Document:

EXHIBIT 10.2

                     Weststar Financial Services Corporation
                                    as Issuer

                                    INDENTURE
                          Dated as of October 10, 2003

                     WELLS FARGO BANK, NATIONAL ASSOCIATION
                                   As Trustee

                       JUNIOR SUBORDINATED DEBT SECURITIES

                               DUE October 7, 2033

                                Table of Contents

                                                                           Page
                                    ARTICLE I
                                   DEFINITIONS

SECTION 1.01.      Definitions...............................................1

         Additional Interest.................................................1

         Additional Provisions...............................................1

         Authenticating Agent................................................1

         Bankruptcy Law......................................................1

         Board of Directors..................................................1

         Board Resolution....................................................2

         Business Day........................................................2

         Calculation Agent...................................................2

         Capital Securities..................................................2

         Capital Securities Guarantee........................................2

         Capital Treatment Event.............................................2

         Certificate.........................................................2

         Common Securities...................................................2

         Company.............................................................3

         Debt Security.......................................................3

         Debt Security Register..............................................3

         Declaration.........................................................3

         Default  ...........................................................3

         Defaulted Interest..................................................3

         Deferred Interest...................................................3

         Event of Default....................................................3

         Extension Period....................................................3

         Federal Reserve.....................................................3

         Indenture...........................................................3

         Institutional Trustee...............................................3

         Interest Payment Date...............................................3

         Interest Rate.......................................................3

         Investment Company Event............................................3

                                       -i-

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                                Table of Contents
                                  (CONTINUED)
                                                                           Page

         LIBOR...............................................................4

         LIBOR Banking Day...................................................4

         LIBOR Business Day..................................................4

         LIBOR Determination Date............................................4

         Liquidation Amount..................................................4

         Maturity Date.......................................................4

         Notice   ...........................................................4

         Officers' Certificate...............................................4

         Opinion of Counsel..................................................4

         Outstanding.........................................................4

         Paying Agent........................................................5

         Person   ...........................................................5

         Predecessor Security................................................5

         Principal Office of the Trustee.....................................5

         Redemption Date.....................................................5

         Redemption Price....................................................5

         Responsible Officer.................................................5

         Securityholder," "holder of Debt Securities.........................5

         Senior Indebtedness.................................................5

         Special Event.......................................................6

         Special Redemption Date.............................................6

         Special Redemption Price............................................6

         Subsidiary..........................................................6

         Tax Event...........................................................6

         Trust...............................................................7

         Trust Indenture Act.................................................7

         Trust Securities....................................................7

         Trustee  ...........................................................7

         United States.......................................................7

         U.S. Person.........................................................7

                                      -ii-
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                                Table of Contents
                                  (CONTINUED)
                                                                           Page

                                   ARTICLE II
                                 DEBT SECURITIES

SECTION 2.01.     Authentication and Dating...................................7

SECTION 2.02.     Form of Trustee's Certificate of Authentication.............8

SECTION 2.03.     Form and Denomination of Debt Securities....................8

SECTION 2.04.     Execution of Debt Securities................................8

SECTION 2.05.     Exchange and Registration of Transfer of Debt Securities....9

SECTION 2.06.     Mutilated, Destroyed, Lost or Stolen Debt Securities.......12

SECTION 2.07.     Temporary Debt Securities..................................12

SECTION 2.08.     Payment of Interest........................................13

SECTION 2.09.     Cancellation of Debt Securities Paid, etc..................14

SECTION 2.10.     Computation of Interest....................................14

SECTION 2.11.     Extension of Interest Payment Period.......................16

SECTION 2.12.     CUSIP Numbers..............................................17

                                   ARTICLE III
                       PARTICULAR COVENANTS OF THE COMPANY

SECTION 3.01.     Payment of Principal, Premium and Interest;
                  Agreed Treatment of the Debt Securities....................17

SECTION 3.02.     Offices for Notices and Payments, etc......................18

SECTION 3.03.     Appointments to Fill Vacancies in Trustee's Office.........18

SECTION 3.04.     Provision as to Paying Agent...............................19

SECTION 3.05.     Certificate to Trustee.....................................20

SECTION 3.06.     Additional Interest........................................20

SECTION 3.07.     Compliance with Consolidation Provisions...................20

SECTION 3.08.     Limitation on Dividends....................................20

SECTION 3.09.     Covenants as to the Trust..................................21

                                   ARTICLE IV
                LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

SECTION 4.01.     Securityholders' Lists.....................................22

SECTION 4.02.     Preservation and Disclosure of Lists.......................22

                                     -iii-
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                                Table of Contents
                                  (CONTINUED)
                                                                           Page

                                    ARTICLE V
      REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

SECTION 5.01.     Events of Default..........................................23

SECTION 5.02.     Payment of Debt Securities on Default; Suit Therefor.......25

SECTION 5.03.     Application of Moneys Collected by Trustee.................26

SECTION 5.04.     Proceedings by Securitvholders.............................27

SECTION 5.05.     Proceedings by Trustee.....................................27

SECTION 5.06.     Remedies Cumulative and Continuing.........................28

SECTION 5.07.     Direction of Proceedings and Waiver of Defaults by
                  Majority of Securityholders................................28

SECTION 5.08.     Notice of Defaults.........................................29

SECTION 5.09.     Undertaking to Pay Costs...................................29

                                   ARTICLE VI
                             CONCERNING THE TRUSTEE
SECTION 6.01.     Duties and Responsibilities of Trustee.....................29

SECTION 6.02.     Reliance on Documents, Opinions, etc.......................31

SECTION 6.03.     No Responsibility for Recitals, etc........................32

SECTION 6.04.     Trustee, Authenticating Agent, Paying Agents, Transfer Agents
                  or Registrar May Own Debt Securities.......................32

SECTION 6.05.     Moneys to be Held in Trust.................................32

SECTION 6.06.     Compensation and Expenses of Trustee.......................32

SECTION 6.07.     Officers' Certificate as Evidence..........................33

SECTION 6.08.     Eligibility of Trustee.....................................33

SECTION 6.09.     Resignation or Removal of Trustee, Calculation Agent,
                  Paying Agent or Debt Security Registrar....................34

SECTION 6.10.     Acceptance by Successor....................................35

SECTION 6.11.     Succession by Merger, etc..................................36

SECTION 6.12.     Authenticating Agents......................................36

                                   ARTICLE VII
                         CONCERNING THE SECURITYHOLDERS

SECTION 7.01.     Action by Securityholders..................................38

SECTION 7.02.     Proof of Execution by Securityholders......................38

SECTION 7.03.     Who Are Deemed Absolute Owners.............................39

SECTION 7.04.     Debt Securities Owned by Company Deemed Not Outstanding....39

SECTION 7.05.     Revocation of Consents; Future Holders Bound...............39

                                      -iv-
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                                Table of Contents
                                  (CONTINUED)
                                                                           Page

                                  ARTICLE VIII
                            SECURITYHOLDERS' MEETINGS

SECTION 8.01.     Purposes of Meetings.......................................40

SECTION 8.02.     Call of Meetings by Trustee................................40

SECTION 8.03.     Call of Meetings by Company or Securityholders.............40

SECTION 8.04.     Qualifications for Voting..................................41

SECTION 8.05.     Regulations................................................41

SECTION 8.06.     Voting.....................................................41

SECTION 8.07.     Quorum; Actions............................................42

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

SECTION 9.01.     Supplemental Indentures without Consent of Securityholders.43

SECTION 9.02.     Supplemental Indentures with Consent of Securityholders....44

SECTION 9.03.     Effect of Supplemental Indentures..........................45

SECTION 9.04.     Notation on Debt Securities................................45

SECTION 9.05.     Evidence of Compliance of Supplemental Indenture to be
                  Furnished to Trustee.......................................45

                                    ARTICLE X
                            REDEMPTION OF SECURITIES

SECTION 10.01.    Optional Redemption........................................46

SECTION 10.02.    Special Event Redemption...................................46

SECTION 10.03.    Notice of Redemption; Selection of Debt Securities.........46

SECTION 10.04.    Payment of Debt Securities Called for Redemption...........47

                                   ARTICLE XI
                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

SECTION 11.01.    Company May Consolidate, etc., on Certain Terms............47

SECTION 11.02.    Successor Entity to be Substituted.........................48

SECTION 11.03.    Opinion of Counsel to be Given to Trustee..................48

                                   ARTICLE XII
                     SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 12.01.    Discharge of Indenture.....................................49

SECTION 12.02.    Deposited Moneys to be Held in Trust by Trustee............49

SECTION 12.03.    Paying Agent to Repay Moneys Held..........................50

SECTION 12.04.    Return of Unclaimed Moneys.................................50

                                      -v-
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                                Table of Contents
                                  (CONTINUED)
                                                                           Page

                                  ARTICLE XIII
         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 13.01.    Indenture and Debt Securities Solely Corporate Obligations.50

                                   ARTICLE XIV
                            MISCELLANEOUS PROVISIONS

SECTION 14.01.    Successors.................................................50

SECTION 14.02.    Official Acts by Successor Entity..........................51

SECTION 14.03.    Surrender of Company Powers................................51

SECTION 14.04.    Addresses for Notices, etc.................................51

SECTION 14.05.    Governing Law..............................................51

SECTION 14.06.    Evidence of Compliance with Conditions Precedent...........51

SECTION 14.07.    Non-Business Days..........................................52

SECTION 14.08.    Table of Contents, Headings, etc...........................52

SECTION 14.09.    Execution in Counterparts..................................52

SECTION 14.10.    Separability...............................................52

SECTION 14.11.    Assignment.................................................53

SECTION 14.12.    Acknowledgment of Rights...................................53

                                   ARTICLE XV
                        SUBORDINATION OF DEBT SECURITIES

SECTION 15.01.    Agreement to Subordinate...................................53

SECTION 15.02.    Default on Senior Indebtedness.............................54

SECTION 15.03.    Liquidation; Dissolution; Bankruptcy.......................54

SECTION 15.04.    Subrogation................................................55

SECTION 15.05.    Trustee to Effectuate Subordination........................56

SECTION 15.06.    Notice by the Company......................................56

SECTION 15.07.    Rights of the Trustee. Holders of Senior Indebtedness......57

SECTION 15.08.    Subordination May Not Be Impaired..........................57

EXHIBITS

EXHIBIT A         FORM OF DEBT SECURITY

                                      -vi-
<PAGE>

          THIS  INDENTURE,  dated  as of  October  10,  2003,  between  Weststar
Financial  Services  Corporation,  a bank holding company  incorporated in North
Carolina  (hereinafter  sometimes  called the "Company"),  and Wells Fargo Bank,
National Association, a national banking association with its principal place of
business in the State of Delaware, as trustee (hereinafter  sometimes called the
"Trustee").

                              W I T N E S S E T H:

          WHEREAS,  for its lawful  corporate  purposes,  the  Company  has duly
authorized the issuance of its Junior  Subordinated  Debt Securities due October
7, 2033 (the "Debt Securities") under this Indenture and to provide, among other
things,  for the  execution  and  authentication,  delivery  and  administration
thereof, the Company has duly authorized the execution of this Indenture.

          NOW, THEREFORE,  in consideration of the premises, and the purchase of
the Debt  Securities by the holders  thereof,  the Company  covenants and agrees
with the  Trustee  for the equal and  proportionate  benefit  of the  respective
holders from time to time of the Debt Securities as follows:

                                   ARTICLE I

                                   DEFINITIONS

SECTION 1.01. Definitions.
              ------------

          The terms  defined in this Section  1.01  (except as herein  otherwise
expressly provided or unless the context otherwise requires) for all purposes of
this  Indenture  and  of  any  indenture  supplemental  hereto  shall  have  the
respective  meanings  specified in this Section 1.01. All accounting  terms used
herein and not expressly  defined shall have the meanings assigned to such terms
in  accordance  with  generally  accepted  accounting  principles  and the  term
"generally accepted accounting  principles" means such accounting  principles as
are generally accepted in the United States at the time of any computation.  The
words "herein," "hereof' and "hereunder" and other words of similar import refer
to this Indenture as a whole and not to any particular Article, Section or other
subdivision.

          "Additional  Interest"  shall  have the  meaning  set forth in Section
3.06.

          "Additional  Provisions"  shall have the  meaning set forth in Section
15.01.

          "Authenticating  Agent" means any agent or agents of the Trustee which
at the time shall be appointed and acting pursuant to Section 6.12.

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

<PAGE>

          "Board of  Directors"  means the board of directors  or the  executive
committee or any other duly authorized designated officers of the Company.

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

          "Business  Day"  means any day other  than a  Saturday,  Sunday or any
other day on which banking institutions in Wilmington,  Delaware,  New York City
or are permitted or required by any applicable law or executive order to close.

          "Calculation  Agent" means the Person  identified  as "Trustee" in the
first paragraph hereof with respect to the Debt Securities and the Institutional
Trustee with respect to the Trust Securities.

          "Capital  Securities"  means  undivided  beneficial  interests  in the
assets of the Trust which are designated as "TP  Securities" and rank pari passu
with Common Securities issued by the Trust; provided,  however, that if an Event
of Default (as defined in the Declaration)  has occurred and is continuing,  the
rights  of  holders  of  such  Common   Securities  to  payment  in  respect  of
distributions  and payments  upon  liquidation,  redemption  and  otherwise  are
subordinated to the rights of holders of such Capital Securities.

          "Capital Securities  Guarantee" means the guarantee agreement that the
Company  will enter into with Wells Fargo Bank,  National  Association  or other
Persons  that  operates  directly  or  indirectly  for the benefit of holders of
Capital Securities of the Trust.

          "Capital  Treatment  Event"  means the  receipt by the Company and the
Trust of an Opinion of Counsel  experienced  in such matters to the effect that,
as a result of any amendment to, or change in, the laws, rules or regulations of
the United States or any  political  subdivision  thereof or therein,  or as the
result of any  official or  administrative  pronouncement  or action or decision
interpreting  or applying such laws,  rules or  regulations,  which amendment or
change is effective or which  pronouncement,  action or decision is announced on
or after the date of  original  issuance of the Debt  Securities,  there is more
than an insubstantial risk that the Company will not, within 90 days of the date
of such  opinion,  be  entitled  to  treat  an  amount  equal  to the  aggregate
Liquidation  Amount of the Capital  Securities  as "Tier 1 Capital" (or the then
equivalent  thereof)  for  purposes of the capital  adequacy  guidelines  of the
Federal Reserve (or any successor  regulatory  authority with  jurisdiction over
bank  holding  companies),  as then in effect  and  applicable  to the  Company,
provided,  however,  that the  distribution of the Debt Securities in connection
with the  liquidation  of the  Trust by the  Company  shall not in and of itself
constitute a Capital Treatment Event unless such liquidation shall have occurred
in connection with a Tax Event or an Investment Company Event.

                                      -2-
<PAGE>

          "Certificate"  means a certificate  signed by any one of the principal
executive officer,  the principal financial officer or the principal  accounting
officer of the Company.

          "Common Securities" means undivided beneficial interests in the assets
of the Trust which are  designated  as "Common  Securities"  and rank pari passu
with Capital Securities issued by the Trust; provided, however, that if an Event
of Default (as defined in the Declaration)  has occurred and is continuing,  the
rights  of  holders  of  such  Common   Securities  to  payment  in  respect  of
distributions  and payments  upon  liquidation,  redemption  and  otherwise  are
subordinated to the rights of holders of such Capital Securities.

          "Company"  means  Weststar  Financial  Services  Corporation,  a  bank
holding company  incorporated in North Carolina,  and, subject to the provisions
of Article XI, shall include its successors and assigns.

          "Debt  Security" or "Debt  Securities"  has the meaning  stated in the
first recital of this Indenture.

          "Debt Security Register" has the meaning specified in Section 2.05.

          "Declaration"  means the Amended and Restated  Declaration of Trust of
the Trust dated as of October 10, 2003, as amended or supplemented  from time to
time.

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

          "Defaulted Interest" has the meaning set forth in Section 2.08.

          "Deferred Interest" has the meaning set forth in Section 2.11.

          "Event of Default"  means any event  specified in Section 5.01,  which
has  continued  for the  period of time,  if any,  and  after the  giving of the
notice, if any, therein designated.

          "Extension Period" has the meaning set forth in Section 2.11.

          "Federal  Reserve" means the Board of Governors of the Federal Reserve
System.

          "Indenture"  means  this  instrument  as  originally  executed  or, if
amended or supplemented as herein provided,  as so amended or  supplemented,  or
both.

                                      -3-

<PAGE>

          "Initial  Purchaser"  means  the  initial  purchaser  of  the  Capital
Securities.

          "Institutional Trustee" has the meaning set forth in the Declaration.

          "Interest Payment Date" means January 7, April 7, July 7 and October 7
of each year, commencing on January 7, 2004, during the term of this Indenture.

          "Interest Rate" means a per annum rate of interest,  reset  quarterly,
equal to LIBOR,  as  determined  on the  LIBOR  Determination  Date  immediately
preceding each Interest Payment Date, plus 3.15%.

          "Investment  Company  Event"  means the receipt by the Company and the
Trust of an Opinion of Counsel  experienced  in such matters to the effect that,
as a result of a change in law or regulation or written change in interpretation
or application of law or regulation by any legislative body, court, governmental
agency or regulatory  authority,  there is more than an insubstantial  risk that
the Trust is or, within 90 days of the date of such opinion will be,  considered
an "investment  company" that is required to be registered  under the Investment
Company Act of 1940,  as amended,  which change or  prospective  change  becomes
effective or would become effective, as the case may be, on or after the date of
the original issuance of the Debt Securities.

          "LIBOR"  means  the  London  Interbank  Offered  Rate for U.S.  Dollar
deposits in Europe as determined by the  Calculation  Agent according to Section
2.10(b).

          "LIBOR Banking Day" has the meaning set forth in Section 2.10(b)(1).

          "LIBOR Business Day" has the meaning set forth in Section 2.10(b)(1).

          "LIBOR  Determination  Date"  has the  meaning  set  forth in  Section
2.10(b).

          "Liquidation  Amount"  means the  stated  amount  of $1,000  per Trust
Security.

          "Maturity Date" means October 7, 2033.

          "Notice" has the meaning set forth in Section 2.11.

          "Officers'  Certificate" means a certificate signed by the Chairman of
the Board,  the Vice Chairman,  the President or any Vice President,  and by the
Chief Financial Officer, the Treasurer, an Assistant Treasurer, the Comptroller,
an  Assistant  Comptroller,  the  Secretary  or an  Assistant  Secretary  of the
Company,  and delivered to the Trustee.  Each such certificate shall include the
statements  provided for in Section  14.06 if and to the extent  required by the
provisions of such Section.

                                      -4-

<PAGE>

          "Opinion  of  Counsel"  means an opinion  in  writing  signed by legal
counsel,  who may be an employee of or counsel to the  Company,  or may be other
counsel reasonably  satisfactory to the Trustee. Each such opinion shall include
the  statements  provided for in Section 14.06 if and to the extent  required by
the provisions of such Section.

          The term  "outstanding,"  when used with reference to Debt Securities,
subject to the provisions of Section 7.04, means, as of any particular time, all
Debt Securities authenticated and delivered by the Trustee or the Authenticating
Agent under this Indenture, except

          (a)  Debt  Securities  theretofore  canceled  by  the  Trustee  or the
Authenticating Agent or delivered to the Trustee for cancellation;

          (b)  Debt  Securities,   or  portions  thereof,  for  the  payment  or
redemption of which moneys in the necessary  amount shall have been deposited in
trust with the  Trustee or with any Paying  Agent  (other  than the  Company) or
shall have been set aside and segregated in trust by the Company (if the Company
shall act as its own Paying Agent); provided, that, if such Debt Securities,  or
portions thereof,  are to be redeemed prior to maturity thereof,  notice of such
redemption  shall have been given as provided in Articles X and XIV or provision
satisfactory to the Trustee shall have been made for giving such notice; and

          (c) Debt  Securities paid pursuant to Section 2.06 or in lieu of or in
substitution for which other Debt Securities shall have been  authenticated  and
delivered pursuant to the terms of Section 2.06 unless proof satisfactory to the
Company and the Trustee is presented  that any such Debt  Securities are held by
bona fide holders in due course.

          "Paying Agent" has the meaning set forth in Section 3.04(e).

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

          "Predecessor  Security" of any  particular  Debt Security  means every
previous  Debt  Security  evidencing  all or a portion  of the same debt as that
evidenced  by such  particular  Debt  Security;  and,  for the  purposes of this
definition,  any Debt Security authenticated and delivered under Section 2.06 in
lieu of a lost,  destroyed or stolen Debt  Security  shall be deemed to evidence
the same debt as the lost, destroyed or stolen Debt Security.

          "Principal Office of the Trustee" means the office of the Trustee,  at
which at any particular  time its corporate  trust business shall be principally
administered,  which at all times shall be located  within the United States and
at the time of the execution of this Indenture shall be 919 Market Street, Suite
700, Wilmington, DE 19801.

                                      -5-

<PAGE>

          "Redemption Date" has the meaning set forth in Section 10.01.

          "Redemption  Price"  means  100% of the  principal  amount of the Debt
Securities  being  redeemed  plus  accrued  and  unpaid  interest  on such  Debt
Securities  to the  Redemption  Date or, in the case of a redemption  due to the
occurrence of a Special Event,  to the Special  Redemption  Date if such Special
Redemption Date is on or after October 7, 2008.

          "Responsible  Officer" means, with respect to the Trustee, any officer
within the Principal  Office of the Trustee with direct  responsibility  for the
administration  of the Indenture,  including any  vice-president,  any assistant
vice-president,  any secretary,  any assistant  secretary,  the  treasurer,  any
assistant treasurer,  any trust officer or other officer of the Principal Office
of the Trustee  customarily  performing  functions similar to those performed by
any of  the  above  designated  officers  and  also  means,  with  respect  to a
particular  corporate  trust  matter,  any other  officer to whom such matter is
referred  because  of that  officer's  knowledge  of and  familiarity  with  the
particular subject.

          "Securityholder,"  "holder of Debt Securities" or other similar terms,
means  any  Person  in whose  name at the time a  particular  Debt  Security  is
registered on the Debt Security Register.

          "Senior  Indebtedness"  means,  with respect to the  Company,  (i) the
principal,  premium,  if any, and interest in respect of (A) indebtedness of the
Company  for  money  borrowed  and (B)  indebtedness  evidenced  by  securities,
debentures,  notes,  bonds or other similar  instruments  issued by the Company;
(ii) all capital lease obligations of the Company;  (iii) all obligations of the
Company  issued or assumed  as the  deferred  purchase  price of  property,  all
conditional  sale  obligations of the Company and all obligations of the Company
under any title  retention  agreement  (but  excluding  trade  accounts  payable
arising in the ordinary course of business); (iv) all obligations of the Company
for the  reimbursement  of any letter of credit,  any banker's  acceptance,  any
security purchase facility, any repurchase agreement or similar arrangement, any
interest rate swap, any other hedging arrangement,  any obligation under options
or any similar  credit or other  transaction;  (v) all  obligations  of the type
referred to in clauses (i) through  (iv) above of other  Persons for the payment
of which  the  Company  is  responsible  or  liable  as  obligor,  guarantor  or
otherwise;  and (vi) all  obligations  of the type  referred  to in clauses  (i)
through (v) above of other Persons  secured by any lien on any property or asset
of the  Company  (whether  or not such  obligation  is assumed by the  Company),
whether  incurred  on or  prior  to the  date of this  Indenture  or  thereafter
incurred,  unless,  with  the  prior  approval  of the  Federal  Reserve  if not
otherwise generally approved,  in the instrument creating or evidencing the same
or  pursuant  to  which  the  same is  outstanding,  it is  provided  that  such
obligations  are not  superior or are pari passu in right of payment to the Debt
Securities.

          "Special Event" means any of a Tax Event, an Investment  Company Event
or a Capital Treatment Event.

          "Special Redemption Date" has the meaning set forth in Section 10.02.

                                      -6-
<PAGE>

          "Special Redemption Price" means (1) if the Special Redemption Date is
before October 7, 2008, One Hundred Five Percent (105%) of the principal  amount
to be redeemed plus any accrued and unpaid interest  thereon to the date of such
redemption  and (2) if the  Special  Redemption  Date is on or after  October 7,
2008, the Redemption Price for such Special Redemption Date.

          "Subsidiary"  means, with respect to any Person,  (i) any corporation,
at least a majority of the outstanding voting stock of which is owned,  directly
or indirectly, by such Person or by one or more of its Subsidiaries,  or by such
Person and one or more of its Subsidiaries,  (ii) any general partnership, joint
venture or similar entity, at least a majority of the outstanding partnership or
similar  interests of which shall at the time be owned by such Person, or by one
or  more  of  its  Subsidiaries,  or by  such  Person  and  one or  more  of its
Subsidiaries,  and (iii) any limited  partnership of which such Person or any of
its  Subsidiaries  is a general  partner.  For the purposes of this  definition,
"voting stock" means shares,  interests,  participations or other equivalents in
the equity interest  (however  designated) in such Person having ordinary voting
power for the election of a majority of the  directors  (or the  equivalent)  of
such Person, other than shares,  interests,  participations or other equivalents
having such power only by reason of the occurrence of a contingency.

          "Tax  Event"  means the  receipt  by the  Company  and the Trust of an
Opinion of Counsel  experienced  in such matters to the effect that, as a result
of any amendment to or change  (including any announced  prospective  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  pronouncement  (including  any private  letter ruling,
technical advice memorandum,  regulatory  procedure,  notice or announcement (an
"Administrative  Action")) or judicial  decision  interpreting  or applying such
laws or  regulations,  regardless  of  whether  such  Administrative  Action  or
judicial decision is issued to or in connection with a proceeding  involving the
Company  or the Trust and  whether or not  subject  to review or  appeal,  which
amendment, clarification,  change, Administrative Action or decision is enacted,
promulgated or announced, in each case on or after the date of original issuance
of the Debt Securities,  there is more than an insubstantial  risk that: (i) the
Trust  is, or will be within  90 days of the date of such  opinion,  subject  to
United States federal  income tax with respect to income  received or accrued on
the Debt Securities; (ii) interest payable by the Company on the Debt Securities
is not, or within 90 days of the date of such opinion,  will not be,  deductible
by the  Company,  in whole or in part,  for  United  States  federal  income tax
purposes;  or (iii)  the Trust is, or will be within 90 days of the date of such
opinion,  subject to or otherwise  required to pay, or required to withhold from
distributions to holders of Trust  Securities,  more than a de minimis amount of
other  taxes  (including  withholding  taxes),  duties,   assessments  or  other
governmental charges.

          "Trust" means Weststar Financial Services  Corporation I, the Delaware
statutory  trust,  or any other similar trust created for the purpose of issuing
Capital Securities in connection with the issuance of Debt Securities under this
Indenture, of which the Company is the sponsor.

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

                                      -7-
<PAGE>

          "Trust  Securities" means Common Securities and Capital  Securities of
Weststar Financial Services Corporation I.

          "Trustee"  means  the  Person  identified  as  "Trustee"  in the first
paragraph  hereof,  and,  subject to the provisions of Article VI hereof,  shall
also include its successors and assigns as Trustee hereunder.

          "United States" means the United States of America and the District of
Columbia.

          "U.S.  Person" has the meaning  given to United  States  Person as set
forth in Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended.

                                   ARTICLE II

                                 DEBT SECURITIES

          SECTION 2.01. Authentication and Dating.
                        --------------------------

          Upon the  execution  and delivery of this  Indenture,  or from time to
time thereafter,  Debt Securities in an aggregate principal amount not in excess
of  $4,124,000  may be executed and  delivered by the Company to the Trustee for
authentication,  and the Trustee shall thereupon authenticate and make available
for delivery  said Debt  Securities to or upon the written order of the Company,
signed by its Chairman of the Board of Directors,  Vice  Chairman,  President or
Chief  Financial  Officer or one of its Vice  Presidents,  without  any  further
action by the Company  hereunder.  In authenticating  such Debt Securities,  and
accepting the  additional  responsibilities  under this Indenture in relation to
such Debt Securities,  the Trustee shall be entitled to receive, and (subject to
Section  6.01)  shall be fully  protected  in  relying  upon a copy of any Board
Resolution  or  Board  Resolutions  relating  thereto  and,  if  applicable,  an
appropriate record of any action taken pursuant to such resolution, in each case
certified  by the  Secretary or an Assistant  Secretary or other  officers  with
appropriate delegated authority of the Company as the case may be.

          The  Trustee  shall  have the right to  decline  to  authenticate  and
deliver any Debt Securities under this Section if the Trustee,  being advised by
counsel,  determines  that  such  action  may  not  lawfully  be  taken  or if a
Responsible  Officer  of the  Trustee in good faith  shall  determine  that such
action   would   expose  the   Trustee  to   personal   liability   to  existing
Securityholders.

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

          SECTION 2.02. Form of Trustee's Certificate of Authentication.
                        ------------------------------------------------

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

                                      -8-
<PAGE>

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

          WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity
but solely as trustee

                                                  By
                                                    ----------------------------
                                                             Authorized Officer

          SECTION 2.03. Form and Denomination of Debt Securities.
                        -----------------------------------------

          The Debt Securities  shall be  substantially  in the form of Exhibit A
hereto.  The Debt Securities shall be in registered,  certificated  form without
coupons and in minimum  denominations  of $100,000 and any multiple of $1,000 in
excess thereof.  The Debt Securities shall be numbered,  lettered,  or otherwise
distinguished  in such manner or in  accordance  with such plans as the officers
executing the same may  determine  with the approval of the Trustee as evidenced
by the execution and authentication thereof.

SECTION 2.04. Execution of Debt Securities.
              -----------------------------

          The Debt  Securities  shall be signed in the name and on behalf of the
Company by the manual or  facsimile  signature  of its  Chairman of the Board of
Directors,  Vice Chairman,  President or Chief  Financial  Officer or one of its
Executive Vice Presidents,  Senior Vice Presidents or Vice Presidents, under its
corporate  seal which may be affixed  thereto or printed,  engraved or otherwise
reproduced thereon,  by facsimile or otherwise,  and which need not be attested.
Only such Debt Securities as shall bear thereon a certificate of  authentication
substantially in the form herein before recited,  executed by the Trustee or the
Authenticating Agent by the manual signature of an authorized officer,  shall be
entitled to the  benefits of this  Indenture or be valid or  obligatory  for any
purpose.  Such certificate by the Trustee or the  Authenticating  Agent upon any
Debt Security executed by the Company shall be conclusive evidence that the Debt
Security so authenticated has been duly  authenticated  and delivered  hereunder
and that the holder is entitled to the benefits of this Indenture.

          In case any  officer of the  Company  who shall have signed any of the
Debt  Securities  shall cease to be such officer  before the Debt  Securities so
signed  shall  have been  authenticated  and  delivered  by the  Trustee  or the
Authenticating  Agent,  or  disposed  of by the  Company,  such Debt  Securities
nevertheless  may be  authenticated  and  delivered or disposed of as though the
Person who signed such Debt  Securities had not ceased to be such officer of the
Company;  and any Debt  Security  may be signed on behalf of the Company by such
Persons as, at the actual date of the execution of such Debt Security,  shall be
the proper  officers of the  Company,  although at the date of the  execution of
this Indenture any such person was not such an officer.

          Every Debt Security shall be dated the date of its authentication.

SECTION 2.05. Exchange and Registration of Transfer of Debt Securities.
              ---------------------------------------------------------

          The Company shall cause to be kept, at the office or agency maintained
for the  purpose of  registration  of transfer  and for  exchange as provided in

                                      -9-

<PAGE>

Section 3.02, a register (the "Debt Security  Register") for the Debt Securities
issued  hereunder in which,  subject to such  reasonable  regulations  as it may
prescribe,  the Company shall provide for the  registration  and transfer of all
Debt  Securities  as provided in this  Article  II.  Such  register  shall be in
written form or in any other form capable of being  converted  into written form
within a reasonable time.

          Debt  Securities to be exchanged may be  surrendered  at the Principal
Office of the Trustee or at any office or agency to be maintained by the Company
for such purpose as provided in Section 3.02, and the Company shall execute, the
Company or the Trustee  shall  register  and the  Trustee or the  Authenticating
Agent shall  authenticate  and make available for delivery in exchange  therefor
the Debt  Security  or Debt  Securities  which  the  Securityholder  making  the
exchange shall be entitled to receive.  Upon due presentment for registration of
transfer of any Debt Security at the  Principal  Office of the Trustee or at any
office or agency of the  Company  maintained  for such  purpose as  provided  in
Section  3.02,  the Company  shall  execute,  the  Company or the Trustee  shall
register and the Trustee or the Authenticating Agent shall authenticate and make
available for delivery in the name of the  transferee or  transferees a new Debt
Security for a like aggregate principal amount.  Registration or registration of
transfer  of any Debt  Security  by the  Trustee or by any agent of the  Company
appointed pursuant to Section 3.02, and delivery of such Debt Security, shall be
deemed to complete the  registration  or  registration  of transfer of such Debt
Security.

          All Debt  Securities  presented  for  registration  of transfer or for
exchange  or payment  shall (if so required by the Company or the Trustee or the
Authenticating  Agent)  be duly  endorsed  by, or be  accompanied  by, a written
instrument or  instruments of transfer in form  satisfactory  to the Company and
either the Trustee or the  Authenticating  Agent duly executed by, the holder or
such holder's attorney duly authorized in writing.

          No service  charge shall be made for any exchange or  registration  of
transfer of Debt Securities,  but the Company or the Trustee may require payment
of a sum sufficient to cover any tax, fee or other governmental  charge that may
be imposed in connection therewith.

          The  Company or the  Trustee  shall not be  required  to  exchange  or
register a transfer  of any Debt  Security  for a period of 15 days  immediately
preceding the date of selection of Debt Securities for redemption.

          Notwithstanding the foregoing,  Debt Securities may not be transferred
except in  compliance  with the  restricted  securities  legend set forth below,
unless  otherwise  determined by the Company in accordance  with applicable law,
which legend shall be placed on each Debt Security:

          THIS  SECURITY HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF
1933, AS AMENDED (THE  "SECURITIES  ACT"),  OR ANY STATE  SECURITIES LAWS OR ANY
OTHER  APPLICABLE  SECURITIES  LAWS.  NEITHER THIS  SECURITY NOR ANY INTEREST OR
PARTICIPATION  HEREIN MAY BE REOFFERED,  SOLD, ASSIGNED,  TRANSFERRED,  PLEDGED,
ENCUMBERED  OR  OTHERWISE  DISPOSED  OF IN THE ABSENCE OF SUCH  REGISTRATION  OR
UNLESS SUCH  TRANSACTION  IS EXEMPT  FROM,  OR NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF  THE  SECURITIES  ACT.  THE  HOLDER  OF  THIS  SECURITY  BY ITS

                                      -10-

<PAGE>

ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE COMPANY,  (B) PURSUANT TO RULE 144A UNDER THE  SECURITIES  ACT ("RULE
144A"), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED  IN RULE 144A THAT  PURCHASES  FOR ITS OWN  ACCOUNT OR FOR THE
ACCOUNT  OF A  QUALIFIED  INSTITUTIONAL  BUYER TO WHOM  NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,  (C)  PURSUANT TO AN  EXEMPTION
FROM THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT TO AN  "ACCREDITED
INVESTOR"  WITHIN THE MEANING OF  SUBPARAGRAPH  (a) (1), (2), (3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT,
OR FOR THE ACCOUNT OF AN "ACCREDITED  INVESTOR," FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION  WITH,  ANY  DISTRIBUTION  IN
VIOLATION OF THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE  EXEMPTION
FROM  THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT,  SUBJECT  TO THE
COMPANY'S  RIGHT PRIOR TO ANY SUCH OFFER,  SALE OR TRANSFER  PURSUANT TO CLAUSES
(C) OR (D) TO REQUIRE  THE  DELIVERY  OF AN OPINION  OF  COUNSEL,  CERTIFICATION
AND/OR OTHER INFORMATION  SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A
COPY OF WHICH MAY BE OBTAINED  FROM THE COMPANY.  THE HOLDER OF THIS SECURITY BY
ITS   ACCEPTANCE   HEREOF   AGREES  THAT  IT  WILL  COMPLY  WITH  THE  FOREGOING
RESTRICTIONS.

          THE  HOLDER  OF  THIS  SECURITY  BY  ITS  ACCEPTANCE   HEREOF  AGREES,
REPRESENTS  AND  WARRANTS  THAT IT  WILL  NOT  ENGAGE  IN  HEDGING  TRANSACTIONS
INVOLVING  THIS SECURITY  UNLESS SUCH  TRANSACTIONS  ARE IN COMPLIANCE  WITH THE
SECURITIES ACT.

          THE HOLDER OF THIS  SECURITY BY ITS  ACCEPTANCE  HEREOF  ALSO  AGREES,
REPRESENTS  AND  WARRANTS  THAT  IT  IS  NOT  AN  EMPLOYEE  BENEFIT,  INDIVIDUAL
RETIREMENT  ACCOUNT  OR  OTHER  PLAN OR  ARRANGEMENT  SUBJECT  TO TITLE I OF THE
EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT OF 1974,  AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE  INTERNAL  REVENUE  CODE OF 1986,  AS AMENDED (THE  "CODE"),
(EACH A "PLAN"),  OR AN ENTITY WHOSE UNDERLYING  ASSETS INCLUDE "PLAN ASSETS" BY
REASON OF ANY PLAN'S  INVESTMENT  IN THE ENTITY  AND NO PERSON  INVESTING  "PLAN
ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS  SECURITY OR ANY INTEREST  THEREIN,
UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE  RELIEF  AVAILABLE
UNDER  U.S.   DEPARTMENT  OF  LABOR  PROHIBITED   TRANSACTION   CLASS  EXEMPTION
96-23,95-60,91-38,90-1  OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE
AND  HOLDING OF THIS  SECURITY  IS NOT  PROHIBITED  BY  SECTION  406 OF ERISA OR
SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER
OR  HOLDER  OF THIS  SECURITY  OR ANY  INTEREST  THEREIN  WILL BE DEEMED TO HAVE
REPRESENTED  BY ITS  PURCHASE  AND HOLDING  THEREOF THAT EITHER (i) IT IS NOT AN
EMPLOYEE  BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO
WHICH SECTION 4975 OF THE CODE IS  APPLICABLE,  A TRUSTEE OR OTHER PERSON ACTING
ON BEHALF OF AN EMPLOYEE  BENEFIT  PLAN OR PLAN,  OR ANY OTHER  PERSON OR ENTITY
USING THE ASSETS OF ANY EMPLOYEE  BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE,
OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED  TRANSACTION UNDER SECTION
406 OF  ERISA OR  SECTION  4975 OF THE CODE  FOR  WHICH  THERE IS NO  APPLICABLE
STATUTORY OR ADMINISTRATIVE EXEMPTION.

                                      -11-
<PAGE>

          IN  CONNECTION  WITH ANY  TRANSFER,  THE HOLDER OF THIS  SECURITY WILL
DELIVER TO THE COMPANY AND TRUSTEE SUCH  CERTIFICATES  AND OTHER  INFORMATION AS
MAY BE REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER  COMPLIES WITH THE
FOREGOING RESTRICTIONS.

          THIS  SECURITY  WILL BE ISSUED AND MAY BE  TRANSFERRED  ONLY IN BLOCKS
HAVING A PRINCIPAL  AMOUNT OF NOT LESS THAN  $100,000 AND MULTIPLES OF $1,000 IN
EXCESS  THEREOF.  ANY  ATTEMPTED  TRANSFER OF THIS  SECURITY IN A BLOCK HAVING A
PRINCIPAL  AMOUNT  OF LESS  THAN  $100,000  SHALL BE DEEMED TO BE VOID AND OF NO
LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE
THE HOLDER OF THIS SECURITY FOR ANY PURPOSE,  INCLUDING, BUT NOT LIMITED TO, THE
RECEIPT OF DISTRIBUTIONS ON THIS SECURITY,  AND SUCH PURPORTED  TRANSFEREE SHALL
BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

          THIS  OBLIGATION  IS NOT A DEPOSIT  AND IS NOT  INSURED  BY THE UNITED
STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT
INSURANCE  CORPORATION  (THE "FDIC").  THIS  OBLIGATION IS  SUBORDINATED  TO THE
CLAIMS OF  DEPOSITORS  AND THE CLAIMS OF GENERAL  AND SECURED  CREDITORS  OF THE
COMPANY,  IS INELIGIBLE  AS  COLLATERAL  FOR A LOAN BY THE COMPANY OR ANY OF ITS
SUBSIDIARIES AND IS NOT SECURED.

SECTION 2.06. Mutilated, Destroyed, Lost or Stolen Debt Securities.
              -----------------------------------------------------

          In case any Debt Security shall become mutilated or be destroyed, lost
or stolen,  the Company shall execute,  and upon its written request the Trustee
shall  authenticate  and  deliver,  a new Debt  Security  bearing  a number  not
contemporaneously  outstanding,  in exchange and  substitution for the mutilated
Debt  Security,  or in lieu of and in  substitution  for the  Debt  Security  so
destroyed,  lost or stolen.  In every case the applicant for a substituted  Debt
Security shall furnish to the Company and the Trustee such security or indemnity
as may be required by them to save each of them harmless,  and, in every case of
destruction,  loss or theft, the applicant shall also furnish to the Company and
the Trustee evidence to their satisfaction of the destruction,  loss or theft of
such Debt Security and of the ownership thereof.

          The Trustee may  authenticate  any such  substituted Debt Security and
deliver the same upon the written request or authorization of any officer of the
Company.  Upon the issuance of any  substituted  Debt Security,  the Company may
require the payment of a sum  sufficient to cover any tax or other  governmental

                                      -12-

<PAGE>

charge that may be imposed in relation thereto and any other expenses  connected
therewith.  In case any Debt Security which has matured or is about to mature or
has been called for  redemption in full shall become  mutilated or be destroyed,
lost or stolen,  the Company may, instead of issuing a substitute Debt Security,
pay or authorize the payment of the same (without  surrender  thereof  except in
the case of a mutilated  Debt  Security) if the applicant for such payment shall
furnish to the Company  and the Trustee  such  security or  indemnity  as may be
required by them to save each of them harmless and, in case of destruction, loss
or  theft,  evidence  satisfactory  to the  Company  and to the  Trustee  of the
destruction, loss or theft of such Security and of the ownership thereof.

          Every  substituted  Debt Security issued pursuant to the provisions of
this  Section  2.06 by  virtue  of the  fact  that  any such  Debt  Security  is
destroyed,  lost or stolen shall constitute an additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Debt Security shall
be  found at any  time,  and  shall  be  entitled  to all the  benefits  of this
Indenture  equally and  proportionately  with any and all other Debt  Securities
duly  issued  hereunder.  All Debt  Securities  shall be held and owned upon the
express condition that, to the extent permitted by applicable law, the foregoing
provisions  are  exclusive  with  respect  to  the  replacement  or  payment  of
mutilated,  destroyed, lost or stolen Debt Securities and shall preclude any and
all other  rights or  remedies  notwithstanding  any law or statute  existing or
hereafter  enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

SECTION 2.07. Temporary Debt Securities.
              --------------------------

          Pending the preparation of definitive Debt Securities, the Company may
execute and the Trustee  shall  authenticate  and make  available  for  delivery
temporary Debt Securities  that are typed,  printed or  lithographed.  Temporary
Debt  Securities  shall  be  issuable  in  any  authorized   denomination,   and
substantially  in the form of the  definitive  Debt  Securities  but  with  such
omissions,  insertions and  variations as may be appropriate  for temporary Debt
Securities,  all as may be determined by the Company.  Every such temporary Debt
Security  shall be executed by the Company and be  authenticated  by the Trustee
upon the same conditions and in substantially the same manner, and with the same
effect,  as the definitive Debt  Securities.  Without  unreasonable  delay,  the
Company  will  execute and deliver to the  Trustee or the  Authenticating  Agent
definitive  Debt  Securities and thereupon any or all temporary Debt  Securities
may be surrendered in exchange therefor,  at the Principal Office of the Trustee
or at any  office  or agency  maintained  by the  Company  for such  purpose  as
provided  in Section  3.02,  and the Trustee or the  Authenticating  Agent shall
authenticate and make available for delivery in exchange for such temporary Debt
Securities a like aggregate principal amount of such definitive Debt Securities.
Such  exchange  shall be made by the  Company at its own expense and without any
charge  therefor  except  that  in  case  of  any  such  exchange   involving  a
registration  of transfer the Company may require payment of a sum sufficient to
cover any tax, fee or other governmental  charge that may be imposed in relation
thereto. Until so exchanged, the temporary Debt Securities shall in all respects
be  entitled  to the same  benefits  under this  Indenture  as  definitive  Debt
Securities authenticated and delivered hereunder.

                                      -13-
<PAGE>

SECTION 2.08. Payment of Interest.
              --------------------

          Each Debt Security will bear interest at the then applicable  Interest
Rate from and including each Interest  Payment Date or, in the case of the first
interest  period,  the original  date of issuance of such Debt  Security to, but
excluding, the next succeeding Interest Payment Date or, in the case of the last
interest period,  the Redemption Date, Special Redemption Date or Maturity Date,
as applicable,  on the principal  thereof,  on any overdue principal and (to the
extent that payment of such interest is  enforceable  under  applicable  law) on
Deferred  Interest  and  on  any  overdue  installment  of  interest  (including
Defaulted Interest),  payable (subject to the provisions of Article XII) on each
Interest  Payment Date commencing on January 7, 2004.  Interest and any Deferred
Interest on any Debt  Security that is payable,  and is punctually  paid or duly
provided for by the Company,  on any Interest  Payment Date shall be paid to the
Person in whose name said Debt Security (or one or more Predecessor  Securities)
is  registered  at the close of  business  on the  regular  record date for such
interest installment,  except that interest and any Deferred Interest payable on
the Maturity Date shall be paid to the Person to whom  principal is paid. In the
event that any Debt Security or portion thereof is called for redemption and the
redemption  date is  subsequent  to a regular  record  date with  respect to any
Interest Payment Date and prior to such Interest Payment Date,  interest on such
Debt  Security  will  be paid  upon  presentation  and  surrender  of such  Debt
Security.

          Any interest on any Debt Security,  other than Deferred Interest, that
is payable,  but is not punctually paid or duly provided for by the Company,  on
any Interest Payment Date (herein called  "Defaulted  Interest") shall forthwith
cease to be payable to the registered holder on the relevant regular record date
by virtue of having been such holder,  and such Defaulted Interest shall be paid
by the  Company to the  Persons in whose  names such Debt  Securities  (or their
respective Predecessor  Securities) are registered at the close of business on a
special record date for the payment of such Defaulted  Interest,  which shall be
fixed in the following  manner:  the Company shall notify the Trustee in writing
of the  amount  of  Defaulted  Interest  proposed  to be paid on each  such Debt
Security and the date of the proposed payment,  and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate  amount
proposed  to be paid in  respect  of  such  Defaulted  Interest  or  shall  make
arrangements  reasonably  satisfactory  to the Trustee for such deposit prior to
the date of the proposed payment,  such money when deposited to be held in trust
for the benefit of the Persons  entitled to such  Defaulted  Interest as in this
clause  provided.  Thereupon the Trustee shall fix a special record date for the
payment of such Defaulted Interest which shall not be more than fifteen nor less
than ten days prior to the date of the  proposed  payment  and not less than ten
days after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall  promptly  notify the Company of such special  record date and, in
the name and at the expense of the  Company,  shall cause notice of the proposed
payment of such  Defaulted  Interest and the special  record date therefor to be
mailed,  first  class  postage  prepaid,  to each  Securityholder  at his or her
address  as it  appears in the Debt  Security  Register,  not less than ten days
prior to such  special  record  date.  Notice of the  proposed  payment  of such
Defaulted  Interest and the special  record date therefor  having been mailed as
aforesaid,  such Defaulted  Interest shall be paid to the Persons in whose names
such Debt Securities (or their respective Predecessor Securities) are registered
on such special  record date and  thereafter  the Company  shall have no further
payment obligation in respect of the Defaulted Interest.

                                      -14-
<PAGE>

          Any interest  scheduled to become payable on an Interest  Payment Date
occurring during an Extension  Period shall not be Defaulted  Interest and shall
be  payable on such  other  date as may be  specified  in the terms of such Debt
Securities.

          The term "regular  record date" as used in this Section shall mean the
fifteenth  day prior to an Interest  Payment  Date whether or not such date is a
Business Day.

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

SECTION 2.09. Cancellation of Debt Securities Paid, etc.
              ------------------------------------------

          All  Debt   Securities   surrendered   for  the  purpose  of  payment,
redemption,  exchange or registration of transfer,  shall, if surrendered to the
Company or any Paying Agent, be surrendered to the Trustee and promptly canceled
by it, or, if surrendered to the Trustee or any  Authenticating  Agent, shall be
promptly  canceled by it, and no Debt Securities shall be issued in lieu thereof
except as expressly  permitted by any of the provisions of this  Indenture.  All
Debt Securities  canceled by any Authenticating  Agent shall be delivered to the
Trustee.  The Trustee  shall  destroy all canceled  Debt  Securities  unless the
Company  otherwise  directs the  Trustee in  writing,  in which case the Trustee
shall dispose of such Debt Securities as directed by the Company. If the Company
shall acquire any of the Debt Securities,  however,  such acquisition  shall not
operate as a redemption or satisfaction of the indebtedness  represented by such
Debt  Securities  unless and until the same are  surrendered  to the Trustee for
cancellation.

SECTION 2.10. Computation of Interest
              -----------------------

          (a) The amount of  interest  payable for any  interest  period will be
computed on the basis of a 360-day year and the actual number of days elapsed in
the relevant interest period;  provided,  however, that upon the occurrence of a
                               --------  -------
Special Event Redemption  pursuant to Section 10.02 the amounts payable pursuant
to this Indenture  shall be calculated as set forth in the definition of Special
Redemption Price.

          (b) LIBOR shall be determined by the  Calculation  Agent in accordance
with the following provisions:

          (1) On the  second  LIBOR  Business  Day  (provided,  that on such day
commercial banks are open for business  (including  dealings in foreign currency
deposits) in London (a "LIBOR  Banking  Day"),  and otherwise the next preceding
LIBOR  Business Day that is also a LIBOR Banking Day) prior to January 15, April
15, July 15 and October 15 (except,  with respect to the first interest  payment
period,  on October 8,  2003),  (each such day, a "LIBOR  Determination  Date"),
LIBOR shall equal the rate, as obtained by the Calculation Agent for three-month
U.S. Dollar deposits in Europe,  which appears on Telerate Page 3750 (as defined
in the International Swaps and Derivatives Association,  Inc. 1991 Interest Rate
and  Currency  Exchange  Definitions)  or such  other page as may  replace  such
Telerate Page 3750, as of 11:00 a.m.  (London time) on such LIBOR  Determination

                                      -15-
<PAGE>

Date,  as reported by  Bloomberg  Financial  Markets  Commodities  News.  "LIBOR
Business Day" means any day that is not a Saturday, Sunday or other day on which
commercial  banking  institutions in New York, New York or Wilmington,  Delaware
are authorized or obligated by law or executive order to be closed. If such rate
is  superseded  on  Telerate  Page 3750 by a corrected  rate  before  12:00 noon
(London time) on the same LIBOR  Determination  Date,  the corrected  rate as so
substituted will be the applicable LIBOR for that LIBOR Determination Date.

                    (2) If, on any LIBOR  Determination Date, such rate does not
          appear  on  Telerate  Page 3750 as  reported  by  Bloomberg  Financial
          Markets  Commodities  News or such  other  page  as may  replace  such
          Telerate  Page  3750,  the  Calculation   Agent  shall  determine  the
          arithmetic  mean of the offered  quotations of the Reference Banks (as
          defined  below) to leading  banks in the London  interbank  market for
          three-month U.S. Dollar deposits in Europe (in an amount determined by
          the  Calculation  Agent) by reference to requests for quotations as of
          approximately 11:00 a.m. (London time) on the LIBOR Determination Date
          made by the Calculation Agent to the Reference Banks. If, on any LIBOR
          Determination  Date, at least two of the Reference  Banks provide such
          quotations,  LIBOR shall equal the arithmetic mean of such quotations.
          If, on any LIBOR Determination Date, only one or none of the Reference
          Banks  provide  such a  quotation,  LIBOR  shall be  deemed  to be the
          arithmetic  mean of the offered  quotations  that at least two leading
          banks in the City of New York (as selected by the  Calculation  Agent)
          are quoting on the relevant LIBOR  Determination  Date for three-month
          U.S. Dollar  deposits in Europe at  approximately  11:00 a.m.  (London
          time) (in an amount  determined  by the  Calculation  Agent).  As used
          herein,  "Reference  Banks"  means  four  major  banks  in the  London
          interbank market selected by the Calculation Agent.

                    (3) If the  Calculation  Agent is required  but is unable to
          determine  a rate in  accordance  with at least one of the  procedures
          provided  above,  LIBOR shall be LIBOR in effect on the previous LIBOR
          Determination  Date  (whether or not LIBOR for such period was in fact
          determined on such LIBOR Determination Date).

          (c) All  percentages  resulting  from  any  calculations  on the  Debt
Securities will be rounded, if necessary,  to the nearest one hundred-thousandth
of a percentage  point,  with five  one-millionths of a percentage point rounded
upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)),
and all  dollar  amounts  used in or  resulting  from such  calculation  will be
rounded to the nearest cent (with one-half cent being rounded upward).

          (d) On each LIBOR  Determination  Date,  the  Calculation  Agent shall
notify, in writing,  the Company and the Paying Agent of the applicable Interest
Rate in effect for the related  Interest  Payment Date.  The  Calculation  Agent
shall,  upon the  request  of the  holder of any Debt  Securities,  provide  the
Interest Rate then in effect.  All calculations made by the Calculation Agent in
the absence of manifest  error shall be conclusive  for all purposes and binding
on the Company and the Holders of the Debt Securities. The Paying Agent shall be

                                      -16-
<PAGE>

entitled  to rely on  information  received  from the  Calculation  Agent or the
Company as to the Interest Rate. The Company shall,  from time to time,  provide
any necessary  information  to the Paying Agent  relating to any original  issue
discount and interest on the Debt Securities that is included in any payment and
reportable for taxable income calculation purposes.

          SECTION 2.11. Extension of Interest Payment Period.
                        -------------------------------------

          So long as no Event of Default has  occurred  and is  continuing,  the
Company shall have the right,  from time to time and without causing an Event of
Default,  to defer payments of interest on the Debt  Securities by extending the
interest payment period on the Debt Securities at any time and from time to time
during the term of the Debt Securities,  for up to twenty consecutive  quarterly
periods (each such extended  interest  payment period,  an "Extension  Period"),
during which  Extension  Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). No Extension Period may end on
a date  other than an  Interest  Payment  Date.  During  any  Extension  Period,
interest  will continue to accrue on the Debt  Securities,  and interest on such
accrued  interest (such accrued interest and interest thereon referred to herein
as "Deferred Interest") will accrue at an annual rate equal to the Interest Rate
in effect for such  Extension  Period,  compounded  quarterly from the date such
Deferred  Interest would have been payable were it not for the Extension Period,
to the extent  permitted by law. No interest or Deferred  Interest  shall be due
and payable during an Extension Period, except at the end thereof. At the end of
any such  Extension  Period the Company  shall pay all  Deferred  Interest  then
accrued and unpaid on the Debt Securities;  provided, however, that no Extension
Period may extend beyond the Maturity Date; and provided further,  however, that
during  any  such  Extension  Period,  the  Company  shall  be  subject  to  the
restrictions  set  forth  in  Section  3.08  of  this  Indenture.  Prior  to the
termination of any Extension Period, the Company may further extend such period,
provided,  that  such  period  together  with  all  such  previous  and  further
consecutive  extensions  thereof shall not exceed twenty  consecutive  quarterly
periods,  or extend  beyond  the  Maturity  Date.  Upon the  termination  of any
Extension Period and upon the payment of all Deferred Interest,  the Company may
commence a new  Extension  Period,  subject to the foregoing  requirements.  The
Company  must give the Trustee  notice of its  election to begin such  Extension
Period ("Notice") at least one Business Day prior to the earlier of (i) the next
succeeding date on which interest on the Debt Securities would have been payable
except for the  election  to begin such  Extension  Period or (ii) the date such
interest is payable,  but in any event not later than the related regular record
date.  The Notice shall  describe,  in  reasonable  detail,  why the Company has
elected to begin an Extension Period.  The Notice shall describe,  in reasonable
detail,  why the Company has elected to begin an  Extension  Period.  The Notice
shall acknowledge and affirm the Company's  understanding  that it is prohibited
from issuing dividends and other distributions during the Extension Period. Upon
receipt  of the  Notice,  the  Initial  Purchaser  has the  right,  at its  sole
discretion,  to disclose the name of the Company,  the fact that the Company has
elected to begin an  Extension  Period and other  information  that the  Initial
Purchaser at its sole  discretion,  deems relevant to the Company's  election to
begin an  Extension  Period.  The  Trustee  shall give  notice of the  Company's
election to begin a new Extension Period to the Securityholders.

                                      -17-
<PAGE>

          SECTION 2.12. CUSIP Numbers.
                        -------------

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

                                  ARTICLE III

                       PARTICULAR COVENANTS OF THE COMPANY

          SECTION  3.01.  Payment of  Principal,  Premium and  Interest;  Agreed
                          ------------------------------------------------------
Treatment of the Debt Securities.
---------------------------------

          (a) The Company  covenants and agrees that it will duly and punctually
pay or cause to be paid all payments due on the Debt Securities at the place, at
the respective  times and in the manner  provided in this Indenture and the Debt
Securities.  At the option of the Company,  each  installment of interest on the
Debt  Securities may be paid (i) by mailing checks for such interest  payable to
the order of the holders of Debt Securities  entitled  thereto as they appear on
the Debt  Security  Register  or (ii) by wire  transfer  to any  account  with a
banking  institution  located in the United States  designated by such Person to
the Paying Agent no later than the related record date.

          (b) The Company will treat the Debt  Securities as  indebtedness,  and
the interest  payable in respect of such Debt  Securities  as interest,  for all
U.S.  federal  income  tax  purposes.  All  payments  in  respect  of such  Debt
Securities will be made free and clear of U.S. withholding tax to any beneficial
owner thereof that has provided an Internal Revenue Service Form W-8 BEN (or any
substitute or successor form) establishing its non-U.S.  status for U.S. federal
income tax purposes.

          (c) As of the date of this Indenture,  the Company has no intention to
exercise its right under Section 2.11 to defer  payments of interest on the Debt
Securities by commencing an Extension Period.

          (d) As of the date of this  Indenture,  the Company  believes that the
likelihood that it would exercise its right under Section 2.11 to defer payments
of interest on the Debt Securities by commencing an Extension Period at any time
during  which the Debt  Securities  are  outstanding  is remote  because  of the
restrictions  that would be imposed on the  Company's  ability to declare or pay
dividends  or  distributions  on, or to redeem,  purchase or make a  liquidation
payment  with  respect to, any of its  outstanding  equity and on the  Company's
ability to make any payments of principal  of or interest on, or  repurchase  or
redeem, any of its debt securities that rank pari passu in all respects with (or
junior in interest to) the Debt Securities.

                                      -18-
<PAGE>

          SECTION 3.02. Offices for Notices and Payments, etc.
                        --------------------------------------

          So long as any of the Debt Securities remain outstanding,  the Company
will maintain in  Wilmington,  Delaware or in an office or agency where the Debt
Securities  may be  presented  for  payment,  an office or agency where the Debt
Securities  may be presented  for  registration  of transfer and for exchange as
provided in this  Indenture and an office or agency where notices and demands to
or upon the Company in respect of the Debt  Securities or of this  Indenture may
be served.  The Company will give to the Trustee  written notice of the location
of any such  office  or agency  and of any  change of  location  thereof.  Until
otherwise  designated  from  time to  time by the  Company  in a  notice  to the
Trustee, or specified as contemplated by Section 2.05, such office or agency for
all of the above purposes shall be the Principal Office of the Trustee.  In case
the  Company  shall fail to maintain  any such  office or agency in  Wilmington,
Delaware or shall fail to give such  notice of the  location or of any change in
the location  thereof,  presentations and demands may be made and notices may be
served at the Principal Office of the Trustee.

          In addition to any such office or agency, the Company may from time to
time designate one or more offices or agencies outside  Wilmington,  Delaware or
where the Debt Securities may be presented for  registration of transfer and for
exchange in the manner provided in this Indenture, and the Company may from time
to  time  rescind  such  designation,  as the  Company  may  deem  desirable  or
expedient;  provided,  however,  that no such designation or rescission shall in
any manner  relieve the Company of its obligation to maintain any such office or
agency in  Wilmington,  Delaware for the purposes above  mentioned.  The Company
will  give to the  Trustee  prompt  written  notice of any such  designation  or
rescission thereof.

          SECTION 3.03. Appointments to Fill Vacancies in Trustee's Office.
                        ---------------------------------------------------

          The  Company,  whenever  necessary  to avoid or fill a vacancy  in the
office of Trustee,  will  appoint,  in the manner  provided in Section  6.09,  a
Trustee, so that there shall at all times be a Trustee hereunder.

          SECTION 3.04. Provision as to Paying Agent.
                        ----------------------------

          (a) If the  Company  shall  appoint  a  Paying  Agent  other  than the
Trustee,  it will cause such Paying  Agent to execute and deliver to the Trustee
an instrument  in which such agent shall agree with the Trustee,  subject to the
provision of this Section 3.04:;

                    (1) that it will hold all sums held by it as such  agent for
          the payment of all payments due on the Debt  Securities  (whether such
          sums have been paid to it by the  Company  or by any other  obligor on
          the Debt  Securities)  in trust for the  benefit of the holders of the
          Debt Securities;

                    (2) that it will give the Trustee  prompt  written notice of
          any  failure  by the  Company  (or by any  other  obligor  on the Debt
          Securities) to make any payment on the Debt  Securities  when the same
          shall be due and payable; and

                                      -19-
<PAGE>

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

          (b) If the Company shall act as its own Paying  Agent,  it will, on or
before  each due date of the  payments  due on the Debt  Securities,  set aside,
segregate  and  hold in  trust  for  the  benefit  of the  holders  of the  Debt
Securities a sum sufficient to pay such payments so becoming due and will notify
the  Trustee in writing of any failure to take such action and of any failure by
the  Company (or by any other  obligor  under the Debt  Securities)  to make any
payment on the Debt Securities when the same shall become due and payable.

          Whenever the Company shall have one or more Paying Agents for the Debt
Securities,  it will,  on or prior to each due date of the  payments on the Debt
Securities,  deposit with a Paying Agent a sum sufficient to pay all payments so
becoming  due,  such  sum to be held in trust  for the  benefit  of the  Persons
entitled thereto and (unless such Paying Agent is the Trustee) the Company shall
promptly notify the Trustee in writing of its action or failure to act.

          (c) Anything in this Section 3.04 to the contrary notwithstanding, the
Company  may, at any time,  for the  purpose of  obtaining  a  satisfaction  and
discharge with respect to the Debt Securities,  or for any other reason, pay, or
direct  any  Paying  Agent to pay to the  Trustee  all sums held in trust by the
Company or any such Paying  Agent,  such sums to be held by the Trustee upon the
same terms and conditions herein contained.

          (d) Anything in this Section 3.04 to the contrary notwithstanding, the
agreement  to hold sums in trust as provided in this  Section 3.04 is subject to
Sections 12.03 and 12.04.

          (e) The Company hereby initially appoints the Trustee to act as Paying
Agent (the "Paying Agent").

          SECTION 3.05. Certificate to Trustee.
                        -----------------------

          The  Company  will  deliver to the Trustee on or before 120 days after
the end of  each  fiscal  year,  so long  as  Debt  Securities  are  outstanding
hereunder,  a Certificate  stating that in the course of the  performance by the
signers of their  duties as  officers of the Company  they would  normally  have
knowledge of any default by the Company in the  performance  of any covenants of
the Company contained herein,  stating whether or not they have knowledge of any
such default and, if so,  specifying each such default of which the signers have
knowledge and the nature thereof.

          SECTION 3.06. Additional Interest.
                        --------------------

          If and for so long as the Trust is the  holder of all Debt  Securities
and is subject to or otherwise  required to pay, or is required to withhold from
distributions  to holders of Trust  Securities,  any additional taxes (including
withholding  taxes),  duties,  assessments  or other  governmental  charges as a
result  of a Tax  Event,  the  Company  will pay such  additional  amounts  (the
"Additional  Interest") on the Debt  Securities as shall be required so that the
net amounts  received and retained by the Trust for  distribution  to holders of
Trust  Securities  after  paying  all  taxes  (including  withholding  taxes  on
distributions  to holders of Trust  Securities),  duties,  assessments  or other
governmental  charges will be equal to the amounts the Trust would have received
and retained for  distribution to holders of Trust  Securities  after paying all

                                      -20-

<PAGE>

taxes  (including  withholding  taxes  on  distributions  to  holders  of  Trust
Securities),  duties,  assessments  or  other  governmental  charges  if no such
additional taxes,  duties,  assessments or other  governmental  charges had been
imposed.  Whenever in this Indenture or the Debt Securities there is a reference
in any  context  to  the  payment  of  principal  of or  interest  on  the  Debt
Securities,  such mention shall be deemed to include  mention of payments of the
Additional  Interest  provided for in this paragraph to the extent that, in such
context,  Additional  Interest  is, was or would be  payable in respect  thereof
pursuant to the provisions of this paragraph and express  mention of the payment
of Additional  Interest (if  applicable) in any  provisions  hereof shall not be
construed as excluding Additional Interest in those provisions hereof where such
express mention is not made, provided, however, that the deferral of the payment
                             --------  -------
of interest during an Extension  Period pursuant to Section 2.11 shall not defer
the payment of any Additional Interest that may be due and payable.

          SECTION 3.07. Compliance with Consolidation Provisions.
                        -----------------------------------------

          The  Company  will  not,  while  any of  the  Debt  Securities  remain
outstanding,  consolidate  with, or merge into any other  Person,  or merge into
itself,  or sell or convey all or substantially all of its property to any other
Person unless the provisions of Article XI hereof are complied with.

          SECTION 3.08. Limitation on Dividends.
                        -----------------------

          If Debt  Securities are initially  issued to the Trust or a trustee of
such Trust in  connection  with the  issuance of Trust  Securities  by the Trust
(regardless  of whether Debt  Securities  continue to be held by such Trust) and
(i) there shall have occurred and be  continuing  an Event of Default,  (ii) the
Company shall be in default with respect to its payment of any obligations under
the Capital Securities Guarantee or (iii) the Company shall have given notice of
its election to defer  payments of interest on the Debt  Securities by extending
the interest payment period as provided herein and such period, or any extension
thereof,  shall have commenced and be  continuing,  then the Company may not (A)
declare or pay any dividends or distributions on, or redeem, purchase,  acquire,
or make a  liquidation  payment  with respect to, any of the  Company's  capital
stock or (B) make any payment of principal of or interest or premium, if any, on
or repay, repurchase or redeem any debt securities of the Company that rank pari
passu in all respects with or junior in interest to the Debt  Securities  (other
than (a)  repurchases,  redemptions or other  acquisitions  of shares of capital
stock of the Company (I) in connection  with any  employment  contract,  benefit
plan  or  other  similar  arrangement  with or for  the  benefit  of one or more
employees,  officers,  directors  or  consultants,  (II)  in  connection  with a
dividend  reinvestment or stockholder stock purchase plan or (III) in connection
with the  issuance of capital  stock of the Company (or  securities  convertible
into or exercisable for such capital stock),  as consideration in an acquisition
transaction  entered into prior to the  occurrence  of (i), (ii) or (iii) above,
(b) as a result  of any  exchange  or  conversion  of any class or series of the
Company's  capital  stock (or any capital  stock of a subsidiary of the Company)
for any class or series of the Company's capital stock or of any class or series
of the Company's  indebtedness for any class or series of the Company's  capital
stock,  (c) the  purchase of  fractional  interests  in shares of the  Company's

                                      -21-
<PAGE>

capital stock pursuant to the conversion or exchange  provisions of such capital
stock or the security  being  converted or exchanged,  (d) any  declaration of a
dividend in connection  with any  stockholder's  rights plan, or the issuance of
rights,  stock or other  property  under any  stockholder's  rights plan, or the
redemption or repurchase of rights pursuant thereto,  or (e) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or the
stock  issuable upon exercise of such  warrants,  options or other rights is the
same stock as that on which the  dividend is being paid or ranks pari passu with
or junior to such stock).

          SECTION 3.09. Covenants as to the Trust.
                        -------------------------

          For so long as such Trust Securities remain  outstanding,  the Company
shall maintain 100% ownership of the Common Securities;  provided, however, that
                                                         --------  -------
any  permitted  successor  of the Company  under this  Indenture  that is a U.S.
Person may succeed to the  Company's  ownership of such Common  Securities.  The
Company,  as owner of the Common Securities,  shall use commercially  reasonable
efforts to cause the Trust (a) to remain a statutory trust, except in connection
with a  distribution  of Debt  Securities to the holders of Trust  Securities in
liquidation  of the Trust,  the  redemption  of all of the Trust  Securities  or
certain  mergers,  consolidations  or  amalgamations,  each as  permitted by the
Declaration,  (b) to otherwise  continue to be classified as a grantor trust for
United States  federal income tax purposes and (c) to cause each holder of Trust
Securities to be treated as owning an undivided  beneficial interest in the Debt
Securities.

                                   ARTICLE IV

                LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

          SECTION 4.01. Securityholders' Lists.
                        -----------------------

          The Company  covenants  and agrees that it will furnish or cause to be
furnished to the Trustee:

          (a) on each regular record date for an Interest  Payment Date, a list,
in such form as the Trustee may reasonably  require,  of the names and addresses
of the Securityholders of the Debt Securities as of such record date; and

          (b) at such other times as the Trustee may request in writing,  within
30 days after the receipt by the Company of any such request,  a list of similar
form and  content as of a date not more than 15 days prior to the time such list
is furnished;

          (c) except  that no such lists need be  furnished  under this  Section
4.01 so long as the Trustee is in possession  thereof by reason of its acting as
Debt Security registrar.

          SECTION 4.02. Preservation and Disclosure of Lists.
                        -------------------------------------

          (a) The Trustee shall preserve,  in as current a form as is reasonably
practicable,  all  information  as to the names and  addresses of the holders of
Debt  Securities  (1)  contained  in the most  recent  list  furnished  to it as
provided  in  Section  4.01  or (2)  received  by it in  the  capacity  of  Debt

                                      -22-
<PAGE>

Securities registrar (if so acting) hereunder.  The Trustee may destroy any list
furnished  to it as  provided  in  Section  4.01 upon  receipt  of a new list so
furnished.

          (b) In case  three or more  holders  of Debt  Securities  (hereinafter
referred to as "applicants")  apply in writing to the Trustee and furnish to the
Trustee  reasonable proof that each such applicant has owned a Debt Security for
a period of at least six months preceding the date of such application, and such
application  states that the applicants desire to communicate with other holders
of Debt  Securities  with respect to their rights under this  Indenture or under
such Debt  Securities and is accompanied by a copy of the form of proxy or other
communication which such applicants propose to transmit,  then the Trustee shall
within  five  Business  Days  after  the  receipt  of such  application,  at its
election, either:

                    (1)  afford  such  applicants   access  to  the  information
          preserved at the time by the Trustee in accordance with the provisions
          of subsection (a) of this Section 4.02, or

                    (2) inform such applicants as to the  approximate  number of
          holders of Debt  Securities  whose names and  addresses  appear in the
          information  preserved at the time by the Trustee in  accordance  with
          the  provisions of subsection  (a) of this Section 4.02, and as to the
          approximate cost of mailing to such  Securityholders the form of proxy
          or other communication, if any, specified in such application.

          If the Trustee  shall elect not to afford  such  applicants  access to
such  information,   the  Trustee  shall,  upon  the  written  request  of  such
applicants,  mail to each  Securityholder  of Debt  Securities  whose  name  and
address  appear  in the  information  preserved  at the time by the  Trustee  in
accordance  with the provisions of subsection (a) of this Section 4.02 a copy of
the form of proxy or other communication which is specified in such request with
reasonable promptness after a tender to the Trustee of the material to be mailed
and of payment,  or provision  for the payment,  of the  reasonable  expenses of
mailing,  unless  within five days after such tender,  the Trustee shall mail to
such  applicants  and file  with the  Securities  and  Exchange  Commission,  if
permitted or required by applicable law, together with a copy of the material to
be  mailed,  a written  statement  to the  effect  that,  in the  opinion of the
Trustee,  such mailing would be contrary to the best interests of the holders of
all Debt Securities,  as the case may be, or would be in violation of applicable
law. Such written  statement  shall  specify the basis of such opinion.  If said
Commission,  as permitted or required by applicable law, after opportunity for a
hearing upon the objections  specified in the written statement so filed,  shall
enter an order refusing to sustain any of such objections or if, after the entry
of an order  sustaining one or more of such  objections,  said Commission  shall
find,  after notice and  opportunity  for hearing,  that all the  objections  so
sustained have been met and shall enter an order so declaring, the Trustee shall
mail  copies  of such  material  to all  such  Securityholders  with  reasonable
promptness  after  the  entry of such  order  and the  renewal  of such  tender;
otherwise  the  Trustee  shall be  relieved  of any  obligation  or duty to such
applicants respecting their application.

          (c) Each and every holder of Debt Securities, by receiving and holding
the same,  agrees with the Company and the Trustee  that neither the Company nor
the Trustee  nor any Paying  Agent  shall be held  accountable  by reason of the
disclosure of any such  information as to the names and addresses of the holders

                                      -23-
<PAGE>

of Debt  Securities in accordance  with the provisions of subsection (b) of this
Section 4.02,  regardless of the source from which such information was derived,
and that the  Trustee  shall not be held  accountable  by reason of mailing  any
material pursuant to a request made under said subsection (b).

                                   ARTICLE V

      REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

          SECTION 5.01. Events of Default.
                        ------------------

          (a) The following  events shall be "Events of Default" with respect to
Debt Securities:

          (b) the Company  defaults in the payment of any interest upon any Debt
Security when it becomes due and payable,  and continuance of such default for a
period of 30 days;  for the  avoidance  of doubt,  an  extension of any interest
payment period by the Company in accordance  with Section 2.11 of this Indenture
shall not constitute a default under this clause 5.01(a); or

          (c) the  Company  defaults  in the  payment  of all or any part of the
principal of (or premium,  if any, on) any Debt  Securities as and when the same
shall become due and payable either at maturity, upon redemption, by declaration
of acceleration pursuant to Section 5.01 of this Indenture or otherwise; or

          (d) the Company  defaults in the performance  of, or breaches,  any of
its  covenants  or  agreements  in  Sections  3.06,  3.07,  3.08 or 3.09 of this
Indenture (other than a covenant or agreement a default in whose  performance or
whose  breach  is  elsewhere  in this  Section  specifically  dealt  with),  and
continuance  of such  default or breach for a period of 90 days after  there has
been given, by registered or certified mail, to the Company by the Trustee or to
the Company  and the  Trustee by the  holders of not less than 25% in  aggregate
principal amount of the outstanding Debt Securities, a written notice specifying
such  default or breach and  requiring  it to be remedied  and stating that such
notice is a "Notice of Default' hereunder; or

          (e) a court having  jurisdiction  in the premises shall enter a decree
or order for relief in respect of the Company in an  involuntary  case under any
applicable  bankruptcy,  insolvency  or other  similar law now or  hereafter  in
effect,  or  appoints a  receiver,  liquidator,  assignee,  custodian,  trustee,
sequestrator (or similar official) of the Company or for any substantial part of
its property,  or orders the  winding-up or  liquidation of its affairs and such
decree  or  order  shall  remain  unstayed  and in  effect  for a  period  of 90
consecutive days; or

          (f) the Company shall  commence a voluntary  case under any applicable
bankruptcy,  insolvency or other  similar law now or hereafter in effect,  shall
consent  to the entry of an order for  relief in an  involuntary  case under any
such law,  or shall  consent to the  appointment  of or taking  possession  by a
receiver,  liquidator,  assignee,  trustee,  custodian,  sequestrator  (or other
similar official) of the Company or of any substantial part of its property,  or

                                      -24-
<PAGE>

shall make any general  assignment  for the benefit of creditors,  or shall fail
generally to pay its debts as they become due; or

          (g) the Trust  shall have  voluntarily  or  involuntarily  liquidated,
dissolved, wound-up its business or otherwise terminated its existence except in
connection  with (1) the  distribution  of the Debt Securities to holders of the
Trust  Securities  in  liquidation  of their  interests  in the  Trust,  (2) the
redemption of all of the outstanding  Trust  Securities or (3) certain  mergers,
consolidations or amalgamations, each as permitted by the Declaration.

          If an Event of Default  occurs and is  continuing  with respect to the
Debt Securities,  then, and in each and every such case, unless the principal of
the Debt  Securities  shall  have  already  become due and  payable,  either the
Trustee or the holders of not less than 25% in aggregate principal amount of the
Debt Securities then outstanding hereunder,  by notice in writing to the Company
(and to the  Trustee  if given  by  Securityholders),  may  declare  the  entire
principal of the Debt Securities and the interest accrued, but unpaid,  thereon,
if any, to be due and payable  immediately,  and upon any such  declaration  the
same shall become immediately due and payable.

          The foregoing  provisions,  however, are subject to the condition that
if, at any time after the  principal of the Debt  Securities  shall have been so
declared due and  payable,  and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided,  (i)
the Company shall pay or shall deposit with the Trustee a sum  sufficient to pay
all  matured  installments  of  interest  upon all the Debt  Securities  and all
payments on the Debt  Securities  which shall have become due otherwise  than by
acceleration (with interest upon all such payments and Deferred Interest, to the
extent  permitted  by law) and such  amount  as  shall  be  sufficient  to cover
reasonable  compensation  to the Trustee  and each  predecessor  Trustee,  their
respective  agents,  attorneys  and  counsel,  and all other  amounts due to the
Trustee  pursuant to Section  6.06, if any, and (ii) all Events of Default under
this  Indenture,  other than the  non-payment of the payments on Debt Securities
which shall have become due by  acceleration,  shall have been cured,  waived or
otherwise  remedied as provided herein,  then and in every such case the holders
of a  majority  in  aggregate  principal  amount  of the  Debt  Securities  then
outstanding,  by written notice to the Company and to the Trustee, may waive all
defaults and rescind and annul such  declaration  and its  consequences,  but no
such waiver or  rescission  and  annulment  shall  extend to or shall affect any
subsequent default or shall impair any right consequent thereon.

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

                                      -25-
<PAGE>

          SECTION 5.02. Payment of Debt Securities on Default; Suit Therefor.
                        -----------------------------------------------------

          The Company  covenants that upon the occurrence of an Event of Default
pursuant  to clause  5.01(a)  or 5.01(b)  and upon  demand of the  Trustee,  the
Company  will pay to the  Trustee,  for the  benefit of the  holders of the Debt
Securities,  the whole amount that then shall have become due and payable on all
Debt Securities including Deferred Interest accrued on the Debt Securities; and,
in addition  thereto,  such further  amount as shall be  sufficient to cover the
costs and expenses of  collection,  including a reasonable  compensation  to the
Trustee,  its agents,  attorneys  and counsel,  and any other amounts due to the
Trustee under Section 6.06. In case the Company shall fail forthwith to pay such
amounts  upon such  demand,  the  Trustee,  in its own name and as trustee of an
express  trust,  shall be entitled and  empowered  to  institute  any actions or
proceedings  at law or in  equity  for  the  collection  of the  sums so due and
unpaid,  and may  prosecute  any such action or  proceeding to judgment or final
decree, and may enforce any such judgment or final decree against the Company or
any other obligor on such Debt  Securities and collect in the manner provided by
law out of the  property  of the  Company  or any  other  obligor  on such  Debt
Securities wherever situated the moneys adjudged or decreed to be payable.

          In case there shall be pending  proceedings  for the bankruptcy or for
the  reorganization  of the Company or any other obligor on the Debt  Securities
under Bankruptcy Law, or in case a receiver or trustee shall have been appointed
for the  property  of the Company or such other  obligor,  or in the case of any
other similar judicial proceedings relative to the Company or other obligor upon
the Debt  Securities,  or to the  creditors  or  property of the Company or such
other obligor,  the Trustee,  irrespective  of whether the principal of the Debt
Securities shall then be due and payable as therein  expressed or by declaration
of acceleration or otherwise and  irrespective of whether the Trustee shall have
made any demand  pursuant  to the  provisions  of this  Section  5.02,  shall be
entitled and empowered,  by  intervention in such  proceedings or otherwise,  to
file and prove a claim or claims for the whole amount of principal  and interest
owing and unpaid in respect of the Debt  Securities and, in case of any judicial
proceedings,  to file such proofs of claim and other  papers or documents as may
be necessary or advisable in order to have the claims of the Trustee  (including
any  claim for  reasonable  compensation  to the  Trustee  and each  predecessor
Trustee,   and  their  respective  agents,   attorneys  and  counsel,   and  for
reimbursement of all other amounts due to the Trustee under Section 6.06) and of
the Securityholders allowed in such judicial proceedings relative to the Company
or any other obligor on the Debt Securities,  or to the creditors or property of
the Company or such other  obligor,  unless  prohibited  by  applicable  law and
regulations,  to vote on behalf of the  holders  of the Debt  Securities  in any
election  of a trustee  or a standby  trustee  in  arrangement,  reorganization,
liquidation or other bankruptcy or insolvency  proceedings or Person  performing
similar  functions  in  comparable  proceedings,  and to collect and receive any
moneys or other  property  payable or  deliverable  on any such  claims,  and to
distribute  the same after the  deduction of its charges and  expenses;  and any
receiver,  assignee  or  trustee  in  bankruptcy  or  reorganization  is  hereby
authorized by each of the  Securityholders to make such payments to the Trustee,
and, in the event that the Trustee  shall consent to the making of such payments
directly to the Securityholders,  to pay to the Trustee such amounts as shall be
sufficient to cover  reasonable  compensation to the Trustee,  each  predecessor
Trustee  and their  respective  agents,  attorneys  and  counsel,  and all other
amounts due to the Trustee under Section 6.06.

                                      -26-
<PAGE>

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

          All rights of action and of asserting claims under this Indenture,  or
under any of the Debt  Securities,  may be enforced  by the Trustee  without the
possession of any of the Debt Securities, or the production thereof at any trial
or other proceeding relative thereto, and any such suit or proceeding instituted
by the Trustee shall be brought in its own name as trustee of an express  trust,
and any recovery of judgment shall be for the ratable  benefit of the holders of
the Debt Securities.

          In any  proceedings  brought by the Trustee (and also any  proceedings
involving the  interpretation  of any  provision of this  Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the holders
of the Debt Securities, and it shall not be necessary to make any holders of the
Debt Securities parties to any such proceedings.

          SECTION 5.03. Application of Moneys Collected by Trustee.
                        ------------------------------------------

          Any moneys  collected by the Trustee shall be applied in the following
order,  at the date or dates fixed by the Trustee for the  distribution  of such
moneys,  upon  presentation  of the several Debt  Securities in respect of which
moneys have been collected,  and stamping thereon the payment, if only partially
paid, and upon surrender thereof if fully paid:

          First:  To  the  payment  of  costs  and  expenses  incurred  by,  and
reasonable fees of, the Trustee,  its agents,  attorneys and counsel, and of all
other amounts due to the Trustee under Section 6.06;

          Second:  To the payment of all Senior  Indebtedness  of the Company if
and to the extent required by Article XV;

          Third:  To the  payment of the  amounts  then due and unpaid upon Debt
Securities,  in  respect  of which or for the  benefit  of which  money has been
collected, ratably, without preference or priority of any kind, according to the
amounts due on such Debt Securities; and

          Fourth: The balance, if any, to the Company.

          SECTION 5.04. Proceedings by Securitvholders.
                        ------------------------------

          No holder of any Debt  Security  shall have any right to institute any
suit,  action  or  proceeding  for any  remedy  hereunder,  unless  such  holder
previously shall have given to the Trustee written notice of an Event of Default
with respect to the Debt  Securities and unless the holders of not less than 25%
in aggregate principal amount of the Debt Securities then outstanding shall have
given the Trustee a written request to institute such action, suit or proceeding
and shall have  offered  to the  Trustee  such  reasonable  indemnity  as it may
require against the costs,  expenses and liabilities to be incurred thereby, and
the Trustee for 60 days after its receipt of such  notice,  request and offer of
indemnity  shall have failed to institute any such action,  suit or  proceeding;

                                      -27-
<PAGE>

provided,  that no holder of Debt  Securities  shall have any right to prejudice
the rights of any other holder of Debt Securities, obtain priority or preference
over any other such holder or enforce any right under this  Indenture  except in
the manner herein provided and for the equal,  ratable and common benefit of all
holders of Debt Securities.

          Notwithstanding any other provisions in this Indenture,  however,  the
right of any holder of any Debt Security to receive payment of the principal of,
premium,  if any, and interest on such Debt  Security  when due, or to institute
suit for the enforcement of any such payment,  shall not be impaired or affected
without the consent of such holder.  For the protection  and  enforcement of the
provisions of this Section,  each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

          SECTION 5.05. Proceedings by Trustee.
                        -----------------------

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

          SECTION 5.06. Remedies Cumulative and Continuing.
                        ----------------------------------

          Except as otherwise  provided in Section 2.06, all powers and remedies
given by this Article V to the Trustee or to the  Securityholders  shall, to the
extent  permitted by law, be deemed  cumulative  and not  exclusive of any other
powers  and  remedies  available  to the  Trustee  or the  holders  of the  Debt
Securities,  by judicial proceedings or otherwise, to enforce the performance or
observance  of the  covenants  and  agreements  contained  in this  Indenture or
otherwise  established  with  respect  to the Debt  Securities,  and no delay or
omission  of the  Trustee  or of any  holder  of any of the Debt  Securities  to
exercise any right or power  accruing  upon any Event of Default  occurring  and
continuing  as  aforesaid  shall  impair  any such  right or power,  or shall be
construed to be a waiver of any such default or an  acquiescence  therein;  and,
subject to the provisions of Section 5.04,  every power and remedy given by this
Article V or by law to the Trustee or to the  Securityholders  may be  exercised
from time to time, and as often as shall be deemed expedient,  by the Trustee or
by the Securityholders.

          SECTION  5.07.  Direction  of  Proceedings  and Waiver of  Defaults by
                          ------------------------------------------------------
Majority of Securityholders.
---------------------------

          The holders of a majority in  aggregate  principal  amount of the Debt
Securities affected (voting as one class) at the time outstanding shall have the
right to direct the time,  method and place of conducting any proceeding for any
remedy  available to the Trustee,  or exercising any trust or power conferred on
the  Trustee  with  respect to such Debt  Securities;  provided,  however,  that
                                                       --------   -------
(subject to the  provisions of Section 6.01) the Trustee shall have the right to
decline to follow any such  direction if the Trustee  shall  determine  that the
action so directed would be unjustly  prejudicial to the holders not taking part

                                      -28-
<PAGE>

in such direction or if the Trustee being advised by counsel determines that the
action or  proceeding  so directed may not lawfully be taken or if a Responsible
Officer  of the  Trustee  shall  determine  that the  action or  proceedings  so
directed  would  involve  the  Trustee  in  personal  liability.  Prior  to  any
declaration  accelerating the maturity of the Debt Securities,  the holders of a
majority  in  aggregate  principal  amount  of the Debt  Securities  at the time
outstanding may on behalf of the holders of all of the Debt Securities waive (or
modify any  previously  granted  waiver of) any past default or Event of Default
and its  consequences,  except a default  (a) in the  payment of  principal  of,
premium,  if any, or interest on any of the Debt  Securities,  (b) in respect of
covenants or provisions  hereof which cannot be modified or amended  without the
consent of the holder of each Debt Security  affected,  or (c) in respect of the
covenants  contained  in  Section  3.09;  provided,  however,  that if the  Debt
Securities  are held by the Trust or a trustee  of such  trust,  such  waiver or
modification  to such  waiver  shall not be  effective  until the  holders  of a
majority in  liquidation  preference of the Trust  Securities of the Trust shall
have consented to such waiver or modification to such waiver; provided, further,
that if the consent of the holder of each outstanding Debt Security is required,
such waiver shall not be effective until each holder of the Trust  Securities of
the Trust shall have consented to such waiver. Upon any such waiver, the default
covered  thereby shall be deemed to be cured for all purposes of this  Indenture
and the  Company,  the Trustee and the holders of the Debt  Securities  shall be
restored to their former positions and rights  hereunder,  respectively;  but no
such waiver shall extend to any  subsequent or other default or Event of Default
or impair any right consequent thereon. Whenever any default or Event of Default
hereunder shall have been waived as permitted by this Section 5.07, said default
or Event of  Default  shall for all  purposes  of the Debt  Securities  and this
Indenture be deemed to have been cured and to be not continuing.

          SECTION 5.08. Notice of Defaults.
                        ------------------

          The Trustee shall,  within 90 days after a Responsible  Officer of the
Trustee shall have actual knowledge or received written notice of the occurrence
of a default with respect to the Debt Securities,  mail to all  Securityholders,
as the  names  and  addresses  of such  holders  appear  upon the Debt  Security
Register,  notice of all defaults with respect to the Debt  Securities  known to
the  Trustee,  unless such  defaults  shall have been cured before the giving of
such notice (the term  "defaults"  for the  purpose of this  Section  5.08 being
hereby defined to be the events  specified in subsections (a), (b), (c), (d) and
(e) of Section  5.01,  not  including  periods of grace,  if any,  provided  for
therein);  provided,  that,  except in the case of default in the payment of the
principal of, premium,  if any, or interest on any of the Debt  Securities,  the
Trustee  shall be  protected  in  withholding  such  notice  if and so long as a
Responsible Officer of the Trustee in good faith determines that the withholding
of such notice is in the interests of the Securityholders.

          SECTION 5.09. Undertaking to Pay Costs.
                        -------------------------

          All  parties  to this  Indenture  agree,  and each  holder of any Debt
Security by such  holder's  acceptance  thereof  shall be deemed to have agreed,
that any court may in its discretion require, in any suit for the enforcement of
any right or remedy under this Indenture, or in any suit against the Trustee for
any action taken or omitted by it as Trustee,  the filing by any party  litigant
in such  suit of an  undertaking  to pay the costs of such  suit,  and that such
court  may in its  discretion  assess  reasonable  costs,  including  reasonable
attorneys'  fees and expenses,  against any party litigant in such suit,  having
due regard to the merits and good faith of the claims or  defenses  made by such
party  litigant;  but the provisions of this Section 5.09 shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Securityholder, or
group of  Securityholders,  holding in the aggregate  more than 10% in principal
amount of the Debt  Securities  outstanding,  or to any suit  instituted  by any
Securityholder  for the  enforcement  of the  payment  of the  principal  of (or
premium,  if any) or  interest  on any Debt  Security  against the Company on or
after the same shall have become due and payable.

                                      -29-
<PAGE>

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

          SECTION 6.01. Duties and Responsibilities of Trustee.
                        ---------------------------------------

          With respect to the holders of Debt Securities issued  hereunder,  the
Trustee, prior to the occurrence of an Event of Default with respect to the Debt
Securities  and after the curing or  waiving of all Events of Default  which may
have occurred,  with respect to the Debt Securities,  undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture.  In
case an Event of Default with respect to the Debt Securities has occurred (which
has not been cured or waived) the Trustee shall  exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and skill
in  their  exercise,  as a  prudent  person  would  exercise  or use  under  the
circumstances in the conduct of such person's own affairs.

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

          (a) prior to the occurrence of an Event of Default with respect to the
Debt  Securities  and after the curing or waiving of all Events of Default which
may have occurred

                    (1) the duties and  obligations  of the Trustee with respect
          to the Debt  Securities  shall be  determined  solely  by the  express
          provisions  of this  Indenture,  and the  Trustee  shall not be liable
          except for the performance of such duties and obligations with respect
          to  the  Debt  Securities  as  are  specifically  set  forth  in  this
          Indenture,  and no implied covenants or obligations shall be read into
          this Indenture against the Trustee; and

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

                                      -30-
<PAGE>

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

          (c) the Trustee  shall not be liable with  respect to any action taken
or omitted to be taken by it in good faith,  in accordance with the direction of
the  Securityholders  pursuant to Section 5.07, relating to the time, method and
place of conducting any proceeding for any remedy  available to the Trustee,  or
exercising any trust or power conferred upon the Trustee, under this Indenture;

          (d) the Trustee shall not be charged with  knowledge of any Default or
Event of  Default  with  respect  to the Debt  Securities  unless  either  (1) a
Responsible  Officer  shall have actual  knowledge  of such  Default or Event of
Default or (2)  written  notice of such  Default or Event of Default  shall have
been  given to the  Trustee  by the  Company  or any other  obligor  on the Debt
Securities  or by any holder of the Debt  Securities,  except with respect to an
Event of Default pursuant to Sections 5.01 (a) or 5.01 (b) hereof (other than an
Event of  Default  resulting  from the  default  in the  payment  of  Additional
Interest or premium,  if any, if the Trustee  does not have actual  knowledge or
written notice that such payment is due and payable), of which the Trustee shall
be deemed to have knowledge; and

          (e) in the  absence  of bad  faith  on the  part of the  Trustee,  the
Trustee may seek and rely on reasonable instructions from the Company.

          None of the provisions  contained in this Indenture  shall require the
Trustee to expend or risk its own funds or otherwise  incur  personal  financial
liability in the  performance  of any of its duties or in the exercise of any of
its rights or powers.

          SECTION 6.02. Reliance on Documents, Opinions, etc.
                        -------------------------------------

                    Except as otherwise provided in Section 6.01:

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

          (b) any request,  direction,  order or demand of the Company mentioned
herein shall be sufficiently evidenced by an Officers' Certificate (unless other
evidence in respect thereof be herein  specifically  prescribed);  and any Board
Resolution  may be evidenced  to the Trustee by a copy thereof  certified by the
Secretary or an Assistant Secretary of the Company;

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

          (d) the Trustee  shall be under no  obligation  to exercise any of the
rights  or  powers  vested  in it by this  Indenture  at the  request,  order or

                                      -31-
<PAGE>

direction  of any of the  Securityholders,  pursuant to the  provisions  of this
Indenture,  unless  such  Securityholders  shall  have  offered  to the  Trustee
reasonable  security or indemnity  against the costs,  expenses and  liabilities
which may be incurred therein or thereby;

          (e) the Trustee shall not be liable for any action taken or omitted by
it in good faith and  reasonably  believed by it to be  authorized or within the
discretion  or rights or powers  conferred  upon it by this  Indenture;  nothing
contained herein shall, however, relieve the Trustee of the obligation, upon the
occurrence of an Event of Default with respect to the Debt Securities  (that has
not been cured or waived) to exercise with respect to the Debt  Securities  such
of the  rights and powers  vested in it by this  Indenture,  and to use the same
degree of care and skill in their  exercise,  as a prudent person would exercise
or use under the circumstances in the conduct of such person's own affairs;

          (f) the Trustee shall not be bound to make any investigation  into the
facts or matters stated in any resolution,  certificate,  statement, instrument,
opinion,  report, notice, request,  consent,  order, approval,  bond, debenture,
coupon or other paper or document,  unless  requested in writing to do so by the
holders of not less than a majority in principal  amount of the outstanding Debt
Securities  affected thereby;  provided,  however,  that if the payment within a
                               ---------  --------
reasonable time to the Trustee of the costs,  expenses or liabilities  likely to
be incurred by it in the making of such  investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded to it by
the terms of this  Indenture,  the  Trustee  may  require  reasonable  indemnity
against such expense or liability as a condition to so proceeding; and

          (g) the Trustee may execute any of the trusts or powers  hereunder  or
perform any duties hereunder either directly or by or through agents  (including
any Authenticating Agent) or attorneys, and the Trustee shall not be responsible
for any  misconduct  or  negligence  on the part of any such  agent or  attorney
appointed by it with due care.

          SECTION 6.03. No Responsibility for Recitals, etc.
                        -------------------------------------

          The recitals  contained  herein and in the Debt Securities  (except in
the certificate of  authentication of the Trustee or the  Authenticating  Agent)
shall  be  taken  as the  statements  of the  Company  and the  Trustee  and the
Authenticating  Agent assume no responsibility  for the correctness of the same.
The  Trustee  and the  Authenticating  Agent make no  representations  as to the
validity or sufficiency of this Indenture or of the Debt Securities. The Trustee
and the Authenticating Agent shall not be accountable for the use or application
by the Company of any Debt  Securities  or the  proceeds of any Debt  Securities
authenticated  and  delivered  by the  Trustee  or the  Authenticating  Agent in
conformity with the provisions of this Indenture.

          SECTION 6.04. Trustee,  Authenticating Agent, Paying Agents,  Transfer
                        --------------------------------------------------------
Agents or Registrar May Own Debt Securities.
--------------------------------------------

          The  Trustee or any  Authenticating  Agent or any Paying  Agent or any
transfer  agent or any Debt Security  registrar,  in its individual or any other
capacity,  may  become the owner or  pledgee  of Debt  Securities  with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent,
transfer agent or Debt Security registrar.

                                      -32-
<PAGE>

          SECTION 6.05. Moneys to be Held in Trust.
                        ---------------------------

          Subject to the provisions of Section 12.04, all moneys received by the
Trustee or any Paying Agent shall, until used or applied as herein provided,  be
held in trust for the  purpose  for which  they were  received,  but need not be
segregated  from other funds  except to the extent  required by law. The Trustee
and any Paying  Agent  shall be under no  liability  for  interest  on any money
received by it hereunder except as otherwise agreed in writing with the Company.
So long as no Event of  Default  shall  have  occurred  and be  continuing,  all
interest allowed on any such moneys,  if any, shall be paid from time to time to
the Company upon the written order of the Company, signed by the Chairman of the
Board  of  Directors,  the  President,  the  Chief  Operating  Officer,  a  Vice
President, the Treasurer or an Assistant Treasurer of the Company.

          SECTION 6.06. Compensation and Expenses of Trustee.
                        -------------------------------------

          The Company  covenants  and agrees to pay to the Trustee  from time to
time, and the Trustee shall be entitled to, such compensation as shall be agreed
to in writing between the Company and the Trustee (which shall not be limited by
any  provision of law in regard to the  compensation  of a trustee of an express
trust),  and the Company  will pay or  reimburse  the  Trustee  upon its written
request for all  documented  reasonable  expenses,  disbursements  and  advances
incurred or made by the Trustee in accordance with any of the provisions of this
Indenture (including the reasonable compensation and the reasonable expenses and
disbursements  of its counsel and of all  Persons not  regularly  in its employ)
except any such expense, disbursement or advance that arises from its negligence
or bad faith.  The  Company  also  covenants  to  indemnify  each of the Trustee
(including  in its  individual  capacity) and any  predecessor  Trustee (and its
officers, agents, directors and employees) for, and to hold it harmless against,
any and all loss,  damage,  claim,  liability or expense  including taxes (other
than taxes based on the income of the Trustee),  except to the extent such loss,
damage, claim,  liability or expense results from the negligence or bad faith of
such  indemnitee,  arising  out  of or in  connection  with  the  acceptance  or
administration  of this Trust,  including  the costs and  expenses of  defending
itself  against any claim or liability in the premises.  The  obligations of the
Company under this Section 6.06 to  compensate  and indemnify the Trustee and to
pay or reimburse the Trustee for documented expenses, disbursements and advances
shall constitute additional indebtedness hereunder. Such additional indebtedness
shall  be  secured  by a lien  prior  to that of the  Debt  Securities  upon all
property and funds held or  collected by the Trustee as such,  except funds held
in trust for the benefit of the holders of particular Debt Securities.

          Without  prejudice to any other rights  available to the Trustee under
applicable  law,  when the  Trustee  incurs  expenses  or  renders  services  in
connection with an Event of Default  specified in subsections (d), (e) or (f) of
Section 5.01, the expenses (including the reasonable charges and expenses of its
counsel)  and the  compensation  for the  services  are  intended to  constitute
expenses of  administration  under any applicable  federal or state  bankruptcy,
insolvency or other similar law.

          The  provisions  of this  Section  shall  survive the  resignation  or
removal  of the  Trustee  and  the  defeasance  or  other  termination  of  this
Indenture.

                                      -33-
<PAGE>

          SECTION 6.07. Officers' Certificate as Evidence.
                        ---------------------------------

          Except as otherwise  provided in Sections  6.01 and 6.02,  whenever in
the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
omitting any action  hereunder,  such matter  (unless other  evidence in respect
thereof be herein specifically  prescribed) may, in the absence of negligence or
bad faith on the part of the Trustee,  be deemed to be  conclusively  proved and
established  by an Officers'  Certificate  delivered  to the  Trustee,  and such
certificate,  in the  absence  of  negligence  or bad  faith  on the part of the
Trustee, shall be full warrant to the Trustee for any action taken or omitted by
it under the provisions of this Indenture upon the faith thereof.

          SECTION 6.08. Eligibility of Trustee.
                        -----------------------

          The Trustee  hereunder  shall at all times be a U.S.  Person that is a
banking corporation or national  association  organized and doing business under
the laws of the United States of America or any state thereof or of the District
of Columbia and 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,  or
District of Columbia  authority.  If such  corporation  or national  association
publishes  reports of  condition  at least  annually,  pursuant to law or to the
requirements of the aforesaid  supervising or examining authority,  then for the
purposes  of  this  Section  6.08  the  combined  capital  and  surplus  of such
corporation or national  association  shall be deemed to be its combined capital
and surplus as set forth in its most recent records of condition so published.

          The  Company  may  not,  nor may any  Person  directly  or  indirectly
controlling,  controlled by, or under common control with the Company,  serve as
Trustee,  notwithstanding that such corporation or national association shall be
otherwise eligible and qualified under this Article.

          In  case at any  time  the  Trustee  shall  cease  to be  eligible  in
accordance  with the  provisions of this Section 6.08,  the Trustee shall resign
immediately in the manner and with the effect specified in Section 6.09.

          If the Trustee has or shall acquire any "conflicting  interest" within
the meaning of ss. 310(b) of the Trust  Indenture  Act, the Trustee shall either
eliminate such interest or resign,  to the extent and in the manner provided by,
and subject to this Indenture.

          SECTION 6.09.  Resignation or Removal of Trustee,  Calculation  Agent,
                         -------------------------------------------------------
Paying Agent or Debt Security Registrar.
----------------------------------------

          (a) The Trustee, or any trustee or trustees hereafter  appointed,  the
Calculation  Agent, the Paying Agent and any Debt Security  Registrar may at any
time resign by giving written  notice of such  resignation to the Company and by
mailing notice  thereof,  at the Company's  expense,  to the holders of the Debt
Securities  at  their  addresses  as they  shall  appear  on the  Debt  Security
Register. Upon receiving such notice of resignation,  the Company shall promptly
appoint a successor or successors by written instrument, in duplicate,  executed
by  order of its  Board of  Directors,  one  copy of which  instrument  shall be

                                      -34-
<PAGE>

delivered to the resigning party and one copy to the successor.  If no successor
shall have been so appointed and have accepted  appointment within 30 days after
the mailing of such notice of resignation to the affected  Securityholders,  the
resigning  party  may  petition  any  court of  competent  jurisdiction  for the
appointment  of a  successor,  or any  Securityholder  who has been a bona  fide
holder  of a Debt  Security  or Debt  Securities  for at least six  months  may,
subject to the  provisions  of Section 5.09, on behalf of himself or herself and
all others similarly situated,  petition any such court for the appointment of a
successor.  Such court may thereupon,  after such notice, if any, as it may deem
proper and prescribe, appoint a successor.

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

                    (1) the Trustee shall fail to comply with the  provisions of
          the last paragraph of Section 6.08 after written  request  therefor by
          the Company or by any  Securityholder  who has been a bona fide holder
          of a Debt Security or Debt Securities for at least six months,

                    (2) the Trustee  shall  cease to be  eligible in  accordance
          with the  provisions  of Section  6.08 and shall fail to resign  after
          written request therefor by the Company or by any such Securityholder,
          or

                    (3) the Trustee shall become  incapable of acting,  or shall
          be adjudged bankrupt or insolvent,  or a receiver of the Trustee or of
          its property  shall be  appointed,  or any public  officer  shall take
          charge or control of the Trustee or of its property or affairs for the
          purpose of rehabilitation, conservation or liquidation,

then,  in any such  case,  the  Company  may remove the  Trustee  and  appoint a
successor Trustee by written instrument, in duplicate,  executed by order of the
Board of  Directors,  one copy of which  instrument  shall be  delivered  to the
Trustee so removed and one copy to the  successor  Trustee,  or,  subject to the
provisions of Section 5.09, if no successor Trustee shall have been so appointed
and have accepted  appointment  within 30 days of the  occurrence of any of (1),
(2) or (3) above, any  Securityholder  who has been a bona fide holder of a Debt
Security or Debt Securities for at least six months may, on behalf of himself or
herself  and all others  similarly  situated,  petition  any court of  competent
jurisdiction  for the removal of the Trustee and the  appointment of a successor
Trustee.  Such court may  thereupon,  after such notice,  if any, as it may deem
proper and prescribe, remove the Trustee and appoint a successor Trustee.

          (c) Upon prior  written  notice to the  Company and the  Trustee,  the
holders of a majority in aggregate  principal  amount of the Debt  Securities at
the time outstanding may at any time remove the Trustee and nominate a successor
Trustee,  which shall be deemed appointed as successor Trustee unless within ten
Business Days after such nomination the Company objects  thereto,  in which case
or in the case of a failure by such holders to nominate a successor Trustee, the
Trustee so  removed or any  Securityholder,  upon the terms and  conditions  and
otherwise as in subsection (a) of this Section 6.09  provided,  may petition any
court of competent jurisdiction for an appointment of a successor.

          (d) Any resignation or removal of the Trustee,  the Calculation Agent,
the Paying Agent and any Debt Security  Registrar and appointment of a successor
pursuant to any of the  provisions  of this Section 6.09 shall become  effective
upon acceptance of appointment by the successor as provided in Section 6.10.

                                      -35-
<PAGE>

          SECTION 6.10. Acceptance by Successor.
                        -----------------------

          Any  successor  Trustee,  Calculation  Agent,  Paying  Agent  or  Debt
Security  Registrar  appointed  as  provided  in  Section  6.09  shall  execute,
acknowledge  and  deliver to the Company and to its  predecessor  an  instrument
accepting such appointment  hereunder,  and thereupon the resignation or removal
of the retiring  party shall become  effective and such  successor,  without any
further  act,  deed or  conveyance,  shall  become  vested  with all the rights,
powers,  duties  and  obligations  with  respect to the Debt  Securities  of its
predecessor  hereunder,  with like effect as if originally  named  herein;  but,
nevertheless,  on the written  request of the Company or of the  successor,  the
party ceasing to act shall,  upon payment of the amounts then due it pursuant to
the provisions of Section 6.06,  execute and deliver an instrument  transferring
to such  successor  all the rights and powers of the party so ceasing to act and
shall duly assign, transfer and deliver to such successor all property and money
held by such retiring party hereunder.  Upon request of any such successor,  the
Company  shall  execute  any and all  instruments  in writing for more fully and
certainly  vesting  in and  confirming  to such  successor  all such  rights and
powers.  Any party  ceasing to act shall,  nevertheless,  retain a lien upon all
property or funds held or  collected  to secure any amounts then due it pursuant
to the provisions of Section 6.06.

          If a successor Trustee is appointed, the Company, the retiring Trustee
and the successor  Trustee  shall execute and deliver an indenture  supplemental
hereto  which shall  contain  such  provisions  as shall be deemed  necessary or
desirable  to  confirm  that all the  rights,  powers,  trusts and duties of the
retiring Trustee with respect to the Debt Securities as to which the predecessor
Trustee is not retiring shall continue to be vested in the predecessor  Trustee,
and shall add to or change any of the  provisions of this  Indenture as shall be
necessary to provide for or facilitate the administration of the Trust hereunder
by more than one Trustee,  it being  understood  that nothing  herein or in such
supplemental  indenture shall  constitute such Trustees  co-trustees of the same
trust and that each such Trustee shall be Trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder  administered by any other
such Trustee.

          No  successor  Trustee  shall accept  appointment  as provided in this
Section 6.10 unless at the time of such acceptance such successor  Trustee shall
be eligible and qualified under the provisions of Section 6.08.

          In no event shall a retiring Trustee,  Calculation Agent, Paying Agent
or Debt Security  Registrar be liable for the acts or omissions of any successor
hereunder.

          Upon  acceptance of  appointment by a successor  Trustee,  Calculation
Agent, Paying Agent or Debt Security Registrar as provided in this Section 6.10,
the  Company  shall  mail  notice  of the  succession  to the  holders  of  Debt
Securities  at  their  addresses  as they  shall  appear  on the  Debt  Security
Register.  If the Company  fails to mail such notice  within ten  Business  Days
after the acceptance of appointment by the successor,  the successor shall cause
such notice to be mailed at the expense of the Company.

                                      -36-
<PAGE>

          SECTION 6.11. Succession by Merger, etc.
                        -------------------------

          Any Person into which the Trustee may be merged or  converted  or with
which  it  may be  consolidated,  or  any  Person  resulting  from  any  merger,
conversion or consolidation to which the Trustee shall be a party, or any Person
succeeding to all or  substantially  all of the corporate  trust business of the
Trustee,  shall be the successor of the Trustee  hereunder without the execution
or  filing  of any paper or any  further  act on the part of any of the  parties
hereto;  provided,  that such Person shall be otherwise  eligible and  qualified
under this Article.

          In case at the time such successor to the Trustee shall succeed to the
trusts  created by this  Indenture  any of the Debt  Securities  shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the
certificate of authentication of any predecessor  Trustee, and deliver such Debt
Securities so authenticated; and in case at that time any of the Debt Securities
shall not have been authenticated, any successor to the Trustee may authenticate
such Debt Securities  either in the name of any predecessor  hereunder or in the
name of the successor  Trustee;  and in all such cases such  certificates  shall
have the full  force  which it is  anywhere  in the Debt  Securities  or in this
Indenture  provided that the  certificate  of the Trustee shall have;  provided,
however,  that the  right to adopt  the  certificate  of  authentication  of any
predecessor  Trustee  or  authenticate  Debt  Securities  in  the  name  of  any
predecessor  Trustee  shall apply only to its successor or successors by merger,
conversion or consolidation.

          SECTION 6.12. Authenticating Agents.
                        ---------------------

          There  may be one  or  more  Authenticating  Agents  appointed  by the
Trustee  upon the  request  of the  Company  with power to act on its behalf and
subject to its direction in the  authentication  and delivery of Debt Securities
issued upon exchange or registration of transfer thereof as fully to all intents
and  purposes  as  though  any such  Authenticating  Agent  had  been  expressly
authorized  to  authenticate  and deliver Debt  Securities;  provided,  that the
Trustee  shall have no liability to the Company for any acts or omissions of the
Authenticating  Agent with  respect to the  authentication  and delivery of Debt
Securities.  Any  such  Authenticating  Agent  shall  at all  times  be a Person
organized and doing business under the laws of the United States or of any state
or territory  thereof or of the District of Columbia  authorized under such laws
to act as  Authenticating  Agent,  having a combined  capital  and surplus of at
least  $50,000,000  and being subject to  supervision or examination by federal,
state,  territorial or District of Columbia authority.  If such Person publishes
reports of condition at least annually  pursuant to law or the  requirements  of
such authority,  then for the purposes of this Section 6.12 the combined capital
and  surplus  of such  Person  shall be deemed to be its  combined  capital  and
surplus as set forth in its most recent report of condition so published.  If at
any time an  Authenticating  Agent shall cease to be eligible in accordance with
the  provisions of this Section,  it shall resign  immediately in the manner and
with the effect herein specified in this Section.

          Any  Person  into  which  any  Authenticating  Agent  may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, consolidation or conversion to which any Authenticating Agent shall be a
party,  or any Person  succeeding to all or  substantially  all of the corporate
trust  business of any  Authenticating  Agent,  shall be the  successor  of such
Authenticating  Agent hereunder,  if such successor Person is otherwise eligible
under this  Section  6.12  without the  execution  or filing of any paper or any
further act on the part of the parties hereto or such Authenticating Agent.

                                      -37-
<PAGE>

          Any  Authenticating  Agent may at any time  resign  by giving  written
notice of resignation to the Trustee and to the Company.  The Trustee may at any
time terminate the agency of any  Authenticating  Agent with respect to the Debt
Securities by giving written notice of termination to such Authenticating  Agent
and to the Company.  Upon  receiving such a notice of resignation or upon such a
termination,  or in case at any time any Authenticating  Agent shall cease to be
eligible  under this Section 6.12,  the Trustee may, and upon the request of the
Company shall, promptly appoint a successor  Authenticating Agent eligible under
this Section 6.12,  shall give written notice of such appointment to the Company
and shall mail notice of such  appointment to all holders of Debt  Securities as
the names and addresses of such holders  appear on the Debt  Security  Register.
Any successor  Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all rights,  powers,  duties and responsibilities  with
respect to the Debt Securities of its predecessor hereunder, with like effect as
if originally named as Authenticating Agent herein.

          The  Company  agrees to pay to any  Authenticating  Agent from time to
time reasonable  compensation for its services.  Any Authenticating  Agent shall
have no  responsibility  or  liability  for any  action  taken  by it as such in
accordance  with the directions of the Trustee and shall receive such reasonable
indemnity as it may require against the costs, expenses and liabilities incurred
in furtherance of its duties under this Section 6.12.

                                  ARTICLE VII

                         CONCERNING THE SECURITYHOLDERS

          SECTION 7.01. Action by Securityholders.
                        --------------------------

          Whenever  in this  Indenture  it is  provided  that the  holders  of a
specified  percentage in aggregate  principal  amount of the Debt Securities may
take any action  (including  the making of any demand or request,  the giving of
any notice,  consent or waiver or the taking of any other action), the fact that
at the time of taking any such action the holders of such  specified  percentage
have joined  therein may be  evidenced  (a) by any  instrument  or any number of
instruments  of similar tenor executed by such  Securityholders  in person or by
agent or proxy  appointed  in writing,  or (b) by the record of such  holders of
Debt Securities  voting in favor thereof at any meeting of such  Securityholders
duly called and held in accordance  with the  provisions of Article VIII, or (c)
by a combination of such instrument or instruments and any such record of such a
meeting of such  Securityholders,  or (d) by any other method the Trustee  deems
satisfactory.

          If the Company  shall  solicit from the  Securityholders  any request,
demand,  authorization,  direction,  notice,  consent, waiver or other action or
revocation  of the same,  the Company  may, at its option,  as  evidenced  by an
Officers' Certificate, fix in advance a record date for such Debt Securities for
the  determination  of  Securityholders  entitled to give such request,  demand,
authorization,  direction, notice, consent, waiver or other action or revocation
of the same, but the Company shall have no obligation to do so. If such a record

                                      -38-
<PAGE>

date is fixed, such request, demand, authorization,  direction, notice, consent,
waiver or other  action or  revocation  of the same may be given before or after
the record date, but only the Securityholders of record at the close of business
on the record  date shall be deemed to be  Securityholders  for the  purposes of
determining whether  Securityholders of the requisite  proportion of outstanding
Debt Securities have authorized or agreed or consented to such request,  demand,
authorization,  direction, notice, consent, waiver or other action or revocation
of the same,  and for that  purpose the  outstanding  Debt  Securities  shall be
computed as of the record date; provided,  however,  that no such authorization,
                                --------   -------
agreement or consent by such  Securityholders on the record date shall be deemed
effective  unless it shall become  effective  pursuant to the provisions of this
Indenture not later than six months after the record date.

          SECTION 7.02. Proof of Execution by Securityholders.
                        -------------------------------------

          Subject to the  provisions of Sections 6.01,  6.02 and 8.05,  proof of
the execution of any  instrument by a  Securityholder  or such  Securityholder's
agent or proxy shall be sufficient if made in  accordance  with such  reasonable
rules and  regulations  as may be prescribed by the Trustee or in such manner as
shall be satisfactory to the Trustee.  The ownership of Debt Securities shall be
proved by the Debt Security  Register or by a  certificate  of the Debt Security
Registrar.  The Trustee may require such additional proof of any matter referred
to in this Section as it shall deem necessary.

          The  record  of any  Securityholders'  meeting  shall be proved in the
manner provided in Section 8.06.

          SECTION 7.03. Who Are Deemed Absolute Owners.
                        -------------------------------

          Prior to due  presentment  for  registration  of  transfer of any Debt
Security,  the Company, the Trustee, any Authenticating Agent, any Paying Agent,
any transfer agent and any Debt Security  registrar may deem the Person in whose
name such Debt Security shall be registered  upon the Debt Security  Register to
be, and may treat  such  Person as,  the  absolute  owner of such Debt  Security
(whether  or not  such  Debt  Security  shall be  overdue)  for the  purpose  of
receiving  payment of or on account of the  principal of,  premium,  if any, and
interest  on such Debt  Security  and for all other  purposes;  and  neither the
Company nor the Trustee nor any  Authenticating  Agent nor any Paying  Agent nor
any  transfer  agent nor any Debt  Security  registrar  shall be affected by any
notice to the  contrary.  All such  payments  so made to any holder for the time
being or upon such holder's order shall be valid,  and, to the extent of the sum
or sums so paid,  effectual to satisfy and  discharge  the  liability for moneys
payable upon any such Debt Security.

          SECTION 7.04. Debt Securities Owned by Company Deemed Not Outstanding.
                        -------------------------------------------------------

          In  determining   whether  the  holders  of  the  requisite  aggregate
principal amount of Debt Securities have concurred in any direction,  consent or
waiver under this Indenture,  Debt Securities  which are owned by the Company or
any other obligor on the Debt Securities or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the
Company or any other obligor on the Debt  Securities  shall be  disregarded  and
deemed  not  to be  outstanding  for  the  purpose  of any  such  determination;
provided,  that for the  purposes of  determining  whether the Trustee  shall be
--------
                                      -39-
<PAGE>

protected  in  relying  on any such  direction,  consent  or  waiver,  only Debt
Securities  which a  Responsible  Officer of the Trustee  actually  knows are so
owned shall be so disregarded.  Debt Securities so owned which have been pledged
in good faith may be regarded as  outstanding  for the  purposes of this Section
7.04 if the  pledgee  shall  establish  to the  satisfaction  of the Trustee the
pledgee's  right to vote such Debt  Securities  and that the  pledgee is not the
Company or any such other obligor or Person  directly or indirectly  controlling
or controlled by or under direct or indirect  common control with the Company or
any such other obligor.  In the case of a dispute as to such right, any decision
by the Trustee taken upon the advice of counsel shall be full  protection to the
Trustee.

          SECTION 7.05. Revocation of Consents; Future Holders Bound.
                        ---------------------------------------------

          At any time prior to (but not after) the evidencing to the Trustee, as
provided  in Section  7.01,  of the  taking of any action by the  holders of the
percentage in aggregate  principal  amount of the Debt  Securities  specified in
this  Indenture in  connection  with such action,  any holder (in cases where no
record  date has been set  pursuant  to  Section  7.01) or any  holder  as of an
applicable  record date (in cases  where a record date has been set  pursuant to
Section  7.01) of a Debt  Security (or any Debt  Security  issued in whole or in
part in exchange or  substitution  therefor) the serial number of which is shown
by the evidence to be included in the Debt  Securities the holders of which have
consented to such action may, by filing  written  notice with the Trustee at the
Principal Office of the Trustee and upon proof of holding as provided in Section
7.02,  revoke such action so far as concerns  such Debt  Security  (or so far as
concerns the principal  amount  represented by any exchanged or substituted Debt
Security).  Except as aforesaid  any such action taken by the holder of any Debt
Security  shall be  conclusive  and binding upon such holder and upon all future
holders and owners of such Debt  Security,  and of any Debt  Security  issued in
exchange or  substitution  therefor  or on  registration  of  transfer  thereof,
irrespective  of whether or not any notation in regard thereto is made upon such
Debt Security or any Debt Security issued in exchange or substitution therefor.

                                  ARTICLE VIII

                            SECURITYHOLDERS' MEETINGS

          SECTION 8.01. Purposes of Meetings.
                        ---------------------

          A meeting of  Securityholders  may be called at any time and from time
to time pursuant to the provisions of this Article VIII for any of the following
purposes:

          (a) to give any notice to the  Company or to the  Trustee,  or to give
any  directions  to the  Trustee,  or to consent to the  waiving of any  default
hereunder  and its  consequences,  or to take any other action  authorized to be
taken by Securityholders pursuant to any of the provisions of Article V;

          (b) to remove the Trustee and nominate a successor trustee pursuant to
the provisions of Article VI;

          (c)  to  consent  to  the  execution  of an  indenture  or  indentures
supplemental hereto pursuant to the provisions of Section 9.02; or

                                      -40-
<PAGE>

          (d) to take any other action authorized to be taken by or on behalf of
the holders of any specified  aggregate principal amount of such Debt Securities
under any other provision of this Indenture or under applicable law.

          SECTION 8.02. Call of Meetings by Trustee.
                        ----------------------------

          The Trustee may at any time call a meeting of  Securityholders to take
any action  specified in Section 8.01, to be held at such time and at such place
in New York or Wilmington,  Delaware, as the Trustee shall determine.  Notice of
every  meeting of the  Securityholders,  setting forth the time and the place of
such  meeting  and in  general  terms the  action  proposed  to be taken at such
meeting,  shall be  mailed  to  holders  of Debt  Securities  affected  at their
addresses  as they shall  appear on the Debt  Securities  Register.  Such notice
shall be mailed  not less than 20 nor more than 180 days prior to the date fixed
for the meeting.

          SECTION 8.03. Call of Meetings by Company or Securityholders.
                        -----------------------------------------------

          In case at any time the Company pursuant to a Board Resolution, or the
holders of at least 10% in aggregate principal amount of the Debt Securities, as
the case may be, then  outstanding,  shall have  requested the Trustee to call a
meeting of  Securityholders,  by written  request  setting  forth in  reasonable
detail the action proposed to be taken at the meeting, and the Trustee shall not
have  mailed the  notice of such  meeting  within 20 days after  receipt of such
request, then the Company or such Securityholders may determine the time and the
place  in for  such  meeting  and may  call  such  meeting  to take  any  action
authorized  in Section 8.01,  by mailing  notice  thereof as provided in Section
8.02.

          SECTION 8.04. Qualifications for Voting.
                        -------------------------

          To be  entitled  to vote at any  meeting of  Securityholders  a Person
shall be (a) a holder of one or more Debt  Securities  with respect to which the
meeting is being held or (b) a Person  appointed by an  instrument in writing as
proxy by a holder of one or more  such Debt  Securities.  The only  Persons  who
shall be entitled  to be present or to speak at any  meeting of  Securityholders
shall be the Persons  entitled to vote at such meeting and their counsel and any
representatives  of the Trustee and its counsel and any  representatives  of the
Company and its counsel.

          SECTION 8.05. Regulations.
                        -----------

          Notwithstanding  any other  provisions of this Indenture,  the Trustee
may make such reasonable regulations as it may deem advisable for any meeting of
Securityholders, in regard to proof of the holding of Debt Securities and of the
appointment  of  proxies,  and  in  regard  to the  appointment  and  duties  of
inspectors of votes, the submission and examination of proxies, certificates and
other  evidence  of the right to vote,  and such other  matters  concerning  the
conduct of the meeting as it shall deem appropriate.

          The Trustee  shall,  by an instrument in writing,  appoint a temporary
chairman  of the  meeting,  unless the  meeting  shall  have been  called by the
Company or by  Securityholders  as provided in Section  8.03,  in which case the

                                      -41-
<PAGE>

Company or the Securityholders calling the meeting, as the case may be, shall in
like manner appoint a temporary  chairman.  A permanent chairman and a permanent
secretary of the meeting shall be elected by majority vote at the meeting.

          Subject to the  provisions of Section 7.04, at any meeting each holder
of Debt  Securities  with  respect to which such  meeting is being held or proxy
therefor shall be entitled to one vote for each $1,000  principal amount of Debt
Securities held or represented by such holder;  provided,  however, that no vote
                                                --------   -------
shall  be cast or  counted  at any  meeting  in  respect  of any  Debt  Security
challenged as not outstanding and ruled by the chairman of the meeting to be not
outstanding.  The chairman of the meeting shall have no right to vote other than
by virtue of Debt  Securities held by such chairman or instruments in writing as
aforesaid  duly  designating  such  chairman  as the Person to vote on behalf of
other  Securityholders.  Any meeting of Securityholders  duly called pursuant to
the  provisions of Section 8.02 or 8.03 may be adjourned  from time to time by a
majority of those present, whether or not constituting a quorum, and the meeting
may be held as so adjourned without further notice.

          SECTION 8.06. Voting.
                        ------

          The vote upon any  resolution  submitted  to any meeting of holders of
Debt  Securities  with  respect to which such  meeting is being held shall be by
written  ballots on which shall be subscribed  the signatures of such holders or
of their  representatives  by proxy and the serial number or numbers of the Debt
Securities  held or represented  by them. The permanent  chairman of the meeting
shall  appoint  two  inspectors  of votes who shall  count all votes cast at the
meeting  for or  against  any  resolution  and who shall  make and file with the
secretary of the meeting  their  verified  written  reports in triplicate of all
votes cast at the  meeting.  A record in duplicate  of the  proceedings  of each
meeting of Securityholders shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors of
votes on any vote by ballot taken thereat and  affidavits by one or more Persons
having  knowledge of the facts setting forth a copy of the notice of the meeting
and showing that said notice was mailed as provided in Section 8.02.  The record
shall  show the  serial  numbers  of the Debt  Securities  voting in favor of or
against  any  resolution.  The  record  shall  be  signed  and  verified  by the
affidavits of the permanent chairman and secretary of the meeting and one of the
duplicates  shall be delivered to the Company and the other to the Trustee to be
preserved by the Trustee,  the latter to have attached thereto the ballots voted
at the meeting.  Any record so signed and verified shall be conclusive  evidence
of the matters therein stated.

          SECTION 8.07. Quorum; Actions.
                        ---------------

          The  Persons  entitled  to vote a majority  in  outstanding  principal
amount  of the Debt  Securities  shall  constitute  a quorum  for a  meeting  of
Securityholders;  provided,  however,  that if any action is to be taken at such
                  --------   -------
meeting  with  respect  to  a  consent,   waiver,   request,   demand,   notice,
authorization,  direction  or other  action which may be given by the holders of
not less than a specified percentage in outstanding principal amount of the Debt
Securities,  the Persons  holding or representing  such specified  percentage in
outstanding principal amount of the Debt Securities will constitute a quorum. In
the  absence of a quorum  within 30 minutes of the time  appointed  for any such
meeting,  the meeting shall, if convened at the request of  Securityholders,  be
dissolved.  In any other case the meeting may be  adjourned  for a period of not
less than 10 days as determined  by the permanent  chairman of the meeting prior
to the  adjournment  of such  meeting.  In the  absence  of a quorum at any such
adjourned meeting,  such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the permanent  chairman of the meeting

                                      -42-
<PAGE>

prior to the adjournment of such adjourned meeting. Notice of the reconvening of
any adjourned  meeting  shall be given as provided in Section 8.02,  except that
such notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Notice of the reconvening of an
adjourned  meeting shall state expressly the  percentage,  as provided above, of
the outstanding principal amount of the Debt Securities which shall constitute a
quorum.

          Except as limited by the  proviso  in the first  paragraph  of Section
9.02, any resolution presented to a meeting or adjourned meeting duly reconvened
at which a quorum is present as aforesaid may be adopted by the affirmative vote
of the holders of not less than a majority in  outstanding  principal  amount of
the Debt Securities;  provided,  however, that, except as limited by the proviso
                      --------   -------
in the first  paragraph  of Section  9.02,  any  resolution  with respect to any
consent,  waiver,  request,  demand, notice,  authorization,  direction or other
action that this Indenture expressly provides may be given by the holders of not
less than a specified  percentage in  outstanding  principal  amount of the Debt
Securities may be adopted at a meeting or an adjourned  meeting duly  reconvened
and at which a quorum is present as aforesaid  only by the  affirmative  vote of
the holders of not less than such specified percentage in outstanding  principal
amount of the Debt Securities.

          Any  resolution  passed or decision taken at any meeting of holders of
Debt  Securities  duly held in accordance  with this Section shall be binding on
all the Securityholders, whether or not present or represented at the meeting.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

     SECTION 9.01. Supplemental Indentures without Consent of Securityholders.
                   ----------------------------------------------------------

     The Company,  when  authorized by a Board  Resolution,  and the Trustee may
from  time  to time  and at any  time  enter  into an  indenture  or  indentures
supplemental hereto, without the consent of the Securityholders, for one or more
of the following purposes:

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

     (b) to add  to  the  covenants  of  the  Company  such  further  covenants,
restrictions  or conditions for the protection of the holders of Debt Securities
as the Board of Directors shall consider to be for the protection of the holders
of such Debt  Securities,  and to make the  occurrence,  or the  occurrence  and
continuance,  of a default in any of such additional covenants,  restrictions or
conditions a default or an Event of Default permitting the enforcement of all or
any of the  several  remedies  provided in this  Indenture  as herein set forth;
provided, however, that in respect of any such additional covenant,  restriction
--------- -------
or condition such supplemental indenture may provide for a particular period of

                                      -43-
<PAGE>

grace after default  (which period may be shorter or longer than that allowed in
the case of other  defaults)  or may provide for an immediate  enforcement  upon
such  default  or may limit the  remedies  available  to the  Trustee  upon such
default;

     (c) to cure  any  ambiguity  or to  correct  or  supplement  any  provision
contained  herein or in any  supplemental  indenture  which may be  defective or
inconsistent  with any other provision  contained  herein or in any supplemental
indenture,  or to make such other  provisions  in regard to matters or questions
arising under this Indenture; provided, that any such action shall not adversely
                              --------
affect the interests of the holders of the Debt Securities;

     (d) to add to,  delete  from,  or  revise  the  terms  of Debt  Securities,
including,  without  limitation,  any terms relating to the issuance,  exchange,
registration or transfer of Debt  Securities,  including to provide for transfer
procedures and  restrictions  substantially  similar to those  applicable to the
Capital  Securities,  as required by Section 2.05 (for purposes of assuring that
no registration of Debt Securities is required under the Securities Act of 1933,
as  amended);  provided,  that any such action  shall not  adversely  affect the
interests  of the  holders of the Debt  Securities  then  outstanding  (it being
understood,  for purposes of this proviso,  that transfer  restrictions  on Debt
Securities substantially similar to those applicable to Capital Securities shall
not be deemed to adversely affect the holders of the Debt Securities);

     (e) to evidence and provide for the acceptance of appointment  hereunder by
a successor  Trustee with respect to the Debt Securities and to add to or change
any of the  provisions of this Indenture as shall be necessary to provide for or
facilitate the  administration of the trusts hereunder by more than one Trustee,
pursuant to the requirements of Section 6.10;

     (f) to make any change (other than as elsewhere provided in this paragraph)
that does not adversely affect the rights of any  Securityholder in any material
respect; or

     (g) to provide  for the  issuance of and  establish  the form and terms and
conditions of the Debt Securities,  to establish the form of any  certifications
required to be  furnished  pursuant to the terms of this  Indenture  or the Debt
Securities, or to add to the rights of the holders of Debt Securities.

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

     Any  supplemental  indenture  authorized by the  provisions of this Section
9.01 may be executed  by the Company and the Trustee  without the consent of the
holders of any of the Debt Securities at the time  outstanding,  notwithstanding
any of the provisions of Section 9.02.

     SECTION 9.02. Supplemental Indentures with Consent of Securityholders.
                   --------------------------------------------------------

     With the consent  (evidenced as provided in Section 7.01) of the holders of
not less than a majority in aggregate principal amount of the Debt Securities at
the time  outstanding  affected  by such  supplemental  indenture  (voting  as a

                                      -44-
<PAGE>

class), the Company, when authorized by a Board Resolution,  and the Trustee may
from  time  to time  and at any  time  enter  into an  indenture  or  indentures
supplemental  hereto  (which  shall  conform  to the  provisions  of  the  Trust
Indenture Act, then in effect,  applicable to indentures  qualified  thereunder)
for the  purpose  of adding  any  provisions  to or  changing  in any  manner or
eliminating  any of the  provisions  of this  Indenture  or of any  supplemental
indenture  or of  modifying  in any manner the rights of the holders of the Debt
Securities; provided, however, that no such supplemental indenture shall without
            --------  -------
such consent of the holders of each Debt Security then  outstanding and affected
thereby  (i)  extend  the fixed  maturity  of any Debt  Security,  or reduce the
principal  amount thereof or any premium  thereon,  or reduce the rate or extend
the time of  payment  of  interest  thereon,  or reduce  any  amount  payable on
redemption  thereof or make the  principal  thereof or any  interest  or premium
thereon  payable in any coin or  currency  other than that  provided in the Debt
Securities,  or impair or affect the right of any  Securityholder  to  institute
suit for payment thereof or impair the right of repayment, if any, at the option
of the holder,  or (ii) reduce the aforesaid  percentage of Debt  Securities the
holders of which are required to consent to any such supplemental indenture; and
provided,  further,  that if the  Debt  Securities  are  held by the  Trust or a
---------  -------
trustee of such trust, such supplemental  indenture shall not be effective until
the  holders of a majority in  liquidation  preference  of the Trust  Securities
shall have consented to such supplemental indenture;  provided, further, that if
                                                      --------  -------
the consent of the Securityholder of each outstanding Debt Security is required,
such  supplemental  indenture  shall not be  effective  until each holder of the
Trust Securities shall have consented to such supplemental indenture.

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

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

     It shall not be necessary for the consent of the Securityholders under this
Section  9.02  to  approve  the  particular  form of any  proposed  supplemental
indenture,  but it  shall  be  sufficient  if such  consent  shall  approve  the
substance thereof.

     SECTION 9.03. Effect of Supplemental Indentures.
                   ---------------------------------

     Upon the execution of any supplemental indenture pursuant to the provisions
of this  Article IX, this  Indenture  shall be and be deemed to be modified  and
amended in  accordance  therewith  and the  respective  rights,  limitations  of
rights, obligations,  duties and immunities under this Indenture of the Trustee,

                                      -45-
<PAGE>

the Company and the holders of Debt Securities  shall  thereafter be determined,
exercised and enforced  hereunder subject in all respects to such  modifications
and  amendments  and all the  terms  and  conditions  of any  such  supplemental
indenture  shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

     SECTION 9.04. Notation on Debt Securities.
                   ---------------------------

     Debt  Securities  authenticated  and  delivered  after the execution of any
supplemental  indenture pursuant to the provisions of this Article IX may bear a
notation as to any matter provided for in such  supplemental  indenture.  If the
Company or the Trustee shall so determine, new Debt Securities so modified as to
conform,  in the  opinion  of the  Board of  Directors  of the  Company,  to any
modification of this Indenture contained in any such supplemental  indenture may
be prepared  and executed by the  Company,  authenticated  by the Trustee or the
Authenticating  Agent and  delivered  in exchange for the Debt  Securities  then
outstanding.

     SECTION  9.05.  Evidence of  Compliance  of  Supplemental  Indenture  to be
                     -----------------------------------------------------------
Furnished to Trustee.
--------------------

     The Trustee, subject to the provisions of Sections 6.01 and 6.02, shall, in
addition  to the  documents  required  by Section  14.06,  receive an  Officers'
Certificate  and  an  Opinion  of  Counsel  as  conclusive   evidence  that  any
supplemental  indenture  executed pursuant hereto complies with the requirements
of this  Article  IX.  The  Trustee  shall  receive  an  Opinion  of  Counsel as
conclusive  evidence that any supplemental  indenture  executed pursuant to this
Article IX is  authorized  or  permitted  by, and conforms to, the terms of this
Article IX and that it is proper for the Trustee  under the  provisions  of this
Article IX to join in the execution thereof.

                                   ARTICLE X

                            REDEMPTION OF SECURITIES

     SECTION 10.01. Optional Redemption.
                    --------------------

     At any time the Company shall have the right, subject to the receipt by the
Company of prior  approval  from the Federal  Reserve,  if then  required  under
applicable capital guidelines or policies of the Federal Reserve,  to redeem the
Debt  Securities,  in whole or in part,  on any  January  7,  April 7, July 7 or
October 7 on or after October 7, 2008 (the "Redemption Date"), at the Redemption
Price.

     SECTION 10.02. Special Event Redemption
                    ------------------------

     If a Special  Event shall occur and be  continuing,  the Company shall have
the right,  subject to the  receipt by the  Company of prior  approval  from the
Federal Reserve if then required under applicable capital guidelines or policies
of the Federal Reserve,  to redeem the Debt Securities,  in whole or in part, at
any time within 90 days  following  the  occurrence  of such Special  Event (the
"Special Redemption Date"), at the Special Redemption Price.

                                      -46-
<PAGE>

     SECTION 10.03. Notice of Redemption; Selection of Debt Securities.
                    ---------------------------------------------------

     In case the Company  shall  desire to exercise the right to redeem all, or,
as the case may be,  any part of the Debt  Securities,  it shall  fix a date for
redemption  and shall mail a notice of such  redemption at least 30 and not more
than 60 days  prior to the date  fixed for  redemption  to the  holders  of Debt
Securities  so to be redeemed as a whole or in part at their last  addresses  as
the same appear on the Debt  Security  Register.  Such mailing shall be by first
class  mail.  The  notice if  mailed  in the  manner  herein  provided  shall be
conclusively  presumed  to have  been  duly  given,  whether  or not the  holder
receives  such notice.  In any case,  failure to give such notice by mail or any
defect  in the  notice  to  the  holder  of any  Debt  Security  designated  for
redemption  as a  whole  or in  part  shall  not  affect  the  validity  of  the
proceedings for the redemption of any other Debt Security.

     Each such notice of redemption  shall specify the CUSIP number,  if any, of
the  Debt  Securities  to be  redeemed,  the  date  fixed  for  redemption,  the
redemption  price at which  Debt  Securities  are to be  redeemed,  the place or
places of payment,  that payment will be made upon presentation and surrender of
such Debt  Securities,  that interest  accrued to the date fixed for  redemption
will be paid as  specified  in said  notice,  and that on and  after  said  date
interest thereon or on the portions thereof to be redeemed will cease to accrue.
If less than all the Debt Securities are to be redeemed the notice of redemption
shall  specify the numbers of the Debt  Securities  to be redeemed.  In case the
Debt Securities are to be redeemed in part only, the notice of redemption  shall
state the portion of the principal amount thereof to be redeemed and shall state
that on and after the date fixed for  redemption,  upon  surrender  of such Debt
Security,  a new Debt Security or Debt  Securities in principal  amount equal to
the unredeemed portion thereof will be issued.

     Prior to  10:00  a.m.  New York  City  time on the  Redemption  Date or the
Special  Redemption Date specified in the notice of redemption given as provided
in this  Section,  the Company will deposit with the Trustee or with one or more
Paying Agents an amount of money sufficient to redeem on the redemption date all
the Debt  Securities  so called for  redemption  at the  appropriate  redemption
price, together with accrued interest to the date fixed for redemption.

     The Company will give the Trustee  notice not less than 45 nor more than 60
days prior to the redemption  date as to the redemption  price at which the Debt
Securities  are to be  redeemed  and  the  aggregate  principal  amount  of Debt
Securities to be redeemed and the Trustee shall select, in such manner as in its
sole  discretion  it shall deem  appropriate  and fair,  the Debt  Securities or
portions thereof (in integral multiples of $1,000) to be redeemed.

     SECTION 10.04. Payment of Debt Securities Called for Redemption.
                    -------------------------------------------------

     If notice of redemption  has been given as provided in Section  10.03,  the
Debt Securities or portions of Debt Securities with respect to which such notice
has been given  shall  become  due and  payable  on the  Redemption  Date or the
Special  Redemption  Date (as the case may be) and at the place or places stated
in such  notice at the  applicable  redemption  price,  together  with  interest
accrued to the date fixed for redemption,  and on and after said Redemption Date
or the Special  Redemption Date (unless the Company shall default in the payment
of such Debt Securities at the redemption price,  together with interest accrued
to said date) interest on the Debt  Securities or portions of Debt Securities so

                                      -47-
<PAGE>

called for redemption  shall cease to accrue.  On presentation  and surrender of
such Debt Securities at a place of payment  specified in said notice,  such Debt
Securities or the specified  portions  thereof shall be paid and redeemed by the
Company at the  applicable  redemption  price,  together with  interest  accrued
thereon to the Redemption  Date or the Special  Redemption Date (as the case may
be).

     Upon  presentation of any Debt Security  redeemed in part only, the Company
shall execute and the Trustee shall authenticate and make available for delivery
to the holder  thereof,  at the expense of the Company,  a new Debt  Security or
Debt  Securities of authorized  denominations  in principal  amount equal to the
unredeemed portion of the Debt Security so presented.

                                   ARTICLE XI

                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

     SECTION 11.01. Company May Consolidate, etc., on Certain Terms.
                    -----------------------------------------------

     Nothing contained in this Indenture or in the Debt Securities shall prevent
any consolidation or merger of the Company with or into any other corporation or
corporations  (whether  or  not  affiliated  with  the  Company)  or  successive
consolidations  or mergers in which the Company or its  successor or  successors
shall be a party or parties, or shall prevent any sale, conveyance,  transfer or
other  disposition  of the  property  or  capital  stock of the  Company  or its
successor or successors as an entirety,  or substantially as an entirety, to any
other corporation  (whether or not affiliated with the Company, or its successor
or successors)  authorized to acquire and operate the same;  provided,  however,
                                                             ---------  --------
that the Company hereby covenants and agrees that, upon any such  consolidation,
merger (where the Company is not the surviving  corporation),  sale, conveyance,
transfer or other disposition,  the due and punctual payment of all payments due
on all of the Debt Securities in accordance with their terms, according to their
tenor, and the due and punctual  performance and observance of all the covenants
and conditions of this  Indenture to be kept or performed by the Company,  shall
be expressly assumed by supplemental  indenture reasonably  satisfactory in form
to the Trustee  executed and  delivered  to the Trustee by the entity  formed by
such consolidation,  or into which the Company shall have been merged, or by the
entity which shall have acquired such property or capital stock.

     SECTION 11.02. Successor Entity to be Substituted.
                    ----------------------------------

     In case of any such consolidation,  merger, sale,  conveyance,  transfer or
other   disposition  and  upon  the  assumption  by  the  successor  entity,  by
supplemental  indenture,  executed and  delivered to the Trustee and  reasonably
satisfactory  in form to the  Trustee,  of the due and  punctual  payment of the
principal of and premium, if any, and interest on all of the Debt Securities and
the due and punctual  performance  and  observance  of all of the  covenants and
conditions  of this  Indenture to be performed or observed by the Company,  such
successor  entity shall succeed to and be substituted for the Company,  with the
same effect as if it had been named herein as the  Company,  and  thereupon  the
predecessor  entity  shall be relieved of any further  liability  or  obligation
hereunder or upon the Debt Securities. Such successor entity thereupon may cause
to be  signed,  and  may  issue  either  in its own  name or in the  name of the

                                      -48-
<PAGE>

Company,  any or all of the Debt Securities issuable hereunder which theretofore
shall not have been signed by the Company  and  delivered  to the Trustee or the
Authenticating  Agent;  and, upon the order of such successor  entity instead of
the Company and subject to all the terms,  conditions  and  limitations  in this
Indenture prescribed, the Trustee or the Authenticating Agent shall authenticate
and  deliver any Debt  Securities  which  previously  shall have been signed and
delivered by the officers of the Company,  to the Trustee or the  Authenticating
Agent for  authentication,  and any Debt Securities  which such successor entity
thereafter  shall  cause  to be  signed  and  delivered  to the  Trustee  or the
Authenticating  Agent for that purpose.  All the Debt Securities so issued shall
in all respects have the same legal rank and benefit under this Indenture as the
Debt Securities theretofore or thereafter issued in accordance with the terms of
this Indenture as though all of such Debt Securities had been issued at the date
of the execution hereof.

     SECTION 11.03. Opinion of Counsel to be Given to Trustee.
                    -----------------------------------------

     The Trustee,  subject to the  provisions of Sections  6.01 and 6.02,  shall
receive,  in  addition to the Opinion of Counsel  required by Section  9.05,  an
Opinion of Counsel as conclusive evidence that any consolidation,  merger, sale,
conveyance,  transfer or other  disposition,  and any  assumption,  permitted or
required by the terms of this Article XI complies  with the  provisions  of this
Article XI.

                                  ARTICLE XII

                     SATISFACTION AND DISCHARGE OF INDENTURE

     SECTION 12.01. Discharge of Indenture.
                    ----------------------

     When (a) the Company shall deliver to the Trustee for cancellation all Debt
Securities theretofore authenticated (other than any Debt Securities which shall
have been  destroyed,  lost or stolen and which shall have been replaced or paid
as provided in Section 2.06) and not theretofore  canceled,  or (b) all the Debt
Securities not theretofore canceled or delivered to the Trustee for cancellation
shall  have  become  due and  payable,  or are by their  terms to become due and
payable within one year or are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption,
and the Company shall deposit with the Trustee,  in trust, funds, which shall be
immediately  due and payable,  sufficient to pay at maturity or upon  redemption
all of the Debt Securities (other than any Debt Securities which shall have been
destroyed, lost or stolen and which shall have been replaced or paid as provided
in Section  2.06) not  theretofore  canceled  or  delivered  to the  Trustee for
cancellation,  including  principal and premium,  if any, and interest due or to
become due to such date of maturity or redemption  date, as the case may be, but
excluding,  however,  the amount of any moneys for the payment of principal  of,
and premium,  if any, or interest on the Debt Securities (1) theretofore  repaid
to the Company in accordance  with the provisions of Section 12.04,  or (2) paid
to any state or to the District of Columbia  pursuant to its unclaimed  property
or  similar  laws,  and if in the case of either  clause  (a) or clause  (b) the
Company  shall also pay or cause to be paid all other sums payable  hereunder by
the Company,  then this Indenture shall cease to be of further effect except for
the provisions of Sections 2.05,  2.06,  3.01,  3.02, 3.04, 6.06, 6.09 and 12.04
hereof,  which shall  survive  until such Debt  Securities  shall  mature or are

                                      -49-
<PAGE>

redeemed, as the case may be, and are paid. Thereafter,  Sections 6.06, 6.09 and
12.04 shall survive, and the Trustee, on demand of the Company accompanied by an
Officers'  Certificate  and  an  Opinion  of  Counsel,  each  stating  that  all
conditions  precedent  herein  provided  for  relating to the  satisfaction  and
discharge of this Indenture have been complied with, and at the cost and expense
of the Company, shall execute proper instruments  acknowledging  satisfaction of
and  discharging  this  Indenture,  the  Company,  however,  hereby  agreeing to
reimburse  the  Trustee  for any costs or  expenses  thereafter  reasonably  and
properly  incurred by the Trustee in connection  with this Indenture or the Debt
Securities.

     SECTION 12.02. Deposited Moneys to be Held in Trust by Trustee.
                    -----------------------------------------------

     Subject to the provisions of Section 12.04,  all moneys  deposited with the
Trustee  pursuant  to Section  12.01 shall be held in trust and applied by it to
the payment,  either directly or through any Paying Agent (including the Company
if acting as its own  Paying  Agent),  to the  holders  of the  particular  Debt
Securities  for the payment of which such moneys  have been  deposited  with the
Trustee,  of all sums due and to become due thereon for principal,  and premium,
if any, and interest.

          SECTION 12.03. Paying Agent to Repay Moneys Held.
                         ---------------------------------

     Upon the satisfaction and discharge of this Indenture, all moneys then held
by any Paying Agent of the Debt Securities  (other than the Trustee) shall, upon
demand of the  Company,  be repaid to the  Company or paid to the  Trustee,  and
thereupon  such Paying Agent shall be released from all further  liability  with
respect to such moneys.

          SECTION 12.04. Return of Unclaimed Moneys.
                         --------------------------

     Any moneys  deposited  with or paid to the Trustee or any Paying  Agent for
payment of the principal of, and premium, if any, or interest on Debt Securities
and not applied but remaining  unclaimed by the holders of Debt  Securities  for
two years after the date upon which the  principal  of, and premium,  if any, or
interest on such Debt Securities,  as the case may be, shall have become due and
payable,  shall be repaid to the Company by the Trustee or such Paying  Agent on
written demand;  and the holder of any of the Debt Securities  shall  thereafter
look only to the Company  for any  payment  which such holder may be entitled to
collect and all  liability  of the Trustee or such Paying  Agent with respect to
such moneys shall thereupon cease.

                                  ARTICLE XIII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

     SECTION 13.01. Indenture and Debt Securities Solely Corporate Obligations.
                    -----------------------------------------------------------

     No recourse  for the  payment of the  principal  of or premium,  if any, or
interest on any Debt  Security,  or for any claim based  thereon or otherwise in
respect  thereof,  and no  recourse  under or upon any  obligation,  covenant or
agreement of the Company in this Indenture or in any supplemental  indenture, or
in any such Debt  Security,  or  because  of the  creation  of any  indebtedness
represented  thereby,  shall  be  had  against  any  incorporator,  stockholder,
officer,  director,  employee or agent, as such, past, present or future, of the
Company or of any  predecessor or successor  corporation of the Company,  either

                                      -50-
<PAGE>

directly or through the Company or any  successor  corporation  of the  Company,
whether  by  virtue  of any  constitution,  statute  or rule  of law,  or by the
enforcement  of any  assessment  or penalty  or  otherwise;  it being  expressly
understood that all such liability is hereby  expressly waived and released as a
condition of, and as a  consideration  for, the execution of this  Indenture and
the issue of the Debt Securities.

                                  ARTICLE XIV

                            MISCELLANEOUS PROVISIONS

     SECTION 14.01. Successors.
                    -----------

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

     SECTION 14.02. Official Acts by Successor Entity.
                    ---------------------------------

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

     SECTION 14.03. Surrender of Company Powers.
                    ----------------------------

     The  Company  by  instrument  in  writing  executed  by  authority  of  2/3
(two-thirds)  of its  Board  of  Directors  and  delivered  to the  Trustee  may
surrender any of the powers  reserved to the Company and thereupon such power so
surrendered  shall  terminate  both as to the  Company  and as to any  permitted
successor.

     SECTION 14.04. Addresses for Notices, etc.
                    --------------------------

     Any notice or demand which by any  provision of this  Indenture is required
or permitted to be given or served by the Trustee or by the  Securityholders  on
the Company may be given or served in writing by being deposited postage prepaid
by  registered or certified  mail in a post office  letter box addressed  (until
another  address is filed by the Company  with the Trustee for such  purpose) to
the Company at:

                     Weststar Financial Services Corporation
                                79 Woodfin Place
                               Asheville, NC 28801
                           Attention: Randall C. Hall]

     Any  notice,  direction,  request  or demand by any  Securityholder  or the
Company to or upon the Trustee shall be deemed to have been  sufficiently  given
or made,  for all  purposes,  if given or made in writing at the office of Wells
Fargo Bank, National Association at:

                                919 Market Street
                                    Suite 700
                              Wilmington, DE 19801
                       Attention: Corporate Trust Division

                                      -51-

<PAGE>

     SECTION 14.05. Governing Law.
                    -------------

     This Indenture and each Debt Security shall be deemed to be a contract made
under the law of the State of New York,  and for all purposes  shall be governed
by and construed in  accordance  with the law of said State,  without  regard to
conflict of laws principles thereof.

     SECTION 14.06. Evidence of Compliance with Conditions Precedent.
                    ------------------------------------------------

     Upon any  application  or demand by the  Company to the Trustee to take any
action under any of the provisions of this Indenture,  the Company shall furnish
to the  Trustee an  Officers'  Certificate  stating  that in the  opinion of the
signers  all  conditions  precedent,  if any,  provided  for in  this  Indenture
relating  to the  proposed  action  have been  complied  with and an  Opinion of
Counsel  stating  that,  in the  opinion of such  counsel,  all such  conditions
precedent  have been  complied  with  (except that no such Opinion of Counsel is
required to be furnished to the Trustee in  connection  with the  authentication
and issuance of Debt Securities issued on the date of this Indenture).

     Each certificate or opinion provided for in this Indenture and delivered to
the Trustee with respect to compliance with a condition or covenant provided for
in this Indenture (except certificates delivered pursuant to Section 3.05) shall
include (a) a statement  that the person making such  certificate or opinion has
read such  covenant or  condition;  (b) a brief  statement  as to the nature and
scope of the examination or investigation  upon which the statements or opinions
contained in such certificate or opinion are based; (c) a statement that, in the
opinion of such person,  he or she has made such examination or investigation as
is necessary  to enable him or her to express an informed  opinion as to whether
or not such covenant or condition has been complied with; and (d) a statement as
to whether or not, in the opinion of such person, such condition or covenant has
been complied with.

     SECTION 14.07. Non-Business Days.
                    -----------------

     In any case where the date of payment of  interest on or  principal  of the
Debt  Securities  is not a Business  Day,  the  payment of such  interest  on or
principal of the Debt  Securities  need not be made on such date but may be made
on the next  succeeding  Business Day, with the same force and effect as if made
on the date of payment,  except if such  Business Day is in the next  succeeding
calendar year, such payment will be made on the immediately  preceding  Business
Day.

     SECTION 14.08. Table of Contents, Headings, etc.
                    --------------------------------

     The table of  contents  and the titles and  headings  of the  articles  and
sections of this Indenture have been inserted for convenience of reference only,
are not to be  considered a part hereof,  and shall in no way modify or restrict
any of the terms or provisions hereof.

                                      -52-
<PAGE>

     SECTION 14.09. Execution in Counterparts.
                    -------------------------

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

     SECTION 14.10. Separability.
                    ------------

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

     SECTION 14.11. Assignment.
                    ----------

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

     SECTION 14.12. Acknowledgment of Rights.
                    ------------------------

     The Company  acknowledges that, with respect to any Debt Securities held by
the  Trust or the  Institutional  Trustee  of the  Trust,  if the  Institutional
Trustee of the Trust fails to enforce  its rights  under this  Indenture  as the
holder of Debt Securities held as the assets of the Trust after the holders of a
majority in  Liquidation  Amount of the Capital  Securities of the Trust have so
directed  in  writing  such  Institutional  Trustee,  a holder of record of such
Capital  Securities may to the fullest extent  permitted by law institute  legal
proceedings directly against the Company to enforce such Institutional Trustee's
rights under this  Indenture  without first  instituting  any legal  proceedings
against such  Institutional  Trustee or any other  Person.  Notwithstanding  the
foregoing,  if an Event of Default has occurred and is continuing and such event
is  attributable  to the failure of the Company to pay interest (or premium,  if
any) or principal on the Debt  Securities on the date such interest (or premium,
if any) or principal is otherwise due and payable (or in the case of redemption,
on the redemption  date),  the Company  acknowledges  that a holder of record of
Capital  Securities of the Trust may directly institute a proceeding against the
Company for  enforcement of payment to such holder  directly of the principal of
(or  premium,  if any) or interest on the Debt  Securities  having an  aggregate
principal  amount  equal to the  aggregate  Liquidation  Amount  of the  Capital
Securities of such holder on or after the  respective  due date specified in the
Debt Securities.

                                      -53-
<PAGE>

                                   ARTICLE XV

                        SUBORDINATION OF DEBT SECURITIES

     SECTION 15.01. Agreement to Subordinate.
                    ------------------------
     The Company covenants and agrees, and each holder of Debt Securities issued
hereunder and under any supplemental indenture (the "Additional  Provisions") by
such Securityholder's acceptance thereof likewise covenants and agrees, that all
Debt  Securities  shall be issued  subject to the provisions of this Article XV;
and each holder of a Debt Security, whether upon original issue or upon transfer
or assignment thereof, accepts and agrees to be bound by such provisions.

     The  payment by the  Company  of the  payments  due on all Debt  Securities
issued hereunder and under any Additional Provisions shall, to the extent and in
the manner hereinafter set forth, be subordinated and junior in right of payment
to the prior payment in full of all Senior Indebtedness of the Company,  whether
outstanding at the date of this Indenture or thereafter incurred.

     No provision of this Article XV shall prevent the occurrence of any default
or Event of Default hereunder.

     SECTION 15.02. Default on Senior Indebtedness.
                    ------------------------------

     In the event and during the  continuation  of any default by the Company in
the payment of  principal,  premium,  interest  or any other  payment due on any
Senior  Indebtedness of the Company following any applicable grace period, or in
the event that the maturity of any Senior  Indebtedness  of the Company has been
accelerated  because of a default,  and such acceleration has not been rescinded
or canceled and such Senior  Indebtedness  has not been paid in full,  then,  in
either  case,  no  payment  shall be made by the  Company  with  respect  to the
payments due on the Debt Securities.

     In the event that,  notwithstanding  the  foregoing,  any payment  shall be
received  by the  Trustee  when such  payment  is  prohibited  by the  preceding
paragraph of this Section 15.02,  such payment shall,  subject to Section 15.06,
be held in trust for the benefit of, and shall be paid over or delivered to, the
holders of Senior  Indebtedness or their respective  representatives,  or to the
trustee or  trustees  under any  indenture  pursuant to which any of such Senior
Indebtedness may have been issued, as their respective interests may appear, but
only to the  extent  that the  holders  of the  Senior  Indebtedness  (or  their
representative  or  representatives  or a trustee) notify the Trustee in writing
within 90 days of such  payment of the amounts  then due and owing on the Senior
Indebtedness and only the amounts  specified in such notice to the Trustee shall
be paid to the holders of Senior Indebtedness.

     SECTION 15.03. Liquidation; Dissolution; Bankruptcy.
                    ------------------------------------

     Upon any payment by the Company or distribution of assets of the Company of
any kind or character,  whether in cash,  property or  securities,  to creditors
upon any  dissolution  or winding- up or liquidation  or  reorganization  of the

                                      -54-
<PAGE>

Company,  whether  voluntary  or  involuntary  or  in  bankruptcy,   insolvency,
receivership or other proceedings,  all amounts due upon all Senior Indebtedness
of the Company shall first be paid in full, or payment  thereof  provided for in
money in accordance with its terms, before any payment is made by the Company on
the Debt Securities;  and upon any such dissolution or winding-up or liquidation
or reorganization,  any payment by the Company, or distribution of assets of the
Company of any kind or character,  whether in cash,  property or securities,  to
which the  Securityholders  or the Trustee would be entitled to receive from the
Company,  except for the  provisions  of this  Article XV,  shall be paid by the
Company, or by any receiver,  trustee in bankruptcy,  liquidating trustee, agent
or other Person making such payment or distribution,  or by the  Securityholders
or by the Trustee  under this  Indenture if received by them or it,  directly to
the holders of Senior  Indebtedness  of the Company (pro rata to such holders on
the basis of the respective amounts of Senior Indebtedness held by such holders,
as calculated by the Company) or their representative or representatives,  or to
the trustee or trustees  under any indenture  pursuant to which any  instruments
evidencing such Senior  Indebtedness  may have been issued,  as their respective
interests may appear, to the extent necessary to pay such Senior Indebtedness in
full, in money or money's worth,  after giving effect to any concurrent  payment
or  distribution to or for the holders of such Senior  Indebtedness,  before any
payment or distribution is made to the Securityholders.

     In  the  event  that,   notwithstanding  the  foregoing,   any  payment  or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities,  prohibited by the  foregoing,  shall be received by the
Trustee  before  all Senior  Indebtedness  of the  Company  is paid in full,  or
provision is made for such payment in money in accordance  with its terms,  such
payment or  distribution  shall be held in trust for the benefit of and shall be
paid over or  delivered  to the  holders of such  Senior  Indebtedness  or their
representative  or  representatives,  or to the  trustee or  trustees  under any
indenture pursuant to which any instruments  evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, as calculated by
the Company,  for  application to the payment of all Senior  Indebtedness of the
Company remaining unpaid to the extent necessary to pay such Senior Indebtedness
in full in money in  accordance  with its  terms,  after  giving  effect  to any
concurrent  payment or distribution to or for the benefit of the holders of such
Senior Indebtedness.

     For purposes of this Article XV, the words "cash,  property or  securities"
shall not be deemed to include  shares of stock of the Company as reorganized or
readjusted,  or securities of the Company or any other corporation  provided for
by  a  plan  of  reorganization  or  readjustment,   the  payment  of  which  is
subordinated  at least to the extent provided in this Article XV with respect to
the Debt  Securities to the payment of all Senior  Indebtedness  of the Company,
that may at the time be outstanding, provided, that (a) such Senior Indebtedness
                                     --------
is  assumed  by  the  new   corporation,   if  any,   resulting  from  any  such
reorganization or readjustment, and (b) the rights of the holders of such Senior
Indebtedness  are not,  without  the  consent of such  holders,  altered by such
reorganization  or readjustment.  The  consolidation of the Company with, or the
merger  of  the  Company  into,  another   corporation  or  the  liquidation  or
dissolution of the Company  following the conveyance or transfer of its property
as an entirety, or substantially as an entirety, to another corporation upon the
terms and conditions  provided for in Article IX of this Indenture  shall not be
deemed a dissolution, winding-up, liquidation or reorganization for the purposes
of  this  Section  15.03  if such  other  corporation  shall,  as a part of such
consolidation, merger, conveyance or transfer, comply with the conditions stated
in Article IX of this  Indenture.  Nothing in Section  15.02 or in this  Section
15.03 shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 6.06 of this Indenture.

                                      -55-
<PAGE>

     SECTION 15.04. Subrogation.
                    -----------

     Subject to the payment in full of all Senior  Indebtedness  of the Company,
the  Securityholders  shall be  subrogated  to the rights of the holders of such
Senior  Indebtedness to receive payments or  distributions of cash,  property or
securities  of the  Company  applicable  to such Senior  Indebtedness  until all
payments due on the Debt Securities shall be paid in full; and, for the purposes
of such subrogation,  no payments or distributions to the holders of such Senior
Indebtedness of any cash, property or securities to which the Securityholders or
the Trustee would be entitled  except for the provisions of this Article XV, and
no payment  over  pursuant to the  provisions  of this  Article XV to or for the
benefit of the holders of such Senior  Indebtedness  by  Securityholders  or the
Trustee,  shall,  as between the Company,  its  creditors  other than holders of
Senior  Indebtedness  of the Company,  and the holders of the Debt Securities be
deemed to be a payment or  distribution  by the Company to or on account of such
Senior Indebtedness. It is understood that the provisions of this Article XV are
and are intended  solely for the purposes of defining the relative rights of the
holders of the Debt Securities,  on the one hand, and the holders of such Senior
Indebtedness, on the other hand.

     Nothing  contained in this Article XV or elsewhere in this  Indenture,  any
Additional  Provisions or in the Debt Securities is intended to or shall impair,
as  between  the  Company,  its  creditors  other  than the  holders  of  Senior
Indebtedness  of the  Company,  and the  holders  of the  Debt  Securities,  the
obligation of the Company,  which is absolute and  unconditional,  to pay to the
holders of the Debt  Securities all payments on the Debt  Securities as and when
the same shall  become due and payable in  accordance  with their  terms,  or is
intended  to or shall  affect  the  relative  rights of the  holders of the Debt
Securities  and  creditors  of the  Company,  other  than the  holders of Senior
Indebtedness  of the Company,  nor shall anything  herein or therein prevent the
Trustee  or the  holder  of any  Debt  Security  from  exercising  all  remedies
otherwise permitted by applicable law upon default under this Indenture, subject
to the  rights,  if any,  under this  Article XV of the  holders of such  Senior
Indebtedness in respect of cash,  property or securities of the Company received
upon the exercise of any such remedy.

     Upon any payment or  distribution  of assets of the Company  referred to in
this Article XV, the Trustee,  subject to the  provisions  of Article VI of this
Indenture,  and the Securityholders  shall be entitled to conclusively rely upon
any order or decree made by any court of  competent  jurisdiction  in which such
dissolution, winding- up, liquidation or reorganization proceedings are pending,
or a certificate of the receiver,  trustee in bankruptcy,  liquidation  trustee,
agent or other  Person  making such  payment or  distribution,  delivered to the
Trustee or to the Securityholders,  for the purposes of ascertaining the Persons
entitled to participate in such distribution, the holders of Senior Indebtedness
and other  indebtedness of the Company,  the amount thereof or payable  thereon,
the amount or amounts paid or distributed  thereon and all other facts pertinent
thereto or to this Article XV.

                                      -56-
<PAGE>

     SECTION 15.05. Trustee to Effectuate Subordination.
                    -----------------------------------

     Each Securityholder by such Securityholder's  acceptance thereof authorizes
and directs the Trustee on such  Securityholder's  behalf to take such action as
may be necessary or appropriate to effectuate the subordination provided in this
Article XV and appoints the Trustee such  Securityholder's  attorney-in-fact for
any and all such purposes.

     SECTION 15.06. Notice by the Company.
                    ---------------------

     The Company shall give prompt  written  notice to a Responsible  Officer of
the  Trustee  at the  Principal  Office of the  Trustee of any fact known to the
Company  that would  prohibit  the making of any  payment of moneys to or by the
Trustee in respect of the Debt  Securities  pursuant to the  provisions  of this
Article  XV.  Notwithstanding  the  provisions  of this  Article XV or any other
provision of this Indenture or any Additional Provisions,  the Trustee shall not
be charged with  knowledge of the existence of any facts that would prohibit the
making of any  payment  of moneys to or by the  Trustee  in  respect of the Debt
Securities  pursuant to the  provisions  of this Article XV,  unless and until a
Responsible  Officer of the Trustee at the Principal Office of the Trustee shall
have received  written notice thereof from the Company or a holder or holders of
Senior Indebtedness or from any trustee therefor;  and before the receipt of any
such written  notice,  the Trustee,  subject to the  provisions of Article VI of
this  Indenture,  shall be entitled in all respects to assume that no such facts
exist; provided, however, that if the Trustee shall not have received the notice
       --------  -------
provided for in this Section  15.06 at least two Business Days prior to the date
upon  which by the terms  hereof any money may become  payable  for any  purpose
(including,  without limitation, the payment of the principal of (or premium, if
any) or interest on any Debt Security),  then,  anything herein contained to the
contrary  notwithstanding,  the Trustee  shall have full power and  authority to
receive  such  money and to apply the same to the  purposes  for which they were
received,  and shall not be affected by any notice to the  contrary  that may be
received by it within two Business Days prior to such date.

     The Trustee,  subject to the  provisions  of Article VI of this  Indenture,
shall be entitled to conclusively rely on the delivery to it of a written notice
by  a  Person  representing  himself  or  herself  to  be  a  holder  of  Senior
Indebtedness  of the Company (or a trustee or  representative  on behalf of such
holder) to establish  that such notice has been given by a holder of such Senior
Indebtedness  or a trustee  or  representative  on behalf of any such  holder or
holders.  In the event that the Trustee  determines  in good faith that  further
evidence is required with respect to the right of any Person as a holder of such
Senior  Indebtedness to participate in any payment or  distribution  pursuant to
this Article XV, the Trustee may request such Person to furnish  evidence to the
reasonable  satisfaction  of  the  Trustee  as to  the  amount  of  such  Senior
Indebtedness held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the
rights of such  Person  under this  Article  XV,  and,  if such  evidence is not
furnished,  the Trustee may defer any  payment to such Person  pending  judicial
determination as to the right of such Person to receive such payment.

     SECTION 15.07. Rights of the Trustee. Holders of Senior Indebtedness.
                    -----------------------------------------------------

     The Trustee in its individual  capacity shall be entitled to all the rights
set forth in this Article XV in respect of any Senior  Indebtedness  at any time

                                      -57-
<PAGE>

held by it, to the same extent as any other holder of Senior  Indebtedness,  and
nothing in this Indenture or any Additional Provisions shall deprive the Trustee
of any of its rights as such holder.

     With  respect to the holders of Senior  Indebtedness  of the  Company,  the
Trustee  undertakes  to  perform or to observe  only such of its  covenants  and
obligations  as are  specifically  set forth in this  Article XV, and no implied
covenants or obligations with respect to the holders of such Senior Indebtedness
shall be read into this  Indenture  or any  Additional  Provisions  against  the
Trustee. The Trustee shall not owe or be deemed to owe any fiduciary duty to the
holders of such Senior Indebtedness and, subject to the provisions of Article VI
of this Indenture,  the Trustee shall not be liable to any holder of such Senior
Indebtedness if it shall pay over or deliver to Securityholders,  the Company or
any other Person money or assets to which any holder of such Senior Indebtedness
shall be entitled by virtue of this Article XV or otherwise.

     Nothing in this  Article XV shall apply to claims of, or  payments  to, the
Trustee under or pursuant to Section 6.06.

     SECTION 15.08. Subordination May Not Be Impaired.
                    ----------------------------------

     No right of any present or future holder of any Senior  Indebtedness of the
Company to enforce subordination as herein provided shall at any time in any way
be  prejudiced  or  impaired  by any act or  failure  to act on the  part of the
Company,  or by any act or failure to act, in good faith, by any such holder, or
by any noncompliance by the Company, with the terms, provisions and covenants of
this  Indenture,  regardless of any  knowledge  thereof that any such holder may
have or otherwise be charged with.

     Without in any way limiting the generality of the foregoing paragraph,  the
holders of Senior  Indebtedness of the Company may, at any time and from time to
time,  without the  consent of or notice to the Trustee or the  Securityholders,
without incurring responsibility to the Securityholders and without impairing or
releasing  the  subordination  provided  in this  Article XV or the  obligations
hereunder  of the holders of the Debt  Securities  to the holders of such Senior
Indebtedness,  do any one or more of the following: (a) change the manner, place
or terms of payment or extend  the time of payment  of, or renew or alter,  such
Senior Indebtedness,  or otherwise amend or supplement in any manner such Senior
Indebtedness or any instrument  evidencing the same or any agreement under which
such Senior Indebtedness is outstanding;  sell,  exchange,  release or otherwise
deal with any property  pledged,  mortgaged or  otherwise  securing  such Senior
Indebtedness;  (c) release any Person liable in any manner for the collection of
such Senior Indebtedness; and (d) exercise or refrain from exercising any rights
against the Company, and any other Person.

     Wells Fargo Bank, National Association,  in its capacity as Trustee, hereby
accepts the trusts in this Indenture  declared and provided,  upon the terms and
conditions herein above set forth.

                                      -58-
<PAGE>

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

                                      Weststar Financial Services Corporation

                                      By: /s/ Randall C. Hall
                                          --------------------------------------
                                      Name: Randall C. Hall
                                      Title:Executive Vice President and CFO

                                      Wells Fargo Bank, National Association,
                                      as Trustee

                                      By: ______________________________________
                                      Name: ____________________________________
                                      Title: ___________________________________

                                      -59-
<PAGE>

                                    EXHIBIT A

                    FORM OF JUNIOR SUBORDINATED DEBT SECURITY
                                    DUE 2033

                           [FORM OF FACE OF SECURITY]
                           --------------------------

     THIS SECURITY HAS NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED  (THE  "SECURITIES  ACT"),  OR ANY  STATE  SECURITIES  LAWS OR ANY OTHER
APPLICABLE   SECURITIES  LAWS.   NEITHER  THIS  SECURITY  NOR  ANY  INTEREST  OR
PARTICIPATION  HEREIN MAY BE REOFFERED,  SOLD, ASSIGNED,  TRANSFERRED,  PLEDGED,
ENCUMBERED  OR  OTHERWISE  DISPOSED  OF IN THE ABSENCE OF SUCH  REGISTRATION  OR
UNLESS SUCH  TRANSACTION  IS EXEMPT  FROM,  OR NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF  THE  SECURITIES  ACT.  THE  HOLDER  OF  THIS  SECURITY  BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE COMPANY,  (B) PURSUANT TO RULE 144A UNDER THE  SECURITIES  ACT ("RULE
144A"), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED  IN RULE 144A THAT  PURCHASES  FOR ITS OWN  ACCOUNT OR FOR THE
ACCOUNT  OF A  QUALIFIED  INSTITUTIONAL  BUYER TO WHOM  NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,  (C)  PURSUANT TO AN  EXEMPTION
FROM THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT TO AN  "ACCREDITED
INVESTOR"  WITHIN THE MEANING OF  SUBPARAGRAPH  (a) (1), (2), (3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT,
OR FOR THE ACCOUNT OF AN "ACCREDITED  INVESTOR," FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION  WITH,  ANY  DISTRIBUTION  IN
VIOLATION OF THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE  EXEMPTION
FROM  THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT,  SUBJECT  TO THE
COMPANY'S  RIGHT PRIOR TO ANY SUCH OFFER,  SALE OR TRANSFER  PURSUANT TO CLAUSES
(C) OR (D) TO REQUIRE  THE  DELIVERY  OF AN OPINION  OF  COUNSEL,  CERTIFICATION
AND/OR OTHER INFORMATION  SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A
COPY OF WHICH MAY BE OBTAINED  FROM THE COMPANY.  THE HOLDER OF THIS SECURITY BY
ITS   ACCEPTANCE   HEREOF   AGREES  THAT  IT  WILL  COMPLY  WITH  THE  FOREGOING
RESTRICTIONS.

     THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS AND
WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS SECURITY
UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE SECURITIES ACT.

     THE  HOLDER  OF  THIS  SECURITY  BY  ITS  ACCEPTANCE  HEREOF  ALSO  AGREES,
REPRESENTS  AND  WARRANTS  THAT  IT  IS  NOT  AN  EMPLOYEE  BENEFIT,  INDIVIDUAL
RETIREMENT  ACCOUNT  OR  OTHER  PLAN OR  ARRANGEMENT  SUBJECT  TO TITLE I OF THE

                                      A-1
<PAGE>

EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT OF 1974,  AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE  INTERNAL  REVENUE  CODE OF 1986,  AS AMENDED (THE  "CODE"),
(EACH A "PLAN"),  OR AN ENTITY WHOSE UNDERLYING  ASSETS INCLUDE "PLAN ASSETS" BY
REASON OF ANY PLAN'S  INVESTMENT  IN THE ENTITY  AND NO PERSON  INVESTING  "PLAN
ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS  SECURITY OR ANY INTEREST  THEREIN,
UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE  RELIEF  AVAILABLE
UNDER  U.S.   DEPARTMENT  OF  LABOR  PROHIBITED   TRANSACTION   CLASS  EXEMPTION
96-23,95-60,91-38,90-1  OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE
AND  HOLDING OF THIS  SECURITY  IS NOT  PROHIBITED  BY  SECTION  406 OF ERISA OR
SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER
OR  HOLDER  OF THIS  SECURITY  OR ANY  INTEREST  THEREIN  WILL BE DEEMED TO HAVE
REPRESENTED  BY ITS  PURCHASE  AND HOLDING  THEREOF THAT EITHER (i) IT IS NOT AN
EMPLOYEE  BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO
WHICH SECTION 4975 OF THE CODE IS  APPLICABLE,  A TRUSTEE OR OTHER PERSON ACTING
ON BEHALF OF AN EMPLOYEE  BENEFIT  PLAN OR PLAN,  OR ANY OTHER  PERSON OR ENTITY
USING THE ASSETS OF ANY EMPLOYEE  BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE,
OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED  TRANSACTION UNDER SECTION
406 OF  ERISA OR  SECTION  4975 OF THE CODE  FOR  WHICH  THERE IS NO  APPLICABLE
STATUTORY OR ADMINISTRATIVE EXEMPTION.

     IN CONNECTION  WITH ANY TRANSFER,  THE HOLDER OF THIS SECURITY WILL DELIVER
TO THE COMPANY AND TRUSTEE SUCH  CERTIFICATES  AND OTHER  INFORMATION  AS MAY BE
REQUIRED  BY THE  INDENTURE  TO  CONFIRM  THAT THE  TRANSFER  COMPLIES  WITH THE
FOREGOING RESTRICTIONS.

     THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A
PRINCIPAL  AMOUNT OF NOT LESS THAN  $100,000  AND  MULTIPLES OF $1,000 IN EXCESS
THEREOF.  ANY ATTEMPTED  TRANSFER OF THIS SECURITY IN A BLOCK HAVING A PRINCIPAL
AMOUNT OF LESS THAN  $100,000  SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER.  ANY SUCH PURPORTED  TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER
OF THIS SECURITY FOR ANY PURPOSE,  INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO
HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

     THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR
ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
CORPORATION  (THE  "FDIC").  THIS  OBLIGATION IS  SUBORDINATED  TO THE CLAIMS OF
DEPOSITORS  AND THE CLAIMS OF GENERAL AND SECURED  CREDITORS OF THE COMPANY,  IS
INELIGIBLE  AS COLLATERAL  FOR A LOAN BY THE COMPANY OR ANY OF ITS  SUBSIDIARIES
AND IS NOT SECURED.

                                      A-2
<PAGE>

               Form of Junior Subordinated Debt Security due 2033

                                       of

                     Weststar Financial Services Corporation

     Weststar   Financial   Services   Corporation,   a  bank  holding   company
incorporated in North Carolina (the "Company"),  for value received  promises to
pay to Wells Fargo Bank,  National  Association,  not in its individual capacity
but solely as Institutional  Trustee for Weststar Financial Services Corporation
I, a Delaware  statutory  trust  (the  "Holder"),  or  registered  assigns,  the
principal  sum of Four  Million One  Hundred  Twenty  Four  Thousand  Dollars on
October 7, 2033 and to pay interest on said principal sum from October 10, 2003,
or from the most recent  interest  payment  date (each such date,  an  "Interest
Payment Date") to which  interest has been paid or duly provided for,  quarterly
(subject to deferral as set forth herein) in arrears on January 7, April 7, July
7 and October 7 of each year commencing January 7, 2004, at a variable per annum
rate equal to LIBOR (as  defined  in the  Indenture)  plus 3.15% (the  "Interest
Rate") until the principal hereof shall have become due and payable,  and on any
overdue  principal  and (without  duplication  and to the extent that payment of
such interest is enforceable under applicable law) on any overdue installment of
interest  at an annual rate equal to the  Interest  Rate in effect for each such
Extension  Period  compounded  quarterly.  The amount of interest payable on any
Interest  Payment  Date shall be computed on the basis of a 360-day year and the
actual number of days elapsed in the relevant interest period. In the event that
any date on which the  principal or interest is payable on this Debt Security is
not a Business Day,  then payment  payable on such date will be made on the next
succeeding  day that is a Business Day,  except that, if such Business Day is in
the next succeeding calendar year, such payment shall be made on the immediately
preceding  Business  Day, in each case with the same force and effect as if made
on such date. The interest  installment so payable,  and punctually paid or duly
provided for, on any Interest  Payment Date will, as provided in the  Indenture,
be  paid  to the  Person  in  whose  name  this  Debt  Security  (or one or more
Predecessor Securities, as defined in said Indenture) is registered at the close
of business on the regular  record date for such  interest  installment,  except
that  interest and any Deferred  Interest  payable on the Maturity Date shall be
paid to the Person to whom principal is paid. Any such interest  installment not
punctually  paid or duly provided for shall forthwith cease to be payable to the
registered  holders on such regular record date and may be paid to the Person in
whose name this Debt Security (or one or more  Predecessor  Debt  Securities) is
registered at the close of business on a special  record date to be fixed by the
Trustee for the payment of such  defaulted  interest,  notice  whereof  shall be
given to the  registered  holders of the Debt  Securities  not less than 10 days
prior to such special  record date, all as more fully provided in the Indenture.
The  principal  of and  interest on this Debt  Security  shall be payable at the
office or agency of the Trustee (or other Paying Agent appointed by the Company)
maintained  for that  purpose in any coin or  currency  of the United  States of
America  that at the time of payment is legal  tender for  payment of public and
private debts;  provided,  however,  that payment of interest may be made at the
option of the Company by check mailed to the  registered  holder at such address
as shall appear in the Debt Security  Register or by wire transfer to an account
appropriately designated by the holder hereof. Notwithstanding the foregoing, so
long as the  holder of this Debt  Security  is the  Institutional  Trustee,  the
payment of the  principal of and interest on this Debt  Security will be made in
immediately  available  funds  at  such  place  and to  such  account  as may be
designated by the Trustee.

                                      A-3
<PAGE>

     Upon  submission of Notice (as defined in the  Indenture) and so long as no
Event of Default has  occurred  and is  continuing,  the Company  shall have the
right,  from time to time and  without  causing  an Event of  Default,  to defer
payments of interest on the Debt  Securities by extending  the interest  payment
period on the Debt  Securities at any time and from time to time during the term
of the Debt Securities,  for up to 20 consecutive  quarterly  periods (each such
extended interest payment period, an "Extension Period"), during which Extension
Period no interest shall be due and payable (except any Additional Interest that
may be due and payable).  During any Extension Period, interest will continue to
accrue on the Debt  Securities,  and  interest on such  accrued  interest  (such
accrued interest and interest thereon referred to herein as "Deferred Interest")
will accrue at an annual rate equal to the Interest Rate in effect for each such
Extension  Period,  compounded  quarterly  from the date such Deferred  Interest
would have been  payable  were it not for the  Extension  Period,  to the extent
permitted by law. No  Extension  Period may end on a date other than an Interest
Payment Date. At the end of any such Extension  Period the Company shall pay all
Deferred  Interest  then  accrued and unpaid on the Debt  Securities;  provided,
                                                                       ---------
however,  that no  Extension  Period may extend  beyond  the  Maturity  Date and
-------
provided,  further,  however,  during any such Extension Period, the Company may
--------   -------
not (i) declare or pay any dividends or distributions  on, or redeem,  purchase,
acquire,  or make a  liquidation  payment with respect to, any of the  Company's
capital  stock or (ii) make any  payment on or repay,  repurchase  or redeem any
debt  securities  of the Company  that rank pari passu in all  respects  with or
junior  in  interest  to  the  Debt  Securities  (other  than  (a)  repurchases,
redemptions or other  acquisitions of shares of capital stock of the Company (A)
in  connection  with any  employment  contract,  benefit  plan or other  similar
arrangement  with  or  for  the  benefit  of one or  more  employees,  officers,
directors or  consultants,  (B) in connection  with a dividend  reinvestment  or
stockholder  stock  purchase  plan or (C) in  connection  with the  issuance  of
capital stock of the Company (or securities  convertible into or exercisable for
such capital stock), as consideration in an acquisition transaction entered into
prior to the  applicable  Extension  Period,  (b) as a result of any exchange or
conversion of any class or series of the Company's capital stock (or any capital
stock of a subsidiary  of the Company) for any class or series of the  Company's
capital  stock or of any class or series of the Company's  indebtedness  for any
class or series of the Company's  capital stock,  (c) the purchase of fractional
interests in shares of the Company's capital stock pursuant to the conversion or
exchange  provisions  of such capital stock or the security  being  converted or
exchanged,   (d)  any   declaration  of  a  dividend  in  connection   with  any
stockholder's  rights plan, or the issuance of rights,  stock or other  property
under any  stockholder's  rights plan, or the redemption or repurchase of rights
pursuant thereto, or (e) any dividend in the form of stock, warrants, options or
other rights where the dividend  stock or the stock  issuable  upon  exercise of
such  warrants,  options or other  rights is the same stock as that on which the
dividend is being paid or ranks pari passu with or junior to such stock).  Prior
to the termination of any Extension Period,  the Company may further extend such
period,  provided,  that such period together with all such previous and further
         --------
consecutive  extensions  thereof  shall  not  exceed  20  consecutive  quarterly
periods,  or extend  beyond  the  Maturity  Date.  Upon the  termination  of any
Extension Period and upon the payment of all Deferred Interest,  the Company may
commence a new  Extension  Period,  subject to the  foregoing  requirements.  No
interest  or Deferred  Interest  shall be due and  payable  during an  Extension
Period,  except at the end thereof, but Deferred Interest shall accrue upon each
installment  of interest that would  otherwise  have been due and payable during
such Extension  Period until such installment is paid. The Company must give the
Trustee  notice of its  election  to begin  such  Extension  Period at least one

                                      A-4
<PAGE>

Business  Day  prior to the  earlier  of (i) the next  succeeding  date on which
interest on the Debt Securities  would have been payable except for the election
to begin such Extension Period or (ii) the date such interest is payable, but in
any event not later than the related regular record date.

     The indebtedness evidenced by this Debt Security is, to the extent provided
in the  Indenture,  subordinate  and  junior  in right of  payment  to the prior
payment in full of all Senior  Indebtedness,  and this Debt  Security  is issued
subject to the provisions of the Indenture with respect thereto.  Each holder of
this Debt  Security,  by accepting the same, (a) agrees to and shall be bound by
such provisions,  (b) authorizes and directs the Trustee on such holder's behalf
to take  such  action as may be  necessary  or  appropriate  to  acknowledge  or
effectuate  the  subordination  so provided  and (c)  appoints  the Trustee such
holder's  attorney-in-fact for any and all such purposes. Each holder hereof, by
such holder's  acceptance hereof,  hereby waives all notice of the acceptance of
the  subordination  provisions  contained  herein and in the  Indenture  by each
holder of Senior  Indebtedness,  whether now outstanding or hereafter  incurred,
and waives reliance by each such holder upon said provisions.

     The Company waives demand,  presentment for payment,  notice of nonpayment,
notice of protest, and all other notices.

     This Debt Security shall not be entitled to any benefit under the Indenture
hereinafter  referred  to and shall not be valid or  become  obligatory  for any
purpose until the certificate of authentication hereon shall have been signed by
or on behalf of the Trustee.

     The  provisions  of this Debt  Security  are  continued on the reverse side
hereof and such continued provisions shall for all purposes have the same effect
as though fully set forth at this place.

                                      A-5
<PAGE>

     IN WITNESS WHEREOF, the Company has duly executed this certificate.

                                      Weststar Financial Services Corporation

                                      By____________________________
                                      Name:_________________________
                                      Title:________________________

Dated:__________________, 2003

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                      Wells Fargo Bank, National Association,
                                      not in its individual capacity but solely
                                      as the Trustee

                                      By:_______________________________________
                                         Authorized Officer

Dated:__________________, 2003

                                      A-6
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

     This Debt Security is one of a duly authorized series of Debt Securities of
the  Company,  all  issued  or to  be  issued  pursuant  to  an  Indenture  (the
"Indenture"),  dated as of October 10, 2003, duly executed and delivered between
the  Company  and Wells  Fargo  Bank,  National  Association,  as  Trustee  (the
"Trustee"), to which Indenture and all indentures supplemental thereto reference
is  hereby  made  for a  description  of  the  rights,  limitations  of  rights,
obligations,  duties and immunities  thereunder of the Trustee,  the Company and
the holders of the Debt Securities (referred to herein as the "Debt Securities")
of which this Debt  Security  is a part.  The  summary of the terms of this Debt
Security  contained  herein does not purport to be complete  and is qualified by
reference to the Indenture.

     Upon the occurrence and continuation of a Tax Event, an Investment  Company
Event or a Capital Treatment Event (each a "Special Event"),  this Debt Security
may become due and  payable,  in whole or in part,  at any time,  within 90 days
following the occurrence of such Tax Event,  Investment Company Event or Capital
Treatment  Event (the  "Special  Redemption  Date"),  as the case may be, at the
Special  Redemption  Price. The Company shall also have the right to redeem this
Debt Security at the option of the Company,  in whole or in part, on any January
7, April 7, July 7 or October 7 on or after  October  7,  2008,  (a  "Redemption
Date"), at the Redemption Price.

     Any redemption pursuant to the preceding paragraph will be made, subject to
the receipt by the Company of prior  approval from the Board of Governors of the
Federal Reserve System (the "Federal Reserve") if then required under applicable
capital  guidelines  or policies of the Federal  Reserve,  upon not less than 30
days' nor more than 60 days' notice.  If the Debt  Securities are only partially
redeemed by the Company, the Debt Securities will be redeemed pro rata or by lot
or by any other method utilized by the Trustee.

     "Redemption  Price"  means  100%  of  the  principal  amount  of  the  Debt
Securities  being  redeemed  plus  accrued  and  unpaid  interest  on such  Debt
Securities  to the  Redemption  Date or, in the case of a redemption  due to the
occurrence of a Special Event,  to the Special  Redemption  Date if such Special
Redemption Date is on or after October 7, 2008.

     "Special  Redemption  Price"  means (1) if the Special  Redemption  Date is
before October 7, 2008, One Hundred Five Percent (105%) of the principal  amount
to be redeemed plus any accrued and unpaid interest  thereon to the date of such
redemption and (2) if the Special Redemption Date is on or after October 7, 2008
the Redemption Price for such Special Redemption Date.

     In the event of  redemption  of this Debt Security in part only, a new Debt
Security or Debt Securities for the unredeemed  portion hereof will be issued in
the name of the holder hereof upon the cancellation hereof.

     In case an Event of  Default,  as  defined  in the  Indenture,  shall  have
occurred and be continuing,  the principal of all of the Debt  Securities may be
declared due and payable, and upon such declaration of acceleration shall become
due and payable,  in the manner,  with the effect and subject to the  conditions
provided in the Indenture.

                                      A-7
<PAGE>

     The Indenture contains  provisions  permitting the Company and the Trustee,
with the  consent  of the  holders  of not less  than a  majority  in  aggregate
principal  amount  of the  Debt  Securities  at the  time  outstanding  affected
thereby, as specified in the Indenture,  to execute supplemental  indentures for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the  provisions of the Indenture or of any  supplemental  indenture or of
modifying  in any  manner  the  rights of the  holders  of the Debt  Securities;
provided,  however,  that no such  supplemental  indenture  shall,  among  other
things,  without  the  consent  of  the  holders  of  each  Debt  Security  then
outstanding  and  affected  thereby  (i) extend the fixed  maturity  of the Debt
Securities,  or reduce the principal  amount thereof or any  redemption  premium
thereon,  or reduce the rate or extend the time of payment of interest  thereon,
or make  payments  due on the Debt  Securities  payable in any coin or  currency
other than that provided in the Debt  Securities,  or impair or affect the right
of any holder of Debt Securities to institute suit for the payment  thereof,  or
(ii) reduce the aforesaid  percentage of Debt  Securities,  the holders of which
are required to consent to any such supplemental  indenture.  The Indenture also
contains provisions  permitting the holders of a majority in aggregate principal
amount of the Debt Securities at the time  outstanding,  on behalf of all of the
holders of the Debt Securities,  to waive any past default in the performance of
any of the covenants contained in the Indenture,  or established pursuant to the
Indenture, and its consequences,  except a default in payments due on any of the
Debt  Securities.  Any such consent or waiver by the  registered  holder of this
Debt Security  (unless revoked as provided in the Indenture) shall be conclusive
and binding upon such holder and upon all future holders and owners of this Debt
Security and of any Debt Security issued in exchange  herefor or in place hereof
(whether by registration  of transfer or otherwise),  irrespective of whether or
not any notation of such consent or waiver is made upon this Debt Security.

     No reference herein to the Indenture and no provision of this Debt Security
or of the Indenture  shall alter or impair the obligation of the Company,  which
is absolute and unconditional,  to pay all payments due on this Debt Security at
the time and place and at the rate and in the money herein prescribed.

     As provided in the Indenture and subject to certain  limitations herein and
therein set forth,  this Debt Security is transferable by the registered  holder
hereof on the Debt Security Register of the Company, upon surrender of this Debt
Security for  registration of transfer at the office or agency of the Trustee in
Wilmington,  Delaware  accompanied  by a written  instrument or  instruments  of
transfer in form satisfactory to the Company or the Trustee duly executed by the
registered  holder hereof or such holder's  attorney duly authorized in writing,
and thereupon one or more new Debt  Securities of authorized  denominations  and
for the  same  aggregate  principal  amount  will be  issued  to the  designated
transferee  or  transferees.  No  service  charge  will  be made  for  any  such
registration  of  transfer,  but  the  Company  may  require  payment  of a  sum
sufficient  to cover any tax or other  governmental  charge  payable in relation
thereto.

     Prior  to due  presentment  for  registration  of  transfer  of  this  Debt
Security,  the Company, the Trustee, any Authenticating Agent, any Paying Agent,
any  transfer  agent  and the Debt  Security  registrar  may deem and  treat the
registered  holder hereof as the absolute owner hereof (whether or not this Debt
Security shall be overdue and notwithstanding any notice of ownership or writing
hereon) for the purpose of receiving  payment of or on account of the  principal
hereof and  interest  due hereon and for all other  purposes,  and  neither  the
Company nor the Trustee nor any  Authenticating  Agent nor any Paying  Agent nor
any  transfer  agent nor any Debt  Security  registrar  shall be affected by any
notice to the contrary.

                                      A-8
<PAGE>

     No  recourse  shall  be had  for the  payment  of the  principal  of or the
interest on this Debt Security,  or for any claim based hereon,  or otherwise in
respect  hereof,  or  based  on or in  respect  of the  Indenture,  against  any
incorporator,  stockholder,  officer or director,  past,  present or future,  as
such, of the Company or of any predecessor or successor corporation,  whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise,  all such liability being, by the acceptance
hereof  and as part of the  consideration  for the  issuance  hereof,  expressly
waived and released.

     The Debt  Securities  are issuable  only in  registered  certificated  form
without coupons. As provided in the Indenture and subject to certain limitations
herein and  therein  set forth,  Debt  Securities  are  exchangeable  for a like
aggregate  principal  amount  of  Debt  Securities  of  a  different  authorized
denomination, as requested by the holder surrendering the same.

     All terms used in this Debt  Security  that are  defined  in the  Indenture
shall have the meanings assigned to them in the Indenture.

     THE LAW OF THE STATE OF NEW YORK SHALL  GOVERN THE  INDENTURE  AND THE DEBT
SECURITIES, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.EXHIBIT 10.3

                                      A-9
<PAGE>

                               GUARANTEE AGREEMENT

                     Weststar Financial Services Corporation

                          Dated as of October 10, 2003

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                                Table of Contents

                                                                                Page

                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

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SECTION 1.1.      Definitions and Interpretation...................................1

                                   ARTICLE II
               POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

SECTION 2.1.      Powers and Duties of the Guarantee Trustee.......................4

SECTION 2.2.      Certain Rights of the Guarantee Trustee..........................5

SECTION 2.3.      Not Responsible for Recitals or Issuance of Guarantee............7

SECTION 2.4.      Events of Default; Waiver........................................7

SECTION 2.5.      Events of Default; Notice........................................8

                                   ARTICLE III
                              THE GUARANTEE TRUSTEE

SECTION 3.1.      The Guarantee Trustee; Eligibility...............................8

SECTION 3.2.      Appointment, Removal and Resignation of the Guarantee Trustee....9

                                   ARTICLE IV
                                    GUARANTEE

SECTION 4.1.      Guarantee........................................................9

SECTION 4.2.      Waiver of Notice and Demand.....................................10

SECTION 4.3.      Obligations Not Affected........................................10

SECTION 4.4.      Rights of Holders...............................................11

SECTION 4.5.      Guarantee of Payment............................................11

SECTION 4.6.      Subrogation.....................................................11

SECTION 4.7.      Independent Obligations.........................................12

SECTION 4.8.      Enforcement.....................................................12

                                    ARTICLE V
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 5.1.      Limitation of Transactions......................................12

SECTION 5.2.      Ranking.........................................................13

                                   ARTICLE VI
                                   TERMINATION

SECTION 6.1.      Termination.....................................................13
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<PAGE>

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                                Table of Contents
                                   (continued)

                                   ARTICLE VII
                                 INDEMNIFICATION

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SECTION 7.1.      Exculpation.....................................................14

SECTION 7.2.      Indemnification.................................................14

SECTION 7.3.      Compensation; Reimbursement of Expenses.........................15

                                  ARTICLE VIII
                                  MISCELLANEOUS

SECTION 8.1.      Successors and Assigns..........................................16

SECTION 8.2.      Amendments......................................................16

SECTION 8.3.      Notices.........................................................16

SECTION 8.4.      Benefit.........................................................17

SECTION 8.5.      Governing Law...................................................17

SECTION 8.6.      Counterparts....................................................17
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                                      -ii-
<PAGE>

                               GUARANTEE AGREEMENT
                               -------------------

          This GUARANTEE  AGREEMENT (the  "Guarantee"),  dated as of October 10,
     2003, is executed and delivered by Weststar Financial Services Corporation,
     incorporated  in North  Carolina (the  "Guarantor"),  and Wells Fargo Bank,
     National  Association,  a national  banking  association with its principal
     place of  business in the State of  Delaware,  as trustee  (the  "Guarantee
     Trustee"),  for the benefit of the Holders (as defined herein) from time to
     time of the Capital  Securities (as defined  herein) of Weststar  Financial
     Services Corporation I, a Delaware statutory trust (the "Issuer").

          WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
     "Declaration"),  dated as of October 10,  2003,  among the  trustees  named
     therein of the Issuer, Weststar Financial Services Corporation, as sponsor,
     and the Holders from time to time of undivided  beneficial interests in the
     assets of the Issuer,  the Issuer is issuing on the date hereof securities,
     having an aggregate liquidation amount of up to $4,000,000,  designated the
     TP Securities (the "Capital Securities"); and

          WHEREAS,  as  incentive  for  the  Holders  to  purchase  the  Capital
     Securities, the Guarantor desires irrevocably and unconditionally to agree,
     to the extent set forth in this Guarantee, to pay to the Holders of Capital
     Securities the Guarantee  Payments (as defined  herein) and to make certain
     other payments on the terms and conditions set forth herein.

          NOW, THEREFORE, in consideration of the purchase by each Holder of the
     Capital  Securities,  which  purchase  the  Guarantor  hereby  agrees shall
     benefit the Guarantor,  the Guarantor  executes and delivers this Guarantee
     for the benefit of the Holders.

                                   ARTICLE I
                         DEFINITIONS AND INTERPRETATION

     SECTION 1.1. Definitions and Interpretation.
                  -------------------------------

          In this Guarantee, unless the context otherwise requires:

          (a)  capitalized  terms used in this  Guarantee but not defined in the
     preamble  above  have  the  respective  meanings  assigned  to them in this
     Section 1.1;

          (b) a term  defined  anywhere in this  Guarantee  has the same meaning
     throughout;

          (c) all references to "the Guarantee" or "this  Guarantee" are to this
     Guarantee as modified, supplemented or amended from time to time;

          (d) all  references in this  Guarantee to Articles and Sections are to
     Articles and Sections of this Guarantee, unless otherwise specified;

          (e) terms  defined in the  Declaration  as of the date of execution of
     this Guarantee have the same meanings when used in this  Guarantee,  unless
     otherwise  defined  in this  Guarantee  or  unless  the  context  otherwise
     requires; and

<PAGE>

          (f) a reference to the singular includes the plural and vice versa.

          "Beneficiaries"  means any Person to whom the  Issuer is or  hereafter
     becomes indebted or liable.

          "Corporate Trust Office" means the office of the Guarantee  Trustee at
     which the corporate  trust business of the Guarantee  Trustee shall, at any
     particular time, be principally  administered,  which office at the date of
     execution  of this  Guarantee is located at 919 Market  Street,  Suite 700,
     Wilmington, DE 19801.

          "Covered Person" means any Holder of Capital Securities.

          "Debentures"  means the junior  subordinated  debentures  of  Weststar
     Financial  Services  Corporation,  designated the Junior  Subordinated Debt
     Securities due 2033, held by the  Institutional  Trustee (as defined in the
     Declaration) of the Issuer.

          "Event of Default" has the meaning set forth in Section 2.4.

          "Guarantee  Payments" means the following  payments or  distributions,
     without duplication,  with respect to the Capital Securities, to the extent
     not paid or made by the Issuer:  (i) any  accrued and unpaid  Distributions
     (as  defined  in the  Declaration)  which are  required  to be paid on such
     Capital  Securities  to the extent the  Issuer has funds  available  in the
     Property  Account  (as defined in the  Declaration)  therefor at such time,
     (ii) the  Redemption  Price (as defined in the Indenture) to the extent the
     Issuer has funds available in the Property  Account  therefor at such time,
     with respect to any Capital Securities called for redemption by the Issuer,
     (iii) the Special  Redemption  Price (as defined in the  Indenture)  to the
     extent the Issuer has funds available in the Property  Account  therefor at
     such time,  with respect to Capital  Securities  called for redemption upon
     the occurrence of a Special Event (as defined in the  Indenture),  and (iv)
     upon a voluntary or  involuntary  liquidation,  dissolution,  winding-up or
     termination of the Issuer (other than in connection  with the  distribution
     of Debentures to the Holders of the Capital Securities in exchange therefor
     as provided in the  Declaration),  the lesser of (a) the  aggregate  of the
     liquidation amount and all accrued and unpaid  Distributions on the Capital
     Securities  to the date of  payment,  to the  extent  the  Issuer has funds
     available in the Property Account therefor at such time, and (b) the amount
     of assets of the Issuer remaining  available for distribution to Holders in
     liquidation of the Issuer after satisfaction of liabilities to creditors of
     the Issuer as required by applicable law (in either case, the  "Liquidation
     Distribution").

          "Guarantee  Trustee"  means Wells Fargo  Bank,  National  Association,
     until a Successor  Guarantee  Trustee has been  appointed  and has accepted
     such  appointment  pursuant to the terms of this  Guarantee and  thereafter
     means each such Successor Guarantee Trustee.

          "Holder"  means any holder,  as registered on the books and records of
     the  Issuer,  of  any  Capital  Securities;  provided,  however,  that,  in
     determining  whether the  holders of the  requisite  percentage  of Capital
     Securities  have given any request,  notice,  consent or waiver  hereunder,
     "Holder" shall not include the Guarantor or any Affiliate of the Guarantor.

          "Indemnified  Person"  means the Guarantee  Trustee  (including in its
     individual  capacity),  any  Affiliate  of the  Guarantee  Trustee,  or any

                                      -2-
<PAGE>

     officers,   directors,   shareholders,    members,   partners,   employees,
     representatives, nominees, custodians or agents of the Guarantee Trustee.

          "Indenture" means the Indenture, dated as of October 10, 2003, between
     the  Guarantor  and Wells  Fargo  Bank,  National  Association,  not in its
     individual capacity but solely as trustee,  and any indenture  supplemental
     thereto  pursuant  to  which  the  Debentures  are  to  be  issued  to  the
     Institutional Trustee of the Issuer.

          "Liquidation Distribution" has the meaning set forth in the definition
     of "Guarantee Payments" herein.

          "Majority  in  liquidation  amount of the  Capital  Securities"  means
     Holder(s) of outstanding  Capital  Securities,  voting together as a class,
     but separately from the holders of Common  Securities,  of more than 50% of
     the aggregate liquidation amount (including the stated amount that would be
     paid on  redemption,  liquidation  or  otherwise,  plus  accrued and unpaid
     Distributions to, but excluding, the date upon which the voting percentages
     are determined) of all Capital Securities then outstanding.

          "Obligations"  means  any  costs,  expenses  or  liabilities  (but not
     including   liabilities  related  to  taxes)  of  the  Issuer,  other  than
     obligations  of the Issuer to pay to holders  of any Trust  Securities  the
     amounts due such holders pursuant to the terms of the Trust Securities.

          "Officer's   Certificate"   means,  with  respect  to  any  Person,  a
     certificate  signed by one Authorized Officer of such Person. Any Officer's
     Certificate  delivered  with  respect to  compliance  with a  condition  or
     covenant provided for in this Guarantee shall include:

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

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

          (c) 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

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

          "Person" means 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.

          "Responsible  Officer" means,  with respect to the Guarantee  Trustee,
     any officer within the Corporate Trust Office of the Guarantee Trustee with
     direct  responsibility  for the  administration  of any matters relating to
     this Guarantee, including any vice president, any assistant vice president,

                                      -3-
<PAGE>

     any  secretary,  any  assistant  secretary,  the  treasurer,  any assistant
     treasurer, any trust officer or other officer of the Corporate Trust Office
     of the Guarantee Trustee customarily  performing functions similar to those
     performed  by any of the above  designated  officers  and also means,  with
     respect to a particular  corporate trust matter,  any other officer to whom
     such  matter  is  referred  because  of  that  officer's  knowledge  of and
     familiarity with the particular subject.

          "Successor  Guarantee  Trustee"  means a successor  Guarantee  Trustee
     possessing  the  qualifications  to act as Guarantee  Trustee under Section
     3.1.

          "Trust  Securities"  means  the  Common  Securities  and  the  Capital
     Securities.

                                   ARTICLE II
               POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

          SECTION 2.1. Powers and Duties of the Guarantee Trustee.
                       ------------------------------------------

          (a) This  Guarantee  shall be held by the  Guarantee  Trustee  for the
     benefit of the Holders of the Capital Securities, and the Guarantee Trustee
     shall not transfer this  Guarantee to any Person except a Holder of Capital
     Securities  exercising his or her rights pursuant to Section 4.4(b) or to a
     Successor  Guarantee  Trustee on  acceptance  by such  Successor  Guarantee
     Trustee of its  appointment  to act as  Successor  Guarantee  Trustee.  The
     right, title and interest of the Guarantee Trustee shall automatically vest
     in any Successor Guarantee Trustee, and such vesting and cessation of title
     shall be effective whether or not conveyancing documents have been executed
     and  delivered  pursuant to the  appointment  of such  Successor  Guarantee
     Trustee.

          (b) If an Event of Default actually known to a Responsible  Officer of
     the Guarantee Trustee has occurred and is continuing, the Guarantee Trustee
     shall enforce this  Guarantee for the benefit of the Holders of the Capital
     Securities.

          (c) The  Guarantee  Trustee,  before  the  occurrence  of any Event of
     Default  and after the curing or waiving of all Events of Default  that may
     have  occurred,  shall  undertake  to  perform  only  such  duties  as  are
     specifically set forth in this Guarantee, and no implied covenants shall be
     read into this Guarantee against the Guarantee Trustee. In case an Event of
     Default has occurred (that has not been cured or waived pursuant to Section
     2.4(b)) and is actually  known to a  Responsible  Officer of the  Guarantee
     Trustee, the Guarantee Trustee shall exercise such of the rights and powers
     vested in it by this  Guarantee,  and use the same degree of care and skill
     in its exercise  thereof,  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  Guarantee  shall be construed to relieve the
     Guarantee  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 any Event of Default and after the
          curing or waiving of all Events of Default that may have occurred:

                                      -4-
<PAGE>

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

               (B) in the  absence  of bad  faith on the  part of the  Guarantee
          Trustee,  the Guarantee 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 Guarantee
          Trustee and conforming to the  requirements of this Guarantee;  but in
          the  case  of any  such  certificates  or  opinions  furnished  to the
          Guarantee  Trustee,  the  Guarantee  Trustee  shall be under a duty to
          examine  the  same to  determine  whether  or not on their  face  they
          conform to the requirements of this Guarantee;

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

          (iii) the  Guarantee  Trustee  shall not be liable with respect to any
     action taken or omitted to be taken by it in good faith in accordance  with
     the  written  direction  of the  Holders  of not less  than a  Majority  in
     liquidation amount of the Capital  Securities  relating to the time, method
     and place of  conducting  any  proceeding  for any remedy  available to the
     Guarantee  Trustee,  or exercising  any trust or power  conferred  upon the
     Guarantee Trustee under this Guarantee; and

          (iv) no  provision  of this  Guarantee  shall  require  the  Guarantee
     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 the  Guarantee  Trustee  shall
     have  reasonable  grounds for believing that the repayment of such funds is
     not reasonably assured to it under the terms of this Guarantee, or security
     and indemnity,  reasonably  satisfactory to the Guarantee Trustee,  against
     such risk or liability is not reasonably assured to it.

          SECTION 2.2. Certain Rights of the Guarantee Trustee.
                       ----------------------------------------

          (a) Subject to the provisions of Section 2.1:

               (i) The Guarantee  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.

                                      -5-
<PAGE>

               (ii) Any direction or act of the Guarantor  contemplated  by this
          Guarantee shall be sufficiently evidenced by an Officer's Certificate.

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

               (iv)  The  Guarantee  Trustee  shall  have  no duty to see to any
          recording,  filing or  registration of any instrument or other writing
          (or any rerecording, refiling or reregistration thereof).

               (v)  The  Guarantee  Trustee  may  consult  with  counsel  of its
          selection,  and the advice or opinion of such  counsel with respect to
          legal matters 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  Guarantor  or any of its  Affiliates  and may
          include any of its  employees.  The  Guarantee  Trustee shall have the
          right at any time to seek instructions  concerning the  administration
          of this Guarantee from any court of competent jurisdiction.

               (vi) The  Guarantee  Trustee  shall be  under  no  obligation  to
          exercise any of the rights or powers vested in it by this Guarantee at
          the request or direction of any Holder,  unless such Holder shall have
          provided  to  the  Guarantee  Trustee  such  security  and  indemnity,
          reasonably  satisfactory to the Guarantee Trustee,  against the costs,
          expenses  (including  attorneys' fees and expenses and the expenses of
          the  Guarantee   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 Guarantee Trustee;  provided,  however,  that nothing
          contained  in this  Section  2.2(a)(vi)  shall be taken to relieve the
          Guarantee Trustee,  upon the occurrence of an Event of Default, of its
          obligation  to  exercise  the rights  and powers  vested in it by this
          Guarantee.

               (vii)  The  Guarantee  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 Guarantee Trustee, in
          its discretion,  may make such further inquiry or  investigation  into
          such facts or matters as it may see fit.

                                      -6-
<PAGE>

               (viii) The  Guarantee  Trustee  may  execute any of the trusts or
          powers hereunder or perform any duties hereunder either directly or by
          or  through  agents,  nominees,   custodians  or  attorneys,  and  the
          Guarantee  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  Guarantee  Trustee  or its agents
          hereunder  shall bind the Holders of the Capital  Securities,  and the
          signature  of the  Guarantee  Trustee  or its  agents  alone  shall be
          sufficient  and  effective to perform any such action.  No third party
          shall be  required  to inquire as to the  authority  of the  Guarantee
          Trustee  to so act or as to its  compliance  with any of the terms and
          provisions  of this  Guarantee,  both of which  shall be  conclusively
          evidenced  by the  Guarantee  Trustee's  or its  agent's  taking  such
          action.

               (x)  Whenever  in  the   administration  of  this  Guarantee  the
          Guarantee Trustee shall deem it desirable to receive instructions with
          respect to  enforcing  any remedy or right or taking any other  action
          hereunder, the Guarantee Trustee (A) may request instructions from the
          Holders of a Majority in liquidation amount of the Capital Securities,
          (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) The  Guarantee  Trustee  shall not be liable  for any action
          taken,  suffered,  or  omitted  to be  taken by it in good  faith  and
          reasonably believed by it to be authorized or within the discretion or
          rights or powers conferred upon it by this Guarantee.

          (b) No provision of this Guarantee  shall be deemed to impose any duty
     or  obligation  on the  Guarantee  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 Guarantee
     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
     Guarantee Trustee shall be construed to be a duty.

          SECTION 2.3. Not Responsible for Recitals or Issuance of Guarantee.
                       -----------------------------------------------------

          The  recitals  contained  in this  Guarantee  shall  be  taken  as the
     statements of the Guarantor,  and the Guarantee Trustee does not assume any
     responsibility  for  their  correctness.  The  Guarantee  Trustee  makes no
     representation as to the validity or sufficiency of this Guarantee.

          SECTION 2.4. Events of Default; Waiver.
                       -------------------------

          (a) An Event of  Default  under  this  Guarantee  will  occur upon the
     failure of the Guarantor to perform any of its payment or other obligations
     hereunder.

          (b) The  Holders of a Majority  in  liquidation  amount of the Capital
     Securities  may,  voting or consenting as a class, on behalf of the Holders
     of all of the Capital  Securities,  waive any past Event of Default and its
     consequences.  Upon such waiver,  any such Event of Default  shall cease to
     exist,  and shall be deemed to have been cured,  for every  purpose of this
     Guarantee,  but no such  waiver  shall  extend to any  subsequent  or other
     default or Event of Default or impair any right consequent thereon.

                                      -7-
<PAGE>

          SECTION 2.5. Events of Default; Notice.
                       --------------------------

          (a) The Guarantee  Trustee shall,  within 90 days after the occurrence
     of an Event of Default,  transmit by mail, first class postage prepaid,  to
     the  Holders of the  Capital  Securities,  notices of all Events of Default
     actually known to a Responsible  Officer of the Guarantee  Trustee,  unless
     such defaults  have been cured before the giving of such notice,  provided,
                                                                       ---------
     however,  that the Guarantee Trustee shall be protected in withholding such
     -------
     notice if and so long as a Responsible  Officer of the Guarantee Trustee in
     good  faith  determines  that  the  withholding  of such  notice  is in the
     interests of the Holders of the Capital Securities.

          (b) The Guarantee  Trustee shall not be charged with  knowledge of any
     Event of Default unless the Guarantee  Trustee shall have received  written
     notice thereof from the Guarantor or a Holder of the Capital Securities, or
     a  Responsible   Officer  of  the  Guarantee   Trustee   charged  with  the
     administration of this Guarantee shall have actual knowledge thereof.

                                   ARTICLE III
                              THE GUARANTEE TRUSTEE

          SECTION 3.1. The Guarantee Trustee; Eligibility.
                       ----------------------------------

          (a) There shall at all times be a Guarantee Trustee which shall:

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

               (ii) be a corporation or national association organized and doing
          business  under the laws of the United  States of America or any state
          or  territory  thereof  or of the  District  of  Columbia,  or  Person
          authorized under such laws to exercise corporate trust powers,  having
          a combined  capital  and surplus of at least 50 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 or national association  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
          purposes of this Section 3.1(a)(ii),  the combined capital and surplus
          of such corporation or national  association 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 Guarantee Trustee shall cease to be eligible to
     so act under Section 3.1(a), the Guarantee Trustee shall immediately resign
     in the manner and with the effect set forth in Section 3.2(c).

                                      -8-
<PAGE>

          (c) If the  Guarantee  Trustee has or shall  acquire any  "conflicting
     interest'  within the meaning of Section 310(b) of the Trust Indenture Act,
     the Guarantee Trustee shall either eliminate such interest or resign to the
     extent and in the manner provided by, and subject to, this Guarantee.

          SECTION 3.2.  Appointment,  Removal and  Resignation  of the Guarantee
                        --------------------------------------------------------
     Trustee.
     -------

          (a) Subject to Section 3.2(b),  the Guarantee Trustee may be appointed
     or removed  without  cause at any time by the  Guarantor  except  during an
     Event of Default.

          (b) The  Guarantee  Trustee  shall not be removed in  accordance  with
     Section 3.2(a) until a Successor  Guarantee  Trustee has been appointed and
     has  accepted  such  appointment  by written  instrument  executed  by such
     Successor Guarantee Trustee and delivered to the Guarantor.

          (c) The Guarantee  Trustee appointed to office shall hold office until
     a  Successor  Guarantee  Trustee  shall  have been  appointed  or until its
     removal or  resignation.  The  Guarantee  Trustee  may resign  from  office
     (without  need for prior or  subsequent  accounting)  by an  instrument  in
     writing  executed by the Guarantee  Trustee and delivered to the Guarantor,
     which resignation shall not take effect until a Successor Guarantee Trustee
     has been  appointed and has accepted such  appointment  by an instrument in
     writing executed by such Successor  Guarantee  Trustee and delivered to the
     Guarantor and the resigning Guarantee Trustee.

          (d) If no Successor  Guarantee  Trustee shall have been  appointed and
     accepted  appointment  as provided in this Section 3.2 within 60 days after
     delivery of an instrument of removal or resignation,  the Guarantee Trustee
     resigning or being removed may petition any court of competent jurisdiction
     for appointment of a Successor Guarantee Trustee. Such court may thereupon,
     after  prescribing  such notice,  if any, as it may deem proper,  appoint a
     Successor Guarantee Trustee.

          (e) No Guarantee  Trustee shall be liable for the acts or omissions to
     act of any Successor Guarantee Trustee.

          (f) Upon  termination  of this  Guarantee or removal or resignation of
     the Guarantee Trustee pursuant to this Section 3.2, the Guarantor shall pay
     to the Guarantee  Trustee all amounts owing to the Guarantee  Trustee under
     Sections  7.2 and 7.3 accrued to the date of such  termination,  removal or
     resignation.

                                   ARTICLE IV
                                    GUARANTEE

          SECTION 4.1. Guarantee.
                       ----------

          (a) The Guarantor  irrevocably  and  unconditionally  agrees to pay in
     full to the Holders the Guarantee Payments (without  duplication of amounts
     theretofore paid by the Issuer), as and when due, regardless of any defense
     (except  as  defense  of  payment  by the  Issuer),  right  of  set-off  or
     counterclaim that the Issuer may have or assert. The Guarantor's obligation

                                      -9-
<PAGE>

     to make a  Guarantee  Payment  may be  satisfied  by direct  payment of the
     required  amounts by the  Guarantor to the Holders or by causing the Issuer
     to pay such amounts to the Holders.

          (b) The Guarantor hereby also agrees to assume any and all Obligations
     of the  Issuer  and in the event  any such  Obligation  is not so  assumed,
     subject  to  the  terms  and  conditions   hereof,   the  Guarantor  hereby
     irrevocably  and  unconditionally  guarantees to each  Beneficiary the full
     payment, when and as due, of any and all Obligations to such Beneficiaries.
     This  Guarantee is intended to be for the  Beneficiaries  who have received
     notice hereof.

          SECTION 4.2. Waiver of Notice and Demand.
                       ---------------------------

          The Guarantor hereby waives notice of acceptance of this Guarantee and
     of any liability to which it applies or may apply, presentment,  demand for
     payment,  any right to require a proceeding first against the Issuer or any
     other Person before proceeding  against the Guarantor,  protest,  notice of
     nonpayment,  notice of dishonor, notice of redemption and all other notices
     and demands.

          SECTION 4.3. Obligations Not Affected.
                       ------------------------

          The  obligations,  covenants,  agreements  and duties of the Guarantor
     under this  Guarantee  shall in no way be affected or impaired by reason of
     the happening from time to time of any of the following:

          (a) the release or waiver,  by operation of law or  otherwise,  of the
     performance  or  observance  by  the  Issuer  of  any  express  or  implied
     agreement,  covenant,  term or condition relating to the Capital Securities
     to be performed or observed by the Issuer;

          (b) the  extension of time for the payment by the Issuer of all or any
     portion of the Distributions,  Redemption Price,  Special Redemption Price,
     Liquidation  Distribution  or any other sums payable under the terms of the
     Capital  Securities  or the  extension of time for the  performance  of any
     other obligation under,  arising out of, or in connection with, the Capital
     Securities  (other  than an  extension  of  time  for  the  payment  of the
     Distributions,  Redemption Price,  Special  Redemption  Price,  Liquidation
     Distribution  or other sums payable that results from the  extension of any
     interest  payment period on the Debentures or any extension of the maturity
     date of the Debentures permitted by the Indenture);

          (c) any failure,  omission,  delay or lack of diligence on the part of
     the Holders to enforce, assert or exercise any right,  privilege,  power or
     remedy  conferred  on the  Holders  pursuant  to the  terms of the  Capital
     Securities,  or any action on the part of the Issuer granting indulgence or
     extension of any kind;

          (d) the voluntary or involuntary liquidation, dissolution, sale of any
     collateral,  receivership,   insolvency,  bankruptcy,  assignment  for  the
     benefit  of  creditors,   reorganization,   arrangement,   composition   or
     readjustment of debt of, or other similar proceedings affecting, the Issuer
     or any of the assets of the Issuer;

                                      -10-
<PAGE>

          (e) any  invalidity  of, or  defect  or  deficiency  in,  the  Capital
     Securities;

          (f) the settlement or compromise of any obligation  guaranteed  hereby
     or hereby incurred; or

          (g) any other circumstance  whatsoever that might otherwise constitute
     a legal or  equitable  discharge  or defense of a  guarantor,  it being the
     intent of this Section 4.3 that the obligations of the Guarantor  hereunder
     shall be absolute and unconditional under any and all circumstances.

          There  shall be no  obligation  of the  Holders to give  notice to, or
     obtain  consent of, the  Guarantor  with respect to the happening of any of
     the foregoing.

               SECTION 4.4. Rights of Holders.
                            ------------------
          (a) The  Holders of a Majority  in  liquidation  amount of the Capital
     Securities  have  the  right  to  direct  the  time,  method  and  place of
     conducting any proceeding for any remedy available to the Guarantee Trustee
     in respect of this  Guarantee  or to direct  the  exercise  of any trust or
     power conferred upon the Guarantee Trustee under this Guarantee;  provided,
     however,  that  (subject  to  Sections  2.1 and 2.2)  --------  ------- the
     Guarantee  Trustee  shall  have the right to  decline  to  follow  any such
     direction if the  Guarantee  Trustee  shall  determine  that the actions so
     directed  would be unjustly  prejudicial  to the Holders not taking part in
     such  direction or if the Guarantee  Trustee being advised by legal counsel
     determines  that the action or  proceeding  so directed may not lawfully be
     taken or if the  Guarantee  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  Guarantee  Trustee in personal
     liability.

          (b) Any Holder of Capital  Securities may institute a legal proceeding
     directly  against the Guarantor to enforce the Guarantee  Trustee's  rights
     under this Guarantee,  without first instituting a legal proceeding against
     the Issuer, the Guarantee Trustee or any other Person. The Guarantor waives
     any right or remedy  to  require  that any such  action  be  brought  first
     against the Issuer,  the  Guarantee  Trustee or any other Person  before so
     proceeding directly against the Guarantor.

               SECTION 4.5. Guarantee of Payment.
                            --------------------

          This Guarantee creates a guarantee of payment and not of collection.

               SECTION 4.6. Subrogation.
                            ------------

          The  Guarantor  shall  be  subrogated  to all (if any)  rights  of the
     Holders of Capital  Securities against the Issuer in respect of any amounts
     paid to such  Holders  by the  Guarantor  under this  Guarantee;  provided,
     however,  that the  Guarantor  shall not  (except  to the  extent  --------
     ------- required by applicable provisions of law) be entitled to enforce or
     exercise  any  right  that  it may  acquire  by way of  subrogation  or any
     indemnity,  reimbursement or other  agreement,  in all cases as a result of
     payment under this Guarantee, if, after giving effect to any such

                                      -11-
<PAGE>

     payment, any amounts are due and unpaid under this Guarantee. If any amount
     shall be paid to the Guarantor in violation of the preceding sentence,  the
     Guarantor  agrees to hold such  amount in trust for the  Holders and to pay
     over such amount to the Holders.

               SECTION 4.7. Independent Obligations.
                            -----------------------

          The  Guarantor   acknowledges  that  its  obligations   hereunder  are
     independent  of the  obligations  of the Issuer with respect to the Capital
     Securities  and that the  Guarantor  shall be  liable as  principal  and as
     debtor hereunder to make Guarantee  Payments  pursuant to the terms of this
     Guarantee  notwithstanding  the  occurrence  of any  event  referred  to in
     subsections (a) through (g), inclusive, of Section 4.3 hereof.

               SECTION 4.8. Enforcement.
                            ------------

          A Beneficiary may enforce the  Obligations of the Guarantor  contained
     in Section 4.1 (b) directly against the Guarantor, and the Guarantor waives
     any right or remedy to  require  that any  action be  brought  against  the
     Issuer  or any  other  person  or  entity  before  proceeding  against  the
     Guarantor.

          The  Guarantor  shall  be  subrogated  to all  rights  (if any) of any
     Beneficiary  against  the  Issuer in  respect  of any  amounts  paid to the
     Beneficiaries  by the Guarantor  under this Guarantee;  provided,  however,
                                                             --------   --------
     that the Guarantor  shall not (except to the extent  required by applicable
     provisions  of law) be entitled  to enforce or exercise  any rights that it
     may acquire by way of subrogation or any indemnity,  reimbursement or other
     agreement,  in all cases as a result of payment under this  Guarantee,  if,
     after giving effect to such  payment,  any amounts are due and unpaid under
     this Guarantee.

                                    ARTICLE V
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

               SECTION 5.1. Limitation of Transactions.
                            --------------------------

          So long as any Capital  Securities  remain  outstanding,  if (a) there
     shall  have  occurred  and be  continuing  an Event of  Default  or (b) the
     Guarantor  shall have  selected  an  Extension  Period as  provided  in the
     Declaration and such period, or any extension thereof, shall have commenced
     and be  continuing,  then  the  Guarantor  may not (x)  declare  or pay any
     dividends or  distributions  on, or redeem,  purchase,  acquire,  or make a
     liquidation  payment with respect to, any of the Guarantor's  capital stock
     or (y) make any payment of principal of or interest or premium,  if any, on
     or repay,  repurchase or redeem any debt  securities of the Guarantor  that
     rank  pari  passu  in all  respects  with  or  junior  in  interest  to the
     Debentures (other than (i) payments under this Guarantee, (ii) repurchases,
     redemptions  or  other  acquisitions  of  shares  of  capital  stock of the
     Guarantor (A) in connection with any employment  contract,  benefit plan or
     other similar arrangement with or for the benefit of one or more employees,
     officers,  directors,  or  consultants,  (B) in connection  with a dividend
     reinvestment  or stockholder  stock purchase plan or (C) in connection with
     the issuance of capital stock of the Guarantor (or  securities  convertible
     into or  exercisable  for  such  capital  stock),  as  consideration  in an
     acquisition  transaction  entered into prior to the occurrence of the Event
     of Default or the applicable Extension Period, (iii) as a result

                                      -12-
<PAGE>

     of any exchange,  reclassification,  combination or conversion of any class
     or series of the  Guarantor's  capital  stock  (or any  capital  stock of a
     subsidiary  of the  Guarantor)  for any class or series of the  Guarantor's
     capital stock or of any class or series of the Guarantor's indebtedness for
     any class or series of the Guarantor's  capital stock, (iv) the purchase of
     fractional interests in shares of the Guarantor's capital stock pursuant to
     the conversion or exchange provisions of such capital stock or the security
     being  converted  or  exchanged,  (v)  any  declaration  of a  dividend  in
     connection with any  stockholder's  rights plan, or the issuance of rights,
     stock or  other  property  under  any  stockholder's  rights  plan,  or the
     redemption or repurchase of rights pursuant  thereto,  or (vi) any dividend
     in the form of stock, warrants,  options or other rights where the dividend
     stock or the stock  issuable  upon  exercise of such  warrants,  options or
     other  rights is the same stock as that on which the dividend is being paid
     or ranks pari passu with or junior to such stock).

               SECTION 5.2. Ranking.
                            -------

          This  Guarantee  will  constitute  an  unsecured   obligation  of  the
     Guarantor and will rank  subordinate  and junior in right of payment to all
     present and future Senior Indebtedness (as defined in the Indenture) of the
     Guarantor.  By their acceptance thereof,  each Holder of Capital Securities
     agrees to the foregoing  provisions  of this  Guarantee and the other terms
     set forth herein.

          The right of the  Guarantor  to  participate  in any  distribution  of
     assets of any of its subsidiaries upon any such subsidiary's liquidation or
     reorganization  or otherwise is subject to the prior claims of creditors of
     that  subsidiary,  except  to  the  extent  the  Guarantor  may  itself  be
     recognized as a creditor of that subsidiary.  Accordingly,  the Guarantor's
     obligations  under this Guarantee will be effectively  subordinated  to all
     existing  and  future  liabilities  of the  Guarantor's  subsidiaries,  and
     claimants  should  look only to the assets of the  Guarantor  for  payments
     thereunder.  This  Guarantee  does not limit the  incurrence or issuance of
     other  secured  or  unsecured  debt  of  the  Guarantor,  including  Senior
     Indebtedness  of the  Guarantor,  under any indenture or agreement that the
     Guarantor may enter into in the future or otherwise.

                                   ARTICLE VI
                                   TERMINATION

               SECTION 6.1. Termination.
                            -----------

          This Guarantee shall  terminate as to the Capital  Securities (i) upon
     full payment of the Redemption  Price or the Special  Redemption  Price, as
     the case may be, of all Capital Securities then outstanding,  (ii) upon the
     distribution  of all of the Debentures to the Holders of all of the Capital
     Securities or (iii) upon full payment of the amounts  payable in accordance
     with the Declaration  upon  dissolution of the Issuer.  This Guarantee will
     continue to be effective or will be  reinstated,  as the case may be, if at
     any time any Holder of Capital  Securities must restore payment of any sums
     paid under the Capital Securities or under this Guarantee.

                                      -13-
<PAGE>

                                  ARTICLE VII
                                 INDEMNIFICATION

               SECTION 7.1. Exculpation.
                            ------------

          (a) No Indemnified Person shall be liable,  responsible or accountable
     in damages or  otherwise  to the  Guarantor  or any Covered  Person for any
     loss,  damage or claim  incurred  by reason of any act or  omission of such
     Indemnified Person in good faith in accordance with this Guarantee 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
     Guarantee 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  negligence  or willful  misconduct  with  respect to such acts or
     omissions.

          (b) An Indemnified  Person shall be fully protected in relying in good
     faith  upon the  records  of the  Issuer  or the  Guarantor  and upon  such
     information, opinions, reports or statements presented to the Issuer or the
     Guarantor  by any Person as to matters the  Indemnified  Person  reasonably
     believes are within such other Person's  professional or expert  competence
     and who, if selected by such  Indemnified  Person,  has been  selected with
     reasonable  care  by  such  Indemnified  Person,   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  Capital
     Securities might properly be paid.

               SECTION 7.2. Indemnification.
                            ---------------

          (a) The Guarantor agrees to indemnify each Indemnified Person for, and
     to hold  each  Indemnified  Person  harmless  against,  any  and all  loss,
     liability,  damage, claim or expense incurred without negligence or willful
     misconduct  on the part of the  Indemnified  Person,  arising  out of or in
     connection  with the  acceptance or  administration  of the trust or trusts
     hereunder,  including but not limited to the costs and expenses  (including
     reasonable  legal fees and expenses) of the  Indemnified  Person  defending
     itself against, or investigating, any claim or liability in connection with
     the exercise or performance of any of the  Indemnified  Person's  powers or
     duties hereunder.  The obligation to indemnify as set forth in this Section
     7.2 shall survive the  resignation or removal of the Guarantee  Trustee and
     the termination of this Guarantee.

          (b) Promptly after receipt by an Indemnified Person under this Section
     7.2 of notice of the commencement of any action,  such  Indemnified  Person
     will,  if a claim in respect  thereof is to be made  against the  Guarantor
     under this Section 7.2, notify the Guarantor in writing of the commencement
     thereof;  but the failure so to notify the  Guarantor  (i) will not relieve
     the Guarantor  from liability  under  paragraph (a) above unless and to the
     extent that the Guarantor  did not otherwise  learn of such action and such
     failure  results in the forfeiture by the Guarantor of  substantial  rights
     and defenses and (ii) will not, in any event,  relieve the  Guarantor  from
     any  obligations to any Indemnified  Person other than the  indemnification
     obligation provided in paragraph (a) above. The Guarantor shall be entitled
     to appoint counsel of the Guarantor's choice at the Guarantor's  expense to

                                      -14-
<PAGE>

     represent the Indemnified Person in any action for which indemnification is
     sought (in which case the Guarantor shall not thereafter be responsible for
     the fees and expenses of any separate  counsel  retained by the Indemnified
     Person or Persons except as set forth below); provided,  however, that such
                                                   --------   -------
     counsel shall be satisfactory to the  Indemnified  Person.  Notwithstanding
     the  Guarantor's  election to appoint  counsel to represent the Indemnified
     Person in any action, the Indemnified Person shall have the right to employ
     separate counsel  (including  local counsel),  and the Guarantor shall bear
     the reasonable fees, costs and expenses of such separate counsel (and local
     counsel),  if (i) the use of counsel  chosen by the  Guarantor to represent
     the  Indemnified  Person  would  present  such  counsel  with a conflict of
     interest,  (ii) the actual or potential  defendants  in, or targets of, any
     such action include both the  Indemnified  Person and the Guarantor and the
     Indemnified Person shall have reasonably  concluded that there may be legal
     defenses  available  to it  and/or  other  Indemnified  Persons  which  are
     different from or additional to those available to the Guarantor, (iii) the
     Guarantor shall not have employed  counsel  satisfactory to the Indemnified
     Person to represent the  Indemnified  Person within a reasonable time after
     notice  of the  institution  of such  action  or (iv) the  Guarantor  shall
     authorize the Indemnified  Person to employ separate counsel at the expense
     of the Guarantor. The Guarantor will not, without the prior written consent
     of the Indemnified Persons, settle or compromise or consent to the entry of
     any judgment with respect to any pending or threatened claim,  action, suit
     or proceeding in respect of which  indemnification  or contribution  may be
     sought  hereunder  (whether  or not the  Indemnified  Persons are actual or
     potential  parties  to  such  claim  or  action)  unless  such  settlement,
     compromise or consent includes an unconditional release of each Indemnified
     Person  from all  liability  arising  out of such  claim,  action,  suit or
     proceeding.

               SECTION 7.3. Compensation; Reimbursement of Expenses.
                            ---------------------------------------

          The Guarantor agrees:

          (a)  to  pay  to  the  Guarantee   Trustee  from  time  to  time  such
     compensation for all services rendered by it hereunder as the parties shall
     agree to 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); and

          (b) except as otherwise  expressly  provided herein,  to reimburse the
     Guarantee Trustee upon request for all reasonable  expenses,  disbursements
     and advances  incurred or made by it in  accordance  with any  provision of
     this Guarantee (including the reasonable  compensation and the expenses and
     disbursements  of  its  agents  and  counsel),  except  any  such  expense,
     disbursement or advance as may be attributable to its negligence or willful
     misconduct.

          The  provisions of this Section 7.3 shall survive the  resignation  or
     removal of the Guarantee Trustee and the termination of this Guarantee.

                                      -15-
<PAGE>

                                  ARTICLE VIII
                                  MISCELLANEOUS

               SECTION 8.1. Successors and Assigns.
                            ----------------------

          All guarantees and agreements  contained in this Guarantee  shall bind
     the successors,  assigns,  receivers,  trustees and  representatives of the
     Guarantor  and shall  inure to the  benefit of the  Holders of the  Capital
     Securities  then  outstanding.  Except  in  connection  with any  merger or
     consolidation  of the  Guarantor  with or into another  entity or any sale,
     transfer or lease of the Guarantor's assets to another entity, in each case
     to the extent  permitted under the Indenture,  the Guarantor may not assign
     its rights or delegate its  obligations  under this  Guarantee  without the
     prior  approval of the  Holders of not less than a Majority in  liquidation
     amount of the Capital Securities.

               SECTION 8.2. Amendments.
                            ----------

          Except with  respect to any changes that do not  adversely  affect the
     rights of Holders of the Capital  Securities  in any  material  respect (in
     which case no consent of Holders will be required),  this  Guarantee may be
     amended  only with the prior  approval  of the  Holders  of not less than a
     Majority in liquidation amount of the Capital Securities. The provisions of
     the Declaration with respect to amendments thereof shall apply equally with
     respect to amendments of the Guarantee.

               SECTION 8.3. Notices.
                            -------

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

          (a) If given to the  Guarantee  Trustee,  at the  Guarantee  Trustee's
     mailing  address  set forth below (or such other  address as the  Guarantee
     Trustee may give notice of to the Holders of the Capital Securities):

                     Wells Fargo Bank, National Association
                                919 Market Street
                                    Suite 700
                              Wilmington, DE 19801
                       Attention: Corporate Trust Division
                             Telecopy: 302-575-2006
                             Telephone: 302-575-2005

                                      -16-
<PAGE>

          (a) If given to the Guarantor,  at the Guarantor's mailing address set
     forth below (or such other  address as the  Guarantor may give notice of to
     the Holders of the Capital Securities and to the Guarantee Trustee):

                     Weststar Financial Services Corporation
                                79 Woodfin Place
                               Asheville, NC 28801
                           Attention: Randall C. Hall
                            Telecopy: (828) 252-1792
                            Telephone: (828) 252-1735

          (b) If given to any Holder of the Capital  Securities,  at the address
     set forth on the books and records of the Issuer.

          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 8.4. Benefit.
                            -------

          This Guarantee is solely for the benefit of the Holders of the Capital
     Securities and, subject to Section 2.1(a),  is not separately  transferable
     from the Capital Securities.

               SECTION 8.5. Governing Law.
                            -------------

          THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
     THE LAW OF THE  STATE OF NEW  YORK,  WITHOUT  REGARD  TO  CONFLICT  OF LAWS
     PRINCIPLES THEREOF.

          SECTION 8.6.  Counterparts.
                        ------------
     This Guarantee may contain more than one  counterpart of the signature page
and this  Guarantee  may be executed by the  affixing  of the  signature  of the
Guarantor and the Guarantee Trustee to any of such counterpart  signature pages.
All of 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.

                                      -17-
<PAGE>

          THIS GUARANTEE is executed as of the day and year first above written.

                                 Weststar Financial Services Corporation,
                                 as Guarantor

                                 By: /S/ Randall C. Hall
                                 Name: Randall C. Hall
                                 Title: Executive Vice President and CFO

                                 Wells Fargo Bank, National
                                 Association, as Guarantee Trustee

                                 By: ___________________________________
                                 Name: _________________________________
                                 Title: __________________________________

                                     - 18 -

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