
         President

                                       2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]