<Page>

                                                                     EXHIBIT 4.5


                                     AMENDED

                                       AND

                                    RESTATED

                              DECLARATION OF TRUST

<Page>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                   <C>
                                    ARTICLE 1
                         INTERPRETATION AND DEFINITIONS

Section 1.01.  Interpretation and Definitions..........................................1

                                    ARTICLE 2
                               TRUST INDENTURE ACT

Section 2.01.  Trust Indenture Act; Application.......................................13
Section 2.02.  List of Holders of the Securities......................................13
Section 2.03.  Reports by the Property Trustee........................................13
Section 2.04.  Periodic Reports to the Property Trustee...............................14
Section 2.05.  Evidence of Compliance with Conditions Precedent.......................14

                                    ARTICLE 3
                                  ORGANIZATION

Section 3.01.  Name and Organization..................................................14
Section 3.02.  Office.................................................................14
Section 3.03.  Purpose................................................................14
Section 3.04.  Authority..............................................................15
Section 3.05.  Title to Property of the Trust.........................................15
Section 3.06.  Powers and Duties of the Administrative Trustees.......................15
Section 3.07.  Prohibition of Actions by the Trust and the Trustees...................18
Section 3.08.  Powers and Duties of the Property Trustee..............................19
Section 3.09.  Certain Duties and Responsibilities of the Property Trustee............21
Section 3.10.  Certain Rights of Property Trustee.....................................23
Section 3.11.  Delaware Trustee.......................................................25
Section 3.12.  Intentionally Omitted..................................................25
Section 3.13.  Not Responsible for Recitals or Issuance of Securities.................25
Section 3.14.  Duration of Trust......................................................25
Section 3.15.  Mergers................................................................25
Section 3.16.  Compensation and Reimbursement.........................................27
Section 3.17.  Property Trustee May File Proofs of Claim..............................27
Section 3.18.  Registration Statement and Related Matters.............................28
Section 3.19.  Books and Records......................................................28

                                    ARTICLE 4
                                   THE SPONSOR

Section 4.01.  Responsibilities of the Sponsor........................................29
</Table>

                                        i
<Page>

<Table>
<S>                                                                                   <C>
                                    ARTICLE 5
                      THE HOLDERS OF THE COMMON SECURITIES

Section 5.01.  [Subordinated] Notes Issuer's Purchase of the Common Securities........29
Section 5.02.  Covenants of the [Subordinated] Notes Issuer...........................30
Section 5.03.  Holder of the Common Securities........................................30
Section 5.04.  Exchanges..............................................................30

                                    ARTICLE 6
                                  THE TRUSTEES

Section 6.01.  Number of Trustees.....................................................31
Section 6.02.  Delaware Trustee; Eligibility..........................................31
Section 6.03.  Property Trustee; Eligibility..........................................32
Section 6.04.  Qualifications of the Administrative Trustees Generally................32
Section 6.05.  Initial Administrative Trustees........................................33
Section 6.06.  Appointment, Removal and Resignation of the Trustees...................33
Section 6.07.  Vacancies among Trustees...............................................34
Section 6.08.  Effect of Vacancies....................................................35
Section 6.09.  Meetings...............................................................35
Section 6.10.  Delegation of Power by the Administrative Trustees.....................35
Section 6.11.  Merger, Consolidation, Conversion or Succession to Business............35

                                    ARTICLE 7
                             TERMS OF THE SECURITIES

Section 7.01.  General Provisions Regarding the Securities............................36
Section 7.02.  Distributions..........................................................39
Section 7.03.  Redemption of Securities...............................................40
Section 7.04.  Redemption Procedures..................................................41
Section 7.05.  Voting Rights of the Preferred Securities..............................42
Section 7.06.  Voting Rights of the Common Securities.................................45
Section 7.07.  Paying Agent...........................................................47
Section 7.08.  Listing................................................................47
Section 7.09.  Transfer of the Securities.............................................47
Section 7.10.  Mutilated, Destroyed, Lost or Stolen Certificates......................48
Section 7.11.  Deemed Holders.........................................................49
Section 7.12.  Global Certificates....................................................49
Section 7.13.  Remarketing............................................................50

                                    ARTICLE 8
                    DISSOLUTION AND TERMINATION OF THE TRUST

Section 8.01.  Dissolution and Termination of the Trust...............................53
Section 8.02.  Liquidation Distribution upon Dissolution of the Trust.................54
</Table>

                                       ii
<Page>

<Table>
<S>                                                                                   <C>
                                    ARTICLE 9
 LIMITATION OF LIABILITY OF HOLDERS OF THE SECURITIES, THE DELAWARE TRUSTEE AND
                                     OTHERS

Section 9.01.  Liability..............................................................56
Section 9.02.  Exculpation............................................................56
Section 9.03.  Fiduciary Duty.........................................................57
Section 9.04.  Indemnification........................................................58
Section 9.05.  Outside Businesses.....................................................58

                                   ARTICLE 10
                                   ACCOUNTING

Section 10.01. Fiscal Year............................................................59
Section 10.02. Certain Accounting Matters.............................................59
Section 10.03. Banking................................................................60
Section 10.04. Withholding............................................................60

                                   ARTICLE 11
                             AMENDMENTS AND MEETINGS

Section 11.01. Amendments.............................................................60
Section 11.02. Meetings of the Holders of the Securities; Action by Written Consent...62

                                   ARTICLE 12
        REPRESENTATIONS OF THE PROPERTY TRUSTEE AND THE DELAWARE TRUSTEE

Section 12.01. Representations and Warranties of the Property Trustee.................64
Section 12.02. Representations and Warranties of the Delaware Trustee.................64

                                   ARTICLE 13
                                  MISCELLANEOUS

Section 13.01. Notices................................................................65
Section 13.02. Governing Law..........................................................66
Section 13.03. Intention of the Parties...............................................67
Section 13.04. Headings...............................................................67
Section 13.05. Successors and Assigns.................................................67
Section 13.06. Partial Enforceability.................................................67
Section 13.07. Counterparts...........................................................67
</Table>

                                       iii
<Page>

                             CROSS-REFERENCE TABLE*

<Table>
<Caption>
Section of
Trust Indenture Act  ....................                  Section of
of 1939, as amended  ....................                  Declaration
-------------------                                        -----------
<S>                                                        <C>
310(b)               ....................                  6.03(c) & (d)
311(a)               ....................                  2.02(b)
311(b)               ....................                  2.02(b)
312(b)               ....................                  2.02(b)
313                  ....................                  2.03
313(d)               ....................                  2.03
314                  ....................                  2.04
314(a)               ....................                  3.06(i)
314(c)               ....................                  2.05
316(a)               ....................                  7.05(j)-(l)
317(b)               ....................                  3.08(h)
</Table>

*    This Cross-Reference Table does not constitute part of the Declaration and
     shall not affect the interpretation of any of its terms or provisions

                                       iv
<Page>

                    AMENDED AND RESTATED DECLARATION OF TRUST

     This Amended and Restated Declaration of Trust of CC Funding Trust II
("Declaration"), dated as of ____________, 2003, by and among Cinergy Corp., a
Delaware corporation, as Sponsor, [         ], [         ] and [         ], as
the initial Administrative Trustees, [         ], an [         ] banking
corporation, as the initial Property Trustee, and [         ], a Delaware
statutory trust, as the initial Delaware Trustee, not in their individual
capacities but solely as Trustees, and the Holders, from time to time, of the
Securities representing undivided beneficial interests in the assets of the
Trust, to be issued pursuant to this Declaration.

     WHEREAS, certain of the Trustees and the Sponsor established CC Funding
Trust II (the "Trust"), a statutory trust under the Statutory Trust Act,
pursuant to a Declaration of Trust dated as of ___________, 2003, (the "Original
Declaration") and a Certificate of Trust (the "Certificate of Trust") filed with
the Secretary of State of the State of Delaware on _____________, 2003; and

     WHEREAS, the sole purpose of the Trust shall be to issue, sell and
repurchase certain securities representing undivided beneficial interests in the
assets of the Trust, to invest the proceeds from such sales in the
[Subordinated] Notes issued by the [Subordinated] Notes Issuer, to enter into
certain agreements in connection therewith and to engage in only those
activities necessary or incidental thereto; and

     WHEREAS, the parties hereto, by this Declaration, amend and restate each
and every term and provision of the Original Declaration.

     NOW, THEREFORE, it being the intention of the parties hereto to continue
the Trust as a statutory trust under the Statutory Trust Act and that this
Declaration constitute the governing instrument of such statutory trust, the
trustees hereby declare that all assets contributed to the Trust be held in
trust for the benefit of the Holders, from time to time, of the Securities
representing undivided beneficial interests in the assets of the Trust issued
hereunder, subject to the provisions of this Declaration.

                                    ARTICLE 1
                         INTERPRETATION AND DEFINITIONS

     Section 1.01. INTERPRETATION AND DEFINITIONS. Unless the context otherwise
requires:

     (a)  capitalized terms used in this Declaration but not defined in the
preamble above shall have the meanings assigned to them in this Section 1.01;

     (b)  a term defined anywhere in this Declaration shall have the same
meaning throughout;

     (c)  all references to "the Declaration" or "this Declaration" shall be to
this Declaration as modified, supplemented or amended from time to time;

                                        1
<Page>

     (d)  all references in this Declaration to Articles, Sections, Recitals and
Exhibits shall be to Articles and Sections of, or Recitals and Exhibits to, this
Declaration unless otherwise specified;

     (e)  unless otherwise defined in this Declaration, a term defined in the
Trust Indenture Act, shall have the same meaning when used in this Declaration;
and

     (f)  a reference to the singular shall include the plural and vice versa,
and a reference to any masculine form of a term shall include the feminine or
neuter form of a term, as applicable.

     (g)  the following terms shall have the following meanings:

     "Administrative Trustee" shall mean any trustee of the Trust other than the
Property Trustee and the Delaware Trustee.

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

     "Applicable Ownership Interest" shall mean, with respect to a Stock
Purchase Unit that includes the Treasury Portfolio, (A) a 1/40, or 2.5%,
undivided beneficial ownership interest in a $1,000 face amount of a principal
or interest strip in a U.S. treasury security included in such Treasury
Portfolio that matures on or prior to _____________ and (B) for each scheduled
interest payment date on the [Subordinated] Notes after the Tax Event Redemption
Date, ______%, undivided beneficial ownership interest in a $1,000 face amount
of a principal or interest strip in a U.S. treasury security included in such
Treasury Portfolio that matures on or prior to such date. Unless otherwise
specified, references in this Declaration to the "Applicable Ownership Interest
of the Treasury Portfolio" shall have meaning specified in clause (A) of this
definition.

     "Applicable Principal Amount" shall mean either (A) if the Tax Event
Redemption Date occurs prior to the Purchase Contract Settlement Date, the
aggregate principal amount of the [Subordinated] Notes corresponding to the
aggregate stated liquidation amount of the Preferred Securities that are
components of the Stock Purchase Units on the Tax Event Redemption Date or (B)
if the Tax Event Redemption Date occurs on or after the Purchase Contract
Settlement Date, the aggregate principal amount of the [Subordinated] Notes
corresponding to the aggregate stated liquidation amount of the Preferred
Securities outstanding on such Tax Event Redemption Date.

                                        2
<Page>

     "Applicable Spread" shall mean the spread determined as set forth below,
based on the prevailing rating of the senior notes of the [Subordinated] Notes
Issuer in effect at the close of business on the Business Day immediately
preceding the date of a Failed Remarketing:

<Table>
<Caption>
                   Prevailing Rating                            Spread
                   -----------------                            ------
                   <S>                                               <C>
                   AA/ "Aa"...........................               %
                   A/ "a".............................               %
                   BBB/ "Baa".........................               %
                   Below BBB/ "Baa"...................               %
</Table>

     For purposes of this definition, the "prevailing rating" of the senior
notes of the [Subordinated] Notes Issuer shall be:

             (i)  AA/ "Aa" if the senior notes of the [Subordinated] Notes
     Issuer have a credit rating of AA- or better by S&P and "Aa3" or better by
     Moody's or the equivalent of such ratings by such agencies or a substitute
     rating agency or substitute rating agencies selected by the Remarketing
     Agent (after consultation with the [Subordinated] Notes Issuer);

            (ii)  if not under clause (i) above, then A/"a" if the senior notes
     of the [Subordinated] Notes Issuer have a credit rating of A- or better by
     S&P and "A3" or better by Moody's or the equivalent of such ratings by such
     agencies or a substitute rating agency or substitute rating agencies
     selected by the Remarketing Agent (after consultation with the
     [Subordinated] Notes Issuer);

           (iii)  if not under clause (i) or (ii) above, then BBB/"Baa" if the
     senior notes of the [Subordinated] Notes Issuer have a credit rating of
     BBB- or better by S&P and "Baa3" or better by Moody's or the equivalent of
     such ratings by such agencies or a substitute rating agency or substitute
     rating agencies selected by the Remarketing Agent (after consultation with
     the [Subordinated] Notes Issuer); or

            (iv)  if not under clauses (i) through (iii) above, then Below
     BBB/"Baa."

     Notwithstanding the foregoing, (A) if (i) the credit rating of the senior
notes of the [Subordinated] Notes Issuer by S&P shall be on the "Credit Watch"
of S&P with a designation of "negative implications" or "developing," or (ii)
the credit rating of the senior notes of the [Subordinated] Notes Issuer by
Moody's shall be on the "Corporate Credit Watch List" of Moody's with a
designation of "downgrade" or "uncertain," or, in each case, on any successor
list of S&P or Moody's with a substitute designation, the prevailing ratings of
the senior notes of the [Subordinated] Notes Issuer shall be deemed to be within
a range one full level lower in the above table than those actually assigned to
the senior notes of the [Subordinated] Notes Issuer by Moody's and S&P and (B)
if the senior notes of the [Subordinated] Notes Issuer are rated by only one
rating agency on or before the Remarketing Date, the prevailing rating shall at
all times be determined without reference to the rating of any other rating
agency; provided that if no such rating agency shall have in effect a rating for
the senior notes of the [Subordinated] Notes Issuer,

                                        3
<Page>

and the Remarketing Agent is unable to identify a substitute rating agency or
rating agencies, as required above, the prevailing rating shall be Below BBB/
"baa."

     "Authorized Officer" of a Person shall mean any Person that is authorized
to bind such Person.

     "Beneficial Owner" shall mean, with respect to a Global Security, a Person
who is the beneficial owner of a book-entry interest in such Global Security as
reflected on the books of the Depositary or on the books of a Person maintaining
an account with such Depositary (directly as a Depositary Participant or as an
indirect participant, in each case in accordance with the rules of such
Depositary).

     "Business Day" shall mean any day other than a Saturday or Sunday or a day
on which banking institutions in the City of New York, New York, or Cincinnati,
Ohio are authorized or required by law or executive order to remain closed, or a
day on which the Indenture Trustee or the Property Trustee, is closed for
business.

     "Cash Settlement" shall have the meaning specified in the Purchase Contract
Agreement.

     "Certificate" shall mean a Common Security Certificate or a Preferred
Security Certificate.

     "Clearing Agency" shall mean an organization registered as a "Clearing
Agency" pursuant to Section 17A of the Exchange Act that is acting as depositary
for the Preferred Securities and in whose name or in the name of a nominee of
that organization shall be registered a Global Certificate and which shall
undertake to effect book-entry transfers and pledges of the Preferred
Securities.

     "Closing Date" shall mean the date on which the Preferred Securities are
initially issued and sold.

     "Code" shall mean the Internal Revenue Code of 1986, as amended from time
to time, or any successor legislation. A reference to a specific section of the
Code refers not only to such specific section but also to any corresponding
provision of any federal tax statute enacted after the date of this Declaration,
as such specific section or corresponding provision is in effect on the date of
application of the provisions of this Declaration containing such reference.

     "Collateral Agent" shall mean [                ].

     "Commission" shall mean the Securities and Exchange Commission.

     "Common Securities" shall have the meaning specified in Section 7.01(a).

     "Common Security Certificate" shall mean a definitive certificate in fully
registered form representing a Common Security, substantially in the form of
Exhibit B hereto, with such changes and additions thereto or deletions therefrom
as may be required by ordinary usage, custom or practice.

                                        4
<Page>

     "Common Securities Purchase Agreement" shall mean the Common Securities
Purchase Agreement dated as of ___________, 2003 between the Sponsor and the
Trust.

     "Compounded Distributions" shall have the meaning specified in Section
7.02(b).

     "Corporate Trust Office" shall mean the principal office of the Property
Trustee at which, at any particular time, its corporate trust business shall be
administered, which office at the date hereof is located at [ address ], Attn:
Corporate Trust Department.

     "Covered Person" shall mean (A) any officer, director, trustee,
shareholder, partner, member, representative, employee or agent of (i) the
Sponsor, (ii) any Affiliate of the Sponsor, (iii) the Trust or (iv) any
Affiliate of the Trust and (B) any Holder.

     "Delaware Trustee" shall have the meaning specified in Section 6.02.

     "Depositary" shall mean, with respect to Securities issuable in whole or
in part in the form of one or more Global Securities, a clearing agency
registered under the Exchange Act that is designated to act as depositary for
such Securities, and initially shall be The Depository Trust Company.

     "Depositary Participant" shall mean a member of, or participant in, the
Depositary.

     "Direct Action" shall have the meaning specified in Section 3.08(e).

     "Distribution" shall mean a distribution payable to the Holders in
accordance with Section 7.02.

     "Exchange Act" shall mean the Securities Exchange Act of 1934 and any
statute successor thereto, in each case as amended from time to time, and the
rules and regulations promulgated thereunder.

     "Exchange Act Registration Statement shall have the meaning specified in
Section 4.01(d).

     "Failed Remarketing" shall have the meaning specified in Section 7.13(h).

     "Fiscal Year" shall have the meaning specified in Section 10.01.

     "Foreign Person" shall mean any Person that is not a United States Person.

     "Global Certificate" shall have the meaning specified in Section 7.01(h).

     "Guarantee" shall mean the Guarantee Agreement, dated as of
________________, 2003, of the Sponsor, as may be amended from time to time, in
respect of the Preferred Securities.

     "Holder" shall mean any holder of Securities, as registered on the books
and records of the Trust, such holder being a beneficial owner within the
meaning of the Statutory Trust Act, PROVIDED that in determining whether the
Holders of the requisite liquidation amount of Preferred Securities have voted
on any matter provided for in this Declaration, then for the purpose of such

                                        5
<Page>

determination only (and not for any other purpose hereunder), if the Preferred
Securities remain in the form of one or more Global Certificates and if the
Depositary has sent an omnibus proxy to the Depositary Participants to whose
accounts the Preferred Securities are credited on the record date, the term
"Holders" shall mean such Depositary Participants acting at the direction of the
Beneficial Owners.

     "Indemnified Person" shall mean any Trustee, any Affiliate of any Trustee,
any Paying Agent, any officers, directors, shareholders, members, partners,
employees, representatives or agents of any Trustee, Affiliate of a Trustee or
Paying Agent, or any officer, employee or agent of the Trust or any of its
Affiliates.

     "Indenture" shall mean the indenture dated as of ____________________,
2003, between the [Subordinated] Notes Issuer and the Indenture Trustee
(including the provisions of the Trust Indenture Act that are deemed
incorporated therein), as supplemented or amended from time to time, pursuant to
which the [Subordinated] Notes are to be issued.

     "Indenture Event of Default" shall have the meaning given to the term
"Event of Default" in the Indenture.

     "Indenture Trustee" shall mean [             ], in its capacity as trustee
under the Indenture, until a successor is appointed thereunder, and thereafter
shall mean such successor trustee.

     "Investment Company" shall mean an investment company as defined in the
Investment Company Act and the regulations promulgated thereunder.

     "Investment Company Act" shall mean the Investment Company Act of 1940, as
amended from time to time, or any successor legislation.

     "Legal Action" shall have the meaning specified in Section 3.06(f).

     "Liquidation" shall have the meaning specified in Section 8.02(a).

     "Liquidation Distribution" shall have the meaning specified in Section
8.02(d).

     "List of Holders" shall have the meaning specified in Section 2.02(a).

     "Majority in Liquidation Amount" shall mean, except as provided by the
Trust Indenture Act, Holders of outstanding Securities, voting together as a
single class, or, as the context may require, Holders of outstanding Preferred
Securities or Holders of the outstanding Common Securities, voting separately as
a class, who are the record owners of more than 50% of the aggregate liquidation
amount (including the stated amount that would be paid on redemption,
liquidation or otherwise, plus accumulated and unpaid Distributions to the date
upon which the voting percentages are determined) of all outstanding Securities,
Preferred Securities or Common Securities, as the case may be.

     "Maturity Date" shall mean ____________________.

                                        6
<Page>

     "Moody's" shall mean Moody's Investors Service, Inc.

     "New York Stock Exchange" shall mean the New York Stock Exchange, Inc. or
any successor thereto.

     "Officers' Certificate" shall mean, when delivered by the Trust, a
certificate signed by a majority of the Regular Trustees of the Trust and, when
delivered by the Sponsor, a certificate signed by (A) the Chairman of the Board,
President or a Vice President of the Sponsor and (B) the Treasurer, Assistant
Treasurer or Secretary of the Sponsor. Any Officers' Certificate delivered with
respect to compliance with a condition or covenant provided for in this
Declaration shall include, where applicable:

             (i)  a statement that each officer signing the Officers'
     Certificate has read the covenant or condition and the definitions relating
     thereto;

            (ii)  a brief statement of the nature and scope of the examination
     or investigation undertaken by each officer in rendering the Officers'
     Certificate;

           (iii)  a statement that each such officer has made such examination
     or investigation as, in such officer's opinion, is necessary to enable such
     officer to express an informed opinion as to whether or not such covenant
     or condition has been complied with; and

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

     ["Option Closing Date" shall mean the date of closing of any sale of
Preferred Securities issued pursuant to an over-allotment option granted to the
underwriters named in the Underwriting Agreement.]

     "Paying Agent" shall have the meaning specified in Section 7.07.

     "Payment Amount" shall have the meaning specified in Section 7.02(c).

     "Person" shall mean a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association or government or any agency
or political subdivision thereof, or any other entity of whatever nature.

     "Pledge Agreement" shall mean the Pledge Agreement dated as of ___________,
2003 among Cinergy Corp., the Collateral Agent, [          ], as Securities
Intermediary, and the Purchase Contract Agent.

     "Preferred Securities" shall have the meaning specified in Section 7.01(a).

     "Preferred Security Certificate" shall mean a definitive certificate in
fully registered form representing a Preferred Security, substantially in the
form of Exhibit A, with such changes and

                                        7
<Page>

additions thereto or deletions therefrom as may be required by ordinary usage,
custom or practice.

     "Primary Treasury Dealer" shall mean a primary U.S. government securities
dealer in New York City.

     "Property Account" shall have the meaning specified in Section 3.08(c).

     "Property Trustee" shall mean the Trustee meeting the eligibility
requirements set forth in Section 6.03.

     "Pro Rata" shall mean pro rata to each Holder according to the aggregate
liquidation amount of the Securities held by such Holder in relation to the
aggregate liquidation amount of all Securities outstanding.

     "Purchase Contract" shall have the meaning specified in the Purchase
Contract Agreement.

     "Purchase Contract Agent" shall mean [                      ].

     "Purchase Contract Agreement" shall mean the Purchase Contract Agreement
dated as of ____________, 2003 between Cinergy Corp., and [               ], as
Purchase Contract Agent.

     "Purchase Contract Settlement Date" shall mean _____________.

     "Quorum" shall mean a majority of the Administrative Trustees or, if there
are only two Administrative Trustees, both of them.

     "Quotation Agent" shall mean (A) _______________ and any respective
successor, provided that if _______________ or any respective successor ceases
to be a Primary Treasury Dealer, the Sponsor shall substitute another Primary
Treasury Dealer therefor or (B) any other Primary Treasury Dealer selected by
the Sponsor.

     "Redemption Amount" shall mean, for each [Subordinated] Note, the product
of the principal amount of such [Subordinated] Note and a fraction, the
numerator of which shall be the Treasury Portfolio Purchase Price and the
denominator of which shall be the Applicable Principal Amount.

     "Redemption/Distribution Notice" shall have the meaning specified in
Section 7.04(a).

     "Redemption Price" shall mean the amount for which the Securities will be
redeemed, which amount will equal the lesser of (i) the redemption price paid by
the [Subordinated] Notes Issuer to repay or redeem, in whole or in part, the
[Subordinated] Notes held by the Trust plus an amount equal to accumulated and
unpaid Distributions on such Securities through the date of their redemption or
(ii) the amount received by the Trust in respect of the [Subordinated] Notes so
repaid or redeemed.

                                        8
<Page>

     "Remarketed Securities" shall mean (i) so long as the Trust has not been
dissolved, the Preferred Securities or (ii) if the Trust has been dissolved, the
[Subordinated] Notes.

     "Remarketing" shall mean the operation of the procedures for remarketing
specified in Section 7.13.

     "Remarketing Agent" shall mean ____________ or if the Remarketing Agent is
removed or resigns, any successor remarketing agent selected by the Sponsor.

     "Remarketing Agreement" shall mean the Remarketing Agreement dated as of
____________, 2003 among Cinergy Corp., the Trust and the Remarketing Agent.

     "Remarketing Date" shall mean the third Business Day preceding [         ].

     "Remarketing Settlement Date" shall mean the date, if any, on which the
settlement of the Remarketed Securities has occurred through the normal
settlement procedures in effect at such time of the Depositary or any successor
Depositary.

     "Reset Rate" shall mean the distribution rate per annum, as determined by
the Remarketing Agent, that results from the Remarketing pursuant to Section
7.13.

     "Responsible Officer" shall mean, with respect to the Property Trustee, any
officer with direct responsibility for the administration of this Declaration
and also shall mean, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred due to that officer's knowledge of
and familiarity with the particular subject.

     "Rule 3a-7" shall mean Rule 3a-7 under the Investment Company Act or any
successor rule thereunder.

     "S&P" shall mean Standard & Poor's Ratings Services.

     "Scheduled Remarketing Settlement Date" shall mean the date, if any, on
which the settlement of the Remarketed Securities is scheduled to occur.

     "Securities" shall mean the Common Securities and the Preferred Securities.

     "Securities Act" shall mean the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time, and the rules and
regulations promulgated thereunder.

     "Securities Act Registration Statement" shall have the meaning specified in
Section 4.01(a).

     "Security Registrar" shall have the meaning specified in Section
7.09(a)(iii).

     "66 2/3% in Liquidation Amount" shall mean Holders of outstanding
Securities, voting together as a single class, or, as the context may require,
Holders of outstanding Preferred Securities voting separately as a class, who
are the record owners of 66 2/3% or more of the

                                        9
<Page>

aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accumulated and unpaid Distributions
to the date upon which the voting percentages are determined) of all outstanding
Securities or Preferred Securities, as the case may be.

     "Sponsor" shall mean Cinergy Corp., a Delaware corporation, or any
successor entity in a merger, consolidation, or conveyance, transfer or lease of
its properties and assets substantially as an entirety, in its capacity as
sponsor of the Trust.

     "Statutory Trust Act" shall mean Chapter 38 of Title 12 of the Delaware
Code, 12 Del. Code Section 3801 et seq., as it may be amended from time to time,
or any successor legislation.

     "Stock Purchase Units" shall mean a security consisting of a unit comprised
of (A) a purchase contract under which the holder of the unit will purchase from
Cinergy Corp., for $25 in cash, a certain number of shares of common stock,
without par value, of Cinergy Corp., and (B) beneficial ownership of a Preferred
Security or [Subordinated] Note, or in certain circumstances following the
occurrence of a Tax Event, the appropriate Applicable Ownership Interest of the
Treasury Portfolio.

     "[Subordinated] Note Purchase Agreement" shall mean the [Subordinated] Note
Purchase Agreement dated as of ___________, 2003 between the [Subordinated]
Notes Issuer and the Trust.

     "[Subordinated] Notes" shall mean the series of [Subordinated] notes to be
issued by the [Subordinated] Notes Issuer under the Indenture and to be
purchased by the Trust and held by the Property Trustee.

     "[Subordinated] Notes Issuer" shall mean Cinergy Corp., a Delaware
corporation, or any successor entity in a merger, consolidation, or conveyance,
transfer or lease of its properties and assets substantially as an entirety, in
its capacity as issuer of the [Subordinated] Notes under the Indenture.

     "Successor Delaware Trustee" shall have the meaning specified in Section
6.06(b).

     "Successor Entity" shall have the meaning specified in Section 3.15(b)(i).

     "Successor Property Trustee" shall have the meaning specified in Section
6.06(b).

     "Successor Security" shall have the meaning specified in Section
3.15(b)(i)(B).

     "Supermajority" shall have the meaning specified in Section 7.05(j)(ii).

     "Tax Event" shall mean the receipt by the Sponsor and the Trust of an
opinion of counsel, rendered by a law firm having a recognized national tax
practice, to the effect that, as a result of any amendment to, change in or
announced proposed change in the laws (or any regulations thereunder) of the
United States or any political subdivision or taxing authority thereof or
therein, or as a result of any official administrative decision, pronouncement,
judicial decision or action interpreting or applying such laws or regulations,
which amendment or change

                                       10
<Page>

is effective or which proposed change, pronouncement, action or decision is
announced on or after the Closing Date, there is more than an insubstantial
increase in the risk that (i) the Trust is, or within 90 days of the date of
such opinion will be, subject to United States federal income tax with respect
to income received or accrued on the [Subordinated] Notes, (ii) interest payable
by the [Subordinated] Notes Issuer on the [Subordinated] Notes is not, or within
90 days of the date of such opinion will not be, deductible by the
[Subordinated] Notes Issuer, in whole or in part, for United States federal
income tax purposes, or (iii) the Trust is, or within 90 days of the date of
such opinion will be, subject to more than a de minimis amount of other taxes,
duties or other governmental charges.

     "Tax Event Redemption" shall mean that a Tax Event has occurred and is
continuing and the [Subordinated] Notes have been called for redemption pursuant
to the Indenture.

     "Tax Event Redemption Date" shall mean the date of the Tax Event
Redemption, if any, specified by the [Subordinated] Notes Issuer.

     "10% in Liquidation Amount" shall mean, except as provided by the Trust
Indenture Act, Holder(s) of outstanding Securities, voting together as a single
class, or, as the context may require, Holders of outstanding Preferred
Securities or Holders of outstanding Common Securities, voting separately as a
class, who are the record owners of 10% or more of the aggregate liquidation
amount (including the stated amount that would be paid on redemption,
liquidation or otherwise, plus accumulated and unpaid Distributions to the date
upon which the voting percentages are determined) of all outstanding Securities,
Preferred Securities or Common Securities, as the case may be.

     "Termination Event" shall have the meaning set forth in Section 1.01 of the
Purchase Contract Agreement.

     "Treasury Stock Purchase Units" shall mean a Stock Purchase Units with
respect to which Treasury Securities have been substituted for the Preferred
Securities or Applicable Ownership Interest of the Treasury Portfolio component,
as applicable.

     "Treasury Portfolio" shall mean, with respect to the Applicable Principal
Amount of [Subordinated] Notes, (A) if the Tax Event Redemption Date occurs
prior to the Purchase Contract Settlement Date, a portfolio of zero-coupon U.S.
treasury securities consisting of (i) principal or interest strips of U.S.
treasury securities that mature on or prior to the Purchase Contract Settlement
Date in an aggregate amount at maturity equal to the Applicable Principal Amount
and (ii) with respect to each scheduled interest payment date on the
[Subordinated] Notes that occurs after the Tax Event Redemption Date but on or
prior to the Purchase Contract Settlement Date, principal or interest strips of
U.S. treasury securities that mature on or prior to such date in an aggregate
amount at maturity equal to the aggregate interest payment that would have been
due on the Applicable Principal Amount of the [Subordinated] Notes on such date,
and (B) if the Tax Event Redemption Date occurs on or after the Purchase
Contract Settlement Date, a portfolio of zero-coupon U.S. treasury securities
consisting of (i) principal or interest strips of U.S. treasury securities that
mature on or prior to the Maturity Date in an aggregate amount at maturity equal
to the Applicable Principal Amount and (ii) with respect to each scheduled
interest payment date on the [Subordinated] Notes that occurs after the Tax
Event

                                       11
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Redemption Date, principal or interest strips of U.S. treasury securities that
mature on or prior to such date in an aggregate amount at maturity equal to the
aggregate interest payment that would have been due on the Applicable Principal
Amount of the [Subordinated] Notes on such date.

     "Treasury Portfolio Purchase Price" shall mean the lowest aggregate price
quoted by a Primary Treasury Dealer to the Quotation Agent on the third Business
Day preceding the Tax Event Redemption Date for the purchase of the Treasury
Portfolio for settlement on the Tax Event Redemption Date.

     "Treasury Regulations" shall mean the income tax regulations, including
temporary and proposed regulations, promulgated under the Code by the United
States Department of the Treasury, as such regulations may be amended from time
to time (including corresponding provisions of succeeding regulations).

     "Treasury Securities" shall mean zero-coupon U.S. Treasury Securities
(CUSIP Number ___________) with a principal amount at maturity equal to $1,000
and maturing on ___________, the Business Day preceding the Purchase Contract
Settlement Date.

     "Trust Enforcement Event" in respect of the Securities shall mean that an
Indenture Event of Default has occurred and is continuing.

     "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended from time to time, or any successor legislation.

     "Trustee" or "Trustees" shall mean each Person that has signed this
Declaration as a trustee, so long as such Person continues in office in
accordance with the terms hereof, and all other Persons that from time to time
may be duly appointed, qualified and serving as Trustees in accordance with the
provisions hereof, and references herein to a Trustee or the Trustees shall
refer to such Person or Persons solely in their capacity as trustees hereunder.

     "Two-Year Benchmark Treasury Rate" shall mean the bid side rate displayed
at 10:00 a.m., New York City time, on the third Business Day immediately
preceding the Purchase Contract Settlement Date for direct obligations of the
United States (which may be obligations traded on a when-issued basis only)
having a maturity comparable to the remaining term to maturity of the
[Subordinated] Notes, as agreed upon by the [Subordinated] Notes Issuer and the
Remarketing Agent in the Telerate system (or if the Telerate system is (a) no
longer available on the third Business Day immediately preceding the Purchase
Contract Settlement Date or (b) in the opinion of the Remarketing Agent (after
consultation with the [Subordinated] Notes Issuer) no longer an appropriate
system from which to obtain such rate, such other nationally recognized
quotation system as, in the opinion of the Remarketing Agent (after consultation
with the [Subordinated] Notes Issuer) is appropriate.

     "United States Person" shall mean a United States person for United States
federal income tax purposes.

     "Underwriting Agreement" shall mean the Underwriting Agreement dated as of
___________, 2003, among the Trust, the Sponsor and _____________, as
representatives of the several underwriters named therein.

                                       12
<Page>

                                    ARTICLE 2
                               TRUST INDENTURE ACT

     Section 2.01. TRUST INDENTURE ACT; APPLICATION.

     (a)  This Declaration is subject to the provisions of the Trust Indenture
Act that are required to be part of this Declaration and, to the extent
applicable, shall be governed by such provisions.

     (b)  The Property Trustee shall be the only Trustee that is a trustee for
the purposes of the Trust Indenture Act.

     (c)  If and to the extent that any provision of this Declaration conflicts
with the duties imposed by Sections 310 to 317, inclusive, of the Trust
Indenture Act, such imposed duties of the Trust Indenture Act shall control.

     (d)  The application of the Trust Indenture Act to this Declaration shall
not affect the Trust's classification as a grantor trust for United States
federal income tax purposes and shall not affect the nature of the Securities as
equity securities representing undivided beneficial interests in the assets of
the Trust.

     Section 2.02. LIST OF HOLDERS OF THE SECURITIES.

     (a)  Each of the Sponsor and the Administrative Trustees on behalf of the
Trust shall provide the Property Trustee with a list of the names and addresses
of the Holders of the Securities in such form as the Property Trustee may
reasonably require ("List of Holders") (i) as of the record date relating to the
payment of any Distribution, at least one Business Day prior to the date for
payment of such Distribution, except while the Preferred Securities are
represented by one or more Global Certificates, and (ii) at any other time,
within 30 days of receipt by the Trust of a written request from the Property
Trustee for a List of Holders as of a date no more than 15 days before such List
of Holders is provided to the Property Trustee. If at any time the List of
Holders does not differ from the most recent List of Holders provided to the
Property Trustee by the Sponsor and the Administrative Trustees on behalf of the
Trust, then neither the Sponsor nor the Administrative Trustees shall be
obligated to deliver such List of Holders. The Property Trustee shall preserve,
in as current a form as is reasonably practicable, all information contained in
Lists of Holders provided to it or that it receives in its capacity as Paying
Agent (if acting in such capacity); PROVIDED that the Property Trustee may
destroy any List of Holders previously provided to it on receipt of a new List
of Holders.

     (b)  The Property Trustee shall comply with its obligations under, and
shall be entitled to the benefits of, Sections 311(a), 311(b) and 312(b) of the
Trust Indenture Act.

     Section 2.03. REPORTS BY THE PROPERTY TRUSTEE.

     Within 60 days after __________ of each year (commencing with the year of
the first anniversary of the issuance of the Preferred Securities), the Property
Trustee shall provide to the Holders of the Preferred Securities such reports as
are required by Section 313 of the Trust Indenture Act, if any, in the form and
in the manner provided by Section 313 of the Trust

                                       13
<Page>

Indenture Act. The Property Trustee also shall comply with the requirements of
Section 313(d) of the Trust Indenture Act. The Sponsor shall promptly notify the
Property Trustee when any Preferred Securities are listed for trading on any
stock exchange and of any delisting thereof.

     Section 2.04. PERIODIC REPORTS TO THE PROPERTY TRUSTEE.

     Each of the Sponsor and the Administrative Trustees on behalf of the Trust
shall provide to the Property Trustee such documents, reports and information as
required by Section 314 of the Trust Indenture Act (if any) and the compliance
certificate required by Section 314 of the Trust Indenture Act in the form, in
the manner and at the times required by Section 314 of the Trust Indenture Act.
Compliance certificates required by Section 314(a)(4) of the Trust Indenture Act
shall be delivered to the Property Trustee annually on or before 120 days after
the end of each fiscal year of the Sponsor.

     Section 2.05. EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT.

     Each of the Sponsor and the Administrative Trustees on behalf of the Trust
shall provide to the Property Trustee such evidence of compliance with any
conditions precedent, if any, provided for in this Declaration that relate to
any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any
certificate or opinion required to be given by an officer pursuant to Section
314(c)(1) may be given in the form of an Officers' Certificate.

                                    ARTICLE 3
                                  ORGANIZATION

     Section 3.01. NAME AND ORGANIZATION.

     The Trust hereby continued is named "CC Funding Trust II," as such name may
be modified from time to time by the Administrative Trustees following written
notice to the Holders of the Securities. The Trust's activities may be conducted
under the name of the Trust or any other name deemed advisable by the
Administrative Trustees.

     Section 3.02. OFFICE.

     The address of the principal office of the Trust is 139 East Fourth Street,
Cincinnati, OH 45202. On ten Business Days' written notice to the Holders of the
Securities, the Administrative Trustees may designate another principal office.

     Section 3.03. PURPOSE.

     The exclusive purposes and functions of the Trust are (a) to issue, sell
and repurchase the Securities, (b) to use the gross proceeds from such sale to
acquire the [Subordinated] Notes, (c) to enter into the Underwriting Agreement,
the Remarketing Agreement, the Common Securities Purchase Agreement and the
[Subordinated] Note Purchase Agreement and (d) except as otherwise limited
herein, to engage in only those other activities necessary or incidental
thereto. The Trust shall not borrow money, issue debt, reinvest proceeds derived
from investments, pledge any of its assets or otherwise undertake (or permit to
be undertaken) any activity that

                                       14
<Page>

would cause the Trust not to be classified as a grantor trust for United States
federal income tax purposes.

     By the acceptance of this Trust, none of the Trustees, the Sponsor, the
Holders of the Preferred Securities or the Common Securities or the Beneficial
Owners of the Preferred Securities will take any position that is contrary to
the classification of the Trust as a grantor trust for United State federal
income tax purposes.

     Section 3.04. AUTHORITY.

     (a)  Subject to the limitations provided in this Declaration and to the
specific duties of the Property Trustee, the Administrative Trustees shall have
exclusive authority to carry out the purposes of the Trust. Any action taken by
the Administrative Trustees in accordance with their powers shall constitute the
act of and shall serve to bind the Trust, and any action taken by the Property
Trustee in accordance with its powers shall constitute the act of and shall
serve to bind the Trust. In dealing with the Trustees acting on behalf of the
Trust, no Person shall be required to inquire into the authority of the Trustees
to bind the Trust. Persons dealing with the Trust are entitled to rely
conclusively on the power and authority of the Trustees as set forth in this
Declaration.

     (b)  Except as expressly set forth in this Declaration or as otherwise
required by the Statutory Trust Act or applicable law, and except if a meeting
of the Administrative Trustees is called with respect to any matter over which
the Administrative Trustees have power to act, any power of the Administrative
Trustees may be exercised by or with the consent of any one such Administrative
Trustee.

     (c)  Unless otherwise determined by the Administrative Trustees, and except
as otherwise required by the Statutory Trust Act or applicable law, any
Administrative Trustee may delegate to any other natural person over the age of
21 that is a United States Person, by power of attorney consistent with
applicable law, his or her power for the purposes of signing any documents that
the Administrative Trustees have power and authority to cause the Trust to
execute pursuant to Section 3.06.

     Section 3.05. TITLE TO PROPERTY OF THE TRUST.

     Except as provided in Section 3.08 with respect to the [Subordinated] Notes
and the Property Account or as otherwise provided in this Declaration, legal
title to all assets of the Trust shall be vested in the Trust. The Holders of
the Securities shall not have legal title to any part of the assets of the Trust
but shall have undivided beneficial interests in the assets of the Trust.

     Section 3.06. POWERS AND DUTIES OF THE ADMINISTRATIVE TRUSTEES.

     The Administrative Trustees shall have the exclusive power, duty and
authority to cause the Trust to engage in the following activities:

     (a)  to issue and sell the Securities in accordance with this Declaration;
PROVIDED that the Trust may issue no more than one series of Preferred
Securities and no more than one series of Common Securities; and PROVIDED
FURTHER that there shall be no interests in the Trust other

                                       15
<Page>

than the Securities, and the issuance of the Securities shall be limited to a
one-time, simultaneous issuance of both Preferred Securities and Common
Securities on the Closing Date [and the Option Closing Date, if any];

     (b)  to acquire the [Subordinated] Notes with the proceeds of the sale of
the Securities; PROVIDED that the Administrative Trustees shall cause legal
title to the [Subordinated] Notes to be held of record in the name of the
Property Trustee for the benefit of the Holders of the Securities;

     (c)  to give the Sponsor and the Property Trustee prompt written notice of
the occurrence of a Tax Event; PROVIDED that the Administrative Trustees shall
consult with the Sponsor and the Property Trustee before taking or refraining
from taking any action in relation to any such Tax Event;

     (d)  to establish a record date with respect to all actions to be taken
hereunder that require a record date to be established, including and with
respect to, for the purposes of Section 316(c) of the Trust Indenture Act,
Distributions, voting rights, redemptions and exchanges, and to issue relevant
notices to the Holders of the Securities as to such actions and applicable
record dates;

     (e)  to take all actions and perform such duties as may be required of the
Administrative Trustees pursuant to the terms of this Declaration;

     (f)  to bring or defend, pay, collect, compromise, arbitrate, resort to
legal action or otherwise adjust claims or demands of or against the Trust
("Legal Action"), unless pursuant to Section 3.08(e), the Property Trustee has
the exclusive power to bring such Legal Action;

     (g)  to employ or otherwise engage employees and agents (who may be
designated as officers with titles) and managers, contractors, advisors and
consultants to conduct only those services that the Administrative Trustees have
authority to conduct directly, and to pay reasonable compensation for such
services, PROVIDED that any Person so employed or engaged is a United States
Person;

     (h)  to cause the Trust to comply with the Trust's obligations under the
Trust Indenture Act;

     (i)  to give to the Property Trustee the certificate required by Section
314(a)(4) of the Trust Indenture Act, which certificate may be executed by any
Administrative Trustee;

     (j)  to incur expenses that are necessary or incidental to carry out any of
the purposes of the Trust;

     (k)  to act as, or appoint another Person to act as, registrar and transfer
agent for the Securities;

     (l)  to take all action that may be necessary or appropriate for the
preservation and continuation of the Trust's valid existence, rights, franchise
and privileges as a statutory trust under the laws of the State of Delaware and
of each other jurisdiction in which such existence is

                                       16
<Page>

necessary to protect the limited liability of the Holders of the Securities or
to enable the Trust to effect the purposes for which it was created;

     (m)  to take any action not inconsistent with applicable law that the
Administrative Trustees determine in their discretion to be necessary or
desirable in carrying out the purposes and functions of the Trust as set forth
in Section 3.01 or the activities of the Trust as set forth in this Section
3.06, including:

             (i)  causing the Trust not to be deemed to be an Investment Company
     required to be registered under the Investment Company Act;

            (ii)  causing the Trust to be classified as a grantor trust for
     United States federal income tax purposes; and

           (iii)  cooperating with the [Subordinated] Notes Issuer to ensure
     that the [Subordinated] Notes will be treated as indebtedness of the
     [Subordinated] Notes Issuer for United States federal income tax purposes;

     (n)  to take all action necessary to cause all applicable tax returns and
tax information reports that are required to be filed with respect to the Trust
to be duly prepared and filed;

     (o)  to prepare, execute and file a certificate of cancellation of the
Certificate of Trust of the Trust pursuant to Section 8.01(b);

     (p)  if and to the extent that the Sponsor on behalf of the Trust has not
already done so, to cause the Trust to enter into the Underwriting Agreement
and/or such other agreements and arrangements as may be necessary or desirable
in connection with the sale of the Preferred Securities to the initial
purchasers thereof and the consummation thereof, and to take all action, and
exercise all discretion, as may be necessary or desirable in connection with the
consummation thereof; and

     (q)  to execute all documents or instruments, including, without
limitation, the Underwriting Agreement, the Remarketing Agreement, the Common
Securities Purchase Agreement and the [Subordinated] Note Purchase Agreement,
perform all duties and powers, and do all things for and on behalf of the Trust
in all matters necessary or incidental to the foregoing.

     The Administrative Trustees shall exercise the powers set forth in this
Section 3.06 in a manner that is consistent with the purposes and functions of
the Trust set out in Section 3.03, and the Administrative Trustees shall have no
power to, and shall not, take any action that is inconsistent with the purposes
and functions of the Trust set forth in Section 3.03.

     Subject to this Section 3.06, the Administrative Trustees shall have none
of the powers or the authority of the Property Trustee set forth in Section
3.08.

     Any expenses incurred by the Administrative Trustees pursuant to this
Section 3.06 shall be reimbursed by the [Subordinated] Notes Issuer.

                                       17
<Page>

     Section 3.07. PROHIBITION OF ACTIONS BY THE TRUST AND THE TRUSTEES.

     (a)  The Trust shall not, and the Trustees (including the Property Trustee)
shall cause the Trust not to, engage in any activity other than as expressly
required or authorized by this Declaration. In particular, the Trust shall not
and the Trustees (including the Property Trustee) shall cause the Trust not to:

             (i)  invest any proceeds received by the Trust in connection with
     its ownership of the [Subordinated] Notes, but the Property Trustee shall
     distribute all such proceeds to the Holders of the Securities pursuant to
     the terms of this Declaration and of the Securities;

            (ii)  acquire any assets other than as expressly provided herein;

           (iii)  possess property for any purpose other than a Trust purpose;

            (iv)  make any loans or incur any indebtedness;

             (v)  possess any power or otherwise act in such a way as to vary
     the Trust's assets;

            (vi)  possess any power or otherwise act in such a way as to vary
     the terms of the Securities in any way whatsoever (except to the extent
     expressly authorized in this Declaration or by the terms of the
     Securities);

           (vii)  issue any securities or other evidences of beneficial
     ownership of, or beneficial interest in, the Trust other than the
     Securities;

          (viii)  other than as provided in this Declaration, (A) direct the
     time, method and place of exercising any trust or power conferred upon the
     Indenture Trustee with respect to the [Subordinated] Notes, (B) waive any
     past default that is waivable under the Indenture, (C) exercise a right to
     rescind or annul any declaration that the principal of all the
     [Subordinated] Notes shall be due and payable or (D) consent to any
     amendment, modification or termination of the Indenture or the
     [Subordinated] Notes where such consent is required, unless the Trust has
     received an opinion of counsel to the effect that such modification will
     not cause more than an insubstantial increase in the risk that the Trust
     will not be classified as a grantor trust for United States federal income
     tax purposes;

            (ix)  take any action inconsistent with the status of the Trust as
     grantor trust for United States federal income tax purposes;

             (x)  revoke any action previously authorized or approved by vote of
     the Holders of the Preferred Securities; or

                                       18
<Page>

            (xi)  after the date hereof, enter into any contract or agreement
     (other than any depositary agreement or any agreement with any securities
     exchange or automated quotation system) that does not expressly provide
     that the Holders of Preferred Securities, in their capacities as such, have
     limited liability for the liabilities and obligations of the Trust, which
     express provision shall be in substantially the following form:

          The Holders of the Preferred Securities, in their capacities
          as such, shall not be personally liable for any liabilities
          or obligations of the Trust arising out of this Agreement,
          and the parties hereto hereby agree that the Holders of the
          Preferred Securities, in their capacities as such, shall be
          entitled to the same limitation of personal liability
          extended to stockholders of private corporations for profit
          organized under the General Corporation Law of the State of
          Delaware.

     Section 3.08. POWERS AND DUTIES OF THE PROPERTY TRUSTEE.

     (a)  The legal title to the [Subordinated] Notes shall be owned by and held
of record in the name of the Property Trustee in trust for the benefit of the
Trust and the Holders of the Securities. The right, title and interest of the
Property Trustee to the [Subordinated] Notes shall vest automatically in each
Person that hereafter may be appointed as Property Trustee in accordance with
Section 6.06. To the fullest extent permitted by law, such vesting and cessation
of title shall be effective whether or not conveyancing documents with regard to
the [Subordinated] Notes have been executed and delivered.

     (b)  The Property Trustee shall not transfer its right, title and interest
in the [Subordinated] Notes to the Administrative Trustees nor to the Delaware
Trustee (if the Property Trustee does not also act as Delaware Trustee).

     (c)  The Property Trustee shall:

             (i)  establish and maintain a segregated non-interest bearing trust
     account (the "Property Account") in the name of and under the exclusive
     control of the Property Trustee on behalf of the Holders of the Securities
     and, upon the receipt of payments of funds made in respect of the
     [Subordinated] Notes, deposit such funds into the Property Account and make
     payments to the Holders of the Securities from the Property Account in
     accordance with Section 7.02. Funds in the Property Account shall be held
     uninvested until disbursed in accordance with this Declaration. The
     Property Account shall be an account that is maintained with a banking
     institution, the rating on whose long-term unsecured indebtedness is at
     least equal to the rating assigned to the [Subordinated] Notes Issuer's
     senior notes by a "nationally recognized statistical rating organization"
     within the meaning of Rule 436(g)(2) under the Securities Act;

            (ii)  engage in such ministerial activities as shall be necessary or
     appropriate to effect the redemption of the Securities to the extent the
     [Subordinated] Notes are redeemed or mature; and

                                       19
<Page>

           (iii)  upon written direction by the Sponsor to dissolve the Trust,
     to engage in such ministerial activities as shall be necessary or
     appropriate to effect the distribution of the [Subordinated] Notes to the
     Holders of the Securities in exchange for the Securities.

     (d)  The Property Trustee shall take all actions and perform such duties as
may be specifically required of the Property Trustee pursuant to the terms of
this Declaration and the Securities.

     (e)  The Property Trustee shall take any Legal Action that arises out of or
in connection with (i) a Trust Enforcement Event of which a Responsible Officer
of the Property Trustee has actual knowledge or (ii) the Property Trustee's
duties and obligations under this Declaration or the Trust Indenture Act;
PROVIDED that if a Trust Enforcement Event has occurred and is continuing and
such event is attributable to the failure of the [Subordinated] Notes Issuer to
pay interest or principal on the [Subordinated] Notes on the date such interest
or principal is otherwise payable (or in the case of redemption, on the
redemption date), then a Holder of Preferred Securities may institute a
proceeding directly against the [Subordinated] Notes Issuer to enforce payment
to such Holder of the principal or interest on [Subordinated] Notes having an
aggregate principal amount equal to the aggregate liquidation amount of the
Preferred Securities of such Holder (a "Direct Action"). In connection with such
Direct Action, the [Subordinated] Notes Issuer will be subrogated to the rights
of such Holder of Preferred Securities to the extent of any payment made by the
[Subordinated] Notes Issuer to such Holders of Preferred Securities in such
Direct Action.

     (f)  The Property Trustee shall continue to serve as a Trustee until
either:

             (i)  the Trust has been completely liquidated and the proceeds of
     the liquidation have been distributed to the Holders of the Securities
     pursuant to the terms of the Securities; or

            (ii)  a Successor Property Trustee has been appointed and has
     accepted that appointment in accordance with Section 6.06.

     (g)  The Property Trustee shall have the legal power to exercise all of the
rights, powers and privileges of a holder of [Subordinated] Notes under the
Indenture and, if a Trust Enforcement Event actually known to a Responsible
Officer of the Property Trustee occurs and is continuing, the Property Trustee
shall enforce, for the benefit of Holders of the Securities, its rights as
holder of the [Subordinated] Notes subject to the rights of the Holders of the
Securities pursuant to the terms of such Securities.

     (h)  Subject to this Section 3.08, the Property Trustee shall have none of
the duties, liabilities, powers or the authority of the Administrative Trustees
set forth in Section 3.06.

     The Property Trustee shall exercise the powers set forth in this Section
3.08 in a manner that is consistent with the purposes and functions of the Trust
set out in Section 3.03, and the Property Trustee shall have no power to, and
shall not, take any action that is inconsistent with the purposes and functions
of the Trust set out in Section 3.03.

                                       20
<Page>

     Section 3.09. CERTAIN DUTIES AND RESPONSIBILITIES OF THE PROPERTY TRUSTEE.

     (a)  Within 90 days after the occurrence of a Trust Enforcement Event
actually known to a Responsible Officer of the Property Trustee, the Property
Trustee shall transmit by mail, first class postage prepaid, to the Holders of
the Securities, notice of such Trust Enforcement Event, unless such Trust
Enforcement Event has been cured before the giving of such notice; PROVIDED
that, except for a default in the payment of principal of (or premium, if any)
or interest on any of the [Subordinated] Notes, the Property Trustee shall be
protected in withholding such notice if and so long as a Responsible Officer of
the Property Trustee in good faith determines that the withholding of such
notice is in the interests of the Holders of the Securities.

     (b)  The Property Trustee shall not be deemed to have knowledge of any
Trust Enforcement Event except for:

             (i)  a default under Section 501(1) and (2) of the Indenture; or

            (ii)  any default as to which the Property Trustee shall have
     received written notice or of which a Responsible Officer of the Property
     Trustee charged with the administration of this Declaration shall have
     actual knowledge.

     (c)  If a Trust Enforcement Event has occurred (that has not been cured or
waived pursuant to Section 7.05) of which a Responsible Officer of the Property
Trustee has actual knowledge, the Property Trustee shall exercise such of the
rights and powers vested in it by this Declaration and shall use the same degree
of care and skill in its exercise as a prudent person would exercise or use
under the circumstances in the conduct of his or her own affairs.

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

             (i)  prior to the occurrence of a Trust Enforcement Event and after
     the cure or waiver of all such Trust Enforcement Events that may have
     occurred:

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

                    (B) in the absence of bad faith on the part of the Property
             Trustee, the Property Trustee may 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 Property Trustee and conforming to the requirements of this
             Declaration; but in the case of any such certificates or opinions
             that by any provision hereof are specifically required to be
             furnished to the Property Trustee, the Property Trustee shall be
             under a duty to examine such certificates or opinions to determine
             whether or not they conform to the requirements of this

                                       21
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             Declaration (but need not confirm or investigate the accuracy of
             mathematical calculations or other facts stated therein);

            (ii)  the Property Trustee shall not be liable for any error of
     judgment made in good faith by a Responsible Officer of the Property
     Trustee, unless it has been proven that the Property Trustee was negligent
     in ascertaining the pertinent facts;

           (iii)  the Property Trustee shall not be liable with respect to any
     action taken or omitted to be taken by it without negligence, in good faith
     in accordance with the direction of the Holders of not less than a Majority
     in Liquidation Amount of the Securities relating to the time, method and
     place of conducting any proceeding for any remedy available to the Property
     Trustee, or exercising any trust or power conferred upon the Property
     Trustee under this Declaration;

            (iv)  no provision of this Declaration shall require the Property
     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 it has reasonable grounds for
     believing that the repayment of such funds or liability is not reasonably
     assured to it under the terms of this Declaration or indemnity reasonably
     satisfactory to the Property Trustee against such risk or liability is not
     reasonably assured to it;

             (v)  the Property Trustee's sole duty with respect to the custody,
     safe-keeping and physical preservation of the [Subordinated] Notes and the
     Property Account shall be to deal with such property in a similar manner as
     the Property Trustee deals with similar property for its own account,
     subject to the protections and limitations on liability afforded to the
     Property Trustee under this Declaration and the Trust Indenture Act;

            (vi)  the Property Trustee shall have no duty or liability for or
     with respect to the value, genuineness, existence or sufficiency of the
     [Subordinated] Notes or the payment of any taxes or assessments levied
     thereon or in connection therewith;

           (vii)  the Property Trustee shall not be liable for any interest on
     any money received by it except as it otherwise may agree in writing with
     the Sponsor. Money held by the Property Trustee need not be segregated from
     other funds held by it except in relation to the Property Account
     maintained by the Property Trustee pursuant to Section 3.08(c)(i) and
     except to the extent otherwise required by law; and

          (viii)  the Property Trustee shall not be responsible for monitoring
     the compliance by the Administrative Trustees or the Sponsor with their
     respective duties under this Declaration, nor shall the Property Trustee be
     liable for any default or misconduct of the Administrative Trustees or the
     Sponsor.

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     Section 3.10.  CERTAIN RIGHTS OF PROPERTY TRUSTEE.

     (a)  Subject to the provisions of Section 3.09:

             (i)  The Property Trustee may conclusively rely and shall be fully
     protected in acting or refraining from acting upon any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document believed by it to be genuine and to
     have been signed, sent or presented by the proper party or parties.

            (ii)  Any direction or act of the Sponsor contemplated by this
     Declaration shall be sufficiently evidenced by an Officers' Certificate.

           (iii)  Whenever in the administration of this Declaration, the
     Property Trustee shall deem it desirable that a matter be proved or
     established before taking, suffering or omitting any action hereunder, the
     Property Trustee (unless other evidence is herein specifically prescribed)
     may request, in the absence of bad faith on its part, and conclusively rely
     upon an Officers' Certificate which, upon receipt of such request, shall be
     promptly delivered by the Sponsor.

            (iv)  The Property Trustee shall have no duty to see to any
     recording, filing or registration of any instrument (including any
     financing or continuation statement or any filing under tax or securities
     laws) or any rerecording, refiling or registration thereof.

             (v)  The Property Trustee may consult with counsel of its choice or
     other experts, and the advice or opinion of such counsel and experts with
     respect to legal matters or advice within the scope of such experts' area
     of expertise shall be full and complete authorization and protection in
     respect of any action taken, suffered or omitted by it hereunder in good
     faith and in accordance with such advice or opinion. Such counsel may be
     counsel to the Sponsor or any of its Affiliates and may include any of its
     employees. The Property Trustee shall have the right at any time to seek
     instructions concerning the administration of this Declaration from any
     court of competent jurisdiction.

            (vi)  The Property Trustee shall be under no obligation to exercise
     any of the rights or powers vested in it by this Declaration at the request
     or direction of any Holder of Securities, unless such Holder of Securities
     has provided to the Property Trustee security and indemnity, reasonably
     satisfactory to the Property Trustee, against the costs, expenses
     (including attorneys' fees and expenses and the expenses of the Property
     Trustee's agents, nominees or custodians) and liabilities that might be
     incurred by it in complying with such request or direction, including such
     reasonable advances as may be requested by the Property Trustee; PROVIDED
     that nothing contained in this Section 3.10(a) shall be taken to relieve
     the Property Trustee, upon the occurrence of an Indenture Event of Default,
     of its obligation to exercise the rights and powers vested in it by this
     Declaration.

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<Page>

           (vii)  The Property Trustee shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document, but the Property Trustee, in its
     discretion, may make such further inquiry or investigation into such facts
     or matters as it sees fit, and, if the Property Trustee shall determine to
     make such further inquiry or investigation, it shall be entitled to examine
     the books, records and premises of the Sponsor, personally or by agent or
     attorney at the sole cost of the Sponsor and shall incur no liability or
     additional liability of any kind by reason of such inquiry or
     investigation.

          (viii)  The Property Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or through
     agents, custodians, nominees or attorneys; PROVIDED that any such action
     (other than ministerial action) executed or performed by such agent or
     attorney is executed or performed by an agent or an attorney that is a
     United States Person, and the Property 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.

            (ix)  Any action taken by the Property Trustee or its agents
     hereunder shall bind the Trust and the Holders of the Securities, and the
     signature of the Property Trustee or its agents alone shall be sufficient
     and effective to perform any such action, and no third party shall be
     required to inquire as to the authority of the Property Trustee to so act
     or as to its compliance with any of the terms and provisions of this
     Declaration, both of which shall be evidenced conclusively by the Property
     Trustee's or its agent's taking such action.

             (x)  Whenever in the administration of this Declaration the
     Property Trustee shall deem it desirable to receive instructions with
     respect to enforcing any remedy or right or taking any other action
     hereunder, the Property Trustee (A) may request instructions from the
     Holders of the Securities, which instructions only may be given by the
     Holders of the same proportion in liquidation amount of the Securities as
     would be entitled to direct the Property Trustee under this Declaration in
     respect of such remedy, right or action, (B) may refrain from enforcing
     such remedy or right or taking such other action until such instructions
     are received and (C) shall be protected in conclusively relying on or
     acting in accordance with such instructions.

            (xi)  Except as otherwise expressly provided by this Declaration,
     the Property Trustee shall not be under any obligation to take any action
     that is discretionary under the provisions of this Declaration.

           (xii)  The Property Trustee shall not be liable for any action taken,
     suffered or omitted to be taken by it without negligence, in good faith and
     reasonably believed by it to be authorized or within the discretion, rights
     or powers conferred upon it by this Declaration.

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<Page>

     (b)  No provision of this Declaration shall be deemed to impose any duty or
obligation on the Property Trustee to perform any act or acts or exercise any
right, power, duty or obligation conferred or imposed on it, in any jurisdiction
in which it shall be illegal, or in which the Property Trustee shall be
unqualified or incompetent in accordance with applicable law, to perform any
such act or acts, or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Property Trustee shall be
construed to be a duty.

     Section 3.11.  DELAWARE TRUSTEE.

     Notwithstanding any other provision of this Declaration other than Section
6.02, the Delaware Trustee shall not be entitled to exercise any powers of, nor
shall the Delaware Trustee have any of the duties and responsibilities of, the
Trustees described in this Declaration. Except as set forth in Section 6.02, the
Delaware Trustee shall be a Trustee for the sole and limited purpose of
fulfilling the requirements of Section 3807(a) of the Statutory Trust Act. If
the Property Trustee, meeting the requirements of Section 6.02, also acts as
Delaware Trustee, this Section 3.11 shall not apply.

     Section 3.12.  INTENTIONALLY OMITTED.

     Section 3.13.  NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

     The recitals contained in this Declaration and the Securities shall be
taken as the statements of the Sponsor, and the Trustees do not assume any
responsibility for their correctness. The Trustees make no representations as to
the value or condition of the property of the Trust or any part thereof. The
Trustees make no representations as to the validity or sufficiency of this
Declaration, the Securities, the [Subordinated] Notes or the Indenture.

     Section 3.14.  DURATION OF TRUST.

     The Trust shall exist until dissolved pursuant to the provisions of Article
8 hereof.

     Section 3.15.  MERGERS.

     (a)  The Trust may not consolidate with, convert into, amalgamate or merge
with or into, be replaced by or convey, transfer or lease its properties and
assets substantially as an entirety to any corporation or other body, except as
described in Section 3.15(b) and (c) or Section 8.02.

     (b)  At the request of the Sponsor and with the consent of the
Administrative Trustees or, if there are more than two, a majority of the
Administrative Trustees and without the consent of the Holders of the Preferred
Securities, the Delaware Trustee or the Property Trustee, the Trust may
consolidate with, convert into, amalgamate or merge with or into, be replaced by
or convey, transfer or lease its properties substantially as an entirety to a
trust organized as such under the laws of any state; PROVIDED that:

             (i)  if the Trust is not the successor entity, such successor
     entity (the "Successor Entity") either:

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<Page>

                    (A) expressly assumes all of the obligations of the Trust
             with respect to the Securities; or

                    (B) substitutes for the Securities other securities having
             substantially the same terms as the Securities (the "Successor
             Securities"), so long as such Successor Securities rank the same as
             the Securities with respect to Distributions and payments upon
             liquidation, redemption and otherwise;

            (ii)  the [Subordinated] Notes Issuer expressly appoints a trustee
     of such Successor Entity that possesses the same powers and duties as the
     Property Trustee as the holder of the [Subordinated] Notes;

           (iii)  the Preferred Securities or any Successor Securities are or,
     upon notification of issuance will be, listed on any national securities
     exchange or with any other organization on which the Preferred Securities
     are then listed or quoted;

            (iv)  such consolidation, conversion, amalgamation, merger,
     replacement, conveyance, transfer or lease does not cause the Preferred
     Securities (including any Successor Securities) to be downgraded by any
     nationally recognized statistical rating organization;

             (v)  such consolidation, conversion, amalgamation, merger,
     replacement, conveyance, transfer or lease does not adversely affect the
     rights, preferences and privileges of the Holders of the Preferred
     Securities (including any Successor Securities) in any material respect;

            (vi)  such Successor Entity has a purpose substantially identical to
     that of the Trust;

           (vii)  prior to such consolidation, conversion, amalgamation, merger,
     replacement, conveyance, transfer or lease, the Sponsor has received an
     opinion of independent counsel to the Trust experienced in such matters to
     the effect that:

                    (A) such consolidation, conversion, amalgamation, merger,
             replacement, conveyance, transfer or lease does not adversely
             affect the rights, preferences and privileges of the Holders of the
             Securities (including any Successor Securities) in any material
             respect;

                    (B) following such consolidation, conversion, amalgamation,
             merger, replacement, conveyance, transfer or lease, neither the
             Trust nor such Successor Entity will be required to register as an
             Investment Company under the Investment Company Act; and

                    (C) following such consolidation, conversion, amalgamation
             or merger, replacement, conveyance, transfer or lease, the Trust
             (or such Successor Entity) will continue to be classified as a
             grantor trust for United States federal income tax purposes;

                                       26
<Page>

          (viii)  the Sponsor or any permitted successor or assignee owns all of
     the common securities of such Successor Entity and guarantees the
     obligations of such Successor Entity under the Successor Securities, at
     least to the extent provided by the Guarantee; and

            (ix)  such Successor Entity expressly assumes all of the obligations
     of the Trust.

     (c)  Notwithstanding Section 3.15(b), the Trust shall not, except with the
consent of Holders of 100% in aggregate liquidation amount of the Securities,
consolidate with, convert into, amalgamate or merge with or into, be replaced by
or convey, transfer or lease its properties and assets substantially as an
entirety to, any other entity or permit any other entity to consolidate with,
amalgamate, merge with or into, or replace it, if such consolidation,
conversion, amalgamation, merger, replacement, conveyance, transfer or lease
would cause the Trust or any Successor Entity to be classified as other than a
grantor trust for United States federal income tax purposes or would cause each
Holder of Securities not to be treated as owning an undivided beneficial
interest in the [Subordinated] Notes.

     Section 3.16.  COMPENSATION AND REIMBURSEMENT.

     The Sponsor agrees to pay each of the Trustees from time to time such
compensation for all services rendered by such Trustee hereunder as the Sponsor
and such Trustee may agree upon from time to time (which compensation shall not
be limited by any provision of law in regard to the compensation of a trustee of
an express trust). To the fullest extent permitted by law the parties intend
that Section 3561 of Title 12 of the Delaware Code shall not apply to the Trust
and that compensation paid pursuant to this Section 3.16 not be subject to
review by any court under Section 3560 of Title 12 of the Delaware Code. The
provisions of this Section 3.16 shall survive the termination of this
Declaration.

     Section 3.17.  PROPERTY TRUSTEE MAY FILE PROOFS OF CLAIM.

     In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
similar judicial proceeding relative to the Trust or any other obligor upon the
Securities or the property of the Trust or of such other obligor or their
creditors, the Property Trustee (irrespective of whether any Distributions on
the Securities are then due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Property Trustee has made any
demand on the Trust for the payment of any past due Distributions) shall be
entitled and empowered, to the fullest extent permitted by law, by intervention
in such proceeding or otherwise:

     (a)  to file and prove a claim for the whole amount of any Distributions
owing and unpaid in respect of the Securities (or, if the Securities are
original issue discount securities, such portion of the liquidation amount as
may be specified in the terms of such securities) and to file such other papers
or documents as may be necessary or advisable in order to have the claims of the
Property Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Property Trustee, its agents and counsel) and
of the Holders of the Securities allowed in such judicial proceeding; and

                                       27
<Page>

     (b)  to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder of Securities to make such payments to the Property Trustee and, in
the event the Property Trustee consents to the making of such payments directly
to the Holders, to pay to the Property Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Property
Trustee, its agents and counsel, and any other amounts due the Property Trustee.

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

     Section 3.18.  REGISTRATION STATEMENT AND RELATED MATTERS.

     In the event that any filing referred to in Section 4.01(a)-(d) is required
by the rules and regulations of the Commission, any Exchange, the National
Association of Securities Dealers, Inc. or state securities or blue sky laws, to
be executed on behalf of the Trust by the Administrative Trustees, the
Administrative Trustees, in their capacities as Trustees of the Trust, are
hereby authorized to join in any such filing and to execute on behalf of the
Trust any and all of the foregoing. In connection with all of the foregoing,
each Administrative Trustee, solely in its capacity as Trustee of the Trust, has
constituted and appointed, and hereby confirms the appointment of, Richard E.
Terry, James M. Luebbers and Peter Kauffman, and each of them, as his, her or
its, as the case may be, true and lawful attorneys-in-fact, and agents, with
full power of substitution and resubstitution, for such Trustee or in such
Trustee's name, place and stead, in any and all capacities, to sign any and all
amendments (including post-effective amendments) to the Securities Act
Registration Statement and the Exchange Act Registration Statement and to file
the same, with all exhibits thereto, and other documents in connection
therewith, with the Commission, granting unto said attorneys-in-fact and agents
full power and authority to do and perform each and every act and thing
requisite and necessary to be done in connection therewith, as fully to all
intents and purposes as such Trustee might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or their or his or her substitute or substitutes, may lawfully do or cause
to be done by virtue hereof. Notwithstanding anything in this Section 3.18 to
the contrary, no Foreign Person (acting in its capacity as attorney-in-fact or
agent of any Foreign Person) shall be authorized to take or perform any action
on behalf of the Trust pursuant to this Section 3.18 at any time on or after the
Closing Date.

     Section 3.19.  BOOKS AND RECORDS.

     The books and records of the Trust will be maintained at the principal
office of the Trust and will be open for inspection by each Holder of Preferred
Securities or any authorized representative of such Holder for any purpose
reasonably related to the Holder's interest in the Trust during normal business
hours.

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                                    ARTICLE 4
                                   THE SPONSOR

     Section 4.01.  RESPONSIBILITIES OF THE SPONSOR.

     In connection with the sale and issuance of the Preferred Securities, the
Sponsor shall have the exclusive right and responsibility to engage in the
following activities:

     (a)  to prepare, execute and file with the Commission, on behalf of the
Trust, a registration statement on Form S-3 in relation to the Preferred
Securities, including any amendments or supplements thereto and any registration
statement filed pursuant to Rule 462(b) under the Securities Act relating to the
Preferred Securities (the "Securities Act Registration Statement"), and to take
any other action relating to the registration and sale of the Preferred
Securities under federal and state securities laws;

     (b)  if necessary, to determine the states in which to take appropriate
action to qualify or register for sale all or part of the Stock Purchase Units
and to do any and all such acts, other than actions that must be taken by the
Trust, and advise the Trust of actions it must take; to prepare, execute and
file, on behalf of the Trust, any documents it deems necessary or advisable in
order to comply with the applicable laws of any such states; and to prepare,
execute and file, on behalf of the Trust, any such documents or take any acts
determined by it to be necessary in order to qualify or register all or part of
the Stock Purchase Units in any state in which it has determined to qualify or
register such Stock Purchase Units for sale;

     (c)  if necessary, to prepare, execute and file on behalf of the Trust, an
application to the [New York Stock Exchange] or any other national stock
exchange or the NASDAQ National Market for listing upon notice of issuance of
any Preferred Securities;

     (d)  if necessary, to prepare, execute and file with the Commission, on
behalf of the Trust, a registration statement on Form 8-A relating to the
registration of the Preferred Securities under Section 12 of the Exchange Act,
including any amendments thereto (the "Exchange Act Registration Statement");
and

     (e)  to negotiate the terms of, and execute and enter into, on behalf of
the Trust, an Underwriting Agreement providing for the sale of the Stock
Purchase Units and a Remarketing Agreement providing for the Remarketing.

                                    ARTICLE 5
                      THE HOLDERS OF THE COMMON SECURITIES

     Section 5.01.  [SUBORDINATED] NOTES ISSUER'S PURCHASE OF THE COMMON
SECURITIES.

     On the Closing Date, the [Subordinated] Notes Issuer shall purchase all of
the Common Securities issued by the Trust, in an aggregate liquidation amount
equal to at least three percent of the total capital of the Trust, at such time
as the Preferred Securities are sold and issued.

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     The aggregate stated liquidation amount of the Common Securities
outstanding at any time shall not be less than three percent of the total
capital of the Trust.

     Section 5.02.  COVENANTS OF THE [SUBORDINATED] NOTES ISSUER.

     For so long as the Preferred Securities remain outstanding, the
[Subordinated] Notes Issuer shall covenant (i) to maintain, directly or
indirectly, 100% ownership of the Common Securities, (ii) to cause the Trust to
remain a statutory trust and not to voluntarily dissolve, wind up, liquidate or
be terminated, except as permitted by this Declaration, (iii) to use its
commercially reasonable efforts to ensure that the Trust will not be an
Investment Company required to be registered under the Investment Company Act
and (iv) not to take any action that would create more than an insubstantial
risk that the Trust would be classified as an association or a publicly traded
partnership taxable as a corporation for United States federal income tax
purposes.

     Section 5.03.  HOLDER OF THE COMMON SECURITIES.

     Each Holder of the Common Securities shall at all times hold the Common
Securities in its individual capacity on its own behalf and shall not, in its
capacity as a Holder of the Common Securities, be under (or subject to) the
control or direction of any Foreign Person (pursuant to a contractual
arrangement or otherwise) other than by virtue of such Foreign Person's direct
or indirect stock ownership, if any, of the Holder of the Common Securities.
Notwithstanding anything in this Declaration to the contrary, each Holder of the
Common Securities shall at all times be a United States Person and shall be
authorized to give any direction hereunder with respect to the Trust as shall be
necessary for the Trust not to be considered a foreign trust for United States
federal income tax purposes.

     Section 5.04.  EXCHANGES.

     (a)  If at any time the [Subordinated] Notes Issuer or any of its
Affiliates (in either case, a "Issuer Affiliated Holder") is the Holder of any
Preferred Securities, such Issuer Affiliated Holder shall have the right to
deliver to the Property Trustee all or such portion of its Preferred Securities
as it elects and receive, in exchange therefor, [Subordinated] Notes in an
aggregate principal amount equal to the aggregate stated liquidation amount of,
with an interest rate identical to the distribution rate of, and accrued and
unpaid interest equal to accumulated and unpaid Distributions on, such Preferred
Securities. Such election (i) shall be exercisable effective on any Distribution
payment date by such Issuer Affiliated Holder delivering to the Property Trustee
a written notice of such election specifying the aggregate liquidation amount of
the Preferred Securities with respect to which such election is being made and
the Distribution payment date on which such exchange shall occur, which
Distribution payment date shall be not less than ten Business Days after the
date of receipt by the Property Trustee of such election notice and (ii) shall
be conditioned upon such Issuer Affiliated Holder having delivered or caused to
be delivered to the Property Trustee or its designee the Preferred Securities
which are the subject of such election by 10:00 a.m. New York City time, on the
Distribution payment date on which such exchange is to occur. After the
exchange, such Preferred Securities will be canceled and will no longer be
deemed to be outstanding and all rights of the [Subordinated] Notes Issuer or
its Affiliate(s) with respect to such Preferred Securities will cease.

                                       30
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     (b)  In the case of an exchange described in Section 5.04(a), the Trust
will, on the date of such exchange, exchange [Subordinated] Notes having a
principal amount equal to a proportional amount of the aggregate liquidation
amount of the outstanding Common Securities based on the ratio of the aggregate
liquidation amount of the Preferred Securities exchanged pursuant to Section
5.04(a) divided by the aggregate liquidation amount of the Preferred Securities
outstanding immediately prior to such exchange, for such proportional amount of
Common Securities held by the [Subordinated] Notes Issuer (which
contemporaneously shall be canceled and no longer be deemed to be outstanding);
PROVIDED, that the [Subordinated] Notes Issuer delivers or causes to be
delivered to the Property Trustee or its designee the required amount of Common
Securities to be exchanged by 10:00 a.m., New York City time, on the
Distribution payment date on which such exchange is to occur.

                                    ARTICLE 6
                                  THE TRUSTEES

     Section 6.01.  NUMBER OF TRUSTEES.

     The number of Trustees initially shall be five, and:

     (a)  at any time before the issuance of any Securities, the Sponsor may
increase or decrease the number of Trustees by written instrument; and

     (b)  after the issuance of any Securities, the number of Trustees may be
increased or decreased by vote of the Holders of the Common Securities at a
meeting of the Holders of the Common Securities or by written consent without
prior notice in lieu of such meeting;

PROVIDED that the number of Trustees shall be at least three; and PROVIDED
FURTHER that: (i) the Delaware Trustee, in the case of a natural person, shall
be a person who is a resident of the State of Delaware or that, if not a natural
person, is an entity that has its principal place of business in the State of
Delaware and otherwise meets the requirements of applicable law; (ii) at least a
majority of the Trustees shall be employees or officers of, or are affiliates
of, the Sponsor; (iii) one Trustee shall be the Property Trustee for so long as
this Declaration is required to qualify as an indenture under the Trust
Indenture Act, and such Property Trustee also may serve as Delaware Trustee if
it meets the applicable requirements; (iv) each Trustee, and any delegee of any
Trustee, shall be a United States Person; and (v) each Trustee, and any delegee
of any Trustee, shall at all times act as Trustee and will not, at any time, in
its capacity as Trustee, be under (or subject to) the control or direction of
any Foreign Person (pursuant to a contractual arrangement or otherwise).

     Section 6.02.  DELAWARE TRUSTEE; ELIGIBILITY.

     If required by the Statutory Trust Act, one Trustee (which may be the
Property Trustee) (the "Delaware Trustee") shall be a United States Person that
is:

     (a)  a natural person who is a resident of the State of Delaware; or

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     (b)  if not a natural person, an entity that has its principal place of
business in the State of Delaware and otherwise meets the requirements of
applicable law, PROVIDED that if the Property Trustee has its principal place of
business in the State of Delaware and otherwise meets the requirements of
applicable law, then the Property Trustee also shall be the Delaware Trustee and
Section 3.11 shall have no application.

     Section 6.03.  PROPERTY TRUSTEE; ELIGIBILITY.

     (a)  There shall be at all times one Trustee (which may be the Delaware
Trustee) that shall act as Property Trustee that shall:

             (i)  not be an Affiliate of the Sponsor; and

            (ii)  be a corporation that is a United States Person organized and
     doing business under the law of the United States of America or any state
     or territory thereof or of the District of Columbia, or a corporation or
     other Person that is a United States Person permitted by the Commission to
     act as an institutional trustee under the Trust Indenture Act, 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
     supervising or examining authority referred to above, then for the purpose
     of this Section 6.03(a)(ii), 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.

     (b)  If at any time the Property Trustee shall cease to be eligible to so
act under Section 6.03(a), the Property Trustee immediately shall resign in the
manner and with the effect set forth in Section 6.06(c).

     (c)  If the Property Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Property Trustee and the Holders of the Common Securities (as if it were the
obligor referred to in Section 310(b) of the Trust Indenture Act) shall comply
in all respects with the provisions of Section 310(b) of the Trust Indenture
Act.

     (d)  The Guarantee shall be deemed to be specifically described in this
Declaration for purposes of clause (i) of the first proviso contained in Section
310(b) of the Trust Indenture Act.

     Section 6.04.  QUALIFICATIONS OF THE ADMINISTRATIVE TRUSTEES GENERALLY.

     Each Administrative Trustee shall be either a natural person who is at
least 21 years of age or a legal entity that shall act through one or more
Authorized Officers.

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     Section 6.05.  INITIAL ADMINISTRATIVE TRUSTEES.

     The initial Administrative Trustees shall be [                   ],[
              ] and [                   ], the business address of all of whom
is in care of Cinergy Corp., 130 East Randolph Drive, Chicago, IL 60601-6207.

     Section 6.06.  APPOINTMENT, REMOVAL AND RESIGNATION OF THE TRUSTEES.

     (a)  Subject to Section 6.06(b) and Section 7.05(i), the Trustees may be
appointed or removed without cause at any time:

             (i)  until the issuance of any Securities, by written instrument
     executed by the Sponsor; and

            (ii)  after the issuance of any Securities, by a vote of the Holders
     of a Majority in Liquidation Amount of the Common Securities at a meeting
     of the Holders of the Common Securities or by written consent without prior
     notice in lieu of such meeting.

     (b)  The Property Trustee shall not be removed in accordance with Section
6.06(a) or Section 7.05(i) until a successor Trustee possessing the
qualifications to act as Property Trustee under Section 6.03(a) (a "Successor
Property Trustee") has been appointed and has accepted such appointment by
written instrument executed by such Successor Property Trustee and delivered to
the Administrative Trustees and the Sponsor. The Delaware Trustee shall not be
removed in accordance with Section 6.06(a) or Section 7.05(i) until a successor
Trustee possessing the qualifications to act as Delaware Trustee under Section
6.02 and Section 6.04 (a "Successor Delaware Trustee") has been appointed and
has accepted such appointment by written instrument executed by such Successor
Delaware Trustee and delivered to the Administrative Trustees and the Sponsor.

     (c)  A Trustee appointed to office shall hold office until a successor has
been appointed, until death or dissolution or until removal or resignation. Any
Trustee may resign from office (without need for prior or subsequent accounting)
by written instrument executed by such Trustee and delivered to the Sponsor and
the other Trustees, which resignation shall take effect upon such delivery or
upon such later date as is specified therein; PROVIDED that:

             (i)  no such resignation of the Property Trustee shall be
     effective:

                    (A) until a Successor Property Trustee has been appointed
             and has accepted such appointment by written instrument executed by
             such Successor Property Trustee and delivered to the Administrative
             Trustees, the Sponsor and the resigning Property Trustee; or

                    (B) until the assets of the Trust have been completely
             liquidated and the proceeds thereof distributed to the Holders of
             the Securities; and

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            (ii)  no such resignation of the Delaware Trustee shall be effective
     until a Successor Delaware Trustee has been appointed and has accepted such
     appointment by written instrument executed by such Successor Delaware
     Trustee and delivered to the Administrative Trustees, the Sponsor and the
     resigning Delaware Trustee.

     (d)  The Holders of the Common Securities shall use their best efforts to
promptly appoint a Successor Property Trustee or Successor Delaware Trustee, as
the case may be, if the Property Trustee or the Delaware Trustee delivers an
instrument of resignation in accordance with this Section 6.06.

     (e)  If no Successor Property Trustee or Successor Delaware Trustee, as the
case may be, has been appointed and accepted appointment as provided in this
Section 6.06 within 60 days after delivery of an instrument of resignation or
removal, the resigning or removed Property Trustee or Delaware Trustee, as
applicable, may petition, at the expense of the Sponsor, any court of competent
jurisdiction for appointment of a Successor Property Trustee or Successor
Delaware Trustee, as applicable. Such court may thereupon, after prescribing
such notice, if any, as it may deem proper, appoint a Successor Property Trustee
or Successor Delaware Trustee, as the case may be.

     (f)  No Property Trustee or Delaware Trustee shall be liable for the acts
or omissions to act of any Successor Property Trustee or Successor Delaware
Trustee, as the case may be.

     (g)  In case of the appointment hereunder of a Successor Property Trustee
or a Successor Delaware Trustee, such Successor Property Trustee or Successor
Delaware Trustee so appointed shall execute, acknowledge and deliver to the
Trust and to the retiring Property Trustee or Delaware Trustee, as the case may
be, an instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Property Trustee or Delaware Trustee shall become
effective and such Successor Property Trustee or Successor Delaware Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Property Trustee or Delaware
Trustee; but, on the request of the Sponsor or the Successor Property Trustee or
Successor Delaware Trustee, such retiring Property Trustee or Delaware Trustee
shall, upon payment of its charges, execute and deliver an instrument
transferring to such Successor Property Trustee or Successor Delaware Trustee
all the rights, powers and trusts of the retiring Property Trustee or Delaware
Trustee, as the case may be, and if the Property Trustee is the resigning
Trustee, it shall duly assign, transfer and deliver to the Successor Property
Trustee all property and money held by such retiring Property Trustee hereunder.

     Section 6.07.  VACANCIES AMONG TRUSTEES.

     If a Trustee ceases to hold office for any reason and the number of
Trustees is not reduced pursuant to Section 6.01, or if the number of Trustees
is increased pursuant to Section 6.01, a vacancy shall occur. A resolution
certifying the existence of such vacancy by the Administrative Trustees or, if
there are more than two, a majority of the Administrative Trustees shall be
conclusive evidence of the existence of such vacancy. The vacancy shall be
filled with a Trustee appointed in accordance with Section 6.06.

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<Page>

     Section 6.08.  EFFECT OF VACANCIES.

     The death, resignation, retirement, removal, bankruptcy, dissolution,
liquidation, incompetence or incapacity to perform the duties of a Trustee shall
not operate to annul, dissolve or terminate the Trust nor to terminate this
Declaration. Whenever a vacancy in the number of Administrative Trustees shall
occur until such vacancy is filled by the appointment of an Administrative
Trustee in accordance with Section 6.06, the Administrative Trustees in office,
regardless of the number, shall have all the powers granted to the
Administrative Trustees and shall discharge all the duties imposed upon the
Administrative Trustees by this Declaration.

     Section 6.09.  MEETINGS.

     If there is more than one Administrative Trustee, meetings of the
Administrative Trustees shall be held from time to time upon the call of any
Administrative Trustee. Regular meetings of the Administrative Trustees may be
held at a time and place fixed by resolution of the Administrative Trustees.
Notice of any in-person meetings of the Administrative Trustees shall be hand
delivered or otherwise delivered in writing (including by facsimile, with a hard
copy by overnight courier) not less than 48 hours before such meeting. Notice of
any telephonic meetings of the Administrative Trustees shall be hand delivered
or otherwise delivered in writing (including by facsimile, with a hard copy by
overnight courier) not less than 24 hours before a meeting. Notices shall
contain a brief statement of the time, place and anticipated purposes of the
meeting. The presence (whether in person or by telephone) of an Administrative
Trustee at a meeting shall constitute a waiver of notice of such meeting except
where an Administrative Trustee attends a meeting for the express purpose of
objecting to the transaction of any activity on the ground that the meeting has
not been lawfully called or convened. Unless provided otherwise in this
Declaration, any action of the Administrative Trustees may be taken at a meeting
by vote of a majority of the Administrative Trustees present (whether in person
or by telephone) and eligible to vote with respect to such matter, provided a
Quorum is present, or without a meeting and without prior notice by the
unanimous written consent of the Administrative Trustees. In the event there is
only one Administrative Trustee, any and all action of such Administrative
Trustee shall be evidenced by a written consent of such Administrative Trustee.

     Section 6.10.  DELEGATION OF POWER BY THE ADMINISTRATIVE TRUSTEES.

     The Administrative Trustees shall have the power to delegate from time to
time to such of their number or to officers of the Trust or any other Person
that is a United States Person the doing of such things and the execution of
such instruments either in the name of the Trust or the names of the
Administrative Trustees or otherwise as the Administrative Trustees may deem
expedient, to the extent such delegation is not prohibited by applicable law or
contrary to the provisions of the Trust, as set forth herein.

     Section 6.11.  MERGER, CONSOLIDATION, CONVERSION OR SUCCESSION TO BUSINESS.

     Any entity into which the Property Trustee, the Delaware Trustee or any
Administrative Trustee that is not a natural person may be merged or converted
or with such Trustee may be consolidated, or any entity resulting from any
merger, conversion or consolidation to which such

                                       35
<Page>

Trustee is a party, or any entity succeeding to all or substantially all the
corporate trust business of such Trustee, shall be the successor of such Trustee
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, PROVIDED that such entity otherwise is
qualified and eligible under this Article.

                                    ARTICLE 7
                             TERMS OF THE SECURITIES

     Section 7.01.  GENERAL PROVISIONS REGARDING THE SECURITIES.

     (a)  The Administrative Trustees shall issue, on behalf of the Trust, one
class of preferred securities representing undivided beneficial interests in the
assets of the Trust (the "Preferred Securities") and one class of common
securities representing undivided beneficial interests in the assets of the
Trust (the "Common Securities").

             (i)  Preferred Securities. The Preferred Securities of the Trust
     shall have an aggregate stated liquidation amount of
     __________________________________ dollars ($_____________)
     [(________________________ dollars ($____________) if the over-allotment
     option granted in the Underwriting Agreement is exercised in full)] or $25
     per Preferred Security. The Preferred Securities are hereby designated for
     identification purposes only as the Preferred Securities. A form of the
     Preferred Security Certificate is attached as Exhibit A hereto.

            (ii)  Common Securities. The Common Securities of the Trust shall
     have an aggregate liquidation amount of __________________________________
     dollars ($_____________)[(________________________ dollars ($____________)
     if the over-allotment option granted in the Underwriting Agreement is
     exercised in full)] or $25 per Common Security. The Common Securities are
     hereby designated for identification purposes only as the Common
     Securities. A form of the Common Security Certificates is attached as
     Exhibit B hereto.

     (b)  Payment of Distributions on, and any payment of the Redemption Price
upon a redemption of, the Preferred Securities and the Common Securities, as
applicable, shall be made Pro Rata based on the liquidation amount of such
Preferred Securities and Common Securities; PROVIDED that if on any date on
which such amounts are payable, a Trust Enforcement Event has occurred and is
continuing, then no payments shall be made on any of the Common Securities,
until all accumulated and unpaid Distributions on, or the Redemption Price of,
as the case may be, all of the outstanding Preferred Securities for which
Distributions are to be paid or that have been called for redemption, as the
case may be, are fully paid. All funds available to the Property Trustee shall
first be applied to the payment in full in cash of all Distributions on, or the
Redemption Price of, the Preferred Securities then due and payable.

     (c)  The consideration received by the Trust for the issuance of the
Securities shall constitute a contribution to the capital of the Trust and shall
not constitute a loan to the Trust.

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<Page>

     (d)  Upon issuance of the Securities as provided in this Declaration, the
Securities so issued shall be validly issued, fully paid and (subject to Section
9.01(b)) non-assessable beneficial interests in the assets of the Trust.

     (e)  Every Person, by virtue of having become a Holder or a Beneficial
Owner of Preferred Securities in accordance with the terms of this Declaration,
shall be deemed to have expressly assented and agreed to the terms of, and shall
be governed by, this Declaration, the Guarantee, the Indenture, the Purchase
Contract Agreement, the Pledge Agreement and the [Subordinated] Notes.

     (f)  The Holders of the Securities shall not have any preemptive or similar
rights.

     (g)  The Certificates shall be signed on behalf of the Trust by an
Administrative Trustee. Such signature shall be the manual or facsimile
signature of any Administrative Trustee. If an Administrative Trustee of the
Trust who has signed any of the Certificates ceases to be an Administrative
Trustee before such signed Certificates have been delivered by the Trust, such
Certificates nevertheless may be delivered as though the Person who signed such
Certificates had not ceased to be an Administrative Trustee. Any Certificate may
be signed on behalf of the Trust by such Persons who, at the actual date of
execution of such Certificate, shall be the Administrative Trustees of the
Trust, although at the date of the execution and delivery of this Declaration
any such Person was not such an Administrative Trustee. Certificates shall be
printed, lithographed or engraved or may be produced in any other manner as is
reasonably acceptable to the Administrative Trustees, as evidenced by their
execution thereof, and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements as the
Administrative Trustees may deem appropriate, or as may be required to comply
with any law or with any rule or regulation of any stock exchange on which the
Securities may be listed, or to conform to usage.

     A Preferred Security Certificate shall not be valid until authenticated by
the manual signature of an authorized signatory of the Property Trustee. Such
signature shall be conclusive evidence that such Preferred Security Certificate
has been authenticated under this Declaration.

     Upon a written order of the Trust signed by one Administrative Trustee, the
Property Trustee shall authenticate the Preferred Security Certificates for
original issue. The aggregate number of Preferred Securities outstanding at any
time shall not exceed the liquidation amount set forth in Section 7.01(a)(i).

     The Property Trustee may appoint an authenticating agent acceptable to the
Trust, as determined by the Administrative Trustees on behalf of the Trust, to
authenticate Certificates. An authenticating agent may authenticate Certificates
whenever the Property Trustee may do so. Each reference in this Declaration to
authentication by the Property Trustee shall include authentication by such
agent. An authenticating agent shall have the same rights as the Property
Trustee to deal with the Sponsor or an Affiliate of the Sponsor.

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<Page>

     (h)  The Preferred Securities, upon original issuance, shall be issued in
the form of one or more fully registered global Preferred Security Certificates
(each a "Global Certificate"), to be delivered to, or pursuant to the
instructions of, The Depository Trust Company, the initial Depositary, by or on
behalf of the Trust. Such Global Certificates initially shall be registered on
the books and records of the Trust in the name of "Cede & Co.," the nominee of
the initial Depositary. No Beneficial Owner of Preferred Securities shall
receive a definitive Preferred Security Certificate representing such Beneficial
Owner's interests in the Global Certificates, except as provided in Section
7.12. Unless and until definitive, fully registered Preferred Security
Certificates have been issued to the Beneficial Owners of Preferred Securities
pursuant to Section 7.12,

             (i)  the provisions of this Section 7.01 shall be in full force and
     effect;

            (ii)  the Trust and the Trustees shall be entitled to deal with the
     Depositary for all purposes of this Declaration (including the payment of
     Distributions on the Preferred Securities represented by the Global
     Certificates and receiving approvals, votes or consents thereunder) as the
     Holder of the Preferred Securities represented by the Global Certificates
     and, except as set forth herein or in Rule 3a-7 (if the Trust is excluded
     from the definition of an Investment Company solely by reason of Rule 3a-7)
     with respect to the Property Trustee, shall have no obligation to the
     Beneficial Owners of the Preferred Securities;

           (iii)  to the extent that the provisions of this Section 7.01
     conflict with any other provisions of this Declaration, the provisions of
     this Section 7.01 shall control; and

            (iv)  the rights of the Beneficial Owners of the Preferred
     Securities shall be exercised only through the Depositary and shall be
     limited to those established by law and agreements between such Beneficial
     Owners and the Depositary and/or the Depositary Participants; PROVIDED that
     no such agreement shall give to any Person any rights against the Trust or
     the Property Trustee without the written consent of the parties so
     affected. The Depositary shall make book-entry transfers among Depositary
     Participants and receive and transmit Distributions on the Preferred
     Securities represented by the Global Certificates to such Depositary
     Participants; PROVIDED that solely for the purposes of determining whether
     the Holders of the requisite amount of Preferred Securities have voted on
     any matter provided for in this Declaration, so long as definitive
     Preferred Security Certificates have not been issued, the Trustees may rely
     conclusively on, and shall be fully protected in relying on, any written
     instrument (including a proxy) delivered to the Trustees by the Depositary
     setting forth the votes of the Beneficial Owners of the Preferred
     Securities or assigning the right to vote on any matter to any other
     Persons either in whole or in part.

     Whenever a notice or other communication to the Holder of the Preferred
Securities is required to be given under this Declaration, unless and until
definitive Preferred Security Certificates have been issued pursuant to Section
7.01(g), the Trustees shall deliver all such notices and communications
specified herein to be given to the Holders of the Preferred Securities to the
Depositary, and, with respect to any Preferred Security Certificate registered
in the name of a Depositary or the nominee of a Depositary, the Trustees may
conclusively rely on,

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<Page>

and shall be fully protected in relying on, any written instrument (including a
proxy) delivered to the Trustees by the Depositary setting forth the votes of
the Beneficial Owners of the Preferred Securities or assigning the right to vote
on any matter or any other Persons either in whole or in part. Multiple requests
and directions from and votes of the Depositary as the Holder of the Preferred
Securities represented by Global Certificates with respect to any particular
matter shall not be deemed inconsistent to the extent they do not represent an
amount of Preferred Securities in excess of those held in the name of the
Depositary or its nominee.

     Section 7.02.  DISTRIBUTIONS.

     (a)  Holders of the Securities shall be entitled to receive Distributions
that shall accumulate and be payable at the rate per annum of __% of the stated
liquidation amount of $25 per Security until _____________, and at the Reset
Rate thereafter. The amount of Distributions payable for any period shall be
computed (i) for any full quarterly distribution period, on the basis of a
360-day year of twelve 30-day months and (ii) for any period shorter than a full
quarterly distribution period, on the basis of a 30-day month and, for any
period of less than one month, on the basis of the actual number of days elapsed
per 30-day month. Subject to Section 7.01(b), Distributions shall be made on the
Securities on a Pro Rata basis. Distributions on the Securities shall accumulate
from ____________, 2003, shall be cumulative and shall be payable quarterly, in
arrears, on ___________, ___________, ___________ and __________ of each year,
commencing ___________, 2003, when, as and if available for payment, by the
Property Trustee, except as otherwise described below. Distributions shall be
payable only to the extent that payments are made to the Trust in respect of the
[Subordinated] Notes held by the Property Trustee and to the extent that the
Trust has funds available for the payment of such Distributions in the Property
Account.

     (b)  Distributions not paid on the scheduled payment date shall accumulate
and compound quarterly at the rate of __% per annum until ______________ and at
the Reset Rate thereafter ("Compounded Distributions"). "Distributions" shall
mean ordinary cumulative distributions together with any Compounded
Distributions.

     (c)  If and to the extent that the [Subordinated] Notes Issuer makes a
payment of principal of and any premium or interest on the [Subordinated] Notes
held by the Property Trustee (the amount of any such payment being a "Payment
Amount"), the Property Trustee shall and is directed, to the extent funds are
available for that purpose, to make a Pro Rata distribution of the Payment
Amount to Holders, subject to Section 7.01(b).

     (d)  Distributions on the Securities shall be payable to the Holders
thereof as they appear on the register of the Trust as of the close of business
on the relevant record dates. If the Preferred Securities are represented by one
or more Global Certificates, the relevant record dates shall be the close of
business on the Business Day preceding such Distribution payment date, unless a
different regular record date is established or provided for the corresponding
interest payment date on the [Subordinated] Notes. The relevant record dates for
the Common Securities shall be the same as for the Preferred Securities. If the
Preferred Securities are not represented by one or more Global Certificates, the
relevant record dates for the Preferred Securities shall be selected by the
Administrative Trustees and shall be the fifteenth Business Day prior to the
relevant Distribution payment dates. At all times, the Distribution payment
dates shall

                                       39
<Page>

correspond to the interest payment dates on the [Subordinated] Notes.
Distributions payable on any Securities that are not punctually paid on any
Distribution payment date, as a result of the [Subordinated] Notes Issuer having
failed to make a payment under the [Subordinated] Notes, shall cease to be
payable to the Person in whose name such Securities are registered on the
relevant record date, and such defaulted Distribution instead shall be payable
to the Person in whose name such Securities are registered on the special record
date or other specified date determined in accordance with this Declaration. If
any date on which Distributions are payable on the Securities is not a Business
Day, then payment of the Distribution payable on such date shall be made on the
next day that is a Business Day (and without any interest or other payment in
respect of any such delay), except that if such Business Day is in the next
calendar year, such payment shall be made on the preceding Business Day, with
the same force and effect as if made on such payment date.

     (e)  In the event that there is any money or other property held by or for
the Trust that is not accounted for hereunder, such property shall be
distributed Pro Rata among the Holders of the Securities, subject to Section
7.01(b).

     Section 7.03.  REDEMPTION OF SECURITIES.

     (a)  Upon the repayment of the [Subordinated] Notes held by the Trust at
the stated maturity of the [Subordinated] Notes, the proceeds from such
repayment shall be simultaneously applied Pro Rata (subject to Section 7.01(b))
to redeem Securities having an aggregate liquidation amount equal to the
aggregate principal amount of the [Subordinated] Notes so repaid.

     (b)  If the [Subordinated] Notes Issuer redeems the [Subordinated] Notes
upon the occurrence and continuance of a Tax Event, the proceeds from such
redemption shall be applied by the Property Trustee to redeem the Securities in
whole (but not in part) at a price per Security equal to the Redemption Amount
attributable to a [Subordinated] Note with a principal amount equal to the
stated liquidation amount of such Security plus any accumulated and unpaid
Distributions thereon to the Tax Event Redemption Date. If, following the
occurrence of a Tax Event, the [Subordinated] Notes Issuer exercises its option
to redeem the [Subordinated] Notes, the [Subordinated] Notes Issuer shall
appoint the Quotation Agent. Subject to the Trust's fulfillment of the notice
requirements set forth in Section 7.04(a), if a Tax Event Redemption occurs
prior to the Purchase Contract Settlement Date, the price payable in liquidation
of the Securities will be distributed to [ ], acting as the securities
intermediary under the Pledge Agreement, which in turn will apply that amount to
purchase the Treasury Portfolio and remit the remaining portion, if any, of such
price to [ ], acting as the purchase contract agent under the Purchase Contract
Agreement, for payment to the Holders of the Securities. If such excess amount
referred to in the immediately preceding sentence is to be paid to Holders of
the Securities, (i) with respect to the Preferred Securities represented by one
or more Global Certificates, by 12:00 noon, New York City time, on the Tax Event
Redemption Date, the Purchase Contract Agent will deposit irrevocably with the
Depositary or its nominee funds sufficient to pay such amount, and the Purchase
Contract Agent shall give the Depositary irrevocable instructions and authority
to pay such amount to the Beneficial Owners of the Preferred Securities, and
(ii) with respect to Securities not represented by one or more Global
Certificates, the Purchase Contract Agent shall pay such amount to the

                                       40
<Page>

Holders of such Securities by check mailed to the address of each Holder
appearing on the Security Register of the Trust on the Tax Event Redemption
Date. If a Tax Event Redemption occurs after the Purchase Contract Settlement
Date, the Treasury Portfolio shall not be purchased and the Property Trustee
shall distribute to the Holders of the Securities on the Tax Event Redemption
Date, the Redemption Price payable in liquidation of such Holders' interests in
the assets of the Trust in accordance with Section 7.04(b) below.

     Section 7.04.  REDEMPTION PROCEDURES.

     (a)  Notice of any redemption of, or notice of distribution of
[Subordinated] Notes in exchange for, the Securities (a "Redemption/Distribution
Notice"), which notice shall be irrevocable, shall be given by the Trust by mail
to each Holder of Securities to be redeemed or exchanged at least 30 but no more
than 60 days before the date fixed for redemption or exchange thereof which, in
the case of a redemption, shall be the date fixed for redemption of the
[Subordinated] Notes. For purposes of the calculation of the date of redemption
or exchange and the dates on which notices are given pursuant to this Section
7.04(a), a Redemption/Distribution Notice shall be deemed to be given on the day
such notice is first mailed by first-class mail, postage prepaid, to the Holders
of the Securities. Each Redemption/Distribution Notice shall be addressed to the
Holders of the Securities at the address of each such Holder appearing in the
register of the Trust. All notices of redemption shall state:

             (i)  the date fixed for redemption;

            (ii)  the Redemption Price;

           (iii)  the applicable CUSIP number;

            (iv)  that on the date fixed for redemption the Redemption Price
     will become due and payable upon each Security to be redeemed and that
     Distributions thereon will cease to accrue on and after said date; and

             (v)  the place or places where such Securities are to be
     surrendered for payment of the Redemption Price.

No defect in the Redemption/Distribution Notice or in the mailing of either
thereof with respect to any Holder shall affect the validity of the redemption
or exchange proceedings with respect to any other Holder.

     (b)  Subject to the Trust's fulfillment of the notice requirements set
forth in Section 7.04(a), if Securities are to be redeemed, other than in
connection with a Tax Event Redemption which occurs prior to the Purchase
Contract Settlement Date, which shall occur in accordance with Section 7.03(b)
above, then (PROVIDED that the [Subordinated] Notes Issuer has paid the Property
Trustee a sufficient amount of cash in connection with the related redemption or
maturity of the [Subordinated] Notes) (i) with respect to the Preferred
Securities represented by one or more Global Certificates, by 12:00 noon, New
York City time, on the redemption date, the Property Trustee will deposit
irrevocably with the Depositary or its nominee funds sufficient to pay the
applicable Redemption Price, and the Property Trustee shall give the Depositary
irrevocable instructions and authority to pay the Redemption Price to the
Beneficial Owners of

                                       41
<Page>

the Preferred Securities, and (ii) with respect to Securities not represented by
one or more Global Certificates, the Property Trustee shall pay the applicable
Redemption Price to the Holders of such Securities by check mailed to the
address of each Holder appearing on the register of the Trust on the redemption
date. If any date fixed for redemption of Securities is not a Business Day, then
payment of the Redemption Price payable on such date shall be made on the next
Business Day (without any interest thereon), except that if such Business Day
falls in the next calendar year, such payment shall be made on the preceding
Business Day, in each case with the same force and effect as if made on such
date fixed for redemption. Notwithstanding the foregoing, so long as the Holder
of any Preferred Securities is the Collateral Agent or the Purchase Contract
Agent, the payment of the Redemption Price in respect of the Preferred
Securities held by the Collateral Agent or the Purchase Contract Agent shall be
made no later than 12:00 noon, New York City time, on the redemption date by
check or wire transfer in immediately available funds at such place and to such
account as may be designated by the Collateral Agent or the Purchase Contract
Agent. If payment of the Redemption Price in respect of any Securities is
improperly withheld or refused and not paid either by the Trust or by the
Sponsor as guarantor pursuant to the Guarantee, then Distributions on such
Securities shall continue to accumulate at the then applicable rate, from the
original redemption date to the actual date of payment, in which case the actual
payment date shall be the date fixed for redemption for purposes of calculating
the Redemption Price. For these purposes, the applicable Redemption Price shall
not include Distributions that are being paid to Holders of Securities who were
not Holders of Securities on a relevant record date. If a
Redemption/Distribution Notice has been given and funds have been deposited or
paid as required, then immediately prior to the close of business on the date of
such deposit or payment, Distributions will cease to accumulate on the
Securities called for redemption, and all rights of Holders of such Securities
so called for redemption shall cease, except the right of the Holders of such
Securities to receive the Redemption Price, but without interest on such
Redemption Price, and from and after the date fixed for redemption, such
Securities will cease to be outstanding.

     Neither the Administrative Trustees nor the Trust shall be required to
register or cause to be registered the transfer of any Securities that have been
called for redemption, except for the unredeemed portion of any Securities being
redeemed in part.

     (c)  Subject to the foregoing and applicable law (including, without
limitation, United States federal securities laws), the [Subordinated] Notes
Issuer or its Affiliates may purchase, at any time and from time to time,
outstanding Preferred Securities by tender, in the open market, by private
agreement or otherwise.

     Section 7.05.  VOTING RIGHTS OF THE PREFERRED SECURITIES.

     (a)  Except as provided under this Section 7.05 and Section 11.01 and as
otherwise required by the Statutory Trust Act, the Trust Indenture Act and other
applicable law, the Holders of the Preferred Securities shall have no voting
rights.

     (b)  Subject to the requirement of the Property Trustee obtaining a tax
opinion in certain circumstances set forth in Section 7.05(d), the Holders of a
Majority in Liquidation Amount of the Preferred Securities, voting separately as
a class, shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Property

                                       42
<Page>

Trustee, or to direct the exercise of any trust or power conferred upon the
Property Trustee under this Declaration, including the right to direct the
Property Trustee, as Holder of the [Subordinated] Notes, to (i) exercise the
remedies available to it under the Indenture, (ii) consent to any amendment or
modification of the Indenture or the [Subordinated] Notes where such consent is
required or (iii) waive any past default and its consequences that are waivable
under the Indenture; PROVIDED that if an Indenture Event of Default has occurred
and is continuing, then the Holders of 25% of the aggregate stated liquidation
amount of the Preferred Securities may direct the Property Trustee to declare
the principal of and interest on the [Subordinated] Notes due and payable;
PROVIDED FURTHER that where a consent or action under the Indenture would
require the consent or act of the Holders of more than a majority of the
aggregate principal amount of [Subordinated] Notes affected thereby, the
Property Trustee only may give such consent or take such action at the direction
of the Holders of at least the same proportion in aggregate stated liquidation
amount of the Preferred Securities; and PROVIDED FURTHER, however, that (subject
to the provisions of Section 3.09) the Property Trustee shall have the right to
decline to follow any such direction if the Property Trustee, being advised by
counsel, determines that the action or proceeding so directed may not lawfully
be taken or if the Property Trustee, in good faith, by its board of directors or
trustees, executive committee, or a trust committee of directors or trustees,
and/or Responsible Officers, shall determine that the action or proceeding so
directed would involve the Property Trustee in personal liability.

     (c)  If the Property Trustee fails to enforce its rights under the
[Subordinated] Notes after a Holder of Preferred Securities has made a written
request, such Holder of Preferred Securities may institute, to the fullest
extent permitted by law, a legal proceeding directly against the [Subordinated]
Notes Issuer to enforce the Property Trustee's rights under the Indenture
without first instituting any legal proceeding against the Property Trustee or
any other Person. In addition, if a Trust Enforcement Event has occurred and is
continuing and such event is attributable to the failure of the [Subordinated]
Notes Issuer to make any interest, principal or other required payments when due
under the Indenture, then a Holder of Preferred Securities may institute a
Direct Action against the [Subordinated] Notes Issuer on or after the respective
due date specified in the [Subordinated] Notes. In connection with such Direct
Action, the [Subordinated] Notes Issuer will be subrogated to the rights of such
Holder of Preferred Securities to the extent of any payment made by the
[Subordinated] Notes Issuer to such Holders of Preferred Securities in such
Direct Action.

     (d)  The Property Trustee shall notify all Holders of the Preferred
Securities of any notice of any Indenture Event of Default received from the
[Subordinated] Notes Issuer with respect to the [Subordinated] Notes. Such
notice shall state that such Indenture Event of Default also constitutes a Trust
Enforcement Event. Except with respect to directing the time, method, and place
of conducting a proceeding for a remedy, the Property Trustee shall be under no
obligation to take any of the actions described in clauses (i) and (ii) of
Section 7.05(b) above, unless the Property Trustee has received an opinion of
independent tax counsel to the effect that the Trust will not fail to be
classified as a grantor trust for United States federal income tax purposes as a
result of such action, and that each Holder of Preferred Securities shall be
treated as owning an undivided beneficial interest in the [Subordinated] Notes.

     (e)  If the consent of the Property Trustee, as the Holder of the
[Subordinated] Notes, is required under the Indenture with respect to any
amendment or modification of the Indenture, the

                                       43
<Page>

Property Trustee shall request the direction of the Holders of the Securities
with respect to such amendment or modification and shall vote with respect to
such amendment or modification as directed by a Majority in Liquidation Amount
of the Securities voting together as a single class; PROVIDED that where a
consent under the Indenture would require the consent of the Holders of more
than a majority of the aggregate principal amount of the [Subordinated] Notes,
the Property Trustee only may give such consent at the direction of the Holders
of at least the same proportion in aggregate stated liquidation amount of the
Securities. The Property Trustee shall not take any such action in accordance
with the directions of the Holders of the Securities unless the Property Trustee
has obtained an opinion of independent tax counsel to the effect that the Trust
will not be classified as other than a grantor trust for United States federal
income tax purposes as a result of such action, and that each Holder will be
treated as owning an undivided beneficial interest in the [Subordinated] Notes.

     (f)  No vote or consent of the Holders of the Preferred Securities shall be
required for the Trust to redeem and cancel the Preferred Securities or
distribute the [Subordinated] Notes in accordance with this Declaration and the
terms of the Securities.

     (g)  Notwithstanding that the Holders of the Preferred Securities are
entitled to vote or consent under any of the circumstances described above, any
of the Preferred Securities that are owned at such time by the [Subordinated]
Notes Issuer, the Trustees or any entity directly or indirectly controlled by,
or under direct or indirect common control with, the [Subordinated] Notes Issuer
or any Trustee shall not be entitled to vote or consent and shall be treated,
for purposes of such vote or consent, as if such Preferred Securities were not
outstanding.

     (h)  Except as provided under Section 7.05(i), the Holders of the Preferred
Securities shall have no rights to appoint or remove the Trustees, who, subject
to Section 6.06, may be appointed, removed or replaced by the Holders of the
Common Securities.

     (i)  If an Indenture Event of Default has occurred and is continuing, the
Property Trustee and the Delaware Trustee may be removed and replaced, subject
to Section 6.06(b), at such time by a Majority in Liquidation Amount of the
Preferred Securities.

     (j)  The Holders of a Majority in Liquidation Amount of the Preferred
Securities may waive, by vote or written consent, on behalf of the Holders of
all of the Preferred Securities, any past Trust Enforcement Event in respect of
the Preferred Securities and its consequences, PROVIDED that if the underlying
Indenture Event of Default:

             (i)  is not waivable under the Indenture, then the Trust
     Enforcement Event under this Declaration also shall not be waivable; and

            (ii)  requires the vote or consent of the holders of greater than a
     majority in principal amount of the [Subordinated] Notes (a
     "Supermajority") to be waived under the Indenture, the related Trust
     Enforcement Event under this Declaration only may be waived by the vote or
     written consent of the Holders of at least the same Supermajority in
     aggregate stated liquidation amount of the Preferred Securities
     outstanding.

Upon such waiver, any such Trust Enforcement Event in respect of the Preferred
Securities shall be deemed to have been cured for every purpose of this
Declaration and the Preferred Securities,

                                       44
<Page>

but no such waiver shall extend to any subsequent or other Trust Enforcement
Event with respect to the Preferred Securities or impair any right consequent
thereon. A waiver of an Indenture Event of Default under the Indenture by the
Property Trustee at the direction of the Holders of the Preferred Securities
shall also constitute a waiver of the corresponding Trust Enforcement Event
under this Declaration. Any waiver by the Holders of the Preferred Securities of
a Trust Enforcement Event with respect to the Preferred Securities also shall be
deemed to constitute a waiver by the Holders of the Common Securities of any
such Trust Enforcement Event with respect to the Common Securities for all
purposes of this Declaration without any further act, vote or consent of the
Holders of the Common Securities.

     (k)  The Holders of the Common Securities may waive, by vote or written
consent, any past Trust Enforcement Event in respect of the Common Securities
and its consequences, PROVIDED that if the underlying Indenture Event of Default
is not waivable under the Indenture, then, except where the Holders of the
Common Securities have been deemed to have waived such Trust Enforcement as
provided below in this Section 7.05(k), the related Trust Enforcement Event
under this Declaration also shall not be waivable. The Holders of the Common
Securities shall be deemed to have waived any and all Trust Enforcement Events
in respect of the Common Securities and the consequences thereof until all Trust
Enforcement Events in respect of the Preferred Securities have been cured,
waived or otherwise eliminated. Until all Trust Enforcement Events in respect of
the Preferred Securities have been so cured, waived or otherwise eliminated, the
Property Trustee shall be deemed to be acting solely on behalf of the Holders of
the Preferred Securities, and only the Holders of the Preferred Securities shall
have the right to direct the Property Trustee. Subject to the foregoing
provisions of this Section 7.05(k), upon such cure, waiver or other elimination,
any Trust Enforcement Event in respect of the Common Securities shall be deemed
to have been cured for every purpose of this Declaration and the Common
Securities, but no such waiver shall extend to any subsequent or other Trust
Enforcement Event with respect to the Common Securities or impair any right
consequent thereon.

     (l)  The foregoing provisions of this Section 7.05(j), (k) and (l) shall be
in lieu of Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act,
and Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act are hereby
expressly excluded from this Declaration and the Securities, as permitted by the
Trust Indenture Act.

     Section 7.06.  VOTING RIGHTS OF THE COMMON SECURITIES.

     (a)  Except as provided under Section 6.01(b), this Section 7.06 and
Section 11.01 and as otherwise required by the Statutory Trust Act, the Trust
Indenture Act or other applicable law or provided by this Declaration, the
Holders of the Common Securities shall have no voting rights.

     (b)  Subject to Section 7.05(i), the Holders of the Common Securities shall
be entitled to vote to appoint, remove or replace any Trustee or to increase or
decrease the number of Trustees in accordance with Article 6.

     (c)  Subject to Section 7.05 and only after all Trust Enforcement Events
with respect to the Preferred Securities have been cured, waived, or otherwise
eliminated and subject to the

                                       45
<Page>

requirement of the Property Trustee obtaining a tax opinion in certain
circumstances set forth in this paragraph (c), the Holders of the Common
Securities shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Property Trustee, or
to direct the exercise of any trust or power conferred upon the Property Trustee
under this Declaration, including the right to direct the Property Trustee, as
Holder of the [Subordinated] Notes, to (i) exercise the remedies available to it
under the Indenture, (ii) consent to any amendment or modification of the
Indenture or the [Subordinated] Notes where such consent is required or (iii)
waive any past default and its consequences that are waivable under the
Indenture; PROVIDED that where a consent or action under the Indenture would
require the consent or act of the Holders of more than a majority of the
aggregate principal amount of [Subordinated] Notes affected thereby, only the
Holders of at least the same proportion of the aggregate stated liquidation
amount of the Common Securities may direct the Property Trustee to give such
consent or take such action. Except with respect to directing the time, method,
and place of conducting a proceeding for a remedy, the Property Trustee shall be
under no obligation to take any of the actions described in clauses (i) and (ii)
above unless the Property Trustee has obtained an opinion of independent tax
counsel to the effect that, as a result of such action, for United States
federal income tax purposes the Trust will not fail to be classified as a
grantor trust and each Holder will be treated as owning an undivided beneficial
interest in the [Subordinated] Notes.

     (d)  If the Property Trustee fails to enforce its rights under the
[Subordinated] Notes after the Holders of the Common Securities have made a
written request, the Holders of the Common Securities may institute, to the
fullest extent permitted by law, a legal proceeding directly against the
[Subordinated] Notes Issuer to enforce the Property Trustee's rights under the
[Subordinated] Notes without first instituting any legal proceeding against the
Property Trustee or any other Person.

     (e)  A waiver of an Indenture Event of Default with respect to the
[Subordinated] Notes shall constitute a waiver of the corresponding Trust
Enforcement Event.

     (f)  Any required approval or direction of the Holders of the Common
Securities may be given at a separate meeting of the Holders of the Common
Securities convened for such purpose, at a meeting of all of the Holders of the
Securities or pursuant to written consent without prior notice. The
Administrative Trustees shall cause a notice of any meeting at which the Holders
of the Common Securities are entitled to vote to be mailed to the Holders of the
Common Securities. Such notice shall include a statement setting forth: (i) the
date of such meeting; (ii) a description of any resolution proposed for adoption
at such meeting on which the Holders of the Common Securities are entitled to
vote; and (iii) instructions for the delivery of proxies.

     (g)  No vote or consent of the Holders of the Common Securities shall be
required for the Trust to redeem and cancel the Common Securities or to
distribute [Subordinated] Notes in accordance with this Declaration and the
terms of the Securities.

                                       46
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     Section 7.07.  PAYING AGENT.

     The Trust shall maintain in the Borough of Manhattan, New York City, State
of New York, an office or agency where the Preferred Securities may be presented
for payment. The Administrative Trustees shall appoint such paying agent (which
shall be a bank or trust company acceptable to the [Subordinated] Notes Issuer
and shall comply with Section 317(b) of the Trust Indenture Act) and may appoint
one or more additional paying agents in such other locations as they shall
determine. The term "Paying Agent" includes any additional paying agent. The
Administrative Trustees may change any Paying Agent without prior notice to the
Holders of the Securities. The Administrative Trustees shall notify the Property
Trustee of the name and address of any Paying Agent not a party to this
Declaration. If the Administrative Trustees, on behalf of the Trust, fail to
appoint or maintain another entity as Paying Agent, the Property Trustee shall
act as such. The Paying Agent shall be permitted to resign as Paying Agent upon
30 days' written notice to the Property Trustee and the [Subordinated] Notes
Issuer.

     Section 7.08.  LISTING.

     The Sponsor shall use its best efforts to cause the Stock Purchase Units to
be listed and maintained as listed for quotation on the [New York Stock
Exchange.]

     Section 7.09.  TRANSFER OF THE SECURITIES.

     (a)  The Preferred Securities initially shall be pledged, pursuant to the
terms of the Pledge Agreement, as collateral to secure the obligations of the
Holders of Stock Purchase Units to purchase common shares of the Sponsor in
accordance with the terms of the Purchase Contract Agreement.

             (i)  The Preferred Securities may be transferred, in whole or in
     part, only in accordance with the terms and conditions set forth in this
     Declaration and pursuant to the Pledge Agreement. To the fullest extent
     permitted by law, any transfer or purported transfer of any Preferred
     Security not made in accordance with this Declaration shall be null and
     void.

            (ii)  Subject to this Section 7.09 and Section 7.12, the Preferred
     Securities shall be freely transferable.

           (iii)  The Trust shall cause to be kept at the Corporate Trust Office
     a register in which, subject to such reasonable regulations as it may
     prescribe, the Trust shall provide for the registration of Preferred
     Securities and of transfers of Preferred Securities. The Property Trustee
     is hereby appointed "Security Registrar" for the purpose of registering
     Preferred Securities and transfers of Preferred Securities as herein
     provided.

            (iv)  Upon surrender for registration of transfer of any Preferred
     Securities at an office or agency of the Trust designated for such purpose,
     an Administrative Trustee shall execute, and the Property Trustee shall
     authenticate and deliver, in the name of the designated transferee or
     transferees, one or more new Preferred Securities of any authorized
     denominations and of a like aggregate principal amount.

                                       47
<Page>

          (v)     At the option of the Holder, Preferred Securities may be
     exchanged for other Preferred Securities of any authorized denominations
     and of a like aggregate principal amount, upon surrender of the Preferred
     Securities to be exchanged at such office or agency. Whenever any Preferred
     Securities are so surrendered for exchange, an Administrative Trustee shall
     execute, and the Property Trustee shall authenticate and deliver, the
     Preferred Securities that the Holder making the exchange is entitled to
     receive.

          (vi)    If so required by the Trust or the Property Trustee, every
     Preferred Security presented or surrendered for registration of transfer or
     for exchange shall be duly endorsed, or accompanied by a duly executed
     written instrument of transfer in form satisfactory to the Trust and the
     Security Registrar, by the Holder thereof or his attorney duly authorized
     in writing.

          (vii)   No service charge shall be made for any registration of
     transfer or exchange of Preferred Securities, but the Trust may require
     payment of a sum sufficient to cover any tax or other governmental charge
     that may be imposed in connection with any registration of transfer or
     exchange of Preferred Securities.

     (b)  The [Subordinated] Notes Issuer may not transfer the Common Securities
except in connection with the transactions permitted under Section 10.01 of the
Indenture; PROVIDED that each Holder of the Common Securities shall at all times
be a United States Person. To the fullest extent permitted by law, any attempted
transfer of the Common Securities other than as set forth in this Section
7.09(b) shall be null and void.

     Section 7.10.  MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

     If:

     (a)  any mutilated Certificates are surrendered to the Administrative
Trustees, or if the Administrative Trustees receive evidence to their
satisfaction of the destruction, loss or theft of any Certificate; and

     (b)  there shall be delivered to the Administrative Trustees such security
or indemnity as may be required by them to keep each of them and the Property
Trustee harmless, then, in the absence of notice that such Certificate has been
acquired by a protected purchaser, any Administrative Trustee shall execute and
the Property Trustee shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like denomination. In connection with the issuance of any new Certificate
under this Section 7.10, the Administrative Trustees may require the payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith. Any duplicate Certificate issued pursuant to
this Section 7.10 shall constitute conclusive evidence of an ownership interest
in the relevant Securities, as if originally issued, whether or not the lost,
stolen or destroyed Certificate is found at any time.

                                       48
<Page>

     Section 7.11.  DEEMED HOLDERS.

     The Trustees may treat the Person in whose name any Certificate is
registered on the register of the Trust as the sole holder of such Certificate
and of the Securities represented thereby for purposes of receiving
Distributions and for all other purposes whatsoever. Accordingly, the Trustees
shall not be bound to recognize any equitable or other claim to or interest in
such Certificate or in the Securities represented by such Certificate on the
part of any Person, whether or not the Trust has actual or other notice thereof.

     Section 7.12.  GLOBAL CERTIFICATES.

     Global Certificates shall bear a legend substantially to the following
effect:

          "This Preferred Security is registered in the name of The
          Depository Trust Company, a New York corporation (the
          "Depositary"), or a nominee of the Depositary. This
          Preferred Security is exchangeable for Preferred Securities
          registered in the name of a person other than the Depositary
          or its nominee only in the limited circumstances described
          in the Declaration, and no transfer of this Preferred
          Security (other than a transfer of this Preferred Security
          as a whole by the Depositary to a nominee of the Depositary
          or by a nominee of the Depositary to the Depositary or
          another nominee of the Depositary) may be reregistered
          except in limited circumstances.

          Unless this Global Certificate is presented by an authorized
          representative of the Depositary to CC Funding Trust II or
          its agent for registration of transfer, exchange or payment,
          and any certificate issued is registered in the name of Cede
          & Co. or such other name as requested by an authorized
          representative of the Depositary (and any payment hereon is
          made to Cede & Co. or to such other entity as is requested
          by an authorized representative of the Depositary), and
          except as otherwise provided in the Amended and Restated
          Declaration of CC Funding Trust II dated as of
          __________________, 2003, ANY TRANSFER, PLEDGE OR OTHER USE
          HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON (OTHER
          THAN PURSUANT TO THE PLEDGE AGREEMENT) IS WRONGFUL since the
          registered owner hereof, Cede & Co., has an interest
          herein."

     Preferred Securities not represented by a Global Certificate issued in
exchange for all or a portion of the Preferred Securities represented by a
Global Certificate pursuant to this Section 7.12 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 Property Trustee. Upon execution and authentication, the Property
Trustee shall deliver any Preferred Securities not represented by a Global
Certificate to the Persons in whose names such definitive Preferred Securities
are so registered.

                                       49
<Page>

     At such time as the Preferred Securities represented by a Global
Certificate have been redeemed, repurchased or canceled, such Global Certificate
shall be canceled, upon receipt thereof, by the Property Trustee in accordance
with standing procedures of the Depositary. At any time prior to such
cancellation, if any Preferred Securities represented by a Global Certificate
are exchanged for Preferred Securities not represented by a Global Certificate,
redeemed, canceled or transferred to a transferee who receives Preferred
Securities not represented by a Global Certificate, or if any Preferred Security
not represented by a Global Certificate is exchanged or transferred for a
Preferred Security represented by a Global Certificate, then, in accordance with
the standing procedures of the Depositary, the liquidation amount of the
Preferred Securities represented by the Global Certificate shall be reduced or
increased, as the case may be, and an endorsement shall be made on such Global
Certificate by the Property Trustee to reflect such reduction or increase.

     If at any time the Depositary notifies the Trust that it is unwilling,
unable or ineligible to continue as Depositary for the Preferred Securities, the
Administrative Trustees shall appoint a successor Depositary with respect to the
Preferred Securities. If a successor Depositary is not appointed within 90 days
after the Trust receives such notice or becomes aware of such ineligibility, the
Trust's election that the Preferred Securities be represented by one or more
Global Certificates shall no longer be effective, and an Administrative Trustee
shall execute, and the Property Trustee will authenticate and deliver, Preferred
Securities in definitive registered form, in any authorized denominations, in an
aggregate stated liquidation amount equal to the aggregate stated liquidation
amount of the Preferred Securities represented by the Global Certificates in
exchange for such Global Certificates.

     An Administrative Trustee on behalf of the Trust at any time and in its
sole discretion may determine that the Preferred Securities issued in the form
of one or more Global Certificates shall no longer be represented by Global
Certificates. In such event an Administrative Trustee on behalf of the Trust
shall execute, and the Property Trustee shall authenticate and deliver,
Preferred Securities in definitive registered form, in any authorized
denominations, in an aggregate stated liquidation amount equal to the aggregate
stated liquidation amount of the Preferred Securities represented by the Global
Certificates, in exchange for such Global Certificates.

     Notwithstanding any other provisions of this Declaration (other than the
provisions set forth in Section 7.09), Preferred Securities represented by
Global Certificates may not be transferred as a whole except by the Depositary
to a nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such
nominee to a successor Depositary or a nominee of such successor Depositary.

     Section 7.13.  REMARKETING.

     (a)  So long as the Preferred Securities and the Stock Purchase Units are
evidenced by one or more global certificates held by the Depositary, the
[Subordinated] Notes Issuer shall request, not later than 15 nor more than 30
calendar days prior to the Remarketing Date, that the Depositary notify the
Holders of the Preferred Securities and the holders of Stock Purchase Units of
the Remarketing and of the procedures that must be followed if a Holder of Stock
Purchase Units wishes to make a Cash Settlement.

                                       50
<Page>

     (b)  Not later than 5:00 p.m., New York City time, on the seventh Business
Day preceding the Purchase Contract Settlement Date, each Holder of Preferred
Securities may elect to have the Preferred Securities held by such Holder
remarketed in the Remarketing. Under Section 5.02 of the Purchase Contract
Agreement, holders of Stock Purchase Units that do not give notice of their
intention to make a Cash Settlement of the Purchase Contract component of their
Stock Purchase Units prior to such time in the manner specified in such Section,
or have given such notice but fail to deliver cash prior to 11:00 a.m., New York
City time, on or prior to the fifth Business Day preceding the Purchase Contract
Settlement Date, shall be deemed to have consented to the disposition of the
Preferred Securities comprising a component of their Stock Purchase Units in the
Remarketing. Holders of the Preferred Securities that are not a component of
Stock Purchase Units wishing to elect to have their Preferred Securities
remarketed shall give to the Property Trustee notice of their election prior to
11:00 a.m., New York City time on the fifth Business Day prior to the Purchase
Contract Settlement Date. Any such notice shall be irrevocable and may not be
conditioned upon the level at which the Reset Rate is established in the
Remarketing. Promptly after 11:00 a.m., New York City time, on such fifth
Business Day, the Property Trustee, based on the notices received by it prior to
such time (including notices from the Purchase Contract Agent as to Purchase
Contracts for which Cash Settlement has been elected and cash received), shall
notify the Trust, the Sponsor and the Remarketing Agent of the number of
Preferred Securities to be tendered for purchase in the Remarketing.

     (c)  If any Holder of Stock Purchase Units does not give a notice of its
intention to make a Cash Settlement or gives such notice but fails to deliver
cash as described in Section 7.13(b), or gives a notice of election to have
Preferred Securities that are not a component of Stock Purchase Units
remarketed, then the Preferred Securities of such Holder shall be deemed
tendered for purchase in the Remarketing, notwithstanding any failure by such
Holder to deliver or properly deliver such Preferred Securities to the
Remarketing Agent for purchase.

     (d)  The right of each Holder to have Preferred Securities tendered for
purchase shall be limited to the extent that (i) the Remarketing Agent conducts
a Remarketing pursuant to the terms of the Remarketing Agreement, (ii) the
Remarketing Agent is able to find a purchaser or purchasers for the tendered
Preferred Securities and (iii) such purchaser or purchasers deliver the purchase
price therefor to the Remarketing Agent.

     (e)  On the Remarketing Date, pursuant to the Remarketing Agreement, the
Remarketing Agent shall use reasonable efforts to remarket, at a price equal to
[100.25]% of the aggregate stated liquidation amount thereof, the Preferred
Securities tendered or deemed tendered for purchase.

     (f)  If, as a result of the efforts described in Section 7.13(e), the
Remarketing Agent has determined that it will not be able to remarket all of the
Preferred Securities tendered or deemed tendered for purchase at a price of
[100.25]% of the aggregate stated liquidation amount of such Preferred
Securities, the Remarketing Agent shall determine the Reset Rate, which shall be
the rate per annum (rounded to the nearest one-thousandth (0.001) of one percent
per annum), sufficient to cause the then current aggregate market value of the
Preferred Securities to be equal to [100.25]% of the aggregate stated
liquidation amount of such Preferred Securities, which rate shall be the lowest
rate per annum that in the sole reasonable discretion of the Remarketing Agent
will enable it to remarket all of the Preferred Securities tendered or deemed
tendered for

                                       51
<Page>

Remarketing at a price of [100.25]% of the aggregate stated liquidation amount
of such Preferred Securities.

     (g)  If none of the Holders of the Preferred Securities or the holders of
the Stock Purchase Units elect to have Preferred Securities remarketed in the
Remarketing, the Reset Rate shall be the rate determined by the Remarketing
Agent, in its sole reasonable discretion, as the rate that would have been
established had a Remarketing been held on the Remarketing Date.

     (h)  If, by 4:00 p.m., New York City time, on the Remarketing Date, the
Remarketing Agent is unable to remarket all of the Preferred Securities tendered
or deemed tendered for purchase, a failed Remarketing ("Failed Remarketing")
shall be deemed to have occurred and the Remarketing Agent shall so advise by
telephone the Depositary, the Property Trustee, the Indenture Trustee, the Trust
and the Sponsor. In the event of a Failed Remarketing, the Reset Rate shall
equal the Two-Year Benchmark Treasury Rate plus the Applicable Spread; PROVIDED,
HOWEVER, that if the Two-Year Benchmark Treasury Rate is not displayed in the
Telerate system, the Reset Rate shall be calculated by the Remarketing Agent as
the yield to maturity of the Preferred Securities, expressed as a bond
equivalent on the basis of a year of 365 or 366 days, as applicable, and applied
on a daily basis, and computed by taking the arithmetic mean of the secondary
market bid rates, as of 10:30 a.m., New York City time, on the third Business
Day prior to the Purchase Contract Settlement Date of three leading United
States government securities dealers selected by the Remarketing Agent (after
consultation with the Sponsor), which may include the Remarketing Agent or an
Affiliate thereof. Whether or not there has been a Failed Remarketing will be
determined in the sole reasonable discretion of the Remarketing Agent.

     (i)  By approximately 4:30 p.m., New York City time, on the Remarketing
Date PROVIDED that there has not been a Failed Remarketing, the Remarketing
Agent shall advise, by telephone (i) the Depositary, the Property Trustee, the
Trust and the Sponsor of the Reset Rate determined in the Remarketing and the
number of Preferred Securities sold in the Remarketing, (ii) each purchaser (or
the Depositary Participant thereof) purchasing Preferred Securities sold in the
Remarketing of the Reset Rate and the number of Preferred Securities such
purchaser is to purchase and (iii) each purchaser to give instructions to its
Depositary Participant to pay the purchase price on the Purchase Contract
Settlement Date in same day funds against delivery of the Preferred Securities
purchased through the facilities of the Depositary.

     (j)  In accordance with the Depositary's normal procedures, on the
Remarketing Settlement Date, the transactions described above with respect to
each Preferred Security tendered for purchase and sold in the Remarketing shall
be executed through the Depositary, and the accounts of the respective
Depositary Participants shall be debited and credited and such Preferred
Securities delivered by book-entry as necessary to effect purchases and sales of
such Preferred Securities. The Depositary shall make payment in accordance with
its normal procedures.

     (k)  If any Holder of the Preferred Securities selling Preferred Securities
in the Remarketing fails to deliver such Preferred Securities, the Depositary
Participant of such selling Holder and of any other Person that was to have
purchased Preferred Securities in the Remarketing may deliver to any such other
Person a number of Preferred Securities that is less

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than the number of Preferred Securities that otherwise was to be purchased by
such Person. In such event, the number of Preferred Securities to be so
delivered shall be determined by such Depositary Participant, and delivery of
such lesser number of Preferred Securities shall constitute good delivery.

     (l)  The Remarketing Agent shall not have any obligation whatsoever to
purchase any Preferred Securities, whether in the Remarketing or otherwise, and
shall in no way be obligated to provide funds to make payment upon tender of
Preferred Securities for Remarketing or to otherwise expend or risk its own
funds or incur or to be exposed to financial liability in the performance of its
duties under this Agreement, and without limitation of the foregoing, the
Remarketing Agent shall not be deemed an underwriter of the Preferred
Securities. None of the Trust, any Trustee, the Sponsor or the Remarketing Agent
shall be obligated in any case to provide funds to make payment upon tender of
the Preferred Securities for Remarketing.

     (m)  Under the Remarketing Agreement, the Sponsor, in its capacity as
[Subordinated] Notes Issuer, shall be liable for, and shall pay, any and all
costs and expenses incurred in connection with the Remarketing, and the Trust
shall not have any liabilities for such costs and expenses; PROVIDED, HOWEVER,
that for the performance of its services, the Remarketing Agent will retain from
the proceeds of the Remarketing an amount equal to [0.25]% of the aggregate
stated liquidation amount of all remarketed Preferred Securities.

     (n)  The tender and settlement procedures set in this Section 7.13,
including provisions for payment by purchasers of the Preferred Securities in
the Remarketing, shall be subject to modification to the extent required by the
Depositary or if the book-entry system is no longer available for the Preferred
Securities at the time of the Remarketing, to facilitate the tendering and
remarketing of the Preferred Securities in certificated form. In addition, the
Remarketing Agent may modify the settlement procedures set forth herein in order
to facilitate the settlement process.

                                    ARTICLE 8
                    DISSOLUTION AND TERMINATION OF THE TRUST

     Section 8.01.  DISSOLUTION AND TERMINATION OF THE TRUST.

     (a)  The Trust shall dissolve upon the earliest of:

             (i)  the bankruptcy or liquidation of the [Subordinated] Notes
     Issuer;

            (ii)  the filing of a certificate of dissolution or its equivalent
     with respect to the Sponsor or the revocation of the Sponsor's charter and
     the expiration of 90 days after the date of revocation without a
     reinstatement thereof;

           (iii)  the entry of a decree of judicial dissolution of the Sponsor
     or the Trust;

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            (iv)  the time when all of the Securities shall have been called for
     redemption at maturity or upon the occurrence of a Tax Event and the
     amounts then due shall have been paid to the Holders of the Securities;

             (v)  the direction by the Property Trustee, following the
     occurrence and continuation of a Tax Event pursuant to which the Trust is
     to be dissolved and all of the [Subordinated] Notes distributed to the
     Holders of the Securities in exchange for all of the Securities;

            (vi)  at the Sponsor's sole discretion, by notice and direction to
     the Property Trustee to distribute the [Subordinated] Notes to the Holders
     of the Securities in exchange for all of the Securities; PROVIDED that the
     Sponsor will be required to obtain an opinion of counsel that the
     distribution of the [Subordinated] Notes will not be taxable to the holders
     of the Preferred Securities for United States federal income tax purposes;
     and

           (vii)  the time when all of the Administrative Trustees and the
     Sponsor have consented to dissolution of the Trust, PROVIDED such action is
     taken before the issuance of any Securities.

     (b)  As soon as is practicable after the occurrence of an event referred to
in Section 8.01(a) and upon completion of the winding up and liquidation of the
Trust in accordance with Section 3808(e) of the Statutory Trust Act, the
Administrative Trustees shall terminate the Trust by executing and filing a
certificate of cancellation with the Secretary of State of the State of Delaware
in accordance with Section 3810 of the Statutory Trust Act.

     (c)  The provisions of Article 9 shall survive the termination of the
Trust.

     Section 8.02.  LIQUIDATION DISTRIBUTION UPON DISSOLUTION OF THE TRUST.

     (a)  In the event of any voluntary or involuntary liquidation, dissolution,
or winding-up of the Trust based on the occurrence of an event specified in
Section 8.01(a) (other than clause (iv)) (each a "Liquidation"), the Holders of
the Securities on the date of the Liquidation shall be entitled to receive on a
Pro Rata basis, after satisfaction of the Trust's liabilities to creditors in
accordance with Section 3808(e) of the Statutory Trust Act, [Subordinated] Notes
in an aggregate principal amount equal to the aggregate stated liquidation
amount of, with an interest rate identical to the distribution rate of, and
accrued and unpaid interest equal to accumulated and unpaid Distributions on,
such Securities in exchange for such Securities; PROVIDED if the Liquidation
occurs prior to the Purchase Contract Settlement Date, the [Subordinated] Notes
receivable by the Holders shall be transferred to the Collateral Agent.

     (b)  Notice of Liquidation shall be given by the Property Trustee by
first-class mail, postage prepaid, mailed not later than 30 nor more than 60
days prior to the date of the Liquidation to each Holder of Securities at such
Holder's address appearing in the Securities register. All notices of
Liquidation shall:

             (i)  state the date of the Liquidation;

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            (ii)  state that from and after the date of the Liquidation, the
     Securities will no longer be deemed to be outstanding and any Certificates
     not surrendered for exchange will be deemed to represent the [Subordinated]
     Notes in a principal amount equal to the stated liquidation amount of the
     Securities, bearing accrued and unpaid interest in an amount equal to the
     accumulated and unpaid Distribution on the Securities; and

           (iii)  provide such information with respect to the mechanics by
     which Holders may exchange Certificates for [Subordinated] Notes, or, if
     Section 8.02(d) applies, receive a distribution, as the Property Trustee
     shall deem appropriate.

     (c)  Except where Section 8.01(a)(iv) or Section 8.02(d) applies, in order
to effect the liquidation of the Trust and distribution of the [Subordinated]
Notes to Holders, the Property Trustee shall establish a record date for such
distribution (which shall be not more than 45 days prior to the date of the
Liquidation) and, either itself acting as exchange agent or through the
appointment of a separate exchange agent, shall establish such procedures as it
shall deem appropriate to effect the distribution of [Subordinated] Notes in
exchange for the outstanding Certificates.

     (d)  In the event that, notwithstanding the other provisions of this
Section 8.02, whether because of an order for dissolution entered by a court of
competent jurisdiction or otherwise, distribution of the [Subordinated] Notes in
the manner provided herein is determined by the Property Trustee not to be
practical, the property of the Trust shall be liquidated, and the Trust shall be
wound-up and terminated, by the Property Trustee in such manner as the Property
Trustee reasonably determines. In such event, on the date of the winding-up and
termination of the Trust, the Holders of the Securities on the date of the
Liquidation shall be entitled to receive, out of the assets of the Trust
available for distribution to the Holders of the Securities after satisfaction
of the Trust's liabilities to creditors in accordance with Section 3808(e) of
the Statutory Trust Act, if any, cash or other immediately available funds in an
amount equal to the aggregate of the stated liquidation amount of $25 per
Security plus accumulated and unpaid Distributions thereon to the date of
payment (such amount being the "Liquidation Distribution"); PROVIDED that if the
Liquidation occurs prior to the Purchase Contract Settlement Date, the
Liquidation Distribution shall equal the Redemption Amount attributable to an
aggregate principal amount of [Subordinated] Notes equal to the aggregate stated
liquidation amount of the Securities plus any accumulated and unpaid
Distributions, and such Liquidation Amount will be distributed to the
Collateral Agent, which in turn will apply an amount equal to the Redemption
Amount of such Liquidation Distribution to purchase the Treasury Portfolio on
behalf of the Holders of the Securities and remit the remaining portion, if any,
of such Liquidation Distribution to the Purchase Contract Agent for payment to
the Holders. If, upon any such Liquidation, the Liquidation Distribution can be
paid only in part because the Trust has insufficient assets available to pay the
aggregate Liquidation Distribution in full, then the amounts payable directly by
the Trust on the Securities shall be paid on a Pro Rata basis. The Holders of
the Common Securities shall be entitled to receive the Liquidation Distribution
Pro Rata with the Holders of the Preferred Securities, except that if a Trust
Enforcement Event has occurred and is continuing, then the Preferred Securities
shall have a preference over the Common Securities with regard to the
Liquidation Distribution.

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     (e)  After the date fixed for any distribution of [Subordinated] Notes upon
dissolution of the Trust, (i) the Securities no longer shall be deemed to be
outstanding and (ii) the Certificates shall be deemed to represent the
[Subordinated] Notes in a principal amount equal to the stated liquidation
amount of the Securities, bearing accrued and unpaid interest in an amount equal
to the accumulated and unpaid Distributions on the Securities, until such
Certificates are presented to the Administrative Trustees or agent for transfer
or reissuance.

                                    ARTICLE 9
 LIMITATION OF LIABILITY OF HOLDERS OF THE SECURITIES, THE DELAWARE TRUSTEE AND
                                     OTHERS

     Section 9.01.  LIABILITY.

     (a)  Except as expressly set forth in this Declaration and the Guarantee,
the Sponsor and the Trustees:

             (i)  shall not be personally liable for the return of any portion
     of the capital contributions (or any return thereon) of the Holders of the
     Securities that will be made solely from assets of the Trust; and

            (ii)  shall not be required to pay to the Trust or to any Holder of
     the Securities any deficit, upon dissolution of the Trust or otherwise.

     (b)  Pursuant to Section 3803(a) of the Statutory Trust Act, the Holder of
the Common Securities shall be entitled to the same limitation of personal
liability extended to stockholders of private corporations for profit organized
under the General Corporation Law of the State of Delaware; PROVIDED that the
Holders of the Common Securities shall be liable for all of the debts and
obligations of the Trust (other than with respect to the Securities) to the
extent such debts and obligations are not satisfied out of the Trust's assets.

     (c)  Pursuant to Section 3803(a) of the Statutory Trust Act, the Holder of
the Preferred Securities shall be entitled to the same limitation of personal
liability extended to stockholders of private corporations for profit organized
under the General Corporation Law of the State of Delaware.

     Section 9.02.  EXCULPATION.

     (a)  No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Trust or to any Covered Person for any loss, damage
or claim incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith on behalf of the Trust and in a manner that
such Indemnified Person reasonably believed to be within the scope of the
authority conferred on such Indemnified Person by this Declaration or by law,
except that an Indemnified Person shall be liable for any such loss, damage or
claim incurred by reason of such Indemnified Person's gross negligence (or, in
the case of the Property Trustee, negligence) or willful misconduct with respect
to such acts or omissions.

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     (b)  Each Indemnified Person shall be fully protected in conclusively
relying in good faith upon the records of the Trust and upon such information,
opinions, reports or statements presented to the Trust by any Person as to
matters such Indemnified Person reasonably believes to be within such other
Person's professional or expert competence and who has been selected with
reasonable care by or on behalf of the Trust, including information, opinions,
reports or statements as to the value and amount of the assets, liabilities,
profits, losses or any other facts pertinent to the existence and amount of
assets from which distributions to Holders of the Securities might properly be
paid.

     Section 9.03.  FIDUCIARY DUTY.

     (a)  To the extent that, at law or in equity, an Indemnified Person has
duties (including fiduciary duties) and liabilities relating thereto to the
Trust or to any other Covered Person, an Indemnified Person acting under this
Declaration shall not be liable to the Trust or to any other Covered Person for
its good faith reliance on the provisions of this Declaration. The provisions of
this Declaration, to the extent that they restrict the duties and liabilities of
an Indemnified Person otherwise existing at law or in equity (other than the
duties imposed on the Property Trustee under the Trust Indenture Act), are
agreed by the parties hereto to replace such other duties and liabilities of
such Indemnified Person.

     (b)  Unless otherwise expressly provided herein:

             (i)  whenever a conflict of interest exists or arises between a
     Covered Person and an Indemnified Person; or

            (ii)  whenever this Declaration or any other agreement contemplated
     herein or therein provides that an Indemnified Person shall act in a manner
     that is, or provides terms that are, fair and reasonable to the Trust or
     any Holder of Securities,

the Indemnified Person shall resolve such conflict of interest, take such action
or provide such terms, considering in each case the relative interest of each
party (including its own interest) to such conflict, agreement, transaction or
situation and the benefits and burdens relating to such interests, any customary
or accepted industry practices and any applicable generally accepted accounting
practices or principles. In the absence of bad faith by the Indemnified Person,
the resolution, action or term so made, taken or provided by the Indemnified
Person shall not constitute a breach of this Declaration or any other agreement
contemplated herein or of any duty or obligation of the Indemnified Person at
law or in equity or otherwise.

     (c)  Whenever in this Declaration an Indemnified Person is permitted or
required to make a decision:

             (i)  in its "discretion" or under a grant of similar authority, the
     Indemnified Person shall be entitled to consider such interests and factors
     as it desires, including its own interests, and shall have no duty or
     obligation to give any consideration to any interest of or factors
     affecting the Trust or any other Person; or

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            (ii)  in its "good faith" or under another express standard, the
     Indemnified Person shall act under such express standard and shall not be
     subject to any other or different standard imposed by this Declaration or
     by applicable law.

     Section 9.04.  INDEMNIFICATION.

     (a)  To the fullest extent permitted by applicable law, the Sponsor, in its
capacity as [Subordinated] Notes Issuer, shall indemnify and hold harmless each
Indemnified Person from and against any loss, damage or claim incurred by such
Indemnified Person by reason of any act or omission performed or omitted by such
Indemnified Person in good faith on behalf of the Trust and in a manner such
Indemnified Person reasonably believed to be within the scope of authority
conferred on such Indemnified Person by this Declaration, except that no
Indemnified Person shall be entitled to be indemnified in respect of any loss,
damage or claim incurred by such Indemnified Person by reason of gross
negligence (or, in the case of the Property Trustee, negligence) or willful
misconduct with respect to such acts or omissions.

     (b)  The provisions of this Section 9.04 shall survive the termination of
this Declaration or the resignation or removal of any Trustee.

     (c)  The Sponsor or the Trust may purchase and maintain insurance on behalf
of any Person who is or was an Indemnified Person against any liability asserted
against him or her and incurred by him or her in any such capacity, or arising
out of his or her status as such, whether or not the Sponsor would have the
power to indemnify him or her against such liability under the provisions of
this Section 9.04.

     (d)  For purposes of this Section 9.04, references to "the Trust" shall
include, in addition to the resulting or surviving entity, any constituent
entity (including any constituent of a constituent) absorbed in a consolidation
or merger, so that any Person who is or was a director, trustee, officer or
employee of such constituent entity, or is or was serving at the request of such
constituent entity as a director, trustee, officer, employee or agent of another
entity, shall stand in the same position under the provisions of this Section
9.04 with respect to the resulting or surviving entity as he or she would have
had with respect to such constituent entity if its separate existence had
continued.

     (e)  The indemnification and advancement of expenses provided by, or
granted pursuant to, this Section 9.04 shall continue, unless otherwise provided
when authorized or ratified, as to a Person who has ceased to be an Indemnified
Person and shall inure to the benefit of the heirs, executors and administrators
of such a Person.

     Section 9.05.  OUTSIDE BUSINESSES.

     Any Covered Person, the Sponsor, the Delaware Trustee and the Property
Trustee (subject to Section 6.03(c)) may engage in or possess an interest in
other business ventures of any nature or description, independently or with
others, similar or dissimilar to the activities of the Trust, and the Trust and
the Holders of the Securities shall have no rights by virtue of this Declaration
in and to such independent ventures or the income or profits derived therefrom,
and the pursuit of any such venture, even if competitive with the activities of
the Trust, shall not be deemed wrongful or improper. Each Covered Person, the
Sponsor, the Delaware Trustee and the

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Property Trustee shall not be obligated to present any particular investment or
other opportunity to the Trust even if such opportunity is of a character that,
if presented to the Trust, could be taken by the Trust, and any Covered Person,
the Sponsor, the Delaware Trustee and the Property Trustee shall have the right
to take for its own account (individually or as a partner or fiduciary) or to
recommend to others any such particular investment or other opportunity. Any
Covered Person, the Delaware Trustee and the Property Trustee may engage or be
interested in any financial or other transaction with the Sponsor or any
Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or
act on any committee or body of holders of, securities or other obligations of
the Sponsor or its Affiliates.

                                   ARTICLE 10
                                   ACCOUNTING

     Section 10.01.  FISCAL YEAR.

     The fiscal year ("Fiscal Year") of the Trust shall be the calendar year, or
such other year as is required by the Code.

     Section 10.02.  CERTAIN ACCOUNTING MATTERS.

     (a)  At all times during the existence of the Trust, the Administrative
Trustees and the Sponsor shall keep, or shall cause to be kept, full books of
account, records and supporting documents, which shall reflect in reasonable
detail each transaction of the Trust. The books of account shall be maintained
on the accrual method of accounting, in accordance with generally accepted
accounting principles, consistently applied. The Trust shall use the accrual
method of accounting for United States federal income tax purposes. The books of
account and the records of the Trust shall be examined by and reported upon as
of the end of each Fiscal Year of the Trust by a firm of independent certified
public accountants selected by the Administrative Trustees and the Sponsor.

     (b)  The Administrative Trustees and the Sponsor shall cause to be prepared
and delivered to each Holder of Securities, within 90 days after the end of each
Fiscal Year of the Trust, annual financial statements of the Trust, including a
balance sheet of the Trust as of the end of such Fiscal Year, and the related
statements of income or loss.

     (c)  The Administrative Trustees and the Sponsor shall cause to be duly
prepared and delivered to each Holder of Securities an annual United States
federal income tax information statement, required by the Code, containing such
information with regard to the Securities held by each Holder as is required by
the Code and the Treasury Regulations. Notwithstanding any right under the Code
to deliver any such statement at a later date, the Administrative Trustees and
the Sponsor shall endeavor to deliver all such statements within 30 days after
the end of each Fiscal Year of the Trust.

     (d)  The Administrative Trustees and the Sponsor shall cause to be duly
prepared and filed with the appropriate taxing authority an annual United States
federal income tax return, on Form 1041 or such other form required by United
States federal income tax law, and any other

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annual income tax returns required to be filed on behalf of the Trust with any
state or local taxing authority.

     Section 10.03.  BANKING.

     The Trust shall maintain one or more bank accounts in the name and for the
sole benefit of the Trust; PROVIDED that all payments of funds in respect of the
[Subordinated] Notes held by the Property Trustee shall be made directly to the
Property Account and no other funds of the Trust shall be deposited in the
Property Account. The sole signatories for such accounts shall be designated by
the Administrative Trustees; PROVIDED that the Property Trustee shall designate
the signatories for the Property Account.

     Section 10.04.  WITHHOLDING.

     The Trust and the Administrative Trustees shall comply with all withholding
requirements under United States federal, state and local law. The
Administrative Trustees shall request, and the Holders of the Securities shall
provide to the Trust, such forms or certificates as are necessary to establish
an exemption from withholding with respect to each Holder of Securities and any
representations and forms as shall reasonably be requested by the Administrative
Trustees to assist them in determining the extent of, and in fulfilling, the
Trust's withholding obligations. The Administrative Trustees shall file required
forms with applicable jurisdictions and, unless an exemption from withholding is
properly established by a Holder of Securities, shall remit amounts withheld
with respect to such Holder to applicable jurisdictions. To the extent that the
Trust is required to withhold and pay over any amounts to any authority with
respect to distributions or allocations to any Holder of Securities, the amount
withheld shall be deemed to be a distribution to such Holder in the amount of
the withholding. In the event of any claimed overwithholding, a Holder shall be
limited to an action against the applicable jurisdiction. If the amount required
to be withheld was not withheld from actual Distributions made, the Trust may
reduce subsequent Distributions by the amount of such withholding.

                                   ARTICLE 11
                             AMENDMENTS AND MEETINGS

     Section 11.01.  AMENDMENTS.

     (a)  Except as otherwise provided in this Declaration or by any applicable
terms of the Securities, this Declaration may be amended only by a written
instrument approved and executed by the Sponsor and (i) the Administrative
Trustees (or, if there are more than two Administrative Trustees, a majority of
the Administrative Trustees) and (ii) the Property Trustee (if the amendment
affects the rights, powers, duties, obligations or immunities of the Property
Trustee) and (iii) by the Delaware Trustee (if the amendment affects the rights,
powers, duties, obligations or immunities of the Delaware Trustee).

     (b)  No amendment shall be made, and any such purported amendment shall be
void and ineffective:

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             (i)  unless, in the case of any proposed amendment, the Property
     Trustee first has received an Officers' Certificate from each of the Trust
     and the Sponsor that such amendment is permitted by, and conforms to, the
     terms of this Declaration (including the terms of the Securities);

            (ii)  unless, in the case of any proposed amendment that affects the
     rights, powers, duties, obligations or immunities of the Property Trustee,
     the Property Trustee first has received an opinion of counsel (which may be
     counsel to the Sponsor or the Trust) that such amendment is permitted by,
     and conforms to, the terms of this Declaration (including the terms of the
     Securities); and

           (iii)  to the extent the result of such amendment would be to

                    (A) cause the Trust to be classified other than as a grantor
             trust for United States federal income tax purposes;

                    (B) reduce or otherwise adversely affect the powers of the
             Property Trustee in contravention of the Trust Indenture Act; or

                    (C) cause the Trust to be deemed to be an Investment Company
             required to be registered under the Investment Company Act.

     (c)  At such time after the Trust has issued any Securities that remain
outstanding, (i) any amendment that would (A) adversely affect the powers,
preferences or special rights of the Securities, whether by way of amendment to
this Declaration or otherwise or (B) result in the dissolution, winding-up or
termination of the Trust other than pursuant to the terms of this Declaration
shall not be effective except with the approval of the Holders of at least a 66
2/3% in Liquidation Amount of the Securities; PROVIDED that if any amendment or
proposal referred to in clause (A) above would adversely affect only the
Preferred Securities or the Common Securities, then only the affected class will
be entitled to vote on such amendment or proposal, and such amendment or
proposal shall not be effective except with the approval of a 66 2/3% in
Liquidation Amount of the class of Securities affected thereby; and (ii) any
amendment that would (X) change the amount or timing of any distribution on the
Securities or otherwise adversely affect the amount of any distribution required
to be made in respect of the Securities as of a specified date or (Y) restrict
the right of a Holder to institute suit for the enforcement of such payment on
or after such date shall not be effective except with the approval of each
Holder of Securities affected thereby.

     (d)  This Section 11.01 shall not be amended without the consent of all of
the Holders of the Securities.

     (e)  Article 4 shall not be amended without the consent of the Holders of
the Common Securities.

     (f)  The rights of the Holders of the Common Securities under Articles 6
and 7 to increase or decrease the number of, and appoint and remove, Trustees
shall not be amended without the consent of the Holders of the Common
Securities.

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     (g)  Notwithstanding Section 11.01(c), this Declaration may be amended
without the consent of the Holders of the Securities, PROVIDED that such
amendment does not have a material adverse effect on the rights, preferences or
privileges of the Holders of the Securities:

             (i)  to cure any ambiguity;

            (ii)  to correct or supplement any provision in this Declaration
     that may be defective or inconsistent with any other provision of this
     Declaration;

           (iii)  to add to the covenants, restrictions or obligations of the
     Sponsor;

            (iv)  to conform to changes in, or a change in interpretation or
     application by any legislative body, court, government agency or regulatory
     authority of regulations relating to whether the Trust is required to be
     registered as an investment company under the Investment Company Act;

             (v)  to modify, eliminate and add to any provision of this
     Declaration to ensure that the Trust will be classified as a grantor trust
     for United States federal income tax purposes at all times that any
     Securities are outstanding or to ensure that the Trust will not be required
     to register as an Investment Company under the Investment Company Act;
     PROVIDED that such modification, elimination or addition would not
     adversely affect in any material respect the rights, privileges or
     preferences of any Holder of Securities; or

            (vi)  to facilitate the tendering, remarketing and settlement of the
     Preferred Securities as contemplated by Section 7.13(n).

     Section 11.02.  MEETINGS OF THE HOLDERS OF THE SECURITIES; ACTION BY
WRITTEN CONSENT.

     (a)  Meetings of the Holders of any class of Securities may be called at
any time by the Administrative Trustees (or as provided in the terms of the
Securities) to consider and act on any matter on which Holders of such class of
Securities are entitled to act under the terms of this Declaration or the rules
of any stock exchange on which the Preferred Securities are listed or admitted
for trading. The Administrative Trustees shall call a meeting of the Holders of
such class if directed to do so by the Holders of at least 10% in Liquidation
Amount of such class of Securities. Such direction shall be given by delivering
to the Administrative Trustees a writing stating that the signing Holders of the
Securities wish to call a meeting and indicating the general or-specific purpose
for which the meeting is to be called. The Holder or Holders of the Securities
calling a meeting shall specify in writing the Certificates held by such Holder
or Holders, and only those Securities specified shall be counted for purposes of
determining whether the required percentage set forth in the second sentence of
this paragraph has been met. The Administrative Trustees shall cause a notice of
any meeting at which Holders of the Preferred Securities are entitled to vote to
be mailed to each Holder of record of Preferred Securities. Each such notice
shall include a statement setting forth: (i) the date of such meeting; (ii) a
description of any resolution proposed for adoption at such meeting on which
such Holders are entitled to vote; and (iii) instructions for the delivery of
proxies.

     (b)  Except to the extent otherwise provided in the terms of the
Securities, the following provisions shall apply to meetings of the Holders of
the Securities:

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             (i)  Notice of any such meeting shall be given to all the Holders
     of the Securities having a right to vote thereat at least seven days and
     not more than 60 days before the date of such meeting. Whenever a vote,
     consent or approval of the Holders of the Securities is permitted or
     required under this Declaration or the rules of any stock exchange on which
     the Preferred Securities are listed or admitted for trading, such vote,
     consent or approval may be given at a meeting of the Holders of the
     Securities. Any action that may be taken at a meeting of the Holders of the
     Securities may be taken without a meeting and without prior notice if a
     consent in writing setting forth the action so taken is signed by the
     Holders of the Securities owning not less than the minimum amount of
     Securities in liquidation amount that would be necessary to authorize or
     take such action at a meeting at which all Holders of the Securities having
     a right to vote thereon were present and voting. Prompt notice of the
     taking of action without a meeting shall be given to the Holders of the
     Securities entitled to vote who have not consented in writing. The
     Administrative Trustees may specify that any written ballot submitted to
     the Holders of the Securities for the purpose of taking any action without
     a meeting shall be returned to the Trust within the time specified by the
     Administrative Trustees.

            (ii)  Each Holder of the Securities may authorize any Person to act
     for it by proxy on any or all matters in which such Holder is entitled to
     participate, including waiving notice of any meeting, or voting or
     participating at a meeting. No proxy shall be valid after the expiration of
     11 months from the date thereof unless otherwise provided in the proxy.
     Every proxy shall be revocable at the pleasure of the Holder of Securities
     executing such proxy. Except as otherwise provided herein, all matters
     relating to the giving, voting or validity of proxies shall be governed by
     the General Corporation Law of the State of Delaware relating to proxies,
     and judicial interpretations thereunder, as if the Trust were a Delaware
     corporation and the Holders of the Securities were stockholders of a
     Delaware corporation.

           (iii)  Each meeting of the Holders of the Securities shall be
     conducted by the Administrative Trustees or by such other Person that the
     Administrative Trustees may designate.

            (iv)  Unless the Statutory Trust Act, this Declaration, the Trust
     Indenture Act or the listing rules of any stock exchange on which the
     Preferred Securities are then listed for trading otherwise provides, the
     Administrative Trustees, in their sole discretion, shall establish all
     other provisions relating to meetings of Holders of the Securities,
     including notice of the time, place or purpose of any meeting at which any
     matter is to be voted on by any Holders of the Securities, waiver of any
     such notice, action by consent without a meeting without prior notice, the
     establishment of a record date, quorum requirements, voting in person or by
     proxy or any other matter with respect to the exercise of any such right to
     vote.

                                       63
<Page>

                                   ARTICLE 12
        REPRESENTATIONS OF THE PROPERTY TRUSTEE AND THE DELAWARE TRUSTEE

     Section 12.01.  REPRESENTATIONS AND WARRANTIES OF THE PROPERTY TRUSTEE.

     The initial Property Trustee represents and warrants to the Trust and to
the Sponsor at the date of this Declaration, and each Successor Property Trustee
represents and warrants to the Trust and the Sponsor at the time of such
Successor Property Trustee's acceptance of its appointment as Property Trustee,
that:

     (a)  the Property Trustee is a corporation or national banking association
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization, with trust power and
authority to execute and deliver, and to carry out and perform its obligations
under the terms of, this Declaration;

     (b)  the Property Trustee satisfies the requirements set forth in Section
6.03(a);

     (c)  the execution, delivery and performance by the Property Trustee of
this Declaration have been duly authorized by all necessary corporate action on
the part of the Property Trustee; this Declaration has been duly executed and
delivered by the Property Trustee, and it constitutes a legal, valid and binding
obligation of the Property Trustee, enforceable against it in accordance with
its terms, subject to applicable bankruptcy, reorganization, moratorium,
insolvency and other similar laws affecting creditors' rights generally and to
general principles of equity and the discretion of the court (regardless of
whether the enforcement of such remedies is considered in a proceeding in equity
or at law);

     (d)  the execution, delivery and performance of this Declaration by the
Property Trustee do not conflict with, nor constitute a breach of, the articles
of association or incorporation, as the case may be, or the by-laws (or other
similar organizational documents) of the Property Trustee; and

     (e)  no consent, approval or authorization of, or registration with or
notice to, any state or federal banking authority is required for the execution
delivery or performance by the Property Trustee of this Declaration.

     Section 12.02.  REPRESENTATIONS AND WARRANTIES OF THE DELAWARE TRUSTEE.

     The initial Delaware Trustee represents and warrants to the Trust and to
the Sponsor at the date of this Declaration, and each Successor Delaware Trustee
represents and warrants to the Trust and the Sponsor at the time of such
Successor Delaware Trustee's acceptance of its appointment as Delaware Trustee,
that:

     (a)  the Delaware Trustee satisfies the requirements set forth in Section
6.02 and has the power and authority to execute and deliver, and to carry out
and perform its obligations under the terms of, this Declaration and, if it is
not a natural person, is a corporation duly organized, validly existing and in
good standing under the laws of its jurisdiction of incorporation or
organization;

                                       64
<Page>

     (b)  the Delaware Trustee has been authorized to perform its obligations
under the Certificate of Trust and this Declaration; and this Declaration
constitutes a legal, valid and binding obligation of the Delaware Trustee under
Delaware law, enforceable against it in accordance with its terms subject to
applicable bankruptcy, reorganization, moratorium, insolvency and other similar
laws affecting creditors' rights generally and to general principles of equity
and the discretion of the court (regardless of whether the enforcement of such
remedies is considered in a proceeding in equity or at law) and

     (c)  no consent, approval or authorization of, or registration with or
notice to, any state or federal banking authority is required for the execution,
delivery or performance by the Delaware Trustee of this Declaration.

                                   ARTICLE 13
                                  MISCELLANEOUS

     Section 13.01.  NOTICES.

     All notices provided for in this Declaration shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or
mailed by registered or certified mail, as follows:

     (a)  if given to the Trust, in care of the Administrative Trustees at the
Trust's mailing address set forth below (or such other address as the Trust may
give notice of to the Property Trustee, the Delaware Trustee and the Holders of
the Securities):

             CC Funding Trust II
             c/o Cinergy Corp.
             139 East Fourth Street
             Cincinnati, OH 45202
             Attention:
             Telephone No:
             Fax No:

             with a copy to:

             [                      ]

                                       65
<Page>

     (b)  if given to the Delaware Trustee, at the mailing address set forth
below (or such other address as the Delaware Trustee may give notice of to the
Administrative Trustees, the Property Trustee and the Holders of the
Securities):

             [                      ]
             [                      ]
             [                      ]
             Attention:
             Telephone No:
             Fax No:

     (c)  if given to the Property Trustee, at its Corporate Trust Office to the
attention of Corporate Trust Department (telephone no. ___________ and fax no.
___________) (or such other address as the Property Trustee may give notice of
to the Administrative Trustees, the Delaware Trustee and the Holders of the
Securities);

     (d)  if given to the Holders of the Common Securities, at the mailing
address of the Sponsor set forth below (or such other address as the Holders of
the Common Securities may give notice of to the Property Trustee, the Delaware
Trustee and the Trust):

          Cinergy Corp.
          139 East Fourth Street
          Cincinnati, OH 45202
          Attention:
          Telephone No:
          Fax No:

          with a copy to:

          [                      ]

     (e)  if given to any Holder of Preferred Securities, at such Holder's
address as set forth in the register of the Trust.

All such notices shall be deemed to have been given when received in person,
telecopied with receipt confirmed or mailed by first class mail, postage
prepaid, except that if a notice or other document is refused delivery or cannot
be delivered because of a changed address of which no notice was given, such
notice or other document shall be deemed to have been delivered on the date of
such refusal or inability to deliver.

     Section 13.02.  GOVERNING LAW.

     This Declaration and the rights of the parties hereunder shall be governed
by and interpreted in accordance with the laws of the State of Delaware, without
regard to principles of conflicts of laws.

                                       66
<Page>

     Section 13.03.  INTENTION OF THE PARTIES.

     It is the intention of the parties hereto that the Trust be classified for
United States federal income tax purposes as a grantor trust. The provisions of
this Declaration shall be interpreted in a manner consistent with such
classification.

     Section 13.04.  HEADINGS.

     The headings contained in this Declaration are inserted for convenience of
reference only and do not affect the interpretation of this Declaration or any
provision hereof.

     Section 13.05.  SUCCESSORS AND ASSIGNS.

     Whenever in this Declaration any of the parties hereto is named or referred
to, the successors and assigns of such party shall be deemed to be included, and
all covenants and agreements in this Declaration by the Sponsor and the Trustee
shall bind and inure to the benefit of their respective successors and assigns,
whether so expressed.

     Section 13.06.  PARTIAL ENFORCEABILITY.

     If any provision of this Declaration or the application of such provision
to any Person or circumstance is held invalid, the remainder of this
Declaration, or the application of such provision to persons or circumstances
other than those to which it is held invalid, shall not be affected thereby.

     Section 13.07.  COUNTERPARTS.

     This Declaration may contain more than one counterpart of the signature
page, and this Declaration may be executed by the affixing of the signature of
each of the Trustees to one of such counterpart signature pages. All such
counterpart signature pages shall be read as though one, and they shall have the
same force and effect as though all of the signers had signed a single signature
page.

                                       67
<Page>

     IN WITNESS WHEREOF, the undersigned have caused these presents to be
executed as of the day and year first above written.

                                 CINERGY CORP.,
                                 as Sponsor, [Subordinated] Notes Issuer and
                                 Common Securities Holder

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

                                 [                                ],
                                 as Property Trustee

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

                                 [                                ],
                                 as Delaware Trustee

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


                                 -----------------------------------------------
                                 [                          ], as Administrative
                                 Trustee


                                 -----------------------------------------------
                                 [                          ], as Administrative
                                 Trustee


                                 -----------------------------------------------
                                 [                          ], as Administrative
                                 Trustee

<Page>

                                    EXHIBIT A

     [This Preferred Security is registered in the name of The Depository Trust
Company, a New York corporation (the "Depositary"), or a nominee of the
Depositary. This Preferred Security is exchangeable for Preferred Securities
registered in the name of a person other than the Depositary or its nominee only
in the limited circumstances described in the Declaration, and no transfer of
this Preferred Security (other than a transfer of this Preferred Security as a
whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary) may be
registered, except in limited circumstances.

     Unless this Global Certificate is presented by an authorized representative
of the Depositary to the issuer or its agent for registration of transfer,
exchange or payment, and any Preferred Security Certificate issued is registered
in the name of Cede & Co. or such other name as registered by an authorized
representative of the Depositary (and any payment hereon is made to Cede & Co.
or to such other entity as is requested by an authorized representative of the
Depositary), and except as otherwise provided in the Amended and Restated
Declaration of CC Funding Trust II dated ___________, 2003, ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON (OTHER THAN
PURSUANT TO THE PLEDGE AGREEMENT) IS WRONGFUL, since the registered owner
hereof, Cede & Co., has an interest herein.]

Certificate No. _________            Number of Preferred Securities: ___________
CUSIP No.                            Aggregate Liquidation Amount:  $___________

                   Certificate Evidencing Preferred Securities
                                       of
                               CC Funding Trust II

                              Preferred Securities
                 (liquidation amount $25 per Preferred Security)

     CC Funding Trust II, a statutory trust created under the laws of the State
of Delaware (the "Trust"), hereby certifies that ____________ (the "Holder") is
the registered owner of ___ preferred securities of the Trust representing
undivided beneficial interests in the assets of the Trust designated the
Preferred Securities (liquidation amount $25.00 per Preferred Security) (the
"Preferred Securities"). The Preferred Securities are transferable on the
register of the Trust, in person or by a duly authorized attorney, upon
surrender of this certificate duly endorsed and in proper form for transfer as
provided in the Declaration (as defined below). The designation, rights,
privileges, restrictions, preferences and other terms and provisions of the
Preferred Securities represented hereby are issued and shall in all respects be
subject to the provisions of the Amended and Restated Declaration of Trust of
the Trust, dated as of ___________, 2003 (as the same may be amended from time
to time, the "Declaration"), among Cinergy Corp., as Sponsor, [             ],
[             ] and [             ], as Administrative Trustees, [            ],
as Property Trustee, [             ], as Delaware Trustee, and the holders from
time to time, of undivided beneficial interests in the assets of the Trust.
Capitalized terms used

                                       A-1
<Page>

herein but not defined shall have the meaning given them in the Declaration. The
Holder is entitled to the benefits of the Guarantee Agreement, dated as of
___________, 2003, as the same may be amended from time to time, of Cinergy
Corp., in respect of the Preferred Securities. The Sponsor will provide a copy
of the Declaration, the Guarantee and the Indenture to a Holder without charge
upon written request to the Sponsor at its principal place of business.

     Upon receipt of this certificate, the Holder is bound by the terms of the
Declaration and is entitled to the benefits thereunder.

     By acceptance, the Holder agrees to treat, for United States federal income
tax purposes, the [Subordinated] Notes as indebtedness of the Sponsor and the
Preferred Securities as evidence of undivided beneficial interests in the
[Subordinated] Notes.

                                       A-2
<Page>

     IN WITNESS WHEREOF, the Trust has executed this certificate this ____ day
of _________, 2003.

                                 CC FUNDING TRUST II


                                 -----------------------------------------------
                                 By:
                                     -------------------------------------------
                                      Administrative Trustee

     This is one of the Securities referred to in the within-mentioned
Declaration.

                                 [                                ], as
                                 Property Trustee


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

                                       A-3
<Page>

                                    EXHIBIT B

           THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT AS PROVIDED IN
                       THE DECLARATION (AS DEFINED BELOW)

Certificate No.______                      Number of Common Securities: ________
                                           Aggregate Liquidation Amount: $______

                    Certificate Evidencing Common Securities
                                       of
                               CC Funding Trust II

                                Common Securities
                  (liquidation amount $25 per Common Security)

     CC Funding Trust II, a statutory trust created under the laws of the State
of Delaware (the "Trust"), hereby certifies that Cinergy Corp. (the "Holder") is
the registered owner of _________________ common securities of the Trust
representing an undivided beneficial interest in the assets of the Trust
designated the Common Securities (liquidation amount $25.00 per Common Security)
(the "Common Securities"). Except as provided in the Declaration (as defined
below), the Common Securities are not transferable, and any attempted transfer
thereof shall be void. The designation, rights, privileges, restrictions,
preferences and other terms and provisions of the Common Securities represented
hereby are issued and shall in all respects be subject to the provisions of the
Amended and Restated Declaration of Trust of the Trust, dated as of ___________,
2003 (as the same may be amended from time to time, the "Declaration"), among
Cinergy Corp., as Sponsor, [             ], [             ] and [
                 ], as Administrative Trustees, [              ], as Property
Trustee, [              ], as Delaware Trustee, and the holders, from time to
time, of undivided beneficial interests in the assets of the Trust. The Sponsor
will provide a copy of the Declaration and the Indenture to the Holder without
charge upon written request to the Sponsor at its principal place of business.

     Upon receipt of this certificate, the Holder is bound by the terms of the
Declaration and is entitled to the benefits thereunder.

     By acceptance, the Holder agrees to treat, for United States federal income
tax purposes, the [Subordinated] Notes as indebtedness of the Sponsor and the
Common Securities as evidence of an undivided beneficial interest in the
[Subordinated] Notes.

<Page>

     IN WITNESS WHEREOF, the Trust has executed this certificate this ______ day
of ___________, 2003.

                                 CC FUNDING TRUST II


                                 -----------------------------------------------
                                 By:
                                     -------------------------------------------
                                Administrative Trustee

                                       B-2