Document:

<PAGE>

                                                                    Exhibit 10.2

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

                               TRANSFER AGREEMENT

                                     BETWEEN

                        EQUICREDIT CORPORATION OF AMERICA
                                   TRANSFEROR

                                       AND

                          EQCC RECEIVABLES CORPORATION
                                   TRANSFEREE

                          DATED AS OF DECEMBER 1, 2001

                                EQCC TRUST 2001-2

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

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                            Page
                                                                                            ----
                                   ARTICLE I

                              CERTAIN DEFINITIONS

<S>                                                                                         <C>
SECTION 1.01.  General...................................................................      1

                                   ARTICLE II

                        CONVEYANCE OF THE MORTGAGE LOANS

SECTION 2.01.  Conveyance of Mortgage Loans..............................................      1
SECTION 2.02.  Possession of Mortgage Files..............................................      2
SECTION 2.03.  Books and Records.........................................................      2
SECTION 2.04.  Delivery of Mortgage Loan Documents. .....................................      2
SECTION 2.05.  Acceptance by Transferee of the Mortgage Loans; Certain
                  Substitutions; Certification by the Trustee. ..........................      3
SECTION 2.06.  Acceptance by Transferee. ................................................      5
SECTION 2.07.  The Closing...............................................................      5

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

SECTION 3.01.  Representations and Warranties of the Transferor. ........................      5
SECTION 3.02.  Representations and Warranties as to the Mortgage Loans and the
                  Mortgage Pool..........................................................      7
SECTION 3.03.  Purchase and Substitution. ...............................................     17

                                   ARTICLE IV

                                   CONDITIONS

SECTION 4.01.  Conditions to Obligation of the Transferee................................     19
SECTION 4.02.  Conditions To Obligation of the Transferor................................     20

                                   ARTICLE V

                                 THE TRANSFEROR

SECTION 5.01.  Third Party Servicers.....................................................     20
SECTION 5.02.  Enforceability; Merger or Consolidation of the Transferor.................     21
SECTION 5.03.  Mandatory Delivery; Grant of Security Interest............................     21
</TABLE>

                                      -i-

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<TABLE>
<CAPTION>
                                   ARTICLE VI

                             ADDITIONAL AGREEMENTS
<S>                                                                                    <C>
SECTION 6.01.  Conflicts With Pooling and Servicing Agreement.......................   22
SECTION 6.02.  Protection of Title to Trust.........................................   22
SECTION 6.03.  Other Liens or Interests.............................................   22
SECTION 6.04.  Purchase Events......................................................   22
SECTION 6.05.  Indemnification......................................................   23
SECTION 6.06.  Trust................................................................   23

                                  ARTICLE VII

                            MISCELLANEOUS PROVISIONS

SECTION 7.01.  Amendment............................................................    23
SECTION 7.02.  Waivers..............................................................    23
SECTION 7.03.  Costs and Expenses...................................................    23
SECTION 7.04.  Survival.............................................................    24
SECTION 7.05.  Confidential Information.............................................    24
SECTION 7.06.  Severability Clause..................................................    24
SECTION 7.07.  Headings and Cross-References........................................    24
SECTION 7.08.  Recordation of Agreement.............................................    24
SECTION 7.09.  Governing Law........................................................    24
SECTION 7.10.  Notices..............................................................    25
SECTION 7.11.  Counterparts.........................................................    25
SECTION 7.12.  The Certificate Insurer and the NIMS Insurer. .......................    25
</TABLE>

EXHIBIT A   Mortgage Loan Schedule
EXHIBIT B   Form of Transferee Receipt
EXHIBIT C   Contents of Mortgage File

                                      -ii-

<PAGE>

          THIS TRANSFER AGREEMENT is made as of December 1, 2001, by and between
EQUICREDIT CORPORATION OF AMERICA (the "Transferor") and EQCC RECEIVABLES
CORPORATION (the "Transferee").

          WHEREAS, the Transferor and the Transferee wish to set forth the terms
pursuant to which the Mortgage Loans are to be transferred by the Transferor to
the Transferee in exchange for (i) the delivery of cash from the Transferee and
(ii) the acceptance by the Transferee of a capital contribution from the
Transferor in the amount of the balance of the purchase price of the Mortgage
Loans;

          NOW, THEREFORE, in consideration of the foregoing, the other good and
valuable consideration and the mutual terms and covenants contained herein, the
parties hereto agree as follows:

                                   ARTICLE I

                               CERTAIN DEFINITIONS
                               -------------------

          SECTION 1.01. General
                        -------

          Certain capitalized terms used and undefined in this Agreement are
defined in and shall have the respective meanings assigned them in Article I to
                                                                   ---------
the Pooling and Servicing Agreement, dated as of December 1, 2001, by and among
the Transferee, as Depositor, EquiCredit Corporation of America, as Transferor
and Initial Servicer, Bank of America, N.A., as Advancing Party, Fairbanks
Capital Corp., as Expected Successor Servicer and The Bank of New York, as
Trustee (the "Pooling and Servicing Agreement"). All references herein to "the
Agreement" or "this Agreement" are to this Transfer Agreement, and all
references herein to Articles, Sections and subsections are to Articles,
Sections or subsections of this Transfer Agreement unless otherwise specified.

                                   ARTICLE II

                        CONVEYANCE OF THE MORTGAGE LOANS
                        --------------------------------

          SECTION 2.01. Conveyance of Mortgage Loans.
                        ----------------------------

          (a) Immediately upon the consummation on the Closing Date of the
transactions contemplated by this Agreement, in exchange for cash in the amount
agreed to by the Transferor and the Transferee in a separate agreement and the
acceptance by the Transferee of a capital contribution from the Transferor for
the balance of the purchase price for the Mortgage Loans, all as reflected on
the books and records of the Transferor and Transferee, the Transferor does
hereby transfer, assign, set over and convey to the Transferee without recourse,
all of the right, title and interest of the Transferor (other than Transferor's
rights to Prepayment Charges, Existing Advances and Excluded Ancillary Income)
in and to the Mortgage Loans set forth in the Mortgage Loan Schedule attached
hereto as Exhibit A, together with the Mortgage Files (as defined below)
          ---------
relating thereto and all proceeds thereof (excepting any amounts

<PAGE>

received on and after the Cut-off Date in respect of interest accrued on such
Mortgage Loans prior to the Cut-off Date).

          SECTION 2.02. Possession of Mortgage Files.
                        -----------------------------

          (a)  Upon the delivery to the Transferor of the consideration set
forth in Section 2.01, the ownership of the Transferor's Mortgage Notes, related
         ------------
Mortgages and the contents of the related Mortgage Files are vested in the
Transferee.

          (b)  Pursuant to Section 2.04, the Transferor has delivered or caused
                           ------------
to be delivered the Transferee's Mortgage File with respect to its Mortgage
Loans to the Transferee.

          SECTION 2.03. Books and Records.
                        ------------------

          The transfer of each Mortgage Loan to the Transferee shall be
reflected on the Transferor's balance sheets and other financial statements as a
sale of assets by the Transferor. The Transferor shall be responsible for
maintaining, and shall maintain, a complete set of books and records for each
Mortgage Loan which shall be clearly marked to reflect the ownership of each
Mortgage Loan by the Transferee.

          SECTION 2.04. Delivery of Mortgage Loan Documents.
                        ------------------------------------

          The Transferor has delivered or caused to be delivered to the
Transferee or its designee in accordance with the instructions of the Transferee
each of the documents referred to in Section 2.04 of the Pooling and Servicing
Agreement and listed in Exhibit C hereto for each Mortgage Loan.
                        ---------

          The Transferor shall use its reasonable efforts promptly to deliver or
cause to be delivered to the Transferee: (a) the original recorded Mortgage in
those instances where a copy thereof certified by the Transferor was delivered
to the Transferee; (b) the original recorded Assignments of Mortgage evidencing
a complete chain of assignment from the originator of such Mortgage to the
Transferor or the applicable Originator, which, together with any intervening
Assignments of Mortgage, evidences a complete chain of assignments from the
originator to the Transferor or the applicable Originator in those instances
where copies of such assignments certified by the Transferor were delivered to
the Transferee; and (c) the title insurance policy or assurance of title
required in paragraph (4) of Exhibit C (to the extent so required). The
                             ---------
Transferor shall, within five (5) Business Days after the receipt thereof, and
in any event, within twelve months after the Closing Date, deliver or cause to
be delivered to the Transferee each document described in any of paragraphs (1),
(2), (3) and (5) on Exhibit C; provided, however, that if a document described
                    ---------
in paragraph (2) or (5) on Exhibit C has not been returned from the appropriate
                           ---------
public recording office, the Transferor shall deliver a certified copy of the
Mortgage and a receipted copy of the assignment from the appropriate recording
office prior to the expiration of such twelve-month period. Notwithstanding
anything to the contrary contained in this Section 2.04, the Transferor shall be
                                           ------------
deemed to have satisfied its obligations to deliver a Mortgage or Assignment of
Mortgage upon delivery to the Transferee of a copy of such Mortgage or
Assignment of Mortgage, as applicable, certified by the public recording office
to be a true copy of the recorded original thereof. From time to time the
Transferor may forward or cause to be forwarded to the Transferee additional
original documents evidencing an assumption

                                      -2-

<PAGE>

or modification of a Mortgage Loan. All Mortgage Loan documents held by the
Transferee as to each Mortgage Loan are referred to herein as the "Mortgage
File."

          All recording required pursuant to this Section 2.04 shall be
                                                  ------------
accomplished by and at the expense of the Transferor.

          SECTION 2.05. Acceptance by Transferee of the Mortgage Loans; Certain
                        -------------------------------------------------------
Substitutions; Certification by the Trustee.
-------------------------------------------

          (a) The Transferee agrees to execute and deliver on the Closing Date
an acknowledgment of receipt of, for each Mortgage Loan, the items listed in
paragraphs (1), (2), (3), (7) and (8) on Exhibit C hereto, in the form attached
                                         ---------
as Exhibit B hereto (other than any Mortgage Loan paid in full or any Mortgage
   ---------
Loan specifically identified in such certification as not covered by such
certification), and declares that the Transferee will hold such documents and
any amendments, replacements or supplements thereto, as well as any other assets
transferred pursuant to the terms hereof. Pursuant to the Pooling and Servicing
Agreement, the Custodial Agreement and this Agreement, the Trustee will review
(or cause to be reviewed) each Mortgage File within 45 days after the Closing
Date (or, with respect to any Qualified Substitute Mortgage Loan, within 45 days
after the delivery thereof) and deliver (or cause to be delivered) a
certification in the form attached to the Pooling and Servicing Agreement as
Exhibit F-1 to the effect that, as to each Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan
specifically identified in such certification as not covered by such
certification), (i) all documents required to be delivered to it pursuant to
this Agreement and the Pooling and Servicing Agreement are in its possession
(other than those described in paragraphs (1)(ii), 5(ii), (6), (11), (12), (13),
(14), (15), (16) and (17) on Exhibit C hereto), (ii) such documents have been
                             ---------
reviewed by it and have not been mutilated, damaged, torn or otherwise
physically altered (handwritten additions, changes or corrections shall not
constitute physical alteration if initialed by the Mortgagor) and relate to such
Mortgage Loan, and (iii) based on its examination and only as to the foregoing
documents, the information set forth on the Mortgage Loan Schedule (other than
items (i), (iv) and (x) of the definition of Mortgage Loan Schedule) accurately
reflects the information set forth in the Mortgage File. Pursuant to the Pooling
and Servicing Agreement, the Custodial Agreement and this Agreement, the Trustee
shall be under no duty or obligation to inspect, review or examine any such
documents, instruments, certificates or other papers to determine that they are
genuine, enforceable, or appropriate for the represented purpose or that they
are other than what they purport to be on their face. Within 375 days after the
Closing Date, pursuant to the Pooling and Servicing Agreement, the Trustee shall
deliver (or cause to be delivered) a final certification in the form attached to
the Pooling and Servicing Agreement as Exhibit F-2 evidencing the completeness
of the Mortgage Files.

          (b) If the Trustee (or other party referred to in the Pooling and
Servicing Agreement) during the process of reviewing the Mortgage Files finds
any document constituting a part of a Mortgage File which is not executed, has
not been received, is unrelated to the Mortgage Loan identified in the Mortgage
Loan Schedule, or does not conform to the requirements of Section 2.04 or
                                                          ------------
Exhibit C hereto or substantively to the description thereof as set forth in the
---------
Mortgage Loan Schedule, the Trustee (or other party referred to in the Pooling
and Servicing Agreement) is required by the Pooling and Servicing Agreement
promptly to give

                                       -3-

<PAGE>

notice of the same. In performing any such review, such person may conclusively
rely on the Transferor as to the purported genuineness of any such document and
any signature thereon. It is understood that the scope of such person's review
of the Mortgage Files is limited solely to confirming that the documents listed
in Exhibit C hereto (other than those described in paragraph (1)(ii), 5(ii), (6)
   ---------
and (11) through (17) on Exhibit C) have been executed and received and relate
                         ---------
to the Mortgage Files identified in the Mortgage Loan Schedule. The Transferor
agrees to use its reasonable efforts to cause to be remedied any material defect
in a document constituting part of a Mortgage File of which the Transferor is so
notified by the Trustee (or other party referred to in the Pooling and Servicing
Agreement). If, however, within 60 days after notice to it respecting such
defect, the Transferor has not caused to be remedied the defect and the defect
materially and adversely affects the interest of the Transferee in the Mortgage
Loan, upon demand therefor by the Servicer, the Transferor will on the third
Business Day preceding the Distribution Date immediately succeeding the end of
such 60-day period (or 30-day, in the case of failure to deliver original
Mortgage Notes or a Destroyed Mortgage Note Affidavit) (i) if within two years
of the closing date, substitute, in lieu of such Mortgage Loan, a Qualified
Substitute Mortgage Loan in the manner and subject to the conditions set forth
in Section 3.03 or (ii) purchase such Mortgage Loan at a purchase price equal to
   ------------
the Principal Balance of such Mortgage Loan as of the date of purchase, plus all
accrued and unpaid interest on such Principal Balance, computed at the Mortgage
Interest Rate, net of the Servicing Fee if the Transferor is the Servicer, plus
the amount of any unreimbursed Interest Advances made with respect to such
Mortgage Loan out of funds on deposit in the Principal and Interest Account
pursuant to Section 6.08 of the Pooling and Servicing Agreement, which purchase
price shall be deposited in the Principal and Interest Account on the next
succeeding Determination Date (after deducting therefrom any amounts received in
respect of such purchased Mortgage Loan or Loans and held in the Principal and
Interest Account for future distribution); provided that if such defect caused
                                           --------
such Mortgage Loan not to be a "qualified mortgage" within the meaning of Code
Section 860G(a)(3), such repurchase or, if applicable, substitution shall occur
within 75 days of the earlier of the delivery of the Trustee's interim
certification under the Pooling and Servicing Agreement or Servicer's discovery
of such defect. It is understood that (i) a failure of a Mortgage File to
contain a Mortgage Note (or a Destroyed Mortgage Note Affidavit as permitted by
paragraph 1 on Exhibit C) or a Mortgage (with or without evidence of recording)
-----------    ---------
(ii) the inclusion in the Mortgage Pool of any Mortgage Loan with a CLTV greater
than 100% which also fails to meet the requirement that it be "principally
secured by an interest in real property" within the meaning of Treasury
Regulation 1.860G-2(a)(1), or (iii) notwithstanding a lost note affidavit as
permitted by paragraph (1) on Exhibit C, the obligation under a Mortgage Note
for which the original is not available becomes unenforceable because another
person has another superior claim under such Mortgage Note, or (iv) any other
Mortgage File defect that causes the related Mortgage Loan not to be a
"qualified mortgage" within the meaning of Code Section 860G(a)(3) materially
and adversely affects the interests of the Certificateholders. Except as
provided in the preceding sentence, ith respect to a defect or failure of
delivery of any other document required to be included in a Mortgage File, such
defect or non-delivery shall not give rise to any obligation to purchase or
substitute for a Mortgage Loan unless and until (1) such defect or failure of
delivery shall have had a material and adverse effect on the interests of the
Trustee or Certificateholders or the Certificate Insurer in the related Mortgage
Loan (a "Material Defect") and (2) a Mortgage Loan Loss shall have occurred with
respect to that Mortgage Loan or foreclosure on the related Mortgaged Property
is rendered impossible. In the event of a Mortgage Loan Loss on a

                                      -4-

                                       -4-

<PAGE>

Mortgage Loan with respect to which a Material Defect shall have occurred, which
Mortgage Loan Loss is determined following liquidation of the related Mortgage
Loan, it is understood that the Transferor shall satisfy any repurchase
obligation by depositing the amount of a Mortgage Loan Loss into the Principal
and Interest Account on the next succeeding Determination Date (after deducting
therefrom any amounts received in respect of such liquidated Mortgage Loan or
Loans and held in the Principal and Interest Account for future distribution).

          (c) Upon receipt by the Trustee of a certification of a Servicing
Officer of the Servicer of such substitution or purchase described above and
receipt of the Mortgage File relating to the purchase price for such Deleted
Mortgage Loan or the Qualified Substitute Mortgage Loan and any Substitution
Adjustment, the Trustee is required to release to the Transferor the related
Mortgage File and shall execute, without recourse, and deliver such instruments
of transfer necessary to transfer such Mortgage Loan to the Transferor.

          SECTION 2.06. Acceptance by Transferee.
                        -------------------------

          The Transferee acknowledges the assignment to it of the Mortgage Loans
being transferred hereby by the Transferor and the delivery of the Mortgage
Files to it or upon its order and, concurrently with such delivery, has
executed, authenticated and delivered to or upon the order of the Transferor, in
exchange for such Mortgage Loans and the related Mortgage Files, the
consideration as set forth in Section 2.01.
                              ------------

          SECTION 2.07. The Closing.
                        ------------

          The conveyance of the Mortgage Loans shall take place at the offices
of Hunton & Williams, Bank of America Plaza, Suite 3500, 101 South Tryon Street,
Charlotte, North Carolina 28280, on the Closing Date, immediately prior to the
closing of the transactions contemplated by the Pooling and Servicing Agreement
and the other Basic Documents.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

          SECTION 3.01. Representations and Warranties of the Transferor.
                        -------------------------------------------------

          The Transferor hereby represents and warrants to the Transferee as of
the Closing Date:

          (a) The Transferor is duly organized, validly existing, and in good
standing under the laws of the jurisdiction of its incorporation and has all
licenses necessary to carry on its business as now being conducted and is
licensed, qualified and in good standing in each Mortgaged Property State if the
laws of such state require licensing or qualification in order to conduct
business of the type conducted by the Transferor and perform its obligations as
a Transferor hereunder; the Transferor has the power and authority to execute
and deliver this Agreement and to perform in accordance herewith; the execution,
delivery and performance of this Agreement (including all instruments of
transfer to be delivered pursuant to this Agreement) by the Transferor and the
consummation of the transactions contemplated hereby have been duly and validly
authorized by all necessary action; this Agreement is the valid, binding and

                                       -5-

<PAGE>

enforceable obligation of the Transferor; and all requisite action has been
taken by the Transferor to make this Agreement valid, binding and enforceable
upon the Transferor in accordance with its terms, subject to the effect of
bankruptcy, insolvency, reorganization, moratorium and other similar laws
relating to or affecting creditors rights generally or the application of
equitable principles in any proceeding, whether at law or in equity;

               (b) All actions, approvals, consents, waivers, exemptions,
variances, franchises, orders, permits, authorizations, rights and licenses
required to be taken, given or obtained, as the case may be, by or from any
federal, state or other governmental authority or agency (other than any such
actions, approvals, etc. under any state securities laws, real estate
syndication or "Blue Sky" statutes, as to which the Transferor makes no such
representation or warranty), that are necessary in connection with the execution
and delivery by the Transferor of the Basic Documents to which it is a party,
have been duly taken, given or obtained, as the case may be, are in full force
and effect, are not subject to any pending proceedings or appeals
(administrative, judicial or otherwise) and either the time within which any
appeal therefrom may be taken or review thereof may be obtained has expired or
no review thereof may be obtained or appeal therefrom taken, and are adequate to
authorize the consummation of the transactions contemplated by this Agreement
and the other documents on the part of the Transferor and the performance by the
Transferor of its obligations as the Transferor under this Agreement and such of
the other Basic Documents to which it is a party;

               (c) The consummation of the transactions contemplated by this
Agreement will not result in the breach of any terms or provisions of the bylaws
of the Transferor or result in the breach of any term or provision of, or
conflict with or constitute a default under or result in the acceleration of any
obligation under, any material agreement, indenture or loan or credit agreement
or other material instrument to which the Transferor or its property is subject,
or result in the violation of any law, rule, regulation, order, judgment or
decree to which the Transferor or its property is subject;

               (d) Neither this Agreement nor the Prospectus nor any statement,
report or other document prepared by the Transferor and furnished or to be
furnished pursuant to this Agreement or in connection with the transactions
contemplated hereby, by the Pooling and Servicing Agreement or by any Basic
Document, contains any untrue statement of material fact or omits to state a
material fact necessary to make the statements contained herein or therein not
misleading;

               (e) There is no action, suit, proceeding or investigation pending
or, to the best of the Transferor's knowledge, threatened against the Transferor
which, either in any one instance or in the aggregate, may result in any
material adverse change in the business, operations, financial condition,
properties or assets of the Transferor or in any material impairment of the
right or ability of the Transferor to carry on its business substantially as now
conducted, or in any material liability on the part of the Transferor or which
would draw into question the validity of this Agreement or the Mortgage Loans or
of any action taken or to be taken in connection with the obligations of the
Transferor contemplated herein, or which would be likely to impair materially
the ability of the Transferor to perform under the terms of this Agreement;

                                       -6-

<PAGE>

               (f) The Transferor is not in default with respect to any order or
decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency, which default might have consequences that
would materially and adversely affect the condition (financial or other) or
operations of the Transferor or its properties or might have consequences that
would materially and adversely affect its performance hereunder or under any
Subservicing Agreement;

               (g) Upon the receipt of each Mortgage File by the Transferee
under this Agreement, the Transferee will have good and indefeasible title to
each Mortgage Loan (other than any amounts received after the Cut-off Date in
respect of interest accrued on or prior to the Cut-off Date) and such other
assets transferred hereunder free and clear of any Lien (other than Liens which
will be simultaneously released);

               (h) The transfer, assignment and conveyance of the Mortgage Notes
and the Mortgages by the Transferor pursuant to this Agreement are not subject
to the bulk transfer laws or any similar statutory provisions in effect in any
applicable jurisdiction;

               (i) The Transferor did not transfer any interest in any Mortgage
Loan with any intent to hinder, delay or defraud any of its creditors;

               (j) The Transferor is solvent and the Transferor will not be
rendered insolvent as a result of the transfer of the Mortgage Loans to the
Transferee; and

               (k) The origination and collection practices used by the
Transferor with respect to each Mortgage Note and Mortgage (other than each
Mortgage Note and Mortgage evidencing or securing (as applicable) a Mortgage
Loan acquired from an originator (each, an "Acquired Mortgage Loan") have been
in all material respects legal, proper, prudent and customary in the second
mortgage origination and servicing business; and, to the best knowledge of the
Transferor, the origination and collection practices used by the originator with
respect to each Mortgage Note and Mortgage evidencing or securing (as
applicable) an Acquired Mortgage Loan have been in all material respects legal,
proper, prudent and customary in the second mortgage origination and servicing
business.

               SECTION 3.02. Representations and Warranties as to the Mortgage
                             -------------------------------------------------
Loans and the Mortgage Pool.
---------------------------

               The Transferor hereby represents and warrants to the Transferee
with respect to each Mortgage Loan, as of the Closing Date (except as otherwise
indicated); provided, that all references to percentages of the Mortgage Loans
            --------
(or of the Mortgage Loans in Mortgage Loan Group 1, Mortgage Loan Group 2,
Mortgage Loan Group 3, Mortgage Loan Group 4, Mortgage Loan Group 5, Mortgage
Loan Group 6 or Mortgage Loan Group 7, as applicable) as of the Cut-off Date
(rounded to two decimal points):

               (a) The information with respect to each related Mortgage Loan
set forth in the Mortgage Loan Schedule is true and correct;

               (b) All of the original or certified documentation set forth in
Section 2.04 of the Pooling and Servicing Agreement (including all material
documents related thereto) has been

                                       -7-

<PAGE>

or will be delivered to the Transferee on the Closing Date or as otherwise
provided in such Section 2.04;

               (c) Each Mortgage Loan is being serviced by the Initial Servicer;

               (d) Each Mortgage Loan in Mortgage Loan Group 1, Mortgage Loan
Group 2, Mortgage Loan Group 3, Mortgage Loan Group 4 and Mortgage Loan Group 5
is an Adjustable Rate Mortgage Loan, and each Mortgage Loan in Mortgage Loan
Group 6 and Mortgage Loan Group 7 is a Fixed Rate Mortgage Loan.

               (e) Mortgage Loans constituting approximately 19.83% of the
Mortgage Loans in Mortgage Loan Group 6 and approximately 18.91% of the Mortgage
Loans in Mortgage Loan Group 7 are balloon loans which will provide for a final
Monthly Payment substantially greater than the preceding Monthly Payments. Less
than 0.5% of the Mortgage Loans in each of Group 1, Group 2, Group 3, Group 4
and Group 5 are balloon loans. Approximately 19.74% of the Mortgage Loans in
Mortgage Loan Group 6 and approximately 18.83% of the Mortgage Loans in Mortgage
Loan Group 7 are balloon loans based on a 30-year amortization schedule.
Approximately 0.08%, 0.26%, 2.56% and 16.94% of the Mortgage Loans in Mortgage
Loan Group 6, and approximately 0.11%, 0.10%, 2.44% and 16.27% of the Mortgage
Loans in Mortgage Loan Group 7, provide for a single payment of the remaining
loan balances approximately 5, 7, 10, and 15 years, respectively, after
origination. All of such balloon loans provide for Monthly Payments based on an
amortization schedule specified in the related Mortgage Note and have a final
balloon payment no earlier than 60 months following origination and no later
than 180 months following origination. Each other Mortgage Note will provide for
a schedule of substantially equal Monthly Payments which are, if timely paid,
sufficient to fully amortize the principal balance of such Mortgage Note on or
before its maturity date.

               (f) Each Mortgage relating to a Mortgage Loan is a valid and
subsisting first or second lien on the Mortgaged Property subject, in the case
of any second Mortgage Loan only to a First Lien on such Mortgaged Property, and
subject in all cases to the exceptions to title set forth in the title insurance
policy or the other evidence of title enumerated in paragraph 4 of Exhibit C
                                                                   ---------
hereto, with respect to the related Mortgage Loan, which exceptions are
generally acceptable to first and second lien mortgage lending companies, and
such other exceptions to which similar properties are commonly subject and which
do not individually, or in the aggregate, materially and adversely affect the
benefits of the security intended to be provided by such Mortgage;

               (g) Each Mortgage Loan is principally secured by a Mortgaged
Property. Each Mortgaged Property is improved by a one- to four-family
Residential Dwelling, which, to the best of the Transferor's knowledge, does not
include (A) cooperatives, (B) mobile homes other than permanently affixed mobile
homes which constitute real property under state law, or (C) except for not more
than approximately 0.33% of the Mortgage Loans in Mortgage Loan Group 1,
approximately 0.20% of the Mortgage Loans in Mortgage Loan Group 2,
approximately 0.12% of the Mortgage Loans in the Mortgage Loan Group 3,
approximately 0.16% of the Mortgage Loans in Mortgage Loan Group 4,
approximately 0.09% of the Mortgage Loans in Mortgage Loan Group 5,
approximately 0.58% of the Mortgage Loans in Mortgage

                                       -8-

<PAGE>

Loan Group 6, and approximately 0.88% of the Mortgage Loans in Mortgage Loan
Group 7 manufactured housing units, as defined in the FNMA Selling Guide, which
constitute other than real property under state law. Each manufactured home
securing a Mortgage Loan is a "single family residence" as defined in Section
25(e)(10) of the Code that is used as a single family residence, has a minimum
living space of 400 square feet and a minimum width of 102 inches and is of the
kind customarily used at a fixed location;

               (h) With respect to each Mortgage Loan involving property
improved by a manufactured or mobile home, the Transferor or the related
Originator has taken all action necessary to create a valid and perfected first
or second priority (as reflected in the Mortgage Loan Schedule) lien and
security interest in such manufactured or mobile home and the related Mortgaged
Property, including, without limitation, the filing of UCC financing statements
or notations on certificates of title if necessary, under applicable state law;

               (i) Immediately prior to the transfer and assignment herein
contemplated, the Transferor held good and indefeasible title to, and was the
sole owner of, each Mortgage Loan, subject to no liens, charges, mortgages,
encumbrances or rights of others (except any liens released immediately prior to
the Transferor's transfer of the Mortgage Loans to the Transferee); and
immediately upon the transfer and assignment herein contemplated, the Transferee
will hold good and indefeasible title, to, and be the sole owner of, each
Mortgage Loan (other than amounts collected on the Mortgage Loans in respect of
interest accrued prior to the Cut-off Date) subject to no liens, charges,
mortgages, encumbrances or rights of others;

               (j) Approximately 2.23% of the Mortgage Loans in Mortgage Loan
Group 1, approximately 2.27% of the Mortgage Loans in Mortgage Loan Group 2,
approximately 4.10% of the Mortgage Loans in Mortgage Loan Group 3,
approximately 9.86% of the Mortgage Loans in Mortgage Loan Group 4,
approximately 6.53% of the Mortgage Loans in Mortgage Loan Group 5,
approximately 10.82% of the Mortgage Loans in Mortgage Loan Group 6, and
approximately 7.27% of the Mortgage Loans in Mortgage Loan Group 7, (excluding
Bankruptcy Loans) are 30 or more days contractually delinquent as of the close
of business on November 30, 2001; and none of the Mortgage Loans in the Mortgage
Pool are more than 59 days contractually delinquent as of the close of business
on November 30, 2001. For purposes of this representation and warranty "30 or
more days contractually delinquent" means that a Monthly Payment due on a Due
Date was unpaid as of the end of the month of the next succeeding Due Date or
following Due Dates. As of the Closing Date, the Transferor does not know or
have reason to know of any facts or circumstances with respect to any Mortgagor
or Mortgage Loan that would indicate that foreclosure is likely to occur with
respect to the related Mortgaged Property;

               (k) To the best of the Transferor's knowledge, (i) there is no
delinquent tax or assessment lien on any Mortgaged Property that would
jeopardize the Transferor's enforcement of the lien of the applicable Mortgage,
and (ii) each Mortgaged Property is free of material damage and is in average
repair;

               (l) No Mortgage Loan is subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the
exercise of any right thereunder, render either the Mortgage Note or the
Mortgage unenforceable in whole or in part, or subject to any

                                       -9-

<PAGE>

right of rescission, set-off, counterclaim or defense, including the defense of
usury, and no such right of rescission, set-off, counterclaim or defense has
been asserted with respect thereto;

               (m) To the best of the Transferor's knowledge, there is no
mechanics' lien or claim for work, labor or material affecting any Mortgaged
Property which is or may be a lien prior to, or equal with, the lien of such
Mortgage except those which are insured against by the title insurance policy
referred to in Section 3.02(o) below;
               ---------------

               (n) Each Mortgage Loan at the time it was made complied in all
material respects with applicable state and federal laws and regulations,
including, without limitation, usury, equal credit opportunity and disclosure
laws;

               (o) With respect to each Mortgage Loan, other than any Mortgage
Loan secured by a second priority lien and having an original Principal Balance
not in excess of $50,000 and any Mortgage Loan with an original Principal
Balance not in excess of $50,000 which is secured by a first priority Mortgage
on a Mortgaged Property located in Oklahoma, a written commitment for a lender's
title insurance policy, issued in standard American Land Title Association or
California Land Title Association form, or other form customary and acceptable
in the related Mortgaged Property State, by a title insurance company acceptable
to FNMA and FHLMC and authorized to transact business in the state in which the
related Mortgaged Property is situated, together with a condominium endorsement,
if applicable, in an amount at least equal to the original Principal Balance of
such Mortgage Loan insuring the mortgagee's interest under the related Mortgage
Loan as the holder of a valid first or second mortgage lien of record on the
real property described in the Mortgage, subject only to (1) in the case of any
second lien Mortgage Loan, a First Lien on the same Mortgaged Property, (2)
covenants, conditions and restrictions, rights of way, easements and other
matters of public record as of the date of recording of the related Mortgage,
such exceptions being set forth in the title insurance policy or attorney's
opinion of title and in the related appraisal, with respect to the related
Mortgage Loan, which exceptions are generally acceptable to banking institutions
in connection with their regular mortgage lending activities, and (3) such other
exceptions to which similar properties are commonly subject and which do not,
individually or in the aggregate, materially and adversely affect the benefits
of the security intended to be provided by the related Mortgage, was effective
on the date of the origination of such Mortgage Loan, and, as of the Closing
Date, such commitment will be valid and thereafter the policy issued pursuant to
such commitment shall continue in full force and effect or, with respect to
Mortgaged Properties located in jurisdictions in which it is customary and
acceptable to obtain an assurance of title in lieu of a title insurance policy,
such assurance of title has been obtained; no claims have been made under such
mortgage title insurance policy and no prior holder of the related Mortgage Loan
has done, by act or omission, anything that would impair the coverage of the
mortgage title insurance policy;

               (p) The improvements upon each Mortgaged Property are covered by
a valid and existing hazard insurance policy with a generally acceptable carrier
that provides for fire and extended coverage representing coverage described in
Sections 5.07 and 5.08 of the Pooling and Servicing Agreement; all premiums
thereon have been paid; each Mortgage obligates the Mortgagor thereunder to
maintain all such premiums at the Mortgagor's cost and expense, and upon the
Mortgagor's failure to do so, authorizes the holder of the Mortgage to obtain
and

                                       -10-

<PAGE>

maintain such insurance at the Mortgagor's cost and expense and to seek
reimbursement further from the Mortgagor;

           (q)  A flood insurance policy is in effect with respect to each
Mortgaged Property with a generally acceptable carrier in an amount representing
coverage described in Section 5.07 or 5.08 of the Pooling and Servicing
Agreement, if and to the extent required by such Section 5.07 or 5.08;

           (r)  Each Mortgage and Mortgage Note is the legal, valid and binding
obligation of the maker thereof and is enforceable in accordance with its terms,
except only as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and by general principles of equity (whether
considered in a proceeding or action in equity or at law), and all parties to
each Mortgage Loan had full legal capacity to execute all Mortgage Loan
documents and convey the estate therein purported to be conveyed;

           (s)  The Transferor has directed the Servicer to perform any and all
acts required to be performed to preserve the rights and remedies of the
Transferee in any insurance policies applicable to the Mortgage Loans including,
without limitation, any necessary notifications of insurers, assignments of
policies or interests therein, and establishments of co-insured, joint loss
payee and mortgagee rights in favor of the Transferee;

           (t)  No more than approximately 0.15% of the Mortgage Loans in
Mortgage Loan Group 1, approximately 0.30% of the Mortgage Loans in Mortgage
Loan Group 2, no more than approximately 0.18% of the Mortgage Loans in Mortgage
Loan Group 3, no more than approximately 0.11% of the Mortgage Loans in Mortgage
Loan Group 4, no more than approximately 0.64% of the Mortgage Loans in Mortgage
Loan Group 5, no more than approximately 0.06% of the Mortgage Loans in Mortgage
Loan Group 6 and no more than approximately 0.33% of the Mortgage Loans in
Mortgage Loan Group 7 are secured by Mortgaged Properties located within any
single five-digit zip code area within the State of California. No more than
approximately 0.34% of the Mortgage Loans in Mortgage Loan Group 1, no more than
approximately 0.37% of the Mortgage Loans in Mortgage Loan Group 2, no more than
approximately 0.22% of the Mortgage Loans in Mortgage Loan Group 3, no more than
approximately 0.28% of the Mortgage Loans in Mortgage Loan Group 4, no more than
approximately 0.23% of the Mortgage Loans in Mortgage Loan Group 5, no more than
approximately 0.19% of the Mortgage Loans in Mortgage Loan Group 6, and no more
than approximately 0.18% of the Mortgage Loans in Mortgage Loan Group 7 are
secured by Mortgaged Properties located within any single five-digit zip code
area outside the State of California;

           (u)  At least approximately 94.04%, 93.90%, 88.38%, 94.04%, 95.96%,
91.82% and 95.56%, respectively, of the Mortgage Loans in Group 1, Group 2,
Group 3, Group 4, Group 5, Group 6 and Group 7, respectively, are secured by an
Owner Occupied Mortgaged Property that is the Mortgagor's primary residence;

           (v)  The terms of the Mortgage Note and the Mortgage have not been
impaired, altered or modified in any material respect, except by a written
instrument which has

                                      -11-

<PAGE>

been recorded or is in the process of being recorded, if necessary to protect
the interests of the Transferee, and which has been or will be delivered to the
Transferee. The substance of any such alteration or modification is reflected on
the related Mortgage Loan Schedule. Each original Mortgage was recorded, and all
subsequent assignments of the original Mortgage have been recorded in the
appropriate jurisdictions wherein such recordation is necessary to perfect the
lien thereof as against creditors of the Transferor (or, subject to Section 2.04
of the Pooling and Servicing Agreement are in the process of being recorded);

           (w)  No instrument of release or waiver has been executed in
connection with the Mortgage Loan, and no Mortgagor has been released, in whole
or in part, from his or her obligations under the related Mortgage, Mortgage
Note and other related documents;

           (x)  Except for Existing Advances, the Transferor has not advanced
funds, or induced, solicited or knowingly received any advance of funds by a
party other than the Mortgagor, directly or indirectly, for the payment of any
amount required by the Mortgage, except for interest accruing from the date of
the Mortgage Note or date of disbursement of the Mortgage proceeds, whichever
was earlier, to the day which precedes by one month the Due Date of the first
installment of principal and interest. With respect to Mortgaged Properties that
are the subject of a ground lease, to the best of the Transferor's knowledge,
all lease rents, and all other payments or assessments that have become due have
been paid and the Mortgagor is not in material default under any other
provisions of the lease and the lease is valid, in good standing and in full
force and effect;

           (y)  To the best of the Transferor's knowledge, there is no
proceeding pending or threatened for the total or partial condemnation of the
Mortgaged Property, nor is such a proceeding currently in process, and the
Mortgaged Property is undamaged by waste, fire, earthquake or earth movement,
windstorm, flood, tornado or other casualty, so as to affect adversely the value
of the Mortgaged Property as security for the Mortgage Loan or the use for which
the premises were intended;

           (z)  To the best of the Transferor's knowledge, all of the
improvements which were included for the purpose of determining the appraised
value of the Mortgaged Property lie wholly within the boundaries and building
restriction lines of such property, and no improvements on adjoining properties
encroach upon the Mortgaged Property;

           (aa) To the best of the Transferor's knowledge, no improvement
located on or being part of the Mortgaged Property is in violation of any
applicable zoning law or regulation. To the best of the Transferor's knowledge,
all inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities;

           (bb) The proceeds of the Mortgage Loan have been fully disbursed, and
there is no obligation on the part of the mortgagee to make future advances
thereunder. Any and all requirements as to completion of any on-site or off-site
improvements and as to disbursements of any escrow funds therefor have been
complied with. All costs, fees and expenses incurred in making or closing or
recording documents with respect to the Mortgage Loans were paid;

                                      -12-

<PAGE>

           (cc) The related Mortgage Note is not and has not been secured by any
collateral, pledged account or other security except the lien of the
corresponding Mortgage;

           (dd) No Mortgage Loan was originated under a buydown plan;

           (ee) There is no obligation on the part of the Transferor or any
other party to make payments in addition to those made by the Mortgagor;

           (ff) With respect to each Mortgage constituting a deed of trust, a
trustee, duly qualified under applicable law to serve as such, has been properly
designated and currently so serves and is named in such Mortgage, and no fees or
expenses are or will become payable by the Transferee to the trustee under such
deed of trust, except in connection with a trustee's sale after default by the
Mortgagor.

           (gg) No Mortgage Loan has a shared appreciation feature or other
contingent interest feature;

           (hh) With respect to each Mortgage Loan secured by a second priority
lien, the related First Lien requires equal monthly payments or if it bears an
adjustable interest rate, the monthly payments for the related First Lien may be
adjusted not more frequently than once every six months. If the related First
Lien provides for negative amortization, the CLTV must be calculated at the
maximum principal balance of such First Lien that could result upon application
of such negative amortization feature. No notice of default with respect to the
related First Lien has been delivered to the Transferor that has not been cured;

           (ii) With respect to each Mortgage Loan secured by a second priority
lien, either (i) no consent for the Mortgage Loan was or is required by the
holder of the related First Lien or (ii) such consent has been obtained and is
contained in the Mortgage File;

           (jj) The maturity date of each Mortgage Loan secured by a second
priority lien is prior to the maturity date of the related First Lien if such
First Lien provides for a balloon payment;

           (kk) All parties which have had any interest in the Mortgage Loan,
whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period
in which they held and disposed of such interest, were) (1) in compliance with
any and all applicable licensing requirements of the laws of the state wherein
the related Mortgaged Property is located, and (2)(A) organized under the laws
of such state, or (B) qualified to do business in such state, or (C) federal
savings and loan associations or national banks having principal offices in such
state, or (D) not doing business in such state so as to require qualification or
licensing;

           (ll) The Mortgage contains a customary provision for the acceleration
of the payment of the unpaid principal balance of the Mortgage Loan in the event
the related security for the Mortgage Loan is sold without the prior consent of
the mortgagee thereunder;

           (mm) Except for Existing Advances, any future advances made to the
Mortgagor prior to (and excluding) the Cut-off Date have been consolidated with
the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a

                                      -13-

<PAGE>

single interest rate and single repayment term reflected on the related Mortgage
Loan Schedule. The consolidated principal amount does not exceed the original
principal amount of the Mortgage Loan. The Mortgage Note does not permit or
obligate the Servicer to make future advances to the Mortgagor at the option of
the Mortgagor;

           (nn) The related Mortgage contains customary and enforceable
provisions which render the rights and remedies of the holder thereof adequate
for the realization against the Mortgaged Property of the benefits of the
security purported to be provided by the Mortgage, including, (i) in the case of
a Mortgage designated as a deed of trust, by trustee's sale, and (ii) otherwise
by judicial or non-judicial foreclosure. There is no homestead or other
exemption available to the Mortgagor which would materially interfere with the
right to sell the Mortgaged Property at a trustee's sale or the right to
foreclose the Mortgage (subject to the applicable federal and state laws and
judicial precedent with respect to bankruptcy and rights of redemption) except
as set forth in the Prospectus;

           (oo) Except for bankruptcy-related defaults under the Bankruptcy
Loans and payment delinquencies described in Section 3.02(k) of this Agreement,
                                             ---------------
to the best of the Transferor's knowledge, there is no default, breach,
violation or event of acceleration existing under the Mortgage or the related
Mortgage Note, and no event which, with the passage of time or with notice and
the expiration of any grace or cure period, would constitute a default, breach,
violation or event of acceleration; and neither the Servicer nor the Transferor
has waived any such default, breach, violation or event of acceleration;

           (pp) All parties to the Mortgage Note and the Mortgage had legal
capacity to execute the Mortgage Note and the Mortgage and each Mortgage Note
and Mortgage have been duly and properly executed by such parties;

           (qq) All amounts received by the Transferor on and after the Cut-off
Date with respect to the Mortgage Loans that are required to be paid to the
Transferee have been transferred to the Transferee;

           (rr) Each Mortgage Loan was originated and underwritten by, or
purchased and re-underwritten by, the Transferor or by an affiliate of the
Transferor, provided, that, with respect to one segment of the Mortgage Loans
            --------
purchased by the Originators from a third-party, which segment comprises
approximately 12.83% of the Mortgage Loans, only a random sample of
approximately 10% of such purchased segment was re-underwritten by the
Transferor or by an Affiliate of the Transferor;

           (ss) As of the Cut-off Date, each Mortgage Loan conforms, and all
Mortgage Loans in the aggregate conform, in all material respects, to the
description thereof set forth in the Prospectus Supplement, including all
statistical data provided therein in tabular format or otherwise;

           (tt) The Mortgage Loans were not selected by the Originators or the
Transferor for transfer to the Transferee hereunder on any basis intended to
affect adversely the Transferee;

                                      -14-

<PAGE>

           (uu) A full interior inspection appraisal was performed in connection
with each Mortgaged Property; provided, that for certain loans with Combined
                              --------
Loan-To-Value Ratios less than 85% and balances less than $50,000, interior
inspections may not have been performed;

           (vv) The current Mortgage Interest Rate and Gross Margin for each
Mortgage Loan in Mortgage Loan Group 1 are not less than 5.62% and 0.00% per
annum, respectively. The current Mortgage Interest Rate and Gross Margin for
each Mortgage Loan in Mortgage Loan Group 2 are not less than 5.43% and 0.00%
per annum, respectively. The current Mortgage Interest Rate and Gross Margin for
each Mortgage Loan in Mortgage Loan Group 3 are not less than 3.875% and 0.00%
per annum, respectively. The current Mortgage Interest Rate and Gross Margin for
each Mortgage Loan in Mortgage Loan Group 4 are not less than 1.875% and 0.00%
per annum, respectively. The current Mortgage Interest Rate and Gross Margin for
each Mortgage Loan in Mortgage Loan Group 5 are not less than 5.44% and 0.00%
per annum, respectively. The Mortgage Interest Rate for each Mortgage Loan in
Mortgage Loan Group 6 is not less than 4.23% per annum. The Mortgage Interest
Rate for each Mortgage Loan in Mortgage Loan Group 7 is not less than 2.00% per
annum. The current Mortgage Interest Rate and Gross Margin for each Mortgage
Loan in Mortgage Loan Group 1 are not more than 16.83% and 13.85% per annum,
respectively. The current Mortgage Interest Rate and Gross Margin for each
Mortgage Loan in Mortgage Loan Group 2 are not more than 16.00% and 16.40% per
annum, respectively. The current Mortgage Interest Rate and Gross Margin for
each Mortgage Loan in Mortgage Loan Group 3 are not more than 15.10% and 14.40%
per annum, respectively. The current Mortgage Interest Rate and Gross Margin for
each Mortgage Loan in Mortgage Loan Group 4 are not more than 19.45% and 14.90%
per annum, respectively. The current Mortgage Interest Rate and Gross Margin for
each Mortgage Loan in Mortgage Loan Group 5 are not more than 16.525% and 12.30%
per annum, respectively. The Mortgage Interest Rate for each Mortgage Loan in
Mortgage Loan Group 6 is not more than 21.00% per annum. The Mortgage Interest
Rate for each Mortgage Loan in Mortgage Loan Group 7 is not more than 25.34% per
annum;

           (ww) None of the Mortgage Loans in Mortgage Loan Group 1 or Mortgage
Loan Group 2 is subject to the Home Ownership and Equity Protection Act of 1994
("HOEPA"); no more than 7% of the Mortgage Loans in the aggregate, by unpaid
  -----
principal balance as of the Cut-off Date, is comprised of Mortgage Loans that
are subject to HOEPA; with respect to any Mortgage Loan in Mortgage Loan Group
3, Mortgage Loan Group 4, Mortgage Loan Group 5, Mortgage Loan Group 6 or
Mortgage Loan Group 7 that is subject to HOEPA, all notices required to be
delivered to the related Mortgagor pursuant to HOEPA have been delivered, and
all other requirements of HOEPA have been complied with. Any breach of this
representation shall be considered material for the purpose of Section 3.03;

           (xx) Each hazard insurance policy required to be maintained under
Section 5.07 of the Pooling and Servicing Agreement with respect to such
Mortgage Loan is a valid, binding, enforceable and subsisting insurance policy
of its respective kind and is in full force and effect;

           (yy) If the Mortgaged Property consists of a leasehold estate, the
Mortgage covers property improvements and the Mortgagor's leasehold interest in
the land upon which such improvements are situated; at origination of the
Mortgage Loan the term of the leasehold

                                      -15-

<PAGE>

estate was scheduled to last for at least ten years beyond the maturity date of
the Mortgage or provided for perpetual renewal covenants; the leasehold estate
is assignable by the mortgagee; and the lease is valid and in full force and
effect;

     (zz)  To the best of the Transferor's knowledge, no Mortgaged Property was,
at origination, located within a one-mile radius of any site with material
environmental or hazardous waste risks;

     (aaa) Approximately 4.18%, 7.97%, 5.73% and 7.11%, respectively, of the
Mortgage Loans in Group 4, Group 5, Group 6 and Group 7, respectively, are
Mortgage Loans as to which the related Mortgagor's payment obligations under the
Mortgage Loan is subject to a Plan. Except for the Mortgage Loans listed on
Exhibit G-2 of the Pooling and Servicing Agreement, to the best of the
-----------
Depositor's knowledge, no other Mortgage Loan is subject to a Plan. None of the
Mortgage Loans in Group 1, and no more than 0.01% of the Mortgage Loans in each
of Group 2 and Group 3, are subject to a Plan. Any breach of this representation
shall be considered material for the purpose of Section 3.03;

     (bbb) With respect to each Mortgage Loan, the CLTV does not exceed 100%. To
the extent there is no documentation evidencing an appraisal with respect to a
Mortgage Loan, such Mortgage Loan was originated pursuant to a program that
required an appraisal of the Mortgaged Property securing the Mortgage Loan that
established a CLTV of less than 100%. In addition, no Mortgage Loan has been
modified since the date it was originated in a manner that would change the
Mortgage Interest Rate, defer or forgive the payment of any principal or
interest, extend the final maturity date, or modify any other material term of
the Mortgage Loan unless such Mortgage Loan was delinquent or in default at the
time of such modification;

     (ccc) Each Mortgage Loan constitutes a "qualified mortgage" within the
meaning of Section 860G(a)(3) of the Code. For this purpose, Section 860G(a)(3)
of the Code shall be applied without regard to the rule contained in Treasury
Regulations Section 1.860G-2(f)(2) which treats a defective mortgage loan as a
"qualified mortgage" under certain circumstances. Accordingly, the Transferor
represents and warrants that each Mortgage Loan is directly secured by a
Mortgage on residential real property, and either (1) substantially all of the
proceeds of such Mortgage Loan were used to acquire, improve or protect such
residential real property and such interest in residential real property was the
sole security for such Mortgage Loan as of the Testing Date (as defined below),
or (2) the fair market value of the interest in real property which secures such
Mortgage Loan was at least equal to 80% of the principal amount of the Mortgage
Loan (a) as of the Testing Date or (b) as of the Closing Date. For purposes of
the previous sentence, (1) the fair market value of the referenced interest in
real property shall first be reduced by (a) the amount of any lien on such
interest in real property that is senior to the lien of the Mortgage Loan, and
(b) a proportionate amount of any lien on such interest in real property that is
on a parity with the Mortgage Loan, and (2) the "Testing Date" shall be the date
on which the referenced Mortgage Loan was originated unless (a) such Mortgage
Loan was modified after the date of its origination in a manner that would cause
a "significant modification" of such Mortgage Loan within the meaning of
Treasury Regulations Section 1.1001-3(e), and (b) such "significant
modification" did not occur at a time when such Mortgage Loan was in default or
when default with respect to such Mortgage Loan was reasonably foreseeable.
However, if the referenced Mortgage Loan has been subjected to a

                                      -16-

<PAGE>

"significant modification" after the date of its origination and at a time when
such Mortgage Loan was not in default or when default with respect to such
Mortgage Loan was not reasonably foreseeable, the "Testing Date" shall be the
date upon which the latest such "significant modification" occurred;

     (ddd) No more than 10% and no less than 90% of the aggregate Loan Balances
of all the Mortgage Loans measured by Cut-off Date Loan Balances relate to
Mortgage Loans originated or purchased under an Originator's "Limited
Documentation Program" and "Full Documentation Program," respectively;

     (eee) To the best of the Depositor's knowledge, no statement, report or
other document constituting a part of the Mortgage File contains any material
untrue statement of fact or omits to state a fact necessary to make the
statements contained therein not misleading which would, either individually or
in the aggregate, have a material adverse effect on the Certificateholders; no
error or omission, misrepresentations, negligence, fraud or similar occurrence
with respect to a Mortgage Loan has taken place on the part of any person,
including, without limitation, the Mortgagor, any appraiser, any builder or
developer, or any other party involved in the origination of the Mortgage Loan
or in the application for any insurance in relation to the Mortgage Loan;

     (fff) The origination and collection practices used by the Originator and
the Initial Servicer with respect to each Mortgage Note and Mortgage have been
in all respects legal, proper, prudent and customary in the mortgage origination
and servicing industry. Each Mortgage Loan has been serviced by the Initial
Servicer (directly or through a subservicer) in accordance with the terms of the
Mortgage Note. All interest rate and payment adjustments have been made in
accordance with the terms of the Mortgage or the related Mortgage Note;

     (ggg) The Mortgage Loans listed on Exhibit S of the Pooling and Servicing
                                        ---------
Agreement are the only Mortgage Loans with respect to which a forbearance
agreement or Mortgage Loan modification in the nature of a forbearance agreement
or an interest extension, pursuant to which the final maturity date for the
Mortgage Loan was extended in response to delinquent payments, are currently in
effect. The Initial Servicer entered into each such forbearance agreement or
modification in accordance with its normal servicing policies (without reference
to any provision permitting discretionary waivers of the servicing policies).
For each Mortgage Loan on Exhibit S of the Pooling and Servicing Agreement, the
                          ---------
Mortgagor has made a scheduled payment (in accordance with the forbearance
agreement or modification) for at least three of the past four months. No such
forbearance agreement or modification rescheduled any payments other than
payments that were delinquent at the time such forbearance agreement or
modification was entered into. Any breach of this representation shall be
considered material for the purpose of Section 3.03.

     SECTION 3.03. Purchase and Substitution.
                   -------------------------

     It is understood and agreed that the representations and warranties set
forth in Sections 3.01 and 3.02 shall survive delivery of the Mortgage Loans to
the Transferee. Upon discovery by the Trustee, the Transferee, the Servicer, any
Subservicer, the Certificate Insurer, the NIMS Insurer, or the Custodian of a
breach of any of such representations and warranties

                                      -17-

<PAGE>

which materially and adversely affects the value of Mortgage Loans or the
interest of the Transferee, or which materially and adversely affects the
interests of the Transferee in the case of a representation and warranty
relating to a particular Mortgage Loan (notwithstanding that such representation
and warranty was made to the Transferor's best knowledge), the party discovering
such breach shall give prompt written notice to the others. Within 60 days of
the earlier of its discovery or its receipt of notice of any breach of a
representation or warranty, the Transferor shall (a) promptly cure such breach
in all material respects, or (b) purchase such Mortgage Loan by remitting to the
Servicer for deposit in the Principal and Interest Account, on the next
succeeding Determination Date relating to a Distribution Date, in the manner and
at the price specified in Section 2.05(b), or by substituting one or more
                          ---------------
Qualified Substitute Mortgage Loans, provided such substitution is effected not
later than the date which is two years after the Closing Date. Any such
substitution shall be accompanied by payment by the Transferor of the
Substitution Adjustment, if any, to be deposited in the Principal and Interest
Account; provided, that if such breach of a representation and warranty caused
         --------
such Mortgage Loan not to be a "qualified mortgage" within the meaning of Code
Section 860G(a)(3), such repurchase or, if applicable, substitution shall occur
within 75 days of the earlier of the delivery of the Trustee's interim
certification under the Pooling and Servicing Agreement or Servicer's discovery
of such defect. It is understood that (i) a failure of a Mortgage File to
contain a Mortgage Note (or a lost note affidavit as permitted by paragraph 1 on
                                                                  -----------
Exhibit C) or a Mortgage (with or without evidence of recording), (ii) the
---------
inclusion in the Mortgage Pool or any Mortgage Loan with a CLTV greater than
100% which also fails to meet the requirement that it be "principally secured by
an interest in real property" within the meaning of Treasury Regulation
1.860G-2(a)(1), or (iii) notwithstanding a lost note affidavit as permitted by
paragraph (1) on Exhibit C, the obligation under a Mortgage Note for which the
original is not available becomes unenforceable because another Person has
another superior claim under such Mortgage Note, or (iv) any other Mortgage File
defect that causes the related Mortgage Loan not to be a "qualified mortgage"
within the meaning of Code Section 860G(a)(3) constitutes a Material Breach.
Notwithstanding anything to the contrary herein (except as stated in the
preceding sentence), a Material Breach shall not give rise to an obligation to
purchase or substitute for a Mortgage Loan unless and until a Mortgage Loan Loss
is incurred on the related Mortgage Loan. It is understood that the Transferor
may satisfy any repurchase obligation with respect to any Material Breach as to
a Mortgage Loan for which a Mortgage Loan Loss was determined following
liquidation of the Mortgage Loan, by depositing the amount of the related
Mortgage Loan Loss into the Principal and Interest Account on the next
succeeding Determination Date (after deducting therefrom any amounts received in
respect of such liquidated Mortgage Loans and held in the Principal and Interest
Account for future distribution). Notwithstanding the foregoing, the breach of
the representation and warranty in Sections 3.02(uu), 3.02(yy) and 3.02(eee) of
                                   -----------------  --------     ---------
the Pooling and Servicing Agreement shall constitute a Material Breach, and the
related Mortgage Loan must be repurchased or substituted by no later than the
third Business Day following the 60th day after the Transferor's receipt of
actual knowledge that such Mortgage Loan is subject to HOEPA or that such
representation was breached.

     As to any Deleted Mortgage Loan for which the Transferor substitutes a
Qualified Substitute Mortgage Loan or Loans, the Servicer shall effect such
substitution by delivering to the Transferee a certification in the form
attached to the Custodial Agreement as Exhibit B thereto, and delivering to the
Transferee the documents constituting the Mortgage File for such Qualified
Substitute Mortgage Loan or Loans.

                                      -18-

<PAGE>

           The Servicer is required to deposit in the Principal and Interest
Account all payments received in connection with such Qualified Substitute
Mortgage Loan or Loans after the date of such substitution; provided, however,
that any amounts received after the date of substitution in respect of interest
accrued on or prior to the date of substitution on such Qualified Substitute
Mortgage Loan will constitute the property of the Transferor. Monthly Payments
received with respect to Qualified Substitute Mortgage Loans on or before the
date of substitution will be retained by the Servicer on behalf of the
Transferor. The Transferee will own all payments received on the Deleted
Mortgage Loan on or before the date of substitution, and the Servicer on behalf
of the Transferor shall thereafter be entitled to retain all amounts
subsequently received in respect of such Deleted Mortgage Loan. The Servicer
shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted
Mortgage Loan from the terms of this Agreement and the substitution of the
Qualified Substitute Mortgage Loan. Upon such substitution, such Qualified
Substitute Mortgage Loan or Loans shall be subject to the terms of this
Agreement in all respects, and the Servicer and the Transferor shall be deemed
to have made with respect to such Qualified Substitute Mortgage Loan or Loans,
as of the date of substitution, the covenants, representations and warranties
set forth in Sections 3.01 and 3.02. On the date of such substitution, the
             -------------     ----
Transferor will remit to the Transferee an amount equal to the Substitution
Adjustment, if any.

           It is understood and agreed that the obligations of the Transferor
set forth in Sections 2.05 and 3.03 to cure, purchase, pay the Mortgage Loan
             -------------     ----
Loss or substitute for a defective Mortgage Loan as provided in Sections 2.05
                                                                -------------
and 3.03 constitute the sole remedies of the Transferee respecting a breach of
    ----
the foregoing representations and warranties.

           Any cause of action against the Transferor relating to or arising out
of a defect in a Mortgage File as contemplated by Section 2.05 or the breach of
                                                  ------------
any representations and warranties made in Sections 3.01 or 3.02 shall arise as
                                           -------------    ----
to any Mortgage Loan upon the occurrence of not less than all of the following
events: (i) discovery of such defect or breach by the Certificate Insurer, the
NIMS Insurer or any party and notice thereof to the Transferor or notice thereof
by the Transferor to the Transferee, (ii) failure by the Transferor to cure such
defect or breach or purchase or substitute such Mortgage Loan as specified
above, and (iii) demand upon the Transferor by the Certificate Insurer, the NIMS
Insurer or the Transferee for all amounts payable in respect of such Mortgage
Loan. The party delivering such notice shall also deliver a copy thereof to the
Certificate Insurer and the NIMS Insurer.

                                   ARTICLE IV

                                   CONDITIONS
                                   ----------

           SECTION 4.01. Conditions to Obligation of the Transferee.
                         ------------------------------------------

           The obligation of the Transferee to purchase the Mortgage Loans is
subject to the satisfaction of the following conditions:

           (a) Representations and Warranties True. The representations and
               -----------------------------------
warranties of the Transferor hereunder shall be true and correct on the Closing
Date with the same effect as

                                      -19-

<PAGE>

if then made, and the Transferor shall have performed all obligations to be
performed by it hereunder on or prior to the Closing Date.

           (b)  Documents to be Delivered By the Transferor at the Closing.
                ----------------------------------------------------------

                (i)   Final Mortgage Loan Schedule specifying the Mortgage Loans
      to be transferred hereunder, one copy to be attached to each counterpart
      to the Pooling and Servicing Agreement as the Mortgage Loan Schedule
      thereto;

                (ii)  Officer's Certificate dated as of the Closing Date with
      respect to the Transferor, and attached thereto the resolutions of the
      Transferor, authorizing the transactions contemplated by this Agreement
      and the other Basic Documents, together with copies of the charter and
      by-laws of the Transferor;

                (iii) Opinion of Counsel to the Transferor dated as of the
      Closing Date in the form required to be delivered to any Rating Agency or
      the Certificate Insurer; and

                (iv)  Certificate or other evidence of merger or changes of
      name, signed or stamped by the applicable regulatory authority, if any of
      the Mortgage Loans were acquired by the Transferor by merger or acquired
      or originated by the Transferor while conducting business under a name
      other than its present name.

           (c)  Other Documents. At the Closing, the Transferor shall provide
                ---------------
such other documents as the Transferee may reasonably request.

           (d)  Other Transactions. The transactions contemplated by the Pooling
                ------------------
and Servicing Agreement and the other Basic Documents shall be consummated on
the Closing Date.

           SECTION 4.02. Conditions To Obligation of the Transferor.
                         ------------------------------------------

           The obligation of the Transferor to transfer the Mortgage Loans to
the Transferee is subject to the satisfaction of the condition that at the
Closing Date, the Transferee shall deliver to the Transferor the consideration
provided in Section 2.01 and the Transferee shall accept a capital contribution
            ------------
from the Transferor in an amount equal to the balance of the purchase price of
the Mortgage Loans transferred by the Transferor to the Transferee, all as
reflected on the books and records of the Transferor and the Transferee.

                                    ARTICLE V

                                 THE TRANSFEROR
                                 --------------

           SECTION 5.01. Third Party Servicers.
                         ---------------------

           As of the Closing Date, the Transferor has represented to the
Transferee that the Mortgage Loans are serviced by the Initial Servicer and are
not subject to servicing agreements with third parties. It is understood and
agreed between the Transferor and the Transferee that the Mortgage Loans which
are the subject of this Agreement are to be delivered free and clear of any
servicing agreements with third party servicers (other than the Expected
Successor Servicer).

                                      -20-

<PAGE>

The Transferor, without reimbursement from the Transferee, shall pay any fees or
penalties required by any third party servicer for releasing the Mortgage Loans
from any such servicing agreement and shall arrange for the orderly transfer of
such servicing from any such third party servicer to the Transferee.

          SECTION 5.02. Enforceability; Merger or Consolidation of the
                        ----------------------------------------------
                        Transferor.
                        ----------

          (a) The Transferor will keep in full effect its respective existence,
rights and franchises as a corporation, and will obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the other Basic Documents, the Pooling and
Servicing Agreement, and any of the Mortgage Loans and to perform its duties
under such agreements.

          (b) Any Person into which the Transferor may be merged or
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Transferor shall be a party, or any Person succeeding
to the business of the Transferor, shall be the successor of the Transferor
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

          SECTION 5.03. Mandatory Delivery; Grant of Security Interest.
                        -----------------------------------------------

          The transfer and delivery on the Closing Date by the Transferor of its
Mortgage Loans are mandatory, it being specifically understood and agreed that
each Mortgage Loan is unique and identifiable on the date hereof and that an
award of money damages would be insufficient to compensate the Transferee for
the loss and damages incurred by the Transferee (including damages to
prospective purchasers of the Certificates) in the event of the Transferor's
failure to deliver the Mortgage Loans on or before the Closing Date. The
Transferor hereby grants to the Transferee a lien on and continuing security
interest in each Mortgage Loan and each document and instrument evidencing such
Mortgage Loan to secure the performance by the Transferor of its obligations
hereunder, and the Transferor agrees that it holds each Mortgage Loan in custody
for the Transferee subject to the Transferee's (i) right to reject any Mortgage
Loan under the terms of this Agreement and (ii) obligation to deliver cash and
other consideration as set forth in Section 2.01 for the Mortgage Loans. All
                                    ------------
rights and remedies of the Transferee under this Agreement are distinct from,
and cumulative with, any other rights or remedies under this Agreement or
afforded by law or equity, and all such rights and remedies may be exercised
concurrently, independently or successively.

                                      -21-

<PAGE>

                                   ARTICLE VI

                              ADDITIONAL AGREEMENTS
                              ---------------------

          The Transferor agrees with the Transferee as follows:

          SECTION 6.01. Conflicts With Pooling and Servicing Agreement.
                        -----------------------------------------------

          To the extent that any provision of Sections 6.02 through 6.04 of this
                                              -------------         ----
Agreement conflicts with any provision of the Pooling and Servicing Agreement,
the Pooling and Servicing Agreement shall govern.

          SECTION 6.02. Protection of Title to Trust.
                        -----------------------------

          (a) The Transferor shall from time to time execute and deliver all
such supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments,
and shall take such other action necessary or advisable to:

              (i)  maintain or preserve the transfer evidenced by this Agreement
          or carry out more effectively the purposes hereof; or

              (ii) preserve and defend the Transferee's title to the Mortgage
          Loans and the rights of the Transferee in such assets against the
          claims of all persons and parties, and the Transferor hereby
          designates the Transferee, its agent and attorney-in-fact to execute
          any financing statement, continuation statement or other instrument
          required by the Transferee pursuant to this Section 6.02.
                                                      ------------

          SECTION 6.03. Other Liens or Interests.
                        -------------------------

          Except for the conveyances hereunder and pursuant to this Agreement
and the other Basic Documents, the Transferor shall not sell, pledge, assign or
transfer the Mortgage Loans to any other Person, or grant, create, incur, assume
or suffer to exist any Lien on any interest therein, and the Transferor shall
defend the right, title and interest of the Transferee in, to and under such
Mortgage Loans against all claims of third parties claiming through or under the
Transferor.

          SECTION 6.04. Purchase Events.
                        ----------------

          The Transferor acknowledges that the Transferee has assigned all of
their right, title and interest in, to and under this Agreement, including the
Transferee's right to cause the Transferor to purchase the Mortgage Loans from
the Transferee under certain circumstances, to the Trust pursuant to Section
2.01 of the Pooling and Servicing Agreement, and the Transferee has granted to
the Trustee a security interest in and Lien on the Mortgage Loans and the
Transferee's right, title and interest in this Agreement. The Transferor hereby
covenants and agrees with the Transferee for the benefit of the Transferee, the
Trustee, the Certificateholders and the Certificate Insurer, the NIMS Insurer,
that the occurrence of a breach of any of the Transferor's representations and
warranties contained in Section 3.02 hereof shall constitute
                        ------------

                                       -22-

<PAGE>

events obligating the Transferor, to the extent specified in Section 3.03 of the
                                                             ------------
Pooling and Servicing Agreement, and without further notice from the Transferee
hereunder, to purchase applicable Mortgage Loans from the Trustee (a "Purchase
Event"). It is understood and agreed that the obligation of the Transferor to
purchase any Mortgage Loan as to which a breach has occurred and is continuing
shall, if such obligation is fulfilled, constitute the sole remedy against the
Transferor for such breach available to the Trustee, the Certificateholders, the
Certificate Insurer or the NIMS Insurer.

          SECTION 6.05. Indemnification.
                        ----------------

          The Transferor shall indemnify the Transferee against any loss or
liability as a result of the failure of any Mortgage Loan to be originated in
compliance with all requirements of law. This indemnity obligation shall be in
addition to any obligation that the Transferor may otherwise have.

          SECTION 6.06. Trust.
                        ------

          The Transferor acknowledges that the Transferee shall, pursuant to the
Pooling and Servicing Agreement, transfer the Mortgage Loans to the Trustee (for
the benefit of the Certificateholders), and the Transferee assigns its rights
hereunder to the Trustee (for the benefit of the Certificateholders) as set
forth in the Pooling and Servicing Agreement.

                                  ARTICLE VII

                            MISCELLANEOUS PROVISIONS
                            ------------------------

          SECTION 7.01. Amendment.
                        ----------

          This Agreement may be amended from time to time (upon prior notice to
each of the Rating Agencies and with the prior written consent of the
Certificate Insurer) by a written amendment duly executed and delivered by the
Transferor and the Transferee, provided, however, that any such amendment that
                               --------  -------
materially adversely affects the rights of the Certificateholders under the
Pooling and Servicing Agreement must be consented to by a Majority in Voting
Interest of the Certificates.

          SECTION 7.02. Waivers.
                        --------

          No failure or delay on the part of the Transferee in exercising any
power, right or remedy under this Agreement shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or remedy
preclude any other or further exercise thereof or the exercise of any other
power, right or remedy.

          SECTION 7.03. Costs and Expenses.
                        -------------------

          The Transferor agrees to pay all reasonable out-of-pocket costs and
expenses of the Transferee, including fees and expenses of counsel, in
connection with the perfection as against third parties of the Transferee's
right, title and interest in, to and under the Mortgage Loans and the
enforcement of any obligation of the Transferor hereunder.

                                       -23-

<PAGE>

          SECTION 7.04. Survival.
                        ---------

          The representations, warranties and covenants of the Transferor set
forth in Sections 3.01 and 3.02 and Article V of this Agreement shall remain in
         -------------     ----     ---------
full force and effect and shall survive the closing under Section 2.07 and the
                                                          ------------
transfers contemplated by Sections 6.04 and 6.06.
                          -------------     ----

          SECTION 7.05. Confidential Information.
                        -------------------------

          The Transferee agrees that it shall neither use nor disclose to any
person the names and addresses of the Mortgagors, except in connection with the
enforcement of the Transferee's rights (i) hereunder, (ii) under the Mortgage
Loans, (iii) under the Basic Documents or (iv) as required by law.

          SECTION 7.06. Severability Clause.
                        --------------------

          Any part, provision, representation or warranty of this Agreement
which is prohibited or which is held to be void or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof. Any part, provision,
representation or warranty of this Agreement which is prohibited or
unenforceable or is held to be void or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction as to any Mortgage Loan
shall not invalidate or render unenforceable such provision in any other
jurisdiction.

          SECTION 7.07. Headings and Cross-References.
                        ------------------------------

          The various headings in this Agreement are included for convenience
only and shall not affect the meaning or interpretation of any provision of this
Agreement.

          SECTION 7.08. Recordation of Agreement.
                        -------------------------

          To the extent permitted by applicable law, the Agreement is subject to
recordation in all appropriate public offices for real property records in all
the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Transferor at the Transferor's expense on direction of the Transferee
accompanied by an Opinion of Counsel to the effect that such recordation
materially and beneficially affects the interests of the Transferee.

          SECTION 7.09. Governing Law.
                        --------------

          THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, WITHOUT GIVING
EFFECT TO PRINCIPLES OF CONFLICTS OF LAW (BUT WITH REFERENCE TO SECTION 5-1401
OF THE

                                      -24-

<PAGE>

NEW YORK GENERAL OBLIGATIONS LAW, WHICH BY ITS TERMS APPLIES TO THIS AGREEMENT).

          SECTION 7.10. Notices.
                        --------

          All demands, notices and communications under this Agreement shall be
in writing, personally delivered or mailed by certified mail with return receipt
requested, and shall be deemed to have been duly given upon receipt at the
appropriate address set forth in the Pooling and Servicing Agreement.

          SECTION 7.11. Counterparts.
                        -------------

          This Agreement may be executed in two or more counterparts and by
different parties on separate counterparts, each of which shall be an original,
but all of which together shall constitute one and the same instrument.

          SECTION 7.12. The Certificate Insurer and the NIMS Insurer.
                        ---------------------------------------------

          Any right conferred to the Certificate Insurer and the NIMS Insurer
hereunder shall be suspended during any period in which the Certificate Insurer
or the NIMS Insurer is in default in its payment obligations under their
respective insurance policies. At such time as the Certificates are no longer
outstanding under the Pooling and Servicing Agreement, and no amounts owed to
the Certificate Insurer or the NIMS Insurer under any Basic Document or under
the Insurance and Indemnity Agreement remain unpaid, the Certificate Insurer's
or the NIMS Insurer's rights hereunder shall terminate. Each of the Certificate
Insurer and the NIMS Insurer is an intended third-party beneficiary of this
Agreement.

                                      -25-

<PAGE>

     IN WITNESS WHEREOF, the parties hereby have caused this Agreement to be
executed by their respective officers thereunto duly authorized as of the date
and year first above written.

                                             TRANSFEROR:
                                             ----------

                                             EQUICREDIT CORPORATION OF AMERICA

                                             By:    /s/ Todd Rosenthal
                                                    ----------------------------
                                             Name:  Todd Rosenthal
                                             Title: Senior Vice President

                                             TRANSFEREE:
                                             ----------

                                             EQCC RECEIVABLES CORPORATION

                                             By:    /s/ Todd Rosenthal
                                                    ----------------------------
                                             Name:  Todd Rosenthal
                                             Title: Senior Vice President

                   [Signature Pages to the Transfer Agreement]

                                       -26-

<PAGE>

                                                                       EXHIBIT A

                             MORTGAGE LOAN SCHEDULE
                             ----------------------

             (See Exhibit D to the Pooling and Servicing Agreement)
              ----------------------------------------------------

                                      A-1

<PAGE>

                                                                       EXHIBIT B

                           FORM OF TRANSFEREE RECEIPT
                           --------------------------

                                                         _____________ __, 2001

EquiCredit Corporation of America

     Re:  Transfer Agreement (the "Transfer Agreement"), dated as of December 1,
                                   ------------------
          2001, between EquiCredit Corporation of America (the "Transferor") and
          EQCC Receivables Corporation (the "Transferee") relating to the EQCC
          Asset Backed Certificates, Series 2001-2

Gentlemen:

          In accordance with Section 2.05 of the Transfer Agreement, the
                             ------------
undersigned hereby certifies that, except as noted on the attachment hereto, if
any (the "Loan Exception Report"), it or the Custodian on its behalf has
          ---------------------
received, with respect to each Mortgage Loan, the documents specified in
paragraphs (1), (2), (3), (7) and (8) on Exhibit C to the Transfer Agreement, as
                                         ---------
applicable, a Mortgage, or a certified copy thereof, Assignment of Mortgage, or
a certified copy thereof, and a Mortgage Note with respect to each Mortgage Loan
listed in the Transfer Agreement and the documents contained therein appear to
bear original signatures or copies of originals if the originals have not yet
been delivered.

          Capitalized words and phrases used and undefined herein shall have the
respective meanings assigned to them in the above-captioned Transfer Agreement.

                               EQCC RECEIVABLES CORPORATION

                               By:    __________________________________________
                               Name:  __________________________________________
                               Title: __________________________________________

                                      B-1

<PAGE>
                                                                       EXHIBIT C

                            CONTENTS OF MORTGAGE FILE
                            -------------------------

          With respect to each Mortgage Loan, the Mortgage File shall include
each of the following items (copies to the extent the originals have been
delivered to the Transferee pursuant to Section 2.04 of the Pooling and
                                        ------------
Servicing Agreement), all of which shall be available for inspection by the
Trustee and the Custodian, to the extent required by applicable laws:

          1.   (i)(A)  The original Mortgage Note, with any intervening
               endorsements, endorsed "Pay to the order of The Bank of New York,
               as Trustee under the Pooling and Servicing Agreement dated as of
               December 1, 2001, Series 2001-2, without recourse" or in blank
               and signed, by facsimile or manual signature, in the name of the
               Transferor or of the Originator that transferred such Mortgage
               Loan to the Transferor pursuant to the Transfer Agreement by a
               Responsible Officer of the Transferor or such Originator, with
               all prior and intervening endorsements showing a complete chain
               of endorsement from the originator to such Originator or the
               Transferor, as the case may be, if neither the Transferor nor the
               Originator from whom the Transferor acquired such Mortgage Loan
               was the originator of the Mortgage Loan or (B) if such Mortgage
               Note is a Destroyed Mortgage Note, an original Destroyed Mortgage
               Note Affidavit together with a copy of such Mortgage Note
               attached thereto and, (ii) and, with respect to manufactured
               housing units, the certificate of title, if any.

          2.   Either: (i) the original Mortgage, with evidence of recording
               thereon, (ii) a copy of the Mortgage certified as a true copy by
               a Responsible Officer of the Transferor or of the Originator that
               transferred such Mortgage Loan to the Transferor (provided,
               however, that such Responsible Officer may complete one or more
               blanket certificates attaching copies of one or more Mortgages
               relating thereto) or by the closing attorney, or by an officer of
               the title insurer or agent of the title insurer which issued the
               related title insurance policy, or commitment therefor, if the
               original has been transmitted for recording until such time as
               the original is returned by the public recording office or (iii)
               a copy of the Mortgage certified by the public recording office
               in those instances where the original recorded Mortgage has been
               lost.

          3.   The original Assignment of Mortgage from the Originator that
               transferred such Mortgage Loan to the Transferor (or, in the case
               of Mortgage Loans owned by the Transferor without any assignment
               of such Mortgage Loans from an Originator, an original Assignment
               from the Transferor) to The Bank of New York as Trustee under the
               Pooling and Servicing Agreement dated as of December 1, 2001,
               Series 2001-2, or in blank; any such Assignments of Mortgage may
               be made by blanket assignment for

                                      C-1

<PAGE>

               Mortgage Loans secured by the Mortgaged Properties located in the
               same county if permitted by applicable local law.

          4.   Except with respect to any Mortgage Loan secured by a second
               priority lien and having a principal balance not in excess of
               $50,000, and any Mortgage Loan with a principal balance not in
               excess of $50,000 which is secured by a first priority Mortgage
               on a Mortgaged Property located in Oklahoma, the original policy
               of title insurance or a true copy thereof or, if such policy has
               not yet been delivered by the insurer, the commitment or binder
               to issue same, or original documents of assurance of title.

          5.   Either: (i) originals of all intervening assignments, if any
               showing a complete chain of title from the originator to the
               Transferor or the applicable Originator, including any recorded
               warehousing assignments, with evidence of recording thereon, or,
               (ii) if the original intervening assignments have not yet been
               returned from the recording office, a copy of the originals of
               such intervening assignments together with a certificate of a
               Responsible Officer of the Transferor or the applicable
               Originator or the closing attorney or an officer of the title
               insurer which issued the related title insurance policy, or
               commitment therefor, or its duly authorized agent certifying that
               the copy is a true copy of the original of such intervening
               assignments or (iii) a copy of the intervening assignment
               certified by the public recording office in those instances where
               the original recorded intervening assignment has been lost.

          6.   Originals of all assumption and modification agreements, if any
               or a copy certified as a true copy by a Responsible Officer of
               the Transferor or the applicable Originator.

          7.   [RESERVED]

          8.   In the event that the Mortgage Loan was acquired by the
               Transferor or the applicable Originator in a merger, the
               Reassignment of the Assignment of Beneficial Interest must be by
               Originator; and in the event that the Mortgage Loan was acquired
               or originated by the Transferor or such Originator while doing
               business under another name, the Reassignment of Assignment of
               Beneficial Interest must be by Originator.

          9.   [RESERVED]

          10.  [RESERVED]

          11.  Mortgage Loan closing statement and any other truth-in-lending or
               real estate settlement procedure forms required by law.

          12.  Residential loan application.

          13.  Verification of employment and income, and tax returns, if any.

                                      C-2

<PAGE>

          14.  Credit report on the mortgagor.

          15.  The full appraisal if available made in connection with the
               origination of the related Mortgage Loan with photographs of the
               subject property and of comparable properties, constituting
               evidence sufficient to indicate that the Mortgaged Property
               relates to a Residential Dwelling. Provided, that for certain
               loans with combined loan-to-value ratios less than 85% and
               balances less than $50,000, interior inspections may not be
               included.

          16.  Copy of the First Lien, if in the Servicer's file.

          17.  All other papers and records developed or originated by the
               Transferor, the applicable Originator or others, required to
               document the Mortgage Loan or to service the Mortgage Loan.

                                      C-3<PAGE>

                                                                     Exhibit 4.6

                                                               EXECUTION VERSION

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

                                 STEELCASE INC.
                                     Issuer

                                       AND

                          BANK ONE TRUST COMPANY, N.A.
                                     Trustee

                                    INDENTURE

                          Dated as of November 27, 2001

                             Senior Debt Securities

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

<PAGE>

                            CROSS-REFERENCE TABLE(1)

Section of Trust Indenture Act
of 1939, as amended ................................ Section of Indenture

310(a) .............................................                 7.09
310(b) .............................................                 7.08
                                                                     7.10
310(c) .............................................         Inapplicable
311(a) .............................................                 7.13
311(b) .............................................                 7.13
311(c) .............................................         Inapplicable
312(a) .............................................                 5.01
                                                                  5.02(a)
312(b) .............................................              5.02(c)
312(c) .............................................                 5.05
313(a) .............................................              5.04(a)
313(b) .............................................              5.04(b)
313(c) .............................................              5.04(a)
                                                                  5.04(b)
313(d) .............................................              5.04(c)
314(a) .............................................                 5.03
314(b) .............................................         Inapplicable
314(c) .............................................                13.06
314(d) .............................................         Inapplicable
314(e) .............................................                13.06
314(f) .............................................         Inapplicable
315(a) .............................................              7.01(c)
                                                                  7.02
315(b) .............................................              7.01(b)
315(c) .............................................              7.01(a)
315(d) .............................................              7.01(c)
315(e) .............................................                 6.07
316(a) .............................................                 6.06
                                                                     8.04
316(b) .............................................                 6.04
316(c) .............................................                 8.01
317(a) .............................................                 6.02
317(b) .............................................                 4.03
318(a) .............................................                13.08

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

(1)  This Cross-Reference Table does not constitute part of the Indenture and
     shall not have any bearing on the interpretation of any of its terms or
     provisions.

<PAGE>

                              TABLE OF CONTENTS(1)

<TABLE>
<CAPTION>
                                                                                   Page
                                                                                   ----

<S>                                                                                <C>
PARTIES ............................................................................  1

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

                                    ARTICLE I

                                   Definitions

SECTION 1.01   Definitions of Terms ................................................  1
------------   --------------------

                                   ARTICLE II

                     Designation and Terms of the Securities

SECTION 2.01   Designation and Terms of Securities .................................  5
------------   -----------------------------------
SECTION 2.02   Form of Securities and Trustee's Certificate ........................  7
------------   --------------------------------------------
SECTION 2.03   Denominations; Provisions for Payment ...............................  7
------------   -------------------------------------
SECTION 2.04   Execution and Authentications .......................................  9
------------   -----------------------------
SECTION 2.05   Registration of Transfer and Exchange ............................... 10
------------   -------------------------------------
SECTION 2.06   Temporary Securities ................................................ 11
------------   --------------------
SECTION 2.07   Mutilated, Destroyed, Lost or Stolen Securities ..................... 11
------------   -----------------------------------------------
SECTION 2.08   Cancellation ........................................................ 12
------------   ------------
SECTION 2.09   Benefits of Indenture ............................................... 12
------------   ---------------------
SECTION 2.10   Authenticating Agent ................................................ 12
------------   --------------------
SECTION 2.11   Global Securities ................................................... 13
------------   -----------------

                                  ARTICLE III
                                  -----------

              Redemption of Securities and Sinking Fund Provisions
              ----------------------------------------------------

SECTION 3.01   Redemption .......................................................... 14
------------   ----------
SECTION 3.02   Notice of Redemption ................................................ 14
------------   --------------------
SECTION 3.03   Payment Upon Redemption ............................................. 15
------------   -----------------------
SECTION 3.04   Sinking Fund ........................................................ 16
------------   ------------
SECTION 3.05   Satisfaction of Sinking Fund Payments with Securities ............... 16
------------   -----------------------------------------------------
SECTION 3.06   Redemption of Securities for Sinking Fund ........................... 16
------------   -----------------------------------------

                                   ARTICLE IV
                                   ----------

                               Certain Covenants
                               -----------------
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                              <C>
SECTION 4.01   Payment of Principal, Premium and Interest ........................ 17
------------   ------------------------------------------
SECTION 4.02   Maintenance of Office or Agency ................................... 17
------------   -------------------------------
SECTION 4.03   Paying Agents ..................................................... 17
------------   -------------
SECTION 4.04   Appointment to Fill Vacancy in Office of Trustee .................. 18
------------   ------------------------------------------------
SECTION 4.05   Limitations on Liens .............................................. 18
------------   --------------------
SECTION 4.06   Limitations on Sale and Lease-Back Transactions ................... 19
------------   -----------------------------------------------

                                   ARTICLE V
                                   ---------
       Securityholders' Lists and Reports by the Company and the Trustee
       -----------------------------------------------------------------

SECTION 5.01   Company to Furnish Trustee Names and Addresses of Securityholders . 21
------------   -----------------------------------------------------------------
SECTION 5.02   Preservation Of Information; Communications With Securityholders .. 21
------------   ----------------------------------------------------------------
SECTION 5.03   Reports by the Company ............................................ 21
------------   ----------------------
SECTION 5.04   Reports by the Trustee ............................................ 22
------------   ----------------------
SECTION 5.05   No Accountability by Reason of Disclosure ......................... 22
------------   -----------------------------------------

                                   ARTICLE VI
                                   ----------

        Remedies of the Trustee and Securityholders on Event of Default
        ---------------------------------------------------------------

SECTION 6.01   Events of Default ................................................. 22
------------   --------------------
SECTION 6.02   Collection of Indebtedness and Suits for Enforcement by Trustee ... 24
------------   ---------------------------------------------------------------
SECTION 6.03   Application of Moneys Collected ................................... 26
------------   -------------------------------
SECTION 6.04   Limitation on Suits ............................................... 26
------------   -------------------
SECTION 6.05   Rights and Remedies Cumulative; Delay or Omission Not Waiver ...... 27
------------   ------------------------------------------------------------
SECTION 6.06   Control by Securityholders ........................................ 27
------------   --------------------------
SECTION 6.07   Undertaking to Pay Costs .......................................... 27
------------   ------------------------

                                  ARTICLE VII
                                  -----------

                             Concerning the Trustee
                             ----------------------

SECTION 7.01   Certain Duties and Responsibilities of Trustee .................... 28
------------   ----------------------------------------------
SECTION 7.02   Certain Rights of Trustee ......................................... 29
------------   -------------------------
SECTION 7.03   Trustee Not Responsible for Recitals, Validity of Securities or
------------   ---------------------------------------------------------------
               Application of Proceeds Thereof ................................... 30
               -------------------------------
SECTION 7.04   May Hold Securities ............................................... 31
------------   -------------------
SECTION 7.05   Moneys Held in Trust .............................................. 31
------------   --------------------
SECTION 7.06   Compensation and Reimbursement .................................... 31
------------   ------------------------------
SECTION 7.07   Reliance on Officers' Certificate ................................. 32
------------   ---------------------------------
SECTION 7.08   Disqualification; Conflicting Interests ........................... 32
------------   ---------------------------------------
SECTION 7.09   Corporate Trustee Required; Eligibility ........................... 32
------------   ---------------------------------------
SECTION 7.10   Resignation and Removal; Appointment of Successor ................. 32
------------   -------------------------------------------------
SECTION 7.11   Acceptance of Appointment By Successor ............................ 33
------------   --------------------------------------
SECTION 7.12   Merger, Conversion, Consolidation or Succession to Business........ 35
------------   -----------------------------------------------------------
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                           <C>
SECTION 7.13 Preferential Collection of Claims Against the Company ............ 35
------------ -----------------------------------------------------

                                  ARTICLE VIII
                                 -------------

                         Concerning the Securityholders
                        -------------------------------

SECTION 8.01   Evidence of Action by Securityholders .......................... 35
------------   -------------------------------------
SECTION 8.02   Proof of Execution by Securityholders .......................... 36
------------   -------------------------------------
SECTION 8.03   Who May be Deemed Owners ....................................... 36
------------   ------------------------
SECTION 8.04   Certain Securities Owned by Company Disregarded ................ 36
------------   -----------------------------------------------
SECTION 8.05   Actions Binding on Future Securityholders ...................... 36
------------   -----------------------------------------

                                   ARTICLE IX
                                   ----------

                            Supplemental Indentures
                            -----------------------

SECTION 9.01   Supplemental Indentures Without the Consent of Securityholders . 37
------------   --------------------------------------------------------------
SECTION 9.02   Supplemental Indentures With Consent of Securityholders ........ 38
------------   -------------------------------------------------------
SECTION 9.03   Effect of Supplemental Indentures .............................. 39
------------   ---------------------------------
SECTION 9.04   Securities Affected by Supplemental Indentures ................. 39
------------   ----------------------------------------------
SECTION 9.05   Execution of Supplemental Indentures ........................... 39
------------   ------------------------------------

                                   ARTICLE X
                                   ---------

                             Successor Corporation
                             ---------------------

SECTION 10.01     Company May Consolidate, Etc ................................ 40
-------------     ----------------------------
SECTION 10.02     Successor Corporation Substituted ........................... 40
-------------     ---------------------------------
SECTION 10.03     Securities to be Secured in Certain Events .................. 41
-------------     ------------------------------------------
SECTION 10.04     Evidence of Consolidation, Etc. to Trustee .................. 41
-------------     ------------------------------------------

                                   ARTICLE XI
                                   ----------

                   Satisfaction and Discharge and Defeasance
                   -----------------------------------------

SECTION 11.01   Satisfaction and Discharge of Indenture ....................... 41
-------------   ---------------------------------------
SECTION 11.02   Defeasance and Covenant Defeasance ............................ 42
-------------   ----------------------------------
SECTION 11.03   Deposited Moneys to be Held in Trust .......................... 44
-------------   ------------------------------------
SECTION 11.04   Payment of Moneys Held by Paying Agents ....................... 44
-------------   ---------------------------------------
SECTION 11.05   Repayment to Company .......................................... 44
-------------   --------------------
SECTION 11.06   Reinstatement ................................................. 45
-------------   -------------
SECTION 11.07   Other Coin or Currency Units .................................. 45
-------------   ----------------------------

                                  ARTICLE XII
                                  -----------

        Immunity of Incorporators, Stockholders, Officers and Directors
        ---------------------------------------------------------------
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                            <C>
SECTION 12.01   No Recourse ..................................................  45
-------------   -----------
                                  ARTICLE XIII
                                  -------------

                            Miscellaneous Provisions
                            ------------------------

SECTION 13.01   Effect on Successors and Assigns .............................  46
-------------   --------------------------------
SECTION 13.02   Actions by Successor .........................................  46
-------------   --------------------
SECTION 13.03   Notices ......................................................  46
-------------   -------
SECTION 13.04   Governing Law ................................................  46
-------------   -------------
SECTION 13.05   Treatment of Securities as Debt ..............................  46
-------------   -------------------------------
SECTION 13.06   Compliance Certificates and Opinions .........................  46
-------------   ------------------------------------
SECTION 13.07   Payments on Business Days ....................................  47
-------------   -------------------------
SECTION 13.08   Conflict with Trust Indenture Act ............................  48
-------------   ---------------------------------
SECTION 13.09   Effect of Headings and Table of Contents .....................  48
-------------   ----------------------------------------
SECTION 13.10   Counterparts .................................................  48
-------------   ------------
SECTION 13.11   Separability .................................................  48
-------------   ------------
SECTION 13.12   Assignment ...................................................  48
-------------   ----------
</TABLE>

--------------
(1)  This Table of Contents does not constitute part of the Indenture and shall
     not have any bearing upon the interpretation of any of its terms or
     provisions.

                                       iv

<PAGE>

           INDENTURE, dated as of November 27, 2001, between Steelcase Inc., a
Michigan corporation (the "Company"), and Bank One Trust Company, N.A., as
trustee (the "Trustee"):

           WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance of unsecured debt securities (hereinafter referred to as the
"Securities"), in an unlimited aggregate principal amount to be issued from time
to time in one or more series as in this Indenture provided, as registered
Securities without coupons, to be authenticated by the certificate of the
Trustee;

           WHEREAS, to provide the terms and conditions upon which the
Securities are to be authenticated, issued and delivered, the Company has duly
authorized the execution of this Indenture; and

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

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

                                    ARTICLE I
                                    ------- -

                                   Definitions
                                   -----------

           SECTION 1.01   Definitions of Terms. The terms defined in this
                          --------------------
Section (except as in this Indenture otherwise expressly provided or unless the
context otherwise requires) for all purposes of this Indenture and of any
indenture supplemental hereto shall have the respective meanings specified in
this Section and shall include the plural as well as the singular. All other
terms used in this Indenture that are defined in the Trust Indenture Act (as
defined herein), or that are by reference in the Trust Indenture Act defined in
the Securities Act (as defined herein) (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 and in the Securities Act.

           "Attributable Debt" has the meaning set forth in Section 4.06(b).

           "Authenticating Agent" means an authenticating agent with respect to
all or any of the series of Securities appointed with respect to all or any
series of the Securities by the Trustee pursuant to Section 2.10.

           "Bankruptcy Law" means Title 11, U.S. Code, or any similar federal or
state law for the relief of debtors.

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

<PAGE>

           "Board Resolution" means 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.

           "Business Day" means, with respect to any series of Securities, any
day other than a Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law to close.

           "Commission" means the Securities and Exchange Commission, or any
successor agency or commission.

           "Company" means Steelcase Inc., a corporation duly organized and
existing under the laws of the State of Michigan, and, subject to the provisions
of Article Ten, shall also include its successors and assigns.

           "Consolidated Net Tangible Assets" as used herein means, as of any
particular time, the total of all the assets appearing on the most recent
consolidated balance sheet of the Company and the Subsidiaries (other than those
principally engaged in leasing or financing activities) as of the end of the
last fiscal quarter for which financial information is available (less
applicable reserves and other properly deductible items) after deducting from
such amount: (a) all current liabilities, including current maturities of
long-term debt and current maturities of obligations under capital leases (other
than liabilities of Subsidiaries principally engaged in leasing or financing
activities that are not guaranteed by the Company or any of its other
Subsidiaries), and (b) the total of the net book values of all assets of the
Company and its Subsidiaries (other than those principally engaged in leasing or
financing activities) properly classified as intangible assets under U.S.
generally accepted accounting principles (including goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like
intangible assets).

           "Corporate Trust Office" means the office of the Trustee at which, at
any particular time, its corporate trust business shall be principally
administered, which office at the date hereof is located at 70 West Madison,
Suite IL1-0823, Chicago, Illinois 60670.

           "Custodian" means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

           "Debt" has the meaning set forth in Section 4.05(a).

           "Default" means any event, act or condition that with notice or lapse
of time, or both, would constitute an Event of Default.

           "Depositary" means, with respect to Securities of any series that the
Company shall determine will be issued as a Global Security, The Depository
Trust Company, New York, New York, another clearing agency, or any successor
registered as a clearing agency under the Exchange Act or other applicable
statute or regulation, which, in each case, shall be designated by the Company
pursuant to either Section 2.01 or 2.11.

                                       2

<PAGE>

           "Event of Default" means, with respect to Securities of a particular
series, any event specified in Section 6.01, continued for the period of time,
if any, therein designated.

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

           "Global Security" means, with respect to any series of Securities, a
Security executed by the Company and delivered by the Trustee to the Depositary
or pursuant to the Depositary's instruction, all in accordance with the
Indenture, which shall be registered in the name of the Depositary or its
nominee.

           "Governmental Obligations" means securities that 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 that, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act) as custodian with respect to any such Governmental
Obligation or a specific payment of principal of or interest on any such
Governmental Obligation held by such custodian for the account of the holder of
such depositary receipt; provided, however, that (except as required by law)
                         --------  -------
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depositary receipt from any amount received by the
custodian in respect of the Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such
depositary receipt.

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

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

           "Interest Payment Date," when used with respect to any installment of
interest on a Security of a particular series, means the date specified in such
Security or in a Board Resolution or in an indenture supplemental hereto with
respect to such series as the fixed date on which an installment of interest
with respect to Securities of that series is due and payable.

           "Lien" has the meaning set forth in Section 4.05(a).

           "Officers' Certificate" means a certificate signed by the Chairman of
the Board of Directors, Chief Executive Officer, President or a Vice President
and by the Chief Financial Officer, Treasurer or an Assistant Treasurer, or the
Controller or an Assistant Controller, or the Secretary or an Assistant
Secretary of the Company that is delivered to the Trustee in accordance with the
terms hereof. Each such certificate shall include the statements provided for in
Section 13.06, if and to the extent required by the provisions thereof.

                                       3

<PAGE>

           "Opinion of Counsel" means an opinion in writing of legal counsel,
who may be an employee of or counsel for the Company, that is delivered to the
Trustee in accordance with the terms hereof. Each such opinion shall include the
statements provided for in Section 13.06, if and to the extent required by the
provisions thereof.

           "Outstanding," when used with reference to Securities of any series,
means, subject to the provisions of Section 8.04, as of any particular time, all
Securities of that series theretofore authenticated and delivered by the Trustee
under this Indenture, except (a) Securities theretofore cancelled by the Trustee
or any paying agent, or delivered to the Trustee or any paying agent for
cancellation; (b) Securities or portions thereof for the payment or redemption
of which moneys or Governmental Obligations in the necessary amount shall have
been deposited pursuant hereto in trust with the Trustee or with any paying
agent (other than the Company) or shall have been set aside and segregated in
trust by the Company (if the Company shall act as its own paying agent) for the
holders of such Securities; provided, however, that if such Securities or
                            --------  -------
portions of such Securities are to be redeemed prior to the maturity thereof,
notice of such redemption shall have been given as provided in Article Three, or
provision satisfactory to the Trustee shall have been made for giving such
notice; and (c) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to the terms of
Section 2.07.

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

           "Principal Property" means the land, improvements, buildings and
fixtures (including any leasehold interest thereof) constituting the principal
corporate office, any manufacturing plant or any manufacturing, research or
engineering facility (whether owned or leased at, or acquired or leased after,
the date of the Indenture) that is owned or leased by the Company or a
Restricted Subsidiary and that is located within the continental United States,
unless the Board of Directors has determined in good faith that such property is
not material to the operation of the business conducted by the Company and the
Subsidiaries taken as a whole.

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

           "Registrar" has the meaning set forth in Section 2.05(b).

           "Responsible Officer" when used with respect to the Trustee means any
officer assigned to administer corporate trust matters or to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with
the particular subject.

           "Restricted Subsidiary" means any Subsidiary (i) substantially all of
whose property is located within the continental United States, (ii) which owns
a Principal Property and (iii) in which the Company's investment exceeds 2.5% of
the aggregate amount of assets included on a consolidated balance sheet of the
Company and the Subsidiaries as of the end of the last fiscal quarter for which
financial information is available. However, the term "Restricted Subsidiary"
does not include Steelcase Financial Services Inc. (so long as Steelcase
Financial

                                       4

<PAGE>

Services Inc. is principally engaged in leasing or financing activities) or any
other Subsidiary that is principally engaged in leasing or financing activities.

           "Sale and Lease-Back Transaction" has the meaning set forth in
Section 4.06(b).

           "Securities" means the debt Securities authenticated and delivered
under this Indenture.

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

           "Securityholder," "Holder," "holder of Securities," "registered
holder," or other similar term, means the Person or Persons in whose name or
names a particular Security shall be registered on the books of the Company kept
for that purpose in accordance with the terms of this Indenture.

           "Security Register" has the meaning set forth in Section 2.05(b).

           "Subsidiary" means (i) any corporation at least a majority of whose
outstanding Voting Stock shall at the time be owned, directly or indirectly, by
the Company, or by one or more of the Subsidiaries or by the Company and one or
more of the Subsidiaries and (ii) any general partnership, limited liability
company, joint venture or similar entity, at least a majority of whose
outstanding partnership or similar interests shall at the time be owned by the
Company, by one or more of the Subsidiaries or by the Company and one or more of
the Subsidiaries.

           "Transfer" of any Security encompasses any sale, pledge, transfer,
hypothecation or other disposition or any interest therein.

           "Trustee" means Bank One Trust Company, N.A., and, subject to the
provisions of Article Seven, shall also include its successors and assigns, and,
if at any time there is more than one Person acting in such capacity hereunder,
"Trustee" shall mean each such Person. The term "Trustee" as used with respect
to a particular series of the Securities shall mean the trustee with respect to
that series.

           "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended.

           "Voting Stock," as applied to stock of any Person, means shares,
interests, participations or other equivalents in the equity interest (however
designated) in such Person having ordinary voting power for the election of a
majority of the directors (or the equivalent) of such Person, other than shares,
interests, participations or other equivalents having such power only by reason
of the occurrence of a contingency.

                                   ARTICLE II

                      Issue, Description, Terms, Execution,
                      ------------------------------------
                     Registration and Exchange of Securities
                     ---------------------------------------

           SECTION 2.01 Designation and Terms of Securities. (a) The aggregate
principal amount of Securities that may be authenticated and delivered under
this Indenture is

                                       5

<PAGE>

unlimited. The Securities may be issued in one or more series up to the
aggregate principal amount of Securities of that series from time to time
authorized by or pursuant to a Board Resolution or pursuant to one or more
indentures supplemental hereto. Prior to the initial issuance of Securities of
any series, there shall be established in or pursuant to a Board Resolution, and
set forth in an Officers' Certificate, or established in one or more indentures
supplemental hereto:

                         (1) the title of the Security 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 that series that 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 that series);

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

                         (4) the place or places where payments will be made;

                         (5) the rate or rates at which the Securities of the
     series shall bear interest or the manner of calculation of such rate or
     rates, if any;

                         (6) the date or dates from which such interest shall
     accrue, the Interest Payment Dates on which such interest will be payable
     or the manner of determination of such Interest Payment Dates and the
     record date for the determination of holders to whom interest is payable on
     any such Interest Payment Dates;

                         (7) the right, if any, to extend the interest payment
     periods and the duration of such extension;

                         (8) 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 of the Company;

                         (9) the obligation, if any, of the Company to redeem or
     purchase Securities of the series pursuant to any sinking fund or analogous
     provisions (including payments made in cash in participation of future
     sinking fund obligations) 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;

                         (10) the form of the Securities of the series including
     the form of the certificate of authentication for such series;

                         (11) if other than denominations of one thousand U.S.
     dollars ($1,000) or any integral multiple thereof, the denominations in
     which the Securities of the series shall be issuable;

                                       6

<PAGE>

                         (12) any and all other terms with respect to such
series (which terms shall not be inconsistent with the terms of this Indenture),
including any terms which may be required by or advisable under any laws or
regulations or advisable in connection with the marketing of Securities of that
series;

                         (13) whether the Securities are issuable as Global
Securities and, in such case, the identity for the Depositary for such series;

                         (14) 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 6.01;

                         (15) any additional or different Events of Default or
          restrictive covenants provided for with respect to the Securities of
          the series;

                         (16) any provisions granting special rights to holders
          when a specified event occurs;

                         (17) if other than such coin or currency of the United
          States of America as at the time of payment is legal tender for
          payment of public or private debts, the coin or currency or currency
          unit in which payment of the principal of, or premium, if any, or
          interest on the Securities of the series shall be payable; and

                         (18) the application, if any, of Section 11.02.

               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 any such Board Resolution or in any indentures supplemental hereto pertaining
to such series of Securities.

               If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers'
Certificate setting forth the terms of the series.

               SECTION 2.02 Form of Securities and Trustee's Certificate. The
                            --------------------------------------------
Securities of any series and the Trustee's certificate of authentication to be
borne by such Securities shall be substantially of the tenor and purport as set
forth in one or more indentures supplemental hereto or as provided in a Board
Resolution and as set forth in an Officers' Certificate and may have such
letters, numbers or other marks of identification or designation and such
legends or endorsements printed, lithographed or engraved thereon as the Company
may deem appropriate and as are not inconsistent with the provisions of this
Indenture, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which Securities of that series may be listed, or to conform to
usage.

               SECTION 2.03 Denominations; Provisions for Payment. The
                            -------------------------------------
Securities shall be issuable, except as otherwise provided with respect to any
series of Securities pursuant to Section 2.01, as registered Securities in the
denominations of one thousand U.S. dollars

                                       7

<PAGE>

($1,000) or any integral multiple thereof, subject to Sections 2.01(11) and
2.01(17). The Securities of a particular series shall bear interest payable on
the dates and at the rate specified with respect to that series. Unless
otherwise provided as contemplated by Section 2.01 with respect to any series of
Securities, the principal of and the interest on the Securities of any series,
as well as any premium thereon in case of redemption thereof prior to maturity,
shall be payable in the coin or currency of the United States of America that at
the time is legal tender for public and private debt. Such payment shall be made
at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, the City and State of New York. Each Security shall be
dated the date of its authentication. Unless otherwise provided as contemplated
by Section 2.01, interest on the Securities shall be computed on the basis of a
360-day year composed of twelve 30-day months.

               The interest installment on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date for
Securities of that series shall be paid to the Person in whose name said
Security (or one or more predecessor Securities) is registered at the close of
business on the regular record date for such interest installment. In the event
that any Security of a particular series or portion thereof is called for
redemption and the redemption date is subsequent to a regular record date with
respect to any Interest Payment Date and prior to such Interest Payment Date,
interest on such Security will be paid upon presentation and surrender of such
Security as provided in Section 3.03.

               Any interest on any Security that is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date for
Securities of the same series (herein called "Defaulted Interest") shall
forthwith cease to be payable to the registered holder on the relevant regular
record date by virtue of having been such holder, and such Defaulted Interest
shall be paid by the Company, at its election, as provided in clause (1) or
clause (2) below:

                         (1)The Company may make payment of any Defaulted
          Interest on Securities to the Persons in whose names such Securities
          (or their respective predecessor Securities) are registered at the
          close of business on a special record date for the payment of such
          Defaulted Interest, which shall be fixed in the following manner: the
          Company shall notify the Trustee in writing of the amount of Defaulted
          Interest proposed to be paid on each such Security and the date of the
          proposed payment, 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. Thereupon the Trustee shall fix a
          special record date for the payment of such Defaulted Interest which
          shall not be more than 15 nor less than 10 days prior to the date of
          the proposed payment and not less than 10 days after the receipt by
          the Trustee of the notice of the proposed payment. The Trustee shall
          promptly notify the Company of such special record date and, in the
          name and at the expense of the Company, shall cause notice of the
          proposed payment of such Defaulted Interest and the special record
          date therefor to be mailed, first class postage prepaid, to each
          Securityholder at his or her 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 mailed as

                                        8

<PAGE>

          aforesaid, such Defaulted Interest shall be paid to the Persons in
          whose names such Securities (or their respective predecessor
          Securities) are registered on such special record date and shall be no
          longer payable pursuant to the following clause (2).

                         (2) The Company may make payment of any Defaulted
          Interest on any Securities in any other lawful manner not inconsistent
          with the requirements of any securities exchange on which such
          Securities may be listed, and upon such notice as may be required by
          such exchange, if, after notice given by the Company to the Trustee of
          the proposed payment pursuant to this clause, such manner of payment
          shall be deemed practicable by the Trustee.

               Unless otherwise set forth in a Board Resolution or one or more
indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.01 hereof, the term "regular record date" as
used in this Section with respect to a series of Securities with respect to any
Interest Payment Date for such series shall mean (i) either the fifteenth day of
the month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur, if such
Interest Payment Date is the first day of a month or (ii) the last day of the
month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur, if such
Interest Payment Date is the fifteenth day of a month, whether or not such date
is a Business Day.

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

               SECTION 2.04 Execution and Authentications. The Securities shall
                            -----------------------------
be signed on behalf of the Company by its Chairman of the Board of Directors,
Chief Executive Officer, President or one of its Vice Presidents, together with
its Chief Financial Officer, Treasurer or any of its Assistant Treasurers, or
its Controller or any of its Assistant Controllers, or its Secretary or any of
its Assistant Secretaries. Such signatures may be the manual or facsimile
signatures of the present or any future such officers. In case any such officer
who shall have signed any of the Securities shall cease to be such officer
before the Security so signed shall be authenticated and delivered by the
Trustee or disposed of by the Company, such Security nevertheless may be
authenticated and delivered or disposed of as though the Person who signed such
Security had not ceased to be such officer of the Company; and any Security may
be signed on behalf of the Company by such Persons as, at the actual date of the
execution of such Security, shall be the proper officers of the Company,
although at the date of the execution and delivery of this Indenture any such
Person was not such an officer. The Securities may contain such notations,
legends or endorsements required by law, stock exchange rule or usage. Each
Security shall be dated the date of its authentication by the Trustee.

               A Security shall not be valid until authenticated manually by an
authorized signatory of the Trustee, or by an Authenticating Agent. Such
signature shall be conclusive evidence that the Security so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled
to the benefits of this Indenture.

                                       9

<PAGE>

               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 for the authentication and delivery of such
Securities, signed by its Chairman of the Board of Directors, Chief Executive
Officer, President or any Vice President and its Treasurer or any Assistant
Treasurer, or its Controller or any Assistant Controller or its Secretary or any
Assistant Secretary, and the Trustee in accordance with such written order shall
authenticate and deliver such Securities.

               In authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be provided, and (subject to the Trustee's Compliance with Section
7.01) shall be fully protected in relying upon, an Officers' Certificate and an
Opinion of Counsel each stating that the form and terms thereof have been
established in conformity with the provisions of this Indenture.

               SECTION 2.05 Registration of Transfer and Exchange. (a)
                            -------------------------------------
Securities of any series may be exchanged upon presentation thereof at the
office or agency of the Company designated for such purpose in the Borough of
Manhattan, the City and State of New York, for other Securities of such series
of authorized denominations, and for a like aggregate principal amount, upon
payment of a sum sufficient to cover any tax or other governmental charge in
relation thereto, all as provided in this Section. In respect of any Securities
so surrendered for exchange, the Company shall execute, the Trustee shall
authenticate and such office or agency shall deliver in exchange therefor the
Security or Securities of the same series that the Securityholder making the
exchange shall be entitled to receive, bearing numbers not contemporaneously
outstanding.

                    (b) The Company shall keep, or cause to be kept, at its
office or agency designated for such purpose in the Borough of Manhattan, the
City and State of New York, or such other location designated by the Company a
register or registers (herein referred to as the "Security Register") in which,
subject to such reasonable regulations as it may prescribe, the Company shall
register the Securities and the transfers of Securities as in this Article
provided and which at all reasonable times shall be open for inspection by the
Trustee. The registrar for the purpose of registering Securities and transfer of
Securities as herein provided shall be appointed as authorized by Board
Resolution or as established in one or more indentures supplemental hereto (the
"Registrar").

               Upon surrender for transfer of any Security at the office or
agency of the Company designated for such purpose, the Company shall execute,
the Trustee shall authenticate and such office or agency shall deliver in the
name of the transferee or transferees a new Security or Securities of the same
series as the Security presented for a like aggregate principal amount.

               All Securities presented or surrendered for exchange or
registration of transfer, as provided in this Section, shall be accompanied (if
so required by the Company or the Registrar) by a written instrument or
instruments of transfer, in form satisfactory to the Company or the Registrar,
duly executed by the registered holder or by such holder's duly authorized
attorney in writing.

                                       10

<PAGE>

                    (c) No service charge shall be made for any exchange or
registration of transfer of Securities, or issue of new Securities in case of
partial redemption of any series, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge in relation thereto,
other than exchanges pursuant to Section 2.06, paragraph (b) of Section 3.03 and
Section 9.04 not involving any transfer, if applicable.

                    (d) The Company shall not be required (i) to issue, exchange
or register the transfer of any Securities during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of less than all the Outstanding Securities of the same series and
ending at the close of business on the day of such mailing, nor (ii) to register
the transfer of or exchange any Securities of any series or portions thereof
called for redemption.

                  The provisions of this Section 2.05 are, with respect to any
Global Security, subject to Section 2.11 hereof.

               SECTION 2.06 Temporary Securities. Pending the preparation of
                            --------------------
definitive Securities of any series, the Company may execute, and the Trustee
shall authenticate and deliver, temporary Securities in lieu thereof (printed,
lithographed or typewritten) in any authorized denomination. Such temporary
Securities shall be substantially in the form of the definitive Securities in
lieu of which they are issued, but with such omissions, insertions and
variations as may be appropriate for temporary Securities, all as may be
determined by the Company. Every temporary Security of any series shall be
executed by the Company and be authenticated by the Trustee upon the same
conditions and in substantially the same manner, and with like effect, as the
definitive Securities of such series. Without unnecessary delay, the Company
will execute and will furnish definitive Securities of such series and thereupon
any or all temporary Securities of such series may be surrendered in exchange
therefor (without charge to the holders), at the office or agency of the Company
designated for the purpose in the Borough of Manhattan, the City and State of
New York, and the Trustee shall authenticate and such office or agency shall
deliver in exchange for such temporary Securities an equal aggregate principal
amount of definitive Securities of such series, unless the Company advises the
Trustee to the effect that definitive Securities need not be executed and
furnished until further notice from the Company. Until so exchanged, the
temporary Securities of such series shall be entitled to the same benefits under
this Indenture as definitive Securities of such series authenticated and
delivered hereunder.

               SECTION 2.07 Mutilated, Destroyed, Lost or Stolen Securities. In
                            -----------------------------------------------
case any temporary or definitive Security shall become mutilated or be
destroyed, lost or stolen, the Company (subject to the next succeeding sentence)
shall execute, and upon the Company's request the Trustee (subject as aforesaid)
shall authenticate and deliver, a new Security of the same series, bearing a
number not contemporaneously outstanding, in exchange and substitution for the
mutilated Security, or in lieu of and in substitution for the Security so
destroyed, lost or stolen. In every case the applicant for a substituted
Security shall furnish to the Company and the Trustee such security or indemnity
as may be required by the Company and the Trustee to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Company and the Trustee evidence to their satisfaction of the
destruction, loss or theft of the applicant's Security and of the ownership
thereof. The Trustee shall authenticate any such substituted Security and
deliver the same upon the written request or authorization of

                                       11

<PAGE>

any officer of the Company. Upon the issuance of any substituted Security, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
In case any Security that has matured or is about to mature shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a
substitute Security, pay or authorize the payment of the same (without surrender
thereof except in the case of a mutilated Security) if the applicant for such
payment shall furnish to the Company and the Trustee such security or indemnity
as the Company and the Trustee may require to save them harmless, and, in case
of destruction, loss or theft, evidence to the satisfaction of the Company and
the Trustee of the destruction, loss or theft of such Security and of the
ownership thereof.

               Every replacement Security issued pursuant to the provisions of
this Section shall constitute an additional contractual obligation of the
Company whether or not the mutilated, destroyed, lost or stolen Security shall
be found at any time, or be enforceable by anyone, and shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all
other Securities of the same series duly issued hereunder. All Securities shall
be held and owned upon the express condition that the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities, and shall preclude (to the extent lawful) any and all
other rights or remedies, notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

               SECTION 2.08 Cancellation. Securities surrendered for the purpose
                            ------------
of payment, redemption, exchange or registration of transfer shall, if
surrendered to the Company or any paying agent, be delivered to the Trustee for
cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and
no Securities shall be issued in lieu thereof except as expressly required or
permitted by any of the provisions of this Indenture. On request of the Company
at the time of such surrender, the Trustee shall deliver to the Company
cancelled Securities held by the Trustee. In the absence of such request the
Trustee may dispose of cancelled Securities in accordance with its standard
procedures and deliver a certificate of disposition to the Company. If the
Company shall otherwise acquire any of the Securities, however, such acquisition
shall not operate as a redemption or satisfaction of the indebtedness
represented by such Securities unless and until the same are delivered to the
Trustee for cancellation.

               SECTION 2.09 Benefits of Indenture. Nothing in this Indenture or
                            ---------------------
in the Securities, express or implied, shall give or be construed to give to any
Person, other than the parties hereto and the holders of the Securities, any
legal or equitable right, remedy or claim under or in respect of this Indenture,
or under any covenant, condition or provision herein contained; all such
covenants, conditions and provisions being for the sole benefit of the parties
hereto and of the holders of the Securities.

               SECTION 2.10 Authenticating Agent. So long as any of the
                            --------------------
Securities of any series remain Outstanding there may be an Authenticating Agent
for any or all such series of Securities which the Trustee shall have the right
to appoint. Said Authenticating Agent shall be authorized to act on behalf of
the Trustee to authenticate Securities of such series issued upon exchange,
transfer or partial redemption thereof, and Securities so authenticated shall be
entitled

                                       12

<PAGE>

to the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. All references in this
Indenture to the authentication of Securities by the Trustee shall be deemed to
include authentication by an Authenticating Agent for such series. Each
Authenticating Agent shall be acceptable to the Company and shall be a
corporation that has a combined capital and surplus, as most recently reported
or determined by it, sufficient under the laws of any jurisdiction under which
it is organized or in which it is doing business to conduct a trust business,
and that is otherwise authorized under such laws to conduct such business and is
subject to supervision or examination by federal or state authorities. If at any
time any Authenticating Agent shall cease to be eligible in accordance with
these provisions, it shall resign immediately.

               Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time (and upon request by the Company shall) terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or
cessation of eligibility of any Authenticating Agent, the Trustee may appoint an
eligible successor Authenticating Agent acceptable to the Company. Any successor
Authenticating Agent, upon acceptance of its appointment hereunder, shall become
vested with all the rights, powers and duties of its predecessor hereunder as if
originally named as an Authenticating Agent pursuant hereto.

               SECTION 2.11 Global Securities. (a) If the Company shall
                            -----------------
establish pursuant to Section 2.01 that the Securities of a particular series
are to be issued as one or more Global Securities, then the Company shall
execute and the Trustee shall, in accordance with Section 2.04, authenticate and
deliver, one or more Global Securities that (i) shall represent, and shall be
denominated in an amount equal to the aggregate principal amount of, all of the
Outstanding Securities of such series, (ii) shall be registered in the name of
the Depositary or its nominee, (iii) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary's instruction and (iv) shall bear a
legend substantially to the following effect: "Except as otherwise provided in
Section 2.11 of the Indenture, this Security may be transferred, in whole but
not in part, only to another nominee of the Depositary or to a successor
Depositary selected and approved by the Company or to a nominee of such
successor Depositary."

                    (b) Notwithstanding the provisions of Section 2.05, a Global
Security of a series may be transferred, in whole but not in part and in the
manner provided in Section 2.05, only to another nominee of the Depositary for
such series, or to a successor Depositary for such series selected or approved
by the Company or to a nominee of such successor Depositary.

                    (c) If (1) at any time the Depositary for a series of the
Securities notifies the Company that it is unwilling or unable to continue as
Depositary for such series or if at any time the Depositary for such series
shall no longer be registered or in good standing under the Exchange Act, or
other applicable statute or regulation, and a successor Depositary for such
series is not appointed by the Company within 90 days after the Company receives
such notice or becomes aware of such condition, as the case may be, or (2) an
Event of Default has occurred and is continuing, then, this Section 2.11 shall
no longer be applicable to the Securities of such series and the Company will
execute, and subject to Section 2.04, the Trustee will authenticate and deliver
the Securities of such series in definitive registered form without coupons, in

                                       13

<PAGE>

authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security or Securities of such series in exchange
for such Global Security or Securities. In addition, the Company may at any time
determine that the Securities of any series shall no longer be represented by a
Global Security or Securities and that the provisions of this Section 2.11 shall
no longer apply to the Securities of such series. In such event the Company will
execute and, subject to Section 2.05, the Trustee, upon receipt of an Officers'
Certificate evidencing such determination by the Company, will authenticate and
deliver the 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 the Global Security or Securities of such series in
exchange for such Global Security or Securities. Upon the exchange of the Global
Security or Securities for such Securities in definitive registered form without
coupons, in authorized denominations, the Global Security or Securities shall be
cancelled by the Trustee. Such Securities in definitive registered form issued
in exchange for the Global Security or Securities pursuant to this Section
2.11(c) shall be registered in such names and in such authorized denominations
as the Depositary, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall deliver
such Securities to the Depositary for delivery to the Persons in whose names
such Securities are so registered.

                                  ARTICLE III
                                  -----------

              Redemption of Securities and Sinking Fund Provisions
              ----------------------------------------------------

               SECTION 3.01   Redemption. The Company may redeem the Securities
                              ----------
of any series issued hereunder on and after the dates and in accordance with the
terms established for such series pursuant to Section 2.01 hereof and this
Article.

               SECTION 3.02   Notice of Redemption. (a) In case the Company
                              --------------------
shall desire to exercise such right to redeem all or, as the case may be, a
portion of the Securities of any series in accordance with the right reserved so
to do, the Company shall, or shall cause the Trustee to, give notice of such
redemption to holders of the Securities of such series to be redeemed by
mailing, first class postage prepaid, a notice of such redemption not less than
30 days but not more than 60 days before the date fixed for redemption of that
series to such holders at their last addresses as they shall appear in the
Security Register unless a shorter period is specified in the Securities to be
redeemed. Any notice that is mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the registered
holder receives the notice. In any case, failure duly to give such notice to the
holder of any Security of any series designated for redemption in whole or in
part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any
other series. In the case of any redemption of Securities prior to the
expiration of 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 any such restriction.

               Each such notice of redemption shall specify the date fixed for
redemption and the redemption price at which Securities of that series are to be
redeemed, and shall state (i) that payment of the redemption price of such
Securities to be redeemed will be made at the office or agency of the Company in
the Borough of Manhattan, the City and State of New York, upon

                                       14

<PAGE>

presentation and surrender of such Securities, (ii) that interest accrued and
unpaid to the date fixed for redemption will be paid as specified in said
notice, (iii) that from and after said date interest will cease to accrue and
(iv) that the redemption is for a sinking fund, if such is the case. If less
than all the Securities of a series are to be redeemed, the notice to the
holders of Securities of that series to be redeemed in whole or in part shall
specify the particular Securities to be so redeemed. In case any Security is to
be redeemed in part only, the notice that relates to such Security shall state
the portion of the principal amount thereof to be redeemed, and shall state that
on and after the redemption date, upon surrender of such Security, a new
Security or Securities of such series in principal amount equal to the
unredeemed portion thereof will be issued.

                    (b) If less than all the Securities of a series are to be
redeemed, the Company shall give the Trustee at least 45 days' notice (or such
shorter notice as shall be acceptable to the Trustee) in advance of the date
fixed for redemption as to the aggregate principal amount of Securities of the
series to be redeemed, and thereupon the Trustee shall select, in such manner as
it shall deem appropriate and fair in its discretion, the Securities (or
portions thereof) of such series to be redeemed and shall thereafter promptly
notify the Company in writing of the numbers of the Securities to be redeemed,
in whole or in part. Unless otherwise provided in an Officers' Certificate or
supplemental indenture provided for in Section 2.01, no Security of a
denomination of $1,000 shall be redeemed in part and Securities may be redeemed
in part only in integral multiples of $1,000.

               The Company may, if and whenever it shall so elect, by delivery
of instructions signed on its behalf by its Chairman of the Board of Directors,
Chief Executive Officer, President or any Vice President, instruct the Trustee
or any paying agent to call all or any part of the Securities of a particular
series for redemption and to give notice of redemption in the manner set forth
in this Section, such notice to be in the name of the Company or its own name as
the Trustee or such paying agent may deem advisable. In any case in which notice
of redemption is to be given by the Trustee or any such paying agent, the
Company shall deliver or cause to be delivered to, or permit to remain with, the
Trustee or such paying agent, as the case may be, such Security Register,
transfer books or other records, or suitable copies or extracts therefrom,
sufficient to enable the Trustee or such paying agent to give any notice by mail
that may be required under the provisions of this Section.

               SECTION 3.03   Payment Upon Redemption. (a) If the giving of
                              -----------------------
notice of redemption shall have been completed as above provided, the Securities
or portions of Securities of the series to be redeemed specified in such notice
shall become due and payable on the date and at the place stated in such notice
at the applicable redemption price, together with interest accrued and unpaid to
the date fixed for redemption and interest on such Securities or portions of
Securities shall cease to accrue on and after the date fixed for redemption,
unless the Company shall default in the payment of such redemption price and
accrued interest with respect to any such Security or portion thereof. On
presentation and surrender of such Securities on or after the date fixed for
redemption at the place of payment specified in the notice, said Securities
shall be paid and redeemed at the applicable redemption price for such series,
together with interest accrued thereon to the date fixed for redemption (but if
the date fixed for redemption is an Interest Payment Date, the interest
installment payable on such date shall be payable to the registered holder at
the close of business on the applicable record date pursuant to Section 2.03).

                                       15

<PAGE>

               (b) Upon presentation of any Security of such series that is to
be redeemed in part only, the Company shall execute and the Trustee shall
authenticate and the office or agency where the Security is presented shall
deliver to the holder thereof, at the expense of the Company, a new Security of
the same series of authorized denominations in principal amount equal to the
unredeemed portion of the Security so presented.

          SECTION 3.04   Sinking Fund. The provisions of Sections 3.04, 3.05 and
                         ------------
3.06 shall be applicable to any sinking fund for the retirement of Securities of
a series, except as otherwise specified as contemplated by Section 2.01 for
Securities of such series.

          The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment," and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment." If provided for by the terms of Securities of any series,
the cash amount of any sinking fund payment may be subject to reduction as
provided in Section 3.05. 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 3.05   Satisfaction of Sinking Fund Payments with Securities.
                         -----------------------------------------------------
The Company (i) may deliver Outstanding Securities of a series (other than any
Securities previously called for redemption) and (ii) may apply as a credit
Securities of a series that have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series, provided that such Securities have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at the
redemption price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

          SECTION 3.06   Redemption of Securities for Sinking Fund. 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 the series, the portion thereof, if any, that is to be
satisfied by delivering and crediting Securities of that series pursuant to
Section 3.05 and the basis for such credit and will, together with such
Officers' Certificate, deliver to the Trustee any Securities to be so delivered.
Not less than 30 days before each such sinking fund payment date the Trustee
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner specified in Section 3.02 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 3.02. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Section 3.03.

                                       16

<PAGE>

                                   ARTICLE IV
                                   ----------

                                Certain Covenants
                                -----------------

               SECTION 4.01   Payment of Principal, Premium and Interest. The
                              ------------------------------------------
Company shall duly and punctually pay or cause to be paid (in the currency or
currency unit in which the Securities of such series are payable) the principal
of and premium, if any, on the Securities, and the interest which shall have
accrued thereon, at the time and place and in the manner provided in the
Securities and in this Indenture.

               SECTION 4.02   Maintenance of Office or Agency. So long as any
                              -------------------------------
series of the Securities remain Outstanding, the Company agrees to maintain an
office or agency in the Borough of Manhattan, the City and State of New York,
with respect to each such series and at such other location or locations as may
be designated as provided in this Section 4.02, where (i) Securities of that
series may be presented for payment, (ii) Securities of that series may be
presented as hereinabove authorized for registration of transfer and exchange,
and (iii) notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by its Chairman of the Board of Directors, Chief
Executive Officer, President or a Vice President and delivered to the trustee,
designate some other office or agency for such purposes or any of them. If at
any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such
presentations, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, notices and demands in such case.

               SECTION 4.03   Paying Agents. (a) If the Company shall appoint
                              -------------
one or more paying agents for all or any series of the Securities, other than
the Trustee, the Company will cause each such paying agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section:

                         (1)  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 of such Securities) in trust for the benefit of
the Persons entitled thereto;

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

                         (3)  that it will, at any time during the continuance
of any failure referred to in the preceding paragraph (a)(2) above, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so held in
trust by such paying agent; and

                         (4)  that it will perform all other duties of paying
agent as set forth in this Indenture.

                                       17

<PAGE>

                    (b)  If the Company shall act as its own paying agent with
respect to any series of the Securities, it will on or before each due date of
the principal of (and premium, if any) or interest on Securities of that series,
set aside, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay such principal (and premium, if any) or interest
so becoming due on Securities of that series until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of such action, or any failure (by it or any other obligor on
such Securities) to take such action. Whenever the Company shall have one or
more paying agents for any series of Securities, it will, prior to each due date
of the principal of (and premium, if any) or interest on any Securities of that
series, deposit with the paying agent a sum sufficient to pay the principal (an
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the Persons entitled to such principal, premium or interest, and
(unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of this action or failure so to act.

                    (c)  Notwithstanding anything in this Section to the
contrary, (i) the agreement to hold sums in trust as provided in this Section is
subject to the provisions of Section 11.05, and (ii) the Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or direct any paying agent to pay, to
the Trustee all sums held in trust by the Company or such paying agent, such
sums to be held by the Trustee upon the same terms and conditions as those upon
which such sums were held by the Company or such paying agent; and, upon such
payment by any paying agent to the Trustee, such paying agent shall be released
from all further liability with respect to such money.

               SECTION 4.04    Appointment to Fill Vacancy in Office of Trustee.
                               ------------------------------------------------
The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so
that there shall at all times be a Trustee hereunder.

               SECTION 4.05    Limitations on Liens. (a) The Company agrees that
                               --------------------
it shall not, nor shall it permit any Restricted Subsidiary to, issue, incur,
create, assume or guarantee any debt for borrowed money, collectively referred
to as "Debt," secured by any mortgage, deed of trust, security interest, pledge,
lien, charge or other encumbrance, each a "Lien" and collectively "Liens," upon
any Principal Property, shares of stock (or other equivalents of or interests in
equity) or indebtedness of a Restricted Subsidiary without in any such case
providing concurrently with the issuance, incurrence, creation, assumption or
guaranty of such secured Debt, or the grant of such Lien, that the Securities
(and, at the Company's option, any other indebtedness of or guarantee by the
Company ranking equally with the Securities) shall be secured equally and
ratably with (or, at the option of the Company, prior to) such secured Debt. The
foregoing restriction, however, will not apply to Debt secured by:

                    (1)  Liens existing on the date of the initial issuance of
     any Securities;

                    (2)  Liens on property, shares of stock (or other
     equivalents of or interests in equity) or indebtedness of a Person existing
     at the time such Person becomes a Restricted Subsidiary, provided that such
                                                              --------
     Liens were not created in anticipation of the transaction in which such
     Person becomes a Restricted Subsidiary;

<PAGE>

                    (3) Liens on property acquired by the Company or a
     Restricted Subsidiary existing at the time of acquisition by the Company or
     a Restricted Subsidiary;

                    (4) Liens upon any property to secure all or a portion of
     the purchase price of such property or Debt incurred to finance such
     purchase price, whether such Debt was incurred prior to, at the time of or
     within 12 months after the date of such acquisition; or Liens upon any
     property to secure all or part of the cost of improvement, repair or
     construction thereof or Debt incurred prior to, at the time of or within 12
     months after the completion of such improvement, repair or construction or
     the commencement of full operations thereof (whichever is later) to provide
     funds for such purpose;

                    (5) Liens in favor of the Company or a Restricted
     Subsidiary;

                    (6) Liens on property, shares of stock (or other equivalents
     of or interests in equity) or indebtedness of a Person existing at the time
     such Person is merged into or consolidated with the Company or a Restricted
     Subsidiary or at the time of a sale, lease or other disposition of all or
     substantially all of the properties of a Person as an entirety or
     substantially as an entirety to the Company or a Restricted Subsidiary,
     provided that such Lien was not incurred in anticipation of such merger or
     --------
     consolidation or sale, lease or other disposition;

                    (7) Liens on Principal Properties subject to Sale and
     Lease-Back Transactions not otherwise prohibited by this Indenture to the
     extent attributable to such Sale and Lease-Back Transactions and securing
     only the related Attributable Debt;

                    (8) Liens on property of the Company or a Restricted
     Subsidiary in favor of governmental bodies to secure partial, progress,
     advance or other payments owed under any contract or statute or to secure
     any Debt incurred for the purpose of financing all or any part of the
     purchase price or the cost of constructing or improving the property
     subject to such Liens; and

                    (9) any extension, renewal or replacement of any Lien
     referred to in the foregoing clauses (1) through (8) or of any Debt secured
     thereby; provided, that such extension, renewal or replacement Lien shall
              --------
     secure no larger an amount of Debt than that existing at the time of such
     extension, renewal or replacement.

               (b) Notwithstanding the restrictions in Section 4.05(a), the
Company or a Restricted Subsidiary may issue, incur, create, assume or guarantee
Debt secured by a Lien which would otherwise be subject to the foregoing
restrictions, without equally and ratably securing the Securities, provided that
                                                                   --------
after giving effect thereto, the aggregate amount of (x) all Debt so secured by
Liens (not including Liens permitted under clauses (1) through (9) above) and
(y) all Attributable Debt of Sale and Lease-Back Transactions permitted under
Section 4.06(4) on the basis that Debt secured by a Lien could be incurred
pursuant to this Section 4.05(b), does not exceed the greater of (i) $75 million
and (ii) Consolidated Net Tangible Assets.

          SECTION 4.06    Limitations on Sale and Lease-Back Transactions. (a)
                          -----------------------------------------------
The Company agrees that it shall not, nor shall it allow any Restricted
Subsidiary to, enter into, any

                                       19

<PAGE>

Sale and Lease-Back Transaction with respect to any Principal Property, unless
at the effective time of such transaction:

                    (1)  such Sale and Lease-Back Transaction occurs within 12
     months from the date of the acquisition of the Principal Property subject
     thereto or the date of the completion of construction or commencement of
     full operations of such Principal Property (whichever is later);

                    (2)  such Sale and Lease-Back Transaction involves a lease
     for a term of not more than three years;

                    (3)  such Sale and Lease-Back Transaction is between the
     Company and a Restricted Subsidiary or between Restricted Subsidiaries;

                    (4)  the Company or the Restricted Subsidiary would be
     entitled, pursuant to Section 4.05 (other than clause (7) thereof), without
     equally and ratably securing the Securities, to incur Debt secured by a
     Lien on the Principal Property involved in such transaction in an amount at
     least equal to the Attributable Debt with respect to such Sale and
     Lease-Back Transaction; or

                    (5)  the Company or such Restricted Subsidiary, within 12
     months after the effective date of such Sale and Lease-Back Transaction,
     applies or causes to be applied an amount not less than the Attributable
     Debt from such Sale and Lease-Back Transaction to either (or a combination
     of) (x) the prepayment, repayment, redemption, reduction or retirement
     (other than any mandatory prepayment, mandatory repayment, mandatory
     redemption or sinking fund payment or payment at maturity) of Debt of the
     Company or any Restricted Subsidiary (other than Debt that is subordinate
     to the Securities or Debt to the Company or a Restricted Subsidiary) or (y)
     expenditures for the acquisition, construction, development or expansion of
     Principal Property used or to be used in the ordinary course of business of
     the Company or a Restricted Subsidiary.

               (b) The term "Sale and Lease-Back Transaction" means any
arrangement with any Person providing for the leasing by the Company or any
Restricted Subsidiary of any Principal Property, whether owned at the date of
this Indenture or thereafter acquired (excluding temporary leases of a term,
including renewal periods, of not more than three years), that has been or is to
be sold or transferred by the Company or any Restricted Subsidiary to such
Person with the intention of taking back a lease of the property. The term
"Attributable Debt" means, in respect of a Sale and Lease-Back Transaction, at
the time of determination, the present value (discounted at the rate set forth
or implicit in the terms of the lease included in the transaction, as determined
in good faith by a principal accounting officer of the Company) of the
obligation of the lessee for rental payments during the remaining term of the
lease included in such transaction, including any period for which such lease
has been extended or may, at the option of the lessor, be extended or, if
earlier, until the earliest date of which the lessee may terminate such lease
upon payment of a penalty (in which case the obligation of the lessee for rental
payments will include such penalty), after excluding all amounts required to be
paid on account of maintenance and repairs, insurance, taxes, assessments, water
and utility rates and similar charges.

                                       20

<PAGE>

                                    ARTICLE V
                                    ---------

                       Securityholders' Lists and Reports
                       ----------------------------------
                         by the Company and the Trustee
                         ------------------------------

           SECTION 5.01   Company to Furnish Trustee Names and Addresses of
                          -------------------------------------------------
Securityholders. The Company shall furnish or cause to be furnished to the
---------------
Trustee (a) not more than 15 days after each regular record date (as defined in
Section 2.03) a list, in such form as the Trustee may reasonably require, of the
names and addresses of the holders of each series of Securities as of such
regular record date, provided that the Company shall not be obligated to furnish
                     --------
or cause to furnish such list at any time that the list shall not differ in any
respect from the most recent list furnished to the Trustee by the Company and
(b) at such other times as the Trustee may request in writing within 30 days
after the receipt by the Company of any such request, a list of similar form and
content as of a date not more than 15 days prior to the time such list is
furnished; provided, however, that, in either case, no such list need be
           --------  -------
furnished for any series for which the Trustee shall be the Registrar.

           SECTION 5.02   Preservation Of Information; Communications With
                          ------------------------------------------------
Securityholders. (a) The Trustee shall preserve, in as current a form as is
---------------
reasonably practicable, all information as to the names and addresses of the
holders of Securities contained in the most recent list furnished to it as
provided in Section 5.01 and as to the names and addresses of holders of
Securities received by the Trustee in its capacity as Registrar (if acting in
such capacity).

                (b)  The Trustee may destroy any list furnished to it as
provided in Section 5.01 upon receipt of a new list so furnished.

                (c)  Securityholders may communicate as provided in Section
312(b) of the Trust Indenture Act with other Securityholders with respect to
their rights under this Indenture or under the Securities.

           SECTION 5.03   Reports by the Company. (a) The Company will file with
                          ----------------------
the Trustee, within 30 days after the Company is required to file the same with
the Commission, copies of the annual reports and of the information, documents
and other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) that the
Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of such sections, then to
file with the Trustee and the Commission, in accordance with the rules and
regulations prescribed from time to time by the Commission, if any, such of the
supplementary and periodic information, documents and reports that may be
required pursuant to Section 13 of the Exchange Act, in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations.

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

                                       21

<PAGE>

with the conditions and covenants provided for in this Indenture if and as may
be required from time to time by such rules and regulations.

                (c)  The Company will transmit by mail, first class postage
prepaid, or reputable over-night delivery service that provides for evidence of
receipt, to the Securityholders, as their names and addresses appear upon the
Security Register or as otherwise provided for in Section 313(c) of the Trust
Indenture Act, within 30 days after the filing thereof with the Trustee (unless
some other time shall be fixed by the Commission), copies or summaries of any
information, documents and reports required to be filed by the Company pursuant
to subsections (a) and (b) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission.

           SECTION 5.04   Reports by the Trustee. (a) On or before July 15 in
                          ----------------------
each year in which any of the Securities are Outstanding, the Trustee shall
transmit by mail, first class postage prepaid, to the Securityholders, as their
names and addresses appear upon the Security Register, a brief report dated as
of the preceding May 15, if and to the extent required under Section 313(a) of
the Trust Indenture Act.

                (b)  The Trustee shall comply with Section 313(b) and 313(c) of
the Trust Indenture Act.

                (c)  A copy of each such report shall, at the time of such
transmission to Securityholders, be filed by the Trustee with the Company, with
each stock exchange upon which any Securities are listed (if so listed) and also
with the Commission. The Company agrees to notify the Trustee when any
Securities become listed on any stock exchange.

           SECTION 5.05   No Accountability by Reason of Disclosure. Each and
                          -----------------------------------------
every Securityholder, by receiving and holding the same, agrees with the Company
and the Trustee that neither the Company nor the Trustee shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Securityholders in accordance with the provisions of this
Article V, regardless of the source from which such information was derived and
that the Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under this Article V.

                                   ARTICLE VI
                                   ----------

                   Remedies of the Trustee and Securityholders
                   -------------------------------------------
                               on Event of Default
                               -------------------

           SECTION 6.01   Events of Default. (a) Whenever used herein with
                          -----------------
respect to Securities of a particular series, "Event of Default" means any one
or more of the following events that has occurred and is continuing:

                      (1)  the Company defaults in the payment of any
installment of interest upon any of the Securities of that series, as and when
the same shall become due and payable, and continuance of such default for a
period of 30 days; provided, however, that a valid extension of an interest
                   --------  -------
payment period by the Company in accordance with

                                       22

<PAGE>

the terms of any indenture supplemental hereto shall not constitute a default in
the payment of interest for this purpose;

                (2)   the Company defaults in the payment of the principal of
(or premium, if any, on) any of the Securities of that series as and when the
same shall become due and payable whether at maturity, upon redemption, by
declaration or otherwise, or in any payment required by any sinking or analogous
fund established with respect to that series; provided, however, that a valid
                                              --------  -------
extension of the maturity of such Securities in accordance with the terms of any
indenture supplemental hereto shall not constitute a default in the payment of
principal or premium, if any, for this purpose;

                (3)   the Company fails to observe or perform any other of its
covenants or agreements with respect to that series contained in this Indenture
or otherwise established with respect to that series of Securities pursuant to
Section 2.01 hereof (other than a covenant or agreement that has been expressly
included in this Indenture solely for the benefit of one or more series of
Securities other than such series) for a period of 60 days after the date on
which written notice of such failure, requiring the same to be remedied and
stating that such notice is a "Notice of Default" hereunder, shall have been
received by the Company from the Trustee, or received by the Company and the
Trustee from the holders of at least 25% in principal amount of the Securities
of that series at the time Outstanding in each case by registered or certified
mail;

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

                (5)   a court of competent jurisdiction enters an order under
any Bankruptcy Law that (i) is for relief against the Company in an involuntary
case, (ii) appoints a Custodian of the Company for all or substantially all of
their respective property or (iii) orders the liquidation of the Company, and
the order or decree remains unstayed and in effect for 90 days.

         (b) In each and every such case (other than an Event of Default
specified in Section 6.01(a)(4) or 6.01(a)(5)), unless the principal of all the
Securities of that series shall have already become due and payable, either the
Trustee or the holders of at least 25% in aggregate principal amount of the
Securities of that series then Outstanding hereunder, by notice in writing to
the Company (and to the Trustee if given by such Securityholders), may declare
the principal of all the Securities of that series to be due and payable
immediately, and upon any such declaration the same shall become and shall be
immediately due and payable, notwithstanding anything contained in this
Indenture or in the Securities of that series or established with respect to
that series pursuant to Section 2.01 to the contrary. If an Event of Default
specified in Section 6.01(a)(4) or 6.01(a)(5) occurs and is continuing, the
principal of all the Securities of that series shall become and be immediately
due and payable without any declaration or other act on the part of the Trustee
or the holders of the Securities.

                                       23

<PAGE>

                (c)   At any time after the principal of the Securities of that
series shall have been so declared due and payable (or have become immediately
due and payable), and before any judgment or decree for the payment of the
moneys due shall have been obtained or entered as hereinafter provided, the
holders of a majority in aggregate principal amount of the Securities of that
series then Outstanding hereunder, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if: (i) the
Company has paid or deposited with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Securities of that series and the
principal of (and premium, if any, on) any and all Securities of that series
that shall have become due otherwise than by acceleration (with interest upon
such principal and premium, if any, and, to the extent that such payment is
enforceable under applicable law, upon overdue installments of interest, at the
rate per annum expressed in the Securities of that series to the date of such
payment or deposit) and the amount payable to the Trustee under Section 7.06,
and (ii) any and all Events of Default under the Indenture with respect to such
series, other than the nonpayment of principal on Securities of that series that
shall not have become due by their terms, shall have been remedied or waived as
provided in Section 6.06.

                No such rescission and annulment shall extend to or shall affect
any subsequent default or impair any right consequent thereon.

                (d)   In case the Trustee shall have proceeded to enforce any
right with respect to Securities of that series under this Indenture and such
proceedings shall have been discontinued or abandoned because of such rescission
or annulment or for any other reason or shall have been determined adversely to
the Trustee, then and in every such case the Company, and the Trustee shall be
restored respectively to their former positions and rights hereunder, and all
rights, remedies and powers of the Company and the Trustee shall continue as
though no such proceedings had been taken.

           SECTION 6.02   Collection of Indebtedness and Suits for Enforcement
                          ----------------------------------------------------
by Trustee. (a) The Company covenants that (1) in case it shall default in the
----------
payment of any installment of interest on any of the Securities of a series, or
any payment required by any sinking or analogous fund established with respect
to that series as and when the same shall have become due and payable, and such
default shall have continued for a period of 90 Business Days, or (2) in case it
shall default in the payment of the principal of (or premium, if any, on) any of
the Securities of a series when the same shall have become due and payable,
whether upon maturity of the Securities of such series or upon redemption or
upon declaration 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, the whole amount that then shall have been become due and payable
on all such Securities for principal (and premium, if any) or interest, or both,
as the case may be, with interest upon the overdue principal (and premium, if
any) and (to the extent that payment of such interest is enforceable under
applicable law) upon overdue installments of interest at the rate per annum
expressed in the Securities of that series; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, and the amount payable to the Trustee under Section 7.06.

                (b)   If the Company shall fail to pay such amounts forthwith
upon such demand, the Trustee, in its own name and as trustee of an express
trust, shall be entitled and
                                       24

<PAGE>

empowered to institute any action or proceedings at law or in equity for the
collection of the sums so due and unpaid, and may prosecute any such action or
proceeding to judgment or final decree, and may enforce any such judgment or
final decree against the Company or other obligor upon the Securities of that
series and collect the moneys adjudged or decreed to be payable in the manner
provided by law out of the property of the Company or other obligor upon the
Securities of that series, wherever situated.

                (c)   In case of any receivership, insolvency, liquidation,
bankruptcy, reorganization, readjustment, arrangement, composition or judicial
proceedings affected the Company, or its creditors or property, the Trustee
shall have power to intervene in such proceedings and take any action therein
that may be permitted by the court and shall (except as may be otherwise
provided by law) be entitled to file such proofs of claim and other papers and
documents as may be necessary or advisable in order to have the claims of the
Trustee and of the holders of Securities of such series allowed for the entire
amount due and payable by the Company under the Indenture at the date of
institution of such proceedings and for any additional amount that may become
due and payable by the Company after such date, and to collect and receive any
moneys or other property payable or deliverable on any such claim, and to
distribute the same after the deduction of the amount payable to the Trustee
under Section 7.06; and any receiver, assignee or trustee in bankruptcy or
reorganization is hereby authorized by each of the holders of Securities of such
series to make such payments to the Trustee, and, in the event that the Trustee
shall consent to the making of such payments directly to such Securityholders,
to pay to the Trustee any amount due it under Section 7.06.

                (d)   All rights of action and of asserting claims under this
Indenture, or under any of the terms established with respect to Securities of
that series, may be enforced by the Trustee without the possession of any of
such Securities, or the production thereof at any trial or other proceeding
relative thereto, and any such suit or proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for payment to the Trustee of any
amounts due under Section 7.06, be for the ratable benefit of the holders of the
Securities of such series.

           In case of an Event of Default hereunder, the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in the Indenture or in aid of the exercise
of any power granted in this Indenture, or to enforce any other legal or
equitable right vested in the Trustee by this Indenture or by law.

           Nothing contained herein shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder any
plan of reorganization, arrangement, adjustment or composition affecting the
Securities of that series or the rights of any holder thereof or to authorize
the Trustee to vote in respect of the claim of any Securityholder in any such
proceeding.

           SECTION 6.03   Application of Moneys Collected. Any moneys collected
                          -------------------------------
by the Trustee with respect to a series of Securities under this Article Six
shall be applied in the

                                       25

<PAGE>

following order, at the date or dates fixed by the Trustee for the distribution
of such moneys, and, in case of the distribution of such moneys on account of
principal (or premium, if any) or interest, upon presentation of the Securities
of that series, 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 of all
amounts payable to the Trustee under Section 7.06;

           SECOND: To the payment of the amounts then due and unpaid upon
Securities of such series for principal (and premium, if any) and interest, in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal (and premium, if any) and
interest, respectively; and

           THIRD: To the Company.

           SECTION 6.04   Limitation on Suits. No holder of any Security of any
                          -------------------
series shall have any right by virtue or by availing of any provision of this
Indenture to institute any suit, action or proceeding in equity or at law upon
or under or with respect to this Indenture or for the appointment of a receiver
or trustee or other similar official, or for any other remedy hereunder, unless
(i) such holder previously shall have given to the Trustee written notice of an
Event of Default and of the continuance thereof with respect to the Securities
of such series specifying such Event of Default, as hereinbefore provided; (ii)
the holders of at least 25% in aggregate principal amount of the Securities of
such series then Outstanding shall have made written request upon the Trustee to
institute such action, suit or proceeding in its own name as trustee hereunder;
(iii) such holder or holders shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses and liabilities to be
incurred therein or thereby; (iv) the Trustee for 60 days after its receipt of
such notice, request and offer of indemnity, shall have failed to institute any
such action, suit or proceeding; and (v) during such 60 day period, the holders
of a majority in principal amount of the Securities of that series do not give
the Trustee a direction inconsistent with the request.

           Notwithstanding anything contained herein to the contrary, the right
of any holder of any Security to receive payment of the principal of (and
premium, if any) and interest on such Security, as therein provided, on or after
the respective due dates expressed in such Security (or in the case of
redemption, on the redemption date), or to institute suit for the enforcement of
any such payment on or after such respective dates or redemption date, shall not
be impaired or affected without the consent of such holder, and by accepting a
Security hereunder it is expressly understood, intended and covenanted by the
taker and holder of every Security of such series with every other such taker
and holder and the Trustee, that no one or more holders of Securities of such
series shall have any right in any manner whatsoever by virtue or by availing of
any provision of this Indenture to affect, disturb or prejudice the rights of
the holders of any other of such Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities of such series. For the
protection and enforcement of the provisions of this Section, each and every
Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

                                       26

<PAGE>

           SECTION 6.05   Rights and Remedies Cumulative; Delay or Omission Not
                          -----------------------------------------------------
Waiver. (a) Except as otherwise provided in Section 2.07, all powers and
------
remedies given by this Article to the Trustee or to the Securityholders shall,
to the extent permitted by law, be deemed cumulative and not exclusive of any
other powers and remedies available to the Trustee or the holders of the
Securities, by judicial proceedings or otherwise, to enforce the performance or
observance of the covenants and agreements contained in this Indenture or
otherwise established with respect to such Securities.

                (b)   No delay or omission of the Trustee or of any holder of
any of the Securities to exercise any right or power accruing upon any Event of
Default occurring and continuing as aforesaid shall impair any such right or
power, or shall be construed to be a waiver of any such Event of Default or an
acquiescence therein; and, subject to the provisions of Section 6.04, every
power and remedy given by this Article or by law to the Trustee or the
Securityholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Securityholders.

           SECTION 6.06   Control by Securityholders. The holders of a majority
                          --------------------------
in aggregate principal amount of the Securities of any series at the time
Outstanding, determined in accordance with Section 8.04, shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee with respect to such series; provided, however, that such direction
                                     --------  -------
shall not be in conflict with any rule of law or with this Indenture or be
unduly prejudicial to the rights of holders of Securities of any other series at
the time Outstanding determined in accordance with Section 8.04. Subject to the
provisions of Section 7.01, the Trustee shall have the right to decline to
follow any such direction if the Trustee in good faith shall, by a Responsible
Officer or Officers of the Trustee, determine that the proceeding so directed
would involve the Trustee in personal liability. The holders of a majority in
aggregate principal amount of the Securities of any series at the time
Outstanding affected thereby, determined in accordance with Section 8.04, may on
behalf of the holders of all of the Securities of such series waive any past
Event of Default or default in the performance of any of the covenants contained
herein or established pursuant to Section 2.01 with respect to such series and
its consequences, except a default in the payment of the principal of, or
premium, if any, or interest on, any of the Securities of that series as and
when the same shall become due by the terms of such Securities otherwise than by
acceleration (unless such default has been cured and a sum sufficient to pay all
matured installments of interest and principal and any premium has been
deposited with the Trustee (in accordance with Section 6.01(c)). Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes
of this Indenture and the Company, the Trustee and the holders of the Securities
of such series 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 6.07   Undertaking to Pay Costs. All parties to this
                          ------------------------
Indenture agree, and each holder of any Securities by such holder's 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 that such court may in its discretion assess
reasonable costs, including

                                       27

<PAGE>

reasonable attorneys' fees, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Securityholder, or
group of Securityholders, holding in the aggregate more than 10% in aggregate
principal amount of the Outstanding Securities of any series, or to any suit
instituted by any Securityholder for the enforcement of the payment of the
principal of (or premium, if any) or interest on any Security of such series, on
or after the respective due dates expressed in such Security or established
pursuant to this Indenture.

                                   ARTICLE VII
                                   -----------

                             Concerning the Trustee
                             ----------------------

               SECTION 7.01 Certain Duties and Responsibilities of Trustee. (a)
                            ----------------------------------------------
The Trustee, prior to the occurrence of an Event of Default with respect to the
Securities of a series and after the curing of all Events of Default with
respect to the Securities of that series that may have occurred, shall undertake
to perform with respect to the Securities of such series such duties and only
such duties as are specifically set forth in this Indenture, and no implied
covenants shall be read into this Indenture against the Trustee. In case an
Event of Default with respect to the Securities of a series has occurred (that
has not been cured or waived), the Trustee shall exercise, with respect to
Securities of that series, the rights and powers vested in it by this Indenture,
and use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own
affairs.

                    (b) Within ninety (90) days after the occurrence of an Event
of Default with respect to the Securities of a Series, the Trustee shall, as
provided in Section 315(b) of the Trust Indenture Act, give to the holders of
the Securities of such series notice of each default with respect to the
Securities of such series actually known to a Responsible Officer of the Trustee
in the manner provided in Section 313(c) of the Trust Indenture Act, unless such
Event of Default shall have been cured before the giving of such notice; but,
unless such default be the failure to pay the principal of, or premium, if any,
or interest on any of the Securities of such series when and as the same shall
become payable, or to make any sinking fund payment as to Securities of the same
series, the Trustee shall be protected in withholding such notice, if and so
long as the board of directors, the executive committee or a trust committee of
directors or Responsible Officers of the Trustee in good faith determine that
the withholding of such notice is in the interests of the holders of the
Securities of such series.

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

                        (1) prior to the occurrence of an Event of Default with
        respect to the Securities of a series and after the curing or waiving of
        all such Events of Default with respect to that series that may have
        occurred:

                            (i) the duties and obligations of the Trustee shall,
        with respect to the Securities of such series, be determined solely by
        the express provisions of

                                       28

<PAGE>

        this Indenture, and the Trustee shall not be liable with respect to the
        Securities of such series except for the performance of such duties and
        obligations as are specifically set forth in this Indenture, and no
        implied covenants or obligations shall be read into this Indenture
        against the Trustee; and

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

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

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

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

               SECTION 7.02 Certain Rights of Trustee. Except as otherwise
                            -------------------------
provided in Section 7.01:

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

                    (b) Any request, direction, order or demand of the Company
mentioned herein shall be sufficiently evidenced by a Board Resolution or an
instrument signed in the name of the Company, by the Chairman of the Board of
Directors, the Chief Executive Officer, the President or any Vice President and
by the Treasurer or an Assistant Treasurer, or the Controller or an Assistant
Controller, or the Secretary or an Assistant Secretary thereof (unless other
evidence in respect thereof is specifically prescribed herein);

                                       29

<PAGE>

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

                    (d) The Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request, order or
direction of any of the Securityholders, pursuant to the provisions of this
Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Trustee of the obligation, upon the occurrence of an Event
of Default with respect to a series of the Securities (that has not been cured
or waived) to exercise with respect to Securities of that series 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;

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

                    (f) The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond,
security, or other papers or documents, unless requested in writing so to do by
the holders of not less than a majority in aggregate principal amount of the
Outstanding Securities of the particular series affected thereby (determined as
provided in Section 8.04); 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 in the making of such investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded to it by
the terms of this Indenture, the Trustee may require reasonable indemnity
against such costs, expenses or liabilities as a condition to so proceeding. 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; and

                    (g) The Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys 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, provided that such appointment was consented to by the Company, such
           --------
consent not to be unreasonably withheld.

               SECTION 7.03 Trustee Not Responsible for Recitals, Validity of
                            -------------------------------------------------
Securities or Application of Proceeds Thereof. (a) The recitals contained herein
---------------------------------------------
and in the Securities shall be taken as the statements of the Company, and the
Trustee assumes no responsibility for the correctness of the same.

                    (b) The Trustee makes no representations as to the validity
or sufficiency of this Indenture or of the Securities.

                                       30

<PAGE>

                    (c) The Trustee shall not be accountable for the use or
application by the Company of any of the Securities 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 established pursuant to
Section 2.01, or for the use or application of any moneys received by any paying
agent other than the Trustee.

               SECTION 7.04 May Hold Securities. The Trustee or any paying agent
                            -------------------
or Registrar, in its individual or any other capacity, may become the owner or
pledgee of Securities with the same rights it would have if it were not Trustee,
paying agent or Registrar.

               SECTION 7.05 Moneys Held in Trust. Subject to the provisions of
                            --------------------
Section 11.05, all moneys received by the Trustee shall, until used or applied
as herein provided, be held in trust for the purposes for which they were
received, but need not be segregated from other funds except to the extent
required by law. The Trustee shall be under no liability for interest on any
moneys received by it hereunder except such as it may agree with the Company to
pay thereon.

               SECTION 7.06 Compensation and Reimbursement. (a) The Company
                            ------------------------------
covenants and agrees to pay to the Trustee, and the Trustee shall be entitled
to, such reasonable compensation as the Company and the Trustee may from time to
time agree in writing, for all services rendered by it in the execution of the
trusts hereby created and in the exercise and performance of any of the powers
and duties hereunder of the Trustee, and, except as otherwise expressly provided
herein, the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any of the provisions of this Indenture (including the
reasonable compensation, expenses and disbursements of its counsel) except any
such expense, disbursement or advance as may arise from its negligence or bad
faith. The Company also covenants to indemnify the Trustee (and its officers,
agents, directors and employees) for, and to hold it harmless against, any loss,
liability or expense incurred without negligence, bad faith or willful
misconduct on the part of the Trustee and arising out of or in connection with
the acceptance or administration of this trust, including the costs and expenses
of defending itself against any claim of liability in the premises.

                    (b) The obligations of the Company under this Section to
compensate and indemnify the Trustee and to pay or reimburse the Trustee for
expenses, disbursements and advances shall constitute additional indebtedness
hereunder. Such additional indebtedness shall be secured by a lien prior to that
of the Securities upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the benefit of the holders of particular
Securities.

                    (c) The provisions of this Section 7.06 shall survive the
resignation or removal of the Trustee and the termination of this Indenture.

               SECTION 7.07 Reliance on Officers' Certificate. Except as
                            ---------------------------------
otherwise provided in Section 7.01, whenever in the administration of the
provisions of this Indenture the Trustee shall deem it necessary or desirable
that a matter be proved or established prior to taking or suffering or omitting
to take any action hereunder, such matter (unless other evidence in respect
thereof be herein specifically prescribed) may, in the absence of negligence or
bad faith

                                       31

<PAGE>

on the part of the Trustee, be deemed to be conclusively proved and established
by an Officers' Certificate delivered to the Trustee and such certificate, in
the absence of negligence or bad faith on the part of the Trustee, shall be full
warrant to the Trustee for any action taken, suffered or omitted to be taken by
it under the provisions of this Indenture upon the faith thereof.

               SECTION 7.08 Disqualification; Conflicting Interests. If the
                            ---------------------------------------
Trustee has or shall acquire any "conflicting interest" within the meaning of
Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall in
all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

               SECTION 7.09 Corporate Trustee Required; Eligibility. There shall
                            ---------------------------------------
at all times be a Trustee with respect to the Securities issued hereunder which
shall at all times be a corporation organized and doing business under the laws
of the United States of America or any State or Territory thereof or of the
District of Columbia, or a corporation or other Person permitted to act as
trustee by the Commission, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least fifty million
U.S. dollars ($50,000,000), and subject to supervision or examination by
Federal, State, Territorial, or District of Columbia authority. If such
corporation publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. The Company may not, nor
may any Person directly or indirectly controlling, controlled by, or under
common control with the Company, serve as Trustee. In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.10.

               SECTION 7.10 Resignation and Removal; Appointment of Successor.
                            -------------------------------------------------
(a) The Trustee or any successor hereafter appointed, may at any time resign
with respect to the Securities of one or more series by giving written notice
thereof to the Company and by transmitting notice of resignation by mail, first
class postage prepaid, to the Securityholders of such series, as their names and
addresses appear upon the Security Register. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor trustee with respect
to Securities of such series by written instrument, in duplicate, executed by
order of the Board of Directors, one copy of which instrument shall be delivered
to the resigning Trustee and one copy to the successor trustee. If no successor
trustee shall have been so appointed and have accepted appointment within 30
days after the mailing of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee with respect to Securities of such series, or any Securityholder of that
series who has been a bona fide holder of a Security or Securities for at least
six months may on behalf of himself and all others similarly situated, petition
any such court for the appointment of a successor trustee. Such court may
thereupon after such notice, if any, as it may deem proper and prescribe,
appoint a successor trustee.

                    (b) In case at any time any one of the following shall
occur:

                                       32

<PAGE>

                        (1) the Trustee shall fail to comply with the provisions
        of Section 7.08 after written request therefor by the Company or by any
        Securityholder who has been a bona fide holder of a Security or
        Securities for at least six months; or

                        (2) the Trustee shall cease to be eligible in accordance
        with the provisions of Section 7.09 and shall fail to resign after
        written request therefor by the Company or by any such Securityholder;
        or

                        (3) the Trustee shall become incapable of acting with
        respect to the Securities, or shall be adjudged a bankrupt or insolvent,
        or commence a voluntary bankruptcy proceeding, or a receiver of the
        Trustee or of its property shall be appointed or consented to, or any
        public officer shall take charge or control of the Trustee or of its
        property or affairs for the purpose of rehabilitation, conservation or
        liquidation, then, in any such case, the Company may remove the Trustee
        with respect to all Securities and appoint a successor trustee by
        written instrument, in duplicate, executed by order of the Board of
        Directors, one copy of which instrument shall be delivered to the
        Trustee so removed and one copy to the successor trustee, or, unless the
        Trustee's duty to resign is stayed as provided herein, any
        Securityholder who has been a bona fide holder of a Security or
        Securities for at least six months may, on behalf of that holder and all
        others similarly situated, petition any court of competent jurisdiction
        for the removal of the Trustee and the appointment of a successor
        trustee. Such court may thereupon after such notice, if any, as it may
        deem proper and prescribe, remove the Trustee and appoint a successor
        trustee.

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

                    (d) Any resignation or removal of the Trustee and
appointment of a successor trustee with respect to the Securities of a series
pursuant to any of the provisions of this Section shall become effective upon
acceptance of appointment by the successor trustee as provided in Section 7.11.

                    (e) Any successor trustee appointed pursuant to this Section
may be appointed with respect to the Securities of one or more series or all of
such series, and at any time there shall be only one Trustee with respect to the
Securities of any particular series.

               SECTION 7.11 Acceptance of Appointment By Successor. (a) In case
                            --------------------------------------
of the appointment hereunder of a successor trustee with respect to all
Securities, every such successor trustee so appointed shall execute, acknowledge
and deliver to the Company and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee; but, on the request of the Company or the
successor trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor trustee all the
rights, powers, and trusts of the retiring Trustee and shall duly assign,

                                       33

<PAGE>

transfer and deliver to such successor trustee all property and money held by
such retiring Trustee hereunder.

                    (b) In case of the appointment hereunder of a successor
trustee with respect to the Securities of one or more (but not all) series, the
Company, the retiring Trustee and 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 or desirable
to transfer and confirm to, and to vest in, each successor trustee all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
trustee relates, (2) shall contain such provisions as shall be deemed necessary
or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust, that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee and that no Trustee shall be responsible
for any act or failure to act on the part of any other Trustee hereunder; and
upon the execution and delivery of such supplemental indenture the resignation
or removal of the retiring Trustee shall become effective to the extent provided
therein, such retiring Trustee shall with respect to the Securities of that or
those series to which the appointment of such successor trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture, and each such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor trustee relates; but, on request of
the Company or any successor trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor trustee, to the extent contemplated by
such supplemental indenture, the property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor trustee relates.

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

                    (c) No successor trustee shall accept its appointment unless
at the time of such acceptance such successor trustee shall be qualified and
eligible under this Article.

                    (e) Upon acceptance of appointment by a successor trustee as
provided in this Section, the Company shall transmit notice of the succession of
such trustee hereunder by mail, first class postage prepaid, to the
Securityholders, as their names and addresses appear upon the Security Register.
If the Company fails to transmit such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be transmitted at the expense of the Company.

                                       34

<PAGE>

          SECTION 7.12 Merger, Conversion, Consolidation or Succession to
                       --------------------------------------------------
Business. Any corporation into which the Trustee may be merged or converted or
--------
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the corporate trust business of the Trustee, shall be
the successor of the Trustee hereunder, provided that such corporation shall be
qualified under the provisions of Section 7.08 and eligible under the provisions
of Section 7.09, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

          SECTION 7.13 Preferential Collection of Claims Against the Company.
                       -----------------------------------------------------
The Trustee shall comply with Section 311(a) of the Trust Indenture Act,
excluding any creditor relationship described in Section 311(b) of the Trust
Indenture Act. A Trustee who has resigned or been removed shall be subject to
Section 311(a) of the Trust Indenture Act to the extent included therein.

                                  ARTICLE VIII
                                  ------------

                         Concerning the Securityholders
                         ------------------------------

          SECTION 8.01 Evidence of Action by Securityholders. Whenever in this
                       -------------------------------------
Indenture it is provided that the holders of a majority or specified percentage
in aggregate principal amount of the Securities of a particular 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 majority or specified
percentage of that series have joined therein may be evidenced by any instrument
or any number of instruments of similar tenor executed by such holders of
Securities of that series in Person or by agent or proxy appointed in writing.
If the Company shall solicit from the Securityholders of any series any request,
demand, authorization, direction, notice, consent, waiver or other action, the
Company may, at its option, as evidenced by an Officers' Certificate, fix in
advance a record date for such series for the determination of Securityholders
entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other action, but the Company shall have no obligation to do
so. If such a record date is fixed, such request, demand, authorization,
direction, notice, consent, waiver or other action may be given before or after
the record date, but only the Securityholders of record at the close of business
on the record date shall be deemed to be Securityholders for the purposes of
determining whether Securityholders of the requisite proportion of Outstanding
Securities of that series have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent, waiver or other
action, and for that purpose the Outstanding Securities of that series shall be
computed as of the record date; provided, however, that no such authorization,
                                --------  -------
agreement or consent by such Securityholders on the record date shall be deemed
effective unless it shall become effective pursuant to the provisions of this
Indenture not later than six months after the record date.

                                       35

<PAGE>

          SECTION 8.02  Proof of Execution by Securityholders. Subject to the
                        -------------------------------------
provisions of Section 7.01, proof of the execution of any instrument by a
Securityholder (such proof will not require notarization) or his agent or proxy
and proof of the holding by any Person of any of the Securities shall be
sufficient if made in the following manner:

               (a) The fact and date of the execution by any such Person of any
instrument may be proved in any reasonable manner acceptable to the Trustee.

               (b) The ownership of Securities shall be proved by the Security
Register of such Securities or by a certificate of the Registrar thereof.

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

          SECTION 8.03  Who May be Deemed Owners. Prior to the due presentment
                        ------------------------
for registration of transfer of any Security, the Company, the Trustee, any
paying agent and any Registrar may deem and treat the Person in whose name such
Security shall be registered upon the books of the Company 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 Registrar) for the purpose of receiving payment of or on account of the
principal of, premium, if any, and (subject to Section 2.03) interest on such
Security and for all other purposes; and neither the Company nor the Trustee nor
any paying agent nor any Registrar shall be affected by any notice to the
contrary.

          SECTION 8.04  Certain Securities Owned by Company Disregarded. In
                        -----------------------------------------------
determining whether the holders of the requisite aggregate principal amount of
Securities of a particular series have concurred in any direction, consent or
waiver under this Indenture, the Securities of that series that are owned by the
Company or any other obligor on the Securities of that series or by any Person
directly or indirectly controlling or controlled by or under common control with
the Company or any other obligor on 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 such series that the Trustee actually knows are so owned shall be
so disregarded. The Securities so owned that have been pledged in good faith may
be regarded as Outstanding for the purposes of this Section, if the pledgee
shall establish to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not a Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company or 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 8.05  Actions Binding on Future Securityholders. At any time
                        -----------------------------------------
prior to (but not after) the evidencing to the Trustee, as provided in Section
8.01, of the taking of any action by the holders of the majority or percentage
in aggregate principal amount of the Securities of a particular series specified
in this Indenture in connection with such action, any holder of a Security of
that series that is shown by the evidence to be included in the Securities the
holders of which have consented to such action may, by filing written notice
with the

                                       36

<PAGE>

Trustee, and upon proof of holding as provided in Section 8.02, revoke such
action so far as concerns such Security. Except as aforesaid any such action
taken by the holder of any Security shall be conclusive and binding upon such
holder and upon all future holders and owners of such Security, and of any
Security issued in exchange therefor, on registration of transfer thereof 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 a particular
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.

                                   ARTICLE IX
                                   ----------

                             Supplemental Indentures
                             -----------------------

          SECTION 9.01 Supplemental Indentures Without the Consent of
                       ----------------------------------------------
Securityholders. In addition to any supplemental indenture otherwise authorized
---------------
by this Indenture, the Company 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 as then in effect), without
the consent of the Securityholders, for one or more of the following purposes:

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

               (b) 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 Ten;

               (c) to provide for uncertificated Securities in addition to or in
place of certificated Securities;

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

               (e) to add to, delete from, or revise the conditions,
limitations, and restrictions on the authorized amount, terms, or purposes of
issue, authentication, and delivery of Securities, as herein set forth;

               (f) to make any change that does not materially adversely affect
the rights of any Securityholder;

                                       37

<PAGE>

               (g) to provide for the issuance of and establish the form and
terms and conditions of the Securities of any series as provided in Section
2.01, to establish the form of any certifications required to be furnished
pursuant to the terms of this Indenture or any series of Securities, or to add
to the rights of the holders of any series of Securities;

               (h) to secure the Securities pursuant to the requirements of
Section 4.05;

               (i) to add any additional Events of Default;

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

               (k) 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 the one Trustee, pursuant to the requirements of Section
7.11; and

               (l) to comply with requirements of the Commission in order to
effect or maintain the qualification of this Indenture under the Trust Indenture
Act.

          The Trustee is hereby authorized to join with the Company in the
execution of any such supplemental indenture, and to make any further
appropriate agreements and stipulations that may be therein contained, but the
Trustee shall not be obligated to enter into any such supplemental indenture
that affects the Trustee's own rights, duties or immunities under this Indenture
or otherwise.

          Any supplemental indenture authorized by the provisions of this
Section 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 9.02.

          SECTION 9.02 Supplemental Indentures With Consent of Securityholders.
                       -------------------------------------------------------
With the consent (evidenced as provided in Section 8.01) of the holders of not
less than a majority in aggregate principal amount of the Securities of each
series affected by such supplemental indenture or indentures at the time
Outstanding (including consents obtained in connection with a tender offer or
exchange offer for the Securities), the Company, when authorized by resolution
of its Board of Directors, 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 as then in effect) for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying in
any manner not covered by Section 9.01 the rights of the holders of the
Securities of such series under this Indenture; provided, however, that no such
                                                --------  -------
supplemental indenture shall, without the consent of the holders of each
Security then Outstanding and affected thereby, (i) extend the fixed maturity of
any Securities of any series, or reduce the principal amount thereof, or reduce
the rate or extend the time of payment of interest thereon, or reduce any
premium payable upon the redemption thereof or (ii) reduce the aforesaid

                                       38

<PAGE>

percentage of Securities, the holders of which are required to consent to any
such supplemental indenture.

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

          SECTION 9.03 Effect of Supplemental Indentures. Upon the execution of
                       ---------------------------------
any supplemental indenture pursuant to the provisions of this Article or of
Section 10.01, this Indenture shall, with respect to such series, 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 holders of Securities of the
series 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 9.04 Securities Affected by Supplemental Indentures.
                       ----------------------------------------------
Securities of any series affected by a supplemental indenture, authenticated and
delivered after the execution of such supplemental indenture pursuant to the
provisions of this Article or of Section 10.01 may bear a notation in form
approved by the Company, provided such form meets the requirements of any
exchange upon which such series may be listed, as to any matter provided for in
such supplemental indenture. If the Company shall so determine, new Securities
of that series so modified as to conform, in the opinion of the Board of
Directors of the Company, to any modification of this Indenture contained in any
such supplemental indenture may be prepared by the Company, authenticated by the
Trustee and delivered in exchange for the Securities of that series then
Outstanding.

          SECTION 9.05 Execution of Supplemental Indentures. Upon the request of
                       ------------------------------------
the Company, accompanied by its Board Resolutions authorizing the execution of
any such supplemental indenture, and upon the filing with the Trustee of
evidence of the consent of Securityholders, if required to consent thereto 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. The Trustee, subject to the provisions of Section
7.01, shall be provided an Officers' Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this
Article complies with the applicable provisions of this Indenture; provided,
                                                                   --------
however, that such Officers' Certificate and Opinion of Counsel need not be
-------
provided in connection with the execution of a supplemental indenture that
establishes the terms of a series of Securities pursuant to Section 2.01 hereof.

          Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall transmit by mail, first class postage prepaid, a notice, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or

                                       39

<PAGE>

any defect therein, shall not, however, in any way impair or affect the validity
of any such supplemental indenture.

                                    ARTICLE X
                                    ---------

                              Successor Corporation
                              ---------------------

          SECTION 10.01 Company May Consolidate, Etc. Nothing contained in this
                        ----------------------------
Indenture or in any of the Securities shall prevent any consolidation or merger
of the Company with or into any other entity or entities (whether or not
affiliated with the Company) or successive consolidations or mergers in which
the Company or any of its successors shall be a party or parties, or shall
prevent any sale, conveyance, lease, transfer or other disposition of all or
substantially all of the property of the Company or any of its successors, to
any other entity (whether or not affiliated with the Company or its successors)
authorized to acquire and operate the same; provided, however, the Company
                                            --------  -------
hereby covenants and agrees that, upon any such consolidation, merger, sale,
conveyance, lease, transfer or other disposition involving the Company or all or
substantially all of the property of the Company, if the Company is not the
surviving entity, the due and punctual payment of the principal of (premium, if
any) and interest on all of the Securities of all series in accordance with the
terms of each series, according to their tenor and the due and punctual
performance and observance of all the covenants and conditions of this Indenture
with respect to each series or established with respect to such series pursuant
to Section 2.01 to be kept or performed by the Company shall be expressly
assumed, by supplemental indenture (which shall conform to the provisions of the
Trust Indenture Act, as then in effect) reasonably satisfactory in form to the
Trustee executed and delivered to the Trustee by the entity formed by such
consolidation, or into which the Company shall have been merged, or by the
entity which shall have acquired such property.

          SECTION 10.02 Successor Corporation Substituted. (a) In case of any
                        ---------------------------------
such consolidation, merger, sale, conveyance, lease, transfer or other
disposition and upon the assumption by the successor entity, by supplemental
indenture, executed and delivered to the Trustee and satisfactory in form to the
Trustee, of the due and punctual payment of the principal of, premium, if any,
and interest on all of the Securities of all series Outstanding and the due and
punctual performance of all of the covenants and conditions of this Indenture or
established with respect to each series of the Securities pursuant to Section
2.01 to be performed by the Company with respect to each series, such successor
entity shall succeed to and be substituted for and may exercise every right and
power of the Company under this Indenture with the same effect as if it had been
named as the Company herein, and thereupon the predecessor entity shall be
relieved of all obligations and covenants under this Indenture and the
Securities.

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

               (c) Nothing contained in this Indenture or in any of the
Securities shall prevent the Company from merging into itself or acquiring by
purchase or otherwise all or any part of the property of any other Person
(whether or not affiliated with the Company).

                                       40

<PAGE>

               SECTION 10.03 Securities to be Secured in Certain Events. If,
                             ------------------------------------------
upon any consolidation, merger, sale, conveyance, lease, transfer or other
disposition referred to in Section 10.01, any Principal Properties of the
Company or of any Restricted Subsidiary or any shares of capital stock or
indebtedness of any Restricted Subsidiary which is owned immediately after such
consolidation, merger, sale, conveyance, lease, transfer or other disposition by
the Company or a Restricted Subsidiary or a successor to the Company pursuant to
Sections 10.01 and 10.02 would thereupon become subject to any mortgage, deed of
trust, security interest, pledge, lien or encumbrance (other than a mortgage,
deed of trust, security interest, pledge, lien or encumbrance in favor of the
Company, a Restricted Subsidiary or any such successor), then unless such
mortgage, deed of trust, security interest, pledge, lien or encumbrance could be
created pursuant to Section 4.05 without equally and ratably securing the
Securities, the Company or Restricted Subsidiary shall, prior to or concurrently
with such consolidation, merger, sale, conveyance, lease, transfer or other
disposition, effectively provide that the Securities shall be secured equally
and ratably with (or prior to) the obligation or liability which upon such
consolidation, merger, sale, conveyance, lease, transfer or other disposition is
to become secured as to such properties or assets by such mortgage, deed of
trust, security interest, pledge, lien or encumbrance, so long as such
properties or assets shall be subject to such mortgage, deed of trust, security
interest, pledge, lien or encumbrance.

               SECTION 10.04 Evidence of Consolidation, Etc. to Trustee. The
                             ------------------------------------------
Trustee, subject to the provisions of Section 7.01, shall be provided an
Officers' Certificate and an Opinion of Counsel as conclusive evidence that any
such consolidation, merger, sale, conveyance, transfer or other disposition, and
any such assumption, comply with the provisions of this Article.

                                   ARTICLE XI
                                   ----------

                    Satisfaction and Discharge and Defeasance
                    -----------------------------------------

               SECTION 11.01 Satisfaction and Discharge of Indenture. If at any
                             ---------------------------------------
time: (a) the Company shall have delivered to the Trustee for cancellation all
Securities of a series theretofore authenticated (other than any Securities that
shall have been destroyed, lost or stolen and that shall have been replaced or
paid as provided in Section 2.07 and Securities for whose payment money and/or
Governmental Obligations have theretofore been deposited in trust or segregated
and held in trust by the Company and thereupon repaid to the Company or
discharged from such trust, as provided in Section 11.05); or (b) all such
Securities of a particular series not theretofore delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become
due and payable 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 or cause to be deposited with the
Trustee as trust funds the entire amount in moneys or Governmental Obligations
sufficient or a combination thereof, sufficient in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay at maturity or upon
redemption all Securities of that series not theretofore delivered to the
Trustee for cancellation, including principal (and premium, if any) and interest
due or to become due to such date of maturity or date fixed for redemption, as
the case may be, and if the Company shall also pay or cause to be paid all other
sums payable hereunder with respect to such series by the

                                       41

<PAGE>

Company, and shall deliver an Officer's Certificate and an Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this indenture with respect to such series have
been complied with, then this Indenture shall thereupon cease to be of further
effect with respect to such series except for (i) the provisions of Sections
2.03, 2.04, 2.05, 2.06, 2.07, 2.09, 2.10, 2.11, 4.02, 4.03, 4.04, 5.01, 7.05,
7.06, 7.10, 10.01, 10.02 and 10.04, that shall survive until the Securities have
been paid in full (thereafter, the Company's obligations in Sections 7.06 only
shall survive) and (ii) this Article XI. Upon the Company's exercise of this
Section 11.01(a), the Trustee, on demand of the Company and at the cost and
expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture with respect to such series.

               SECTION 11.02 Defeasance and Covenant Defeasance. In addition to
                             ----------------------------------
discharge of this Indenture pursuant to Section 11.01, if this Section is
specified, as contemplated by Section 2.01, to be applicable to Securities of
any series, the Company may at its option elect at any time either to effect:
(i) a defeasance and discharge of the Securities of any particular series under
Section 11.02(a) below; or (ii) a covenant defeasance of the Securities of any
particular series under Section 11.02(b) below; in each case upon compliance
with the applicable conditions set forth in Section 11.02(c).

                    (a) Upon election by the Company to effect a defeasance and
discharge of the Securities of any series under this Section 11.02(a) and
satisfaction of the conditions precedent set forth in Section 11.02(c) with
respect to the Securities of such series, the Company shall be deemed to have
paid and discharged the Securities of such series and the Company shall be
deemed to have satisfied all its other obligations under such Securities and all
its other obligations relating to such Securities under the Indenture, except
for (i) the provisions of Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.09, 2.10,
2.11, 4.02, 4.03, 4.04, 5.01, 7.05, 7.06, 7.10, 10.01, 10.02 and 10.04, that
shall survive until the Securities have been paid in full (thereafter, the
Company's obligations in Sections 7.06 only shall survive) and (ii) this Article
XI.

                    (b) Upon election by the Company to effect a covenant
defeasance with respect to the Securities of any series under this Section
11.02(b), the Company shall be released from its obligations under Section 4.05,
Section 4.06 and Section 10.03 of this Indenture (if applicable to such series)
and any covenants made applicable to the Securities of such series which are
subject to defeasance under the terms of any indenture supplemental hereto or
the terms otherwise established with respect to such series pursuant to Section
2.01 hereof and any such failure to comply with such covenants shall not
constitute a default or Event of Default hereunder on or after the date the
conditions precedent set forth in Section 11.02(c) are satisfied (hereinafter,
"covenant defeasance"). For this purpose, such covenant defeasance means that
the Company may omit to comply with and shall have no liability in respect of
any term, condition or limitation set forth in Section 4.05, Section 4.06 and
Section 10.03 of this Indenture (if applicable to such series) or in any other
covenant applicable to such series which is subject to defeasance under the
terms of an indenture supplemental hereto or the terms otherwise established
with respect to such series pursuant to Section 2.01 hereof pertaining to such
series.

                    (c) The following shall be conditions precedent to the
application of Sections 11.02(a) and 11.02(b):

                                       42

<PAGE>

                         (i)   with respect to Section 11.02(a) or 11.02(b) the
        Company shall have deposited or cause to be deposited irrevocably with
        the Trustee, as trust funds in trust for the purpose of making the
        following payments and specifically pledged as security for and
        dedicated solely to the benefit of the holders of the Securities to be
        defeased, cash in U.S. dollars (or such other money or currencies as
        shall then be legal tender in the United States) and/or Governmental
        Obligations, which through the scheduled payment of interest and
        principal in respect thereof, in accordance with their terms, will be
        provided (and without reinvestment and assuming no tax liability will be
        imposed on the Trustee), not later than one day before the due date of
        any payment of money, an amount in cash, sufficient, in the opinion of a
        nationally recognized firm of independent certified public accountants
        expressed in a written certification thereof delivered to the Trustee,
        to discharge principal (including premium, if any) and interest on such
        Securities on the stated maturity of such principal or installment of
        principal or interest on the dates on which such installments of
        principal and interest are due, in accordance with the terms of this
        Indenture, any indenture supplemental thereto entered into pursuant to
        Section 2.01 with respect to such Securities, and such Securities;

                         (ii)  in the case of defeasance under Section 11.02(a),
        the Company shall have delivered to the Trustee an Opinion of Counsel
        based on the fact that (A) the Company has received from, or there has
        been published by, the Internal Revenue Service a ruling (which ruling
        may be, but need not be, issued with respect to the Company) or (B)
        since the date of this Indenture, there has been a change in the
        applicable United States federal income tax law, in either case to the
        effect that, and such opinion shall confirm that, the holders of the
        Outstanding Securities of such series will not recognize income, gain or
        loss for United States federal income tax purposes as a result of such
        deposit, defeasance and discharge and will be subject to United States
        federal income tax on the same amount and in the same manner and at the
        same times as would have been the case if such deposit, defeasance and
        discharge had not occurred;

                         (iii) in the case of covenant defeasance under Section
        11.02(b), the Company shall have delivered to the Trustee an Opinion of
        Counsel to the effect that, and such opinion shall confirm that, the
        holders of the Outstanding Securities of such series will not recognize
        income, gain or loss for United States federal income tax purposes as a
        result of such deposit and covenant defeasance and will be subject to
        United States federal income tax on the same amount and in the same
        manner and at the same times as would have been the case if such deposit
        and covenant defeasance had not occurred;

                         (iv)  no Event of Default or Default with respect to
        the Securities to be defeased shall have occurred and be continuing on
        the date of such deposit, and no such Event of Default under Sections
        6.01(a) (4) or (5) or event which with the giving of notice or lapse of
        time, or both, would become such an Event of Default under Sections
        6.01(a) (4) or (5) shall have occurred and be continuing on the 91st day
        after such date or, if longer, ending on the day following the
        expiration of the longest preference period applicable to the Company in
        respect of such deposit (it being understood that this condition of this
        subsection (iii) shall not be deemed satisfied until the expiration of
        such period);

                                       43

<PAGE>

                             (v)    such deposit and defeasance or covenant
        defeasance will not result in a breach or violation of, or constitute a
        default under, this Indenture or any other agreement or instrument to
        which the Company is a party or by which it is bound;

                             (vi)   the Company has delivered to the Trustee an
        Officers' Certificate and an Opinion of Counsel, each stating that all
        conditions precedent provided for relating to either the defeasance and
        discharge under Section 11.02(a) or the covenant defeasance under
        Section 11.02(b) (as the case may be) have been complied with;

                             (vii)  such defeasance and discharge or covenant
        defeasance will not cause the Trustee to have a conflicting interest as
        defined in Section 7.08 or for purposes of the Trust Indenture Act with
        respect to any securities of the Company or result in the trust arising
        from such deposit to constitute an investment company under the
        Investment Company Act of 1940 or such trust shall be qualified under
        such act or exempt from regulation thereunder; and

                             (viii) the Company has paid or caused to be paid
        all other sums payable with respect to the Securities to be defeased.

               SECTION 11.03 Deposited Moneys to be Held in Trust. All moneys or
                             ------------------------------------
Governmental Obligations deposited with the Trustee pursuant to Sections 11.01
or 11.02 shall be held in trust and shall be available for payment as due,
either directly or through any paying agent (including the Company acting as its
own paying agent), to the holders of the particular series of Securities for the
payment or redemption of which such moneys or Governmental Obligations have been
deposited with the Trustee.

               SECTION 11.04 Payment of Moneys Held by Paying Agents. In
                             ---------------------------------------
connection with the satisfaction and discharge of this Indenture, all moneys or
Governmental Obligations then held by any paying agent under the provisions of
this Indenture shall, upon demand of the Company, be paid to the Trustee and
thereupon such paying agent shall be released from all further liability with
respect to such moneys or Governmental Obligations.

               SECTION 11.05 Repayment to Company. Any moneys or Governmental
                             --------------------
Obligations deposited with any paying agent or the Trustee, or then held by the
Company, in trust for payment of principal of or premium or interest on the
Securities of a particular series that are not applied but remain unclaimed by
the holders of such Securities for at least two years after the date upon which
the principal of (and premium, if any) or interest on such Securities shall have
respectively become due and payable, shall be repaid to the Company on May 31 of
each year or (if then held by the Company) shall be discharged from such trust;
and thereupon the paying agent and the Trustee shall be released from all
further liability with respect to such moneys or Governmental Obligations, and
the holder of any of the Securities entitled to receive such payment shall
thereafter, as an unsecured general creditor, look only to the Company for the
payment thereof.

                                       44

<PAGE>

               SECTION 11.06  Reinstatement. If the Trustee or the paying agent
                              -------------
is unable to apply any money in accordance with either Section 11.01 or 11.02 by
reason of any order or judgment of any court or governmental authority
enjoining, restraining, or otherwise prohibiting such application, then the
Company's obligations under the Securities to be defeased shall be revived and
reinstated as though no deposit had occurred pursuant to this Article XI until
such time as the Trustee or paying agent is permitted to apply all such money in
accordance with Section 11.01 or 11.02; provided, however, that if the Company
                                        --------  -------
makes any payment of principal of (and premium, if any) or interest on any such
Securities following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the holders of such Securities to receive such
payment from the money held by the Trustee or paying agent.

               SECTION 11.07  Other Coin or Currency Units. Notwithstanding the
                              ----------------------------
foregoing provisions of this Article Eleven, if the Securities of any series are
payable in a coin or currency or currency unit other than such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public or private debts, the coin or currency or currency unit or the
nature of the government obligations to be deposited with the Trustee under the
foregoing provisions of this Article Eleven shall be set forth in the Officers'
Certificate or established in the supplemental indenture under which the
Securities of such series are issued.

                                  ARTICLE XII
                                  -----------

                Immunity of Incorporators, Stockholders, Officers
                --------------------------------------------------
                                  and Directors
                                  -------------

               SECTION 12.01  No Recourse. No recourse under or upon any
                              -----------
obligation, covenant or agreement of this Indenture, or of any Security, or for
any claim based thereon or otherwise in respect thereof, shall be had against
any incorporator, stockholder, officer or director, past, present or future as
such, of the Company or of any predecessor or successor corporation, either
directly or through the Company or any such predecessor or successor
corporation, whether by virtue of any constitution, statute or rule of law, by
the enforcement of any assessment or penalty, by any legal or equitable
proceeding 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 predecessor or 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 or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by
constitution or statute, of, and any and all such rights and claims against,
every such incorporator, 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 of
the Securities or implied therefrom, are hereby expressly waived and released as
a condition of, and as a consideration for, the execution of this Indenture and
the issuance of such Securities.

                                       45

<PAGE>

                                  ARTICLE XIII
                                  ------------

                            Miscellaneous Provisions
                            ------------------------

               SECTION 13.01 Effect on Successors and Assigns. All the
                             --------------------------------
covenants, stipulations, promises and agreements in this Indenture contained by
or on behalf of the Company shall bind their respective successors and assigns,
whether so expressed or not.

               SECTION 13.02 Actions by Successor. Any act or proceeding by any
                             --------------------
provision of this Indenture authorized or required to be done or performed by
any board, committee or officer of the Company shall and may be done and
performed with like force and effect by the corresponding board, committee or
officer of any corporation that shall at the time be the lawful sole successor
of the Company.

               SECTION 13.03 Notices. Except as otherwise expressly provided
                             -------
herein any notice or demand that by any provision of this Indenture is required
or permitted to be given or served by the Trustee or by the holders of
Securities to or on the Company may be given or served by being deposited first
class postage prepaid in a post-office letterbox addressed (until another
address is filed in writing by the Company with the Trustee), as follows:
Steelcase Inc., 901 44th Street, Grand Rapids, Michigan 49508, Attention: Legal
Services. Any notice, election, request or demand by the Company or any
Securityholder to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made in writing at the Corporate
Trust Office of the Trustee. Any notice to be given to any Securityholder shall
be given to each Securityholder by being deposited first class postage prepaid
in a post-office letterbox addressed to his or her address as it appears in the
Security Register and shall be sufficiently given if so mailed within the time
prescribed herein. Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

               SECTION 13.04 Governing Law. This Indenture and each Security
                             -------------
shall be deemed to be a contract made under the internal laws of the State of
New York, and for all purposes shall be construed in accordance with the laws of
said State.

               SECTION 13.05 Treatment of Securities as Debt. It is intended
                             -------------------------------
that the Securities will be treated as indebtedness and not as equity for
federal income tax purposes. The provisions of this Indenture shall be
interpreted to further this intention.

               SECTION 13.06 Compliance Certificates and Opinions. (a) Upon any
                             ------------------------------------
application or demand 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 provided for in
this Indenture relating to the proposed action have been complied with and an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent have been complied with, except that in the case of any
such application or demand as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or demand, no additional certificate or opinion need be
furnished.

                                       46

<PAGE>

                    (b) Each certificate or opinion provided for in this
Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant in this Indenture shall include (1) 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.

                    (c) Any certificate, statement or opinion of any 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 or information with respect to which is
in the possession of the Company, upon the certificate, statement or opinion of
or representations by an officer of 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 of 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.

               SECTION 13.07 Payments on Business Days. Except as provided
                             -------------------------
pursuant to Section 2.01 pursuant to a Board Resolution, and as set forth in an
Officers' Certificate, or established in one or more indentures supplemental to
this Indenture, in any case where the date of maturity of interest or principal
of any Security or the date of redemption of any Security shall not be a
Business Day, then payment of interest or principal (and premium, if any) may be
made on the next succeeding Business Day with the same force and effect as if
made on the nominal date of maturity or redemption, and no additional interest
shall accrue as a result of such payment being made on the next succeeding
Business Day.

               SECTION 13.08 Conflict with Trust Indenture Act. If and to the
                             ---------------------------------
extent that any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture
Act, such imposed duties shall control.

                                       47

<PAGE>

               SECTION 13.09 Effect of Headings and Table of Contents. The
                             ----------------------------------------
Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

               SECTION 13.10 Counterparts. This Indenture may be executed in any
                             ------------
number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one and the same instrument.

               SECTION 13.11 Separability. 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 or of such Securities, but this Indenture and such
Securities shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.

               SECTION 13.12 Assignment. The Company will have the right at all
                             ----------
times to assign any of its rights or obligations under this Indenture to a
direct or indirect wholly-owned Subsidiary, provided that, in the event of any
such assignment, the Company, will remain liable for all such obligations.
Subject to the foregoing, the Indenture is binding upon and inures to the
benefit of the parties thereto and their respective successors and assigns. This
Indenture may not otherwise be assigned by the parties thereto.

                                       48

<PAGE>

               IN WITNESS WHEREOF, the parties hereto have caused this Indenture
to be duly executed all as of the day and year first above written.

                                      STEELCASE INC.

                                       by

                                         /s/ James P. Keane
                                         -------------------------------------
                                         Name:  James P. Keane
                                         Title: Senior Vice President and
                                                Chief Financial Officer

                                      BANK ONE TRUST COMPANY, N.A.,
                                      as Trustee

                                       by

                                         /s/ J. Morand
                                         -------------------------------------
                                         Name:  J. Morand
                                         Title: Vice President

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