Document:

EXHIBIT 10.2

                          JUNIOR SUBORDINATED INDENTURE

                                     between

                              BLUEGREEN CORPORATION

                                       and

                   JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
                                   as Trustee

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

                           Dated as of March 15, 2005

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

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

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                                TABLE OF CONTENTS

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                                    ARTICLE I
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.1.   Definitions ................................................    1

Section 1.2.   Compliance Certificate and Opinions ........................   10

Section 1.3.   Forms of Documents Delivered to Trustee ....................   10

Section 1.4.   Acts of Holders ............................................   11

Section 1.5.   Notices, Etc. to Trustee and Company .......................   13

Section 1.6.   Notice to Holders; Waiver ..................................   13

Section 1.7.   Effect of Headings and Table of Contents ...................   13

Section 1.8.   Successors and Assigns .....................................   13

Section 1.9.   Separability Clause ........................................   14

Section 1.10.  Benefits of Indenture ......................................   14

Section 1.11.  Governing Law ..............................................   14

Section 1.12.  Submission to Jurisdiction .................................   14

Section 1.13.  Non-Business Days ..........................................   14

                                   ARTICLE II
                                 SECURITY FORMS

Section 2.1.   Form of Security ...........................................   15

Section 2.2.   Restricted Legend ..........................................   20

Section 2.3.   Form of Trustee's Certificate of Authentication ............   22

Section 2.4.   Temporary Securities .......................................   23

Section 2.5.   Definitive Securities ......................................   23

                                   ARTICLE III
                                 THE SECURITIES

Section 3.1.   Payment of Principal and Interest ..........................   23

Section 3.2.   Denominations ..............................................   25

Section 3.3.   Execution, Authentication, Delivery and Dating .............   25

Section 3.4.   Global Securities ..........................................   26

Section 3.5.   Registration, Transfer and Exchange Generally ..............   28

Section 3.6.   Mutilated, Destroyed, Lost and Stolen Securities ...........   29

Section 3.7.   Persons Deemed Owners ......................................   30

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Section 3.8.   Cancellation ...............................................   30

Section 3.9.   Reserved ...................................................   30

Section 3.10.  Reserved ...................................................   31

Section 3.11.  Agreed Tax Treatment .......................................   31

Section 3.12.  CUSIP Numbers ..............................................   31

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

Section 4.1.   Satisfaction and Discharge of Indenture ....................   32

Section 4.2.   Application of Trust Money .................................   33

                                    ARTICLE V
                                    REMEDIES

Section 5.1.   Events of Default ..........................................   33

Section 5.2.   Acceleration of Maturity; Rescission and Annulment .........   34

Section 5.3.   Collection of Indebtedness and Suits for Enforcement
               by Trustee .................................................   35

Section 5.4.   Trustee May File Proofs of Claim ...........................   36

Section 5.5.   Trustee May Enforce Claim Without Possession of Securities .   36

Section 5.6.   Application of Money Collected .............................   36

Section 5.7.   Limitation on Suits ........................................   37

Section 5.8.   Unconditional Right of Holders to Receive Principal,
               Premium and Interest; Direct Action by Holders of
               Preferred Securities .......................................   38

Section 5.9.   Restoration of Rights and Remedies .........................   38

Section 5.10.  Rights and Remedies Cumulative .............................   38

Section 5.11.  Delay or Omission Not Waiver ...............................   38

Section 5.12.  Control by Holders .........................................   38

Section 5.13.  Waiver of Past Defaults ....................................   39

Section 5.14.  Undertaking for Costs ......................................   39

Section 5.15.  Waiver of Usury, Stay or Extension Laws ....................   40

                                   ARTICLE VI
                                   THE TRUSTEE

Section 6.1.   Corporate Trustee Required .................................   40

Section 6.2.   Certain Duties and Responsibilities ........................   40

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                                   (continued)

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Section 6.3.   Notice of Defaults .........................................   41

Section 6.4.   Certain Rights of Trustee ..................................   42

Section 6.5.   May Hold Securities ........................................   43

Section 6.6.   Compensation; Reimbursement; Indemnity .....................   44

Section 6.7.   Resignation and Removal; Appointment of Successor ..........   45

Section 6.8.   Acceptance of Appointment by Successor .....................   45

Section 6.9.   Merger, Conversion, Consolidation or Succession to
               Business ...................................................   46

Section 6.10.  Not Responsible for Recitals or Issuance of Securities .....   46

Section 6.11.  Appointment of Authenticating Agent ........................   46

                                   ARTICLE VII
                HOLDER'S LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 7.1.   Company to Furnish Trustee Names and Addresses of Holders ..   48

Section 7.2.   Preservation of Information, Communications to Holders .....   48

Section 7.3.   Reports by Company .........................................   48

                                  ARTICLE VIII
              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 8.1.   Company May Consolidate, Etc., Only on Certain Terms .......   49

Section 8.2.   Successor Company Substituted ..............................   49

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

Section 9.1.   Supplemental Indentures without Consent of Holders .........   50

Section 9.2.   Supplemental Indentures with Consent of Holders ............   51

Section 9.3.   Execution of Supplemental Indentures .......................   52

Section 9.4.   Effect of Supplemental Indentures ..........................   52

Section 9.5.   Reference in Securities to Supplemental Indentures .........   52

                                    ARTICLE X
                                    COVENANTS

Section 10.1.  Payment of Principal, Premium and Interest .................   52

Section 10.2.  Money for Security Payments to be Held in Trust ............   52

Section 10.3.  Statement as to Compliance .................................   54

Section 10.4.  Calculation Agent ..........................................   54

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                                TABLE OF CONTENTS
                                   (continued)

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Section 10.5.  Additional Tax Sums ........................................   54

Section 10.6.  Additional Covenants .......................................   55

Section 10.7.  Waiver of Covenants ........................................   56

Section 10.8.  Treatment of Securities ....................................   56

                                   ARTICLE XI
                            REDEMPTION OF SECURITIES

Section 11.1.  Optional Redemption ........................................   56

Section 11.2.  Special Event Redemption ...................................   56

Section 11.3.  Election to Redeem; Notice to Trustee ......................   57

Section 11.4.  Selection of Securities to be Redeemed .....................   57

Section 11.5.  Notice of Redemption .......................................   57

Section 11.6.  Deposit of Redemption Price ................................   58

Section 11.7.  Payment of Securities Called for Redemption ................   58

                                   ARTICLE XII
                           SUBORDINATION OF SECURITIES

Section 12.1.  Securities Subordinate to Senior Debt ......................   59

Section 12.2.  No Payment When Senior Debt in Default; Payment Over of
               Proceeds Upon Dissolution, Etc .............................   59

Section 12.3.  Payment Permitted If No Default ............................   61

Section 12.4.  Subrogation to Rights of Holders of Senior Debt ............   61

Section 12.5.  Provisions Solely to Define Relative Rights ................   61

Section 12.6.  Trustee to Effectuate Subordination ........................   62

Section 12.7.  No Waiver of Subordination Provisions ......................   62

Section 12.8.  Notice to Trustee ..........................................   62

Section 12.9.  Reliance on Judicial Order or Certificate of Liquidating
               Agent ......................................................   63

Section 12.10. Trustee Not Fiduciary for Holders of Senior Debt ...........   63

Section 12.11. Rights of Trustee as Holder of Senior Debt; Preservation
               of Trustee's Rights ........................................   63

Section 12.12. Article Applicable to Paying Agents ........................   63

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                                TABLE OF CONTENTS

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SCHEDULES

Schedule A     -    Determination of LIBOR

Exhibit A      -    Form of Officer's Financial Certificate

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      JUNIOR  SUBORDINATED  INDENTURE,  dated  as of  March  15,  2005,  between
Bluegreen Corporation a Massachusetts corporation (the "Company"),  and JPMORGAN
CHASE BANK, NATIONAL ASSOCIATION, as Trustee (in such capacity, the "Trustee").

                             RECITALS OF THE COMPANY

      WHEREAS,  the Company has duly  authorized  the  execution and delivery of
this Indenture to provide for the issuance of its unsecured junior  subordinated
notes (the  "Securities")  issued to  evidence  loans made to the Company of the
proceeds from the issuance by Bluegreen  Statutory Trust I, a Delaware statutory
trust (the "Trust"),  of undivided preferred  beneficial interests in the assets
of the Trust  (the  "Preferred  Securities")  and  undivided  common  beneficial
interests in the assets of the Trust (the "Common Securities" and,  collectively
with the Preferred Securities, the "Trust Securities"), and to provide the terms
and conditions  upon which the Securities  are to be  authenticated,  issued and
delivered; and

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

      NOW, THEREFORE, this Indenture Witnesseth:

      For  and  in  consideration  of  the  premises  and  the  purchase  of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities, as follows:

                                   ARTICLE I

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

      SECTION 1.1. Definitions.

      For all purposes of this Indenture, except as otherwise expressly provided
or unless the context otherwise requires:

            (a) the terms  defined in this Article I have the meanings  assigned
      to them in this Article I;

            (b) the words "include",  "includes" and "including" shall be deemed
      to be followed by the phrase "without limitation";

            (c) all  accounting  terms not  otherwise  defined  herein  have the
      meanings assigned to them in accordance with GAAP;

            (d) unless the  context  otherwise  requires,  any  reference  to an
      "Article"  or a "Section"  refers to an Article or a Section,  as the case
      may be, of this Indenture;

            (e) the words "hereby", "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;

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

            (g) the  masculine,  feminine or neuter  genders  used herein  shall
      include the masculine, feminine and neuter genders.

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

      "Administrative  Trustee"  means,  with respect to the Trust,  each Person
identified as an "Administrative Trustee" in the Trust Agreement,  solely in its
capacity as  Administrative  Trustee of the Trust under the Trust  Agreement and
not in its individual  capacity,  or its successor in interest in such capacity,
or any successor Administrative Trustee appointed as therein provided.

      "Additional Interest" means the interest, if any, that shall accrue on any
amounts payable on the Securities, the payment of which has not been made on the
applicable  Interest  Payment  Date and which shall accrue at the rate per annum
specified  or  determined  as specified  in such  Security,  in each case to the
extent legally enforceable.

      "Additional Tax Sums" has the meaning specified in Section 10.5.

      "Additional  Taxes"  means  taxes,  duties or other  governmental  charges
imposed on the Trust as a result of a Tax Event (which, for the sake of clarity,
does not include  amounts  required to be deducted or withheld by the Trust from
payments made by the Trust to or for the benefit of the Holder of, or any Person
that acquires a beneficial interest in, the Securities).

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

      "Applicable  Depositary Procedures" means, with respect to any transfer or
transaction  involving a Global  Security or beneficial  interest  therein,  the
rules and procedures of the  Depositary  for such Security,  in each case to the
extent applicable to such transaction and as in effect from time to time.

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

      "Bankruptcy  Code"  means  Title  11 of  the  United  States  Code  or any
successor statute(s) thereto, or any similar federal or state law for the relief
of debtors, in each case as amended from time to time.

      "Board of  Directors"  means the board of  directors of the Company or any
duly authorized committee of that board.

      "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.

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      "Business  Day" means any day other than (i) a Saturday or Sunday,  (ii) a
day on which  banking  institutions  in the City of New York are  authorized  or
required by law or executive  order to remain closed or (iii) a day on which the
Corporate Trust Office of the Trustee is closed for business.

      "Calculation Agent" has the meaning specified in Section 10.4.

      "Common Securities" has the meaning specified in the first recital of this
Indenture.

      "Common  Stock" means the common stock,  par value $.01 per share,  of the
Company.

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

      "Company  Request" and "Company  Order"  mean,  respectively,  the written
request or order  signed in the name of the Company by its Chairman of the Board
of Directors,  its Vice Chairman of the Board of Directors,  its Chief Executive
Officer,  President or a Vice President, and by its Chief Financial Officer, its
Treasurer, an Assistant Treasurer,  its Secretary or an Assistant Secretary, and
delivered to the Trustee.

      "Corporate  Trust  Office"  means the  principal  office of the Trustee at
which at any particular time its corporate trust business shall be administered,
which office at the date of this Indenture is located at 600 Travis, 50th Floor,
Houston,  Texas 77019 Attn:  Institutional Trust  Services--Bluegreen  Statutory
Trust I.

      "Debt" means, with respect to any Person,  whether recourse is to all or a
portion of the assets of such Person,  whether  currently  existing or hereafter
incurred  and  whether or not  contingent  and  without  duplication,  (i) every
obligation  of such Person for money  borrowed;  (ii) every  obligation  of such
Person  evidenced  by bonds,  debentures,  notes or other  similar  instruments,
including  obligations  incurred in connection with the acquisition of property,
assets or businesses;  (iii) every reimbursement  obligation of such Person with
respect to letters of credit,  bankers' acceptances or similar facilities issued
for the account of such Person;  (iv) every  obligation of such Person issued or
assumed as the deferred  purchase  price of property or services (but  excluding
trade  accounts  payable or other  accrued  liabilities  arising in the ordinary
course of business); (v) every capital lease obligation of such Person; (vi) all
indebtedness  of such Person,  whether  incurred on or prior to the date of this
Indenture or thereafter incurred,  for claims in respect of derivative products,
including  interest rate, foreign exchange rate and commodity forward contracts,
options and swaps and similar  arrangements;  (vii) every obligation of the type
referred to in clauses (i) through (vi) of another  Person and all  dividends of
another Person the payment of which,  in either case, such Person has guaranteed
or is  responsible  or  liable  for,  directly  or  indirectly,  as  obligor  or
otherwise;  and (viii)  any  renewals,  extensions,  refundings,  amendments  or
modifications  of any  obligation of the type referred to in clauses (i) through
(vii).

      "Defaulted Interest" has the meaning specified in Section 3.1.

      "Delaware Trustee" means, with respect to the Trust, the Person identified
as the  "Delaware  Trustee" in the Trust  Agreement,  solely in its  capacity as
Delaware  Trustee  of  the

                                       3
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Trust  under the Trust  Agreement  and not in its  individual  capacity,  or its
successor  in interest  in such  capacity,  or any  successor  Delaware  Trustee
appointed as therein provided.

      "Depositary"  means an organization  registered as a clearing agency under
the  Exchange  Act  that is  designated  as  Depositary  by the  Company  or any
successor thereto. DTC will be the initial Depositary.

      "Depositary  Participant"  means a broker,  dealer,  bank, other financial
institution  or other  Person  for whom from time to time a  Depositary  effects
book-entry transfers and pledges of securities deposited with the Depositary.

      "Distributions"  means amounts payable in respect of the Trust  Securities
as provided in the Trust Agreement and referred to therein as "Distributions."

      "Dollar" or "$" means the currency of the United  States of America  that,
as at the time of payment, is legal tender for the payment of public and private
debts.

      "DTC" means The Depository Trust Company,  a New York corporation,  or any
successor thereto.

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

      "Exchange  Act" means the  Securities  Exchange Act of 1934 or any statute
successor thereto, in each case as amended from time to time.

      "Expiration Date" has the meaning specified in Section 1.4.

      "Fixed Rate Period" shall have the meaning set forth in Section 2.1.

      "GAAP" means  United  States  generally  accepted  accounting  principles,
consistently applied, from time to time in effect.

      "Global  Security"  means a  Security  that  evidences  all or part of the
Securities,  the  ownership  and  transfers  of which shall be made through book
entries by a Depositary.

      "Government  Obligation"  means  (a) any  security  that  is (i) a  direct
obligation of the United States of America of which the full faith and credit of
the  United  States of America  is  pledged  or (ii) an  obligation  of a Person
controlled or supervised  by and acting as an agency or  instrumentality  of the
United States of America or the payment of which is  unconditionally  guaranteed
as a full faith and credit obligation by the United States of America, which, in
either  case (i) or (ii),  is not  callable or  redeemable  at the option of the
issuer thereof,  and (b) any depositary  receipt issued by a bank (as defined in
Section  3(a)(2)  of the  Securities  Act)  as  custodian  with  respect  to any
Government  Obligation  that is  specified  in clause (a) above and held by such
bank for the account of the holder of such depositary  receipt,  or with respect
to any specific payment of principal of or interest on any Government Obligation
that is so specified and held,  provided,  that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such  depositary  receipt from any amount received by the custodian in
respect of the  Government  Obligation  or the specific  payment of principal or
interest evidenced by such depositary receipt.

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      "Holder"  means a Person in whose name a  Security  is  registered  in the
Securities Register.

      "Indenture" means this instrument as originally executed or as it may from
time to time be amended or  supplemented by one or more amendments or indentures
supplemental hereto entered into pursuant to the applicable provisions hereof.

      "Interest  Payment  Date"  means  March 30,  June 30,  September  30,  and
December 30 of each year,  commencing on June 30, 2005,  during the term of this
Indenture.

      "Investment  Company Act" means the Investment  Company Act of 1940 or any
successor statute thereto, in each case as amended from time to time.

      "Investment  Company Event" means the receipt by the Company of an Opinion
of Counsel  experienced  in such matters to the effect that,  as a result of the
occurrence of a change in law or regulation (including any announced prospective
change)  or a  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
ninety (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,
which change or prospective  change becomes effective or would become effective,
as the case may be, on or after the date of the issuance of the Securities.

      "LIBOR" has the meaning specified in Schedule A.

      "LIBOR Business Day" has the meaning specified in Schedule A.

      "LIBOR Determination Date" has the meaning specified in Schedule A.

      "Liquidation Amount" has the meaning specified in the Trust Agreement.

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

      "Notice  of  Default"  means a  written  notice of the kind  specified  in
Section 5.1(c).

      "Officers'  Certificate" means a certificate signed by the Chairman of the
Board, a Vice Chairman of the Board, the Chief Executive Officer,  the President
or a Vice  President,  and by the Chief  Financial  Officer,  the Treasurer,  an
Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company and
delivered to the Trustee.

      "Operative  Documents"  means  the Trust  Agreement,  the  Indenture,  the
Purchase Agreement and the Securities.

      "Opinion  of  Counsel"  means a written  opinion  of  counsel,  who may be
counsel for or an employee of the Company or any Affiliate of the Company.

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<PAGE>

      "Optional Redemption Price" has the meaning set forth in Section 11.1.

      "Original  Issue  Date"  means  the  date  of  original  issuance  of each
Security.

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

            (i) Securities  theretofore  canceled by the Trustee or delivered to
      the Trustee for cancellation;

            (ii)  Securities  for  whose  payment  or  redemption  money  in the
      necessary  amount has been  theretofore  deposited with the Trustee or any
      Paying Agent (other than the Company) in trust or set aside and segregated
      in trust by the Company (if the Company shall act as its own Paying Agent)
      for the Holders of such Securities; provided, that, if such Securities are
      to be redeemed,  notice of such redemption has been duly given pursuant to
      this Indenture or provision therefor  satisfactory to the Trustee has been
      made; and

            (iii)  Securities that have been paid or in  substitution  for or in
      lieu of which  other  Securities  have been  authenticated  and  delivered
      pursuant to the provisions of this Indenture, unless proof satisfactory to
      the Trustee is presented  that any such  Securities are held by Holders in
      whose hands such  Securities are valid,  binding and legal  obligations of
      the Company;

provided,  that in  determining  whether the Holders of the requisite  principal
amount of Outstanding Securities have given any request, demand,  authorization,
direction, notice, consent or waiver hereunder,  Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or such
other  obligor shall be  disregarded  and deemed not to be  Outstanding,  except
that, in determining  whether the Trustee shall be protected in relying upon any
such request, demand, authorization,  direction, notice, consent or waiver, only
Securities  that a Responsible  Officer of the Trustee  actually  knows to be so
owned shall be so  disregarded.  Securities  so owned that have been  pledged in
good faith may be regarded as  Outstanding  if the  pledgee  establishes  to the
satisfaction  of the Trustee the pledgee's  right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the
Securities   or  any   Affiliate   of  the   Company  or  such  other   obligor.
Notwithstanding anything herein to the contrary,  Securities initially issued to
the  Trust  that  are  owned by the  Trust  shall be  deemed  to be  Outstanding
notwithstanding  the ownership by the Company or an Affiliate of any  beneficial
interest in the Trust.

      "Paying  Agent" means the Trustee or any Person  authorized by the Company
to pay the  principal  of or any  premium or  interest  on, or other  amounts in
respect of, any Securities on behalf of the Company.

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

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<PAGE>

      "Place of Payment" means,  with respect to the  Securities,  the Corporate
Trust Office of the Trustee.

      "Preferred  Securities" has the meaning  specified in the first recital of
this Indenture.

      "Predecessor  Security" of any  particular  Security  means every previous
Security  evidencing all or a portion of the same debt as that evidenced by such
particular  Security.  For  the  purposes  of  this  definition,   any  security
authenticated and delivered under Section 3.6 in lieu of a mutilated, destroyed,
lost or  stolen  Security  shall be  deemed  to  evidence  the same  debt as the
mutilated, destroyed, lost or stolen Security.

      "Proceeding" has the meaning specified in Section 12.2.

      "Property  Trustee" means the Person identified as the "Property  Trustee"
in the Trust Agreement,  solely in its capacity as Property Trustee of the Trust
under the Trust Agreement and not in its individual  capacity,  or its successor
in interest in such capacity,  or any successor  Property  Trustee  appointed as
therein provided.

      "Purchase  Agreement"  means the  agreement,  dated as of the date hereof,
between the Company and the Trust and Purchaser named therein.

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

      "Redemption  Price"  means,  when used with  respect to any Security to be
redeemed,  in whole or in part,  the Special  Redemption  Price or the  Optional
Redemption Price, as applicable, at which such Security or portion thereof is to
be redeemed as fixed by or pursuant to this Indenture.

      "Reference Banks" has the meaning specified in Schedule A.

      "Regular  Record  Date" for the interest  payable on any Interest  Payment
Date with  respect to the  Securities  means the date that is fifteen  (15) days
preceding such Interest Payment Date (whether or not a Business Day).

      "Responsible  Officer" means,  when used with respect to the Trustee,  the
officer in the  Institutional  Trust  Services  department of the Trustee having
direct responsibility for the administration of this Indenture.

      "Rights  Plan" means a plan of the Company  providing  for the issuance by
the Company to all holders of its Common Stock of rights  entitling  the holders
thereof to  subscribe  for or purchase  shares of any class or series of capital
stock of the Company  which  rights (i) are deemed to be  transferred  with such
shares of such  Common  Stock  and (ii) are also  issued  in  respect  of future
issuances of such Common Stock, in each case until the occurrence of a specified
event or events.

      "Securities" or "Security  means any debt securities or debt security,  as
the case may be, authenticated and delivered under this Indenture.

                                       7
<PAGE>

      "Securities Act" means the Securities Act of 1933 or any successor statute
thereto, in each case as amended from time to time.

      "Securities  Register"  and  "Securities  Registrar"  have the  respective
meanings specified in Section 3.5.

      "Senior  Debt" means the  principal  of and any  premium  and  interest on
(including  interest  accruing  on or  after  the  filing  of  any  petition  in
bankruptcy or for  reorganization  relating to the Company,  whether or not such
claim for post-petition  interest is allowed in such proceeding) all Debt of the
Company,  whether  incurred  on or  prior  to the  date  of  this  Indenture  or
thereafter  incurred,  unless  it is  provided  in the  instrument  creating  or
evidencing  the same or  pursuant  to which the same is  outstanding,  that such
obligations are not superior in right of payment to the Securities  issued under
this  Indenture;  provided,  that Senior Debt shall not be deemed to include any
other  debt  securities  (and  guarantees,  if any),  in  respect  of such  debt
securities  issued to any trust  other  than the Trust (or a trustee of any such
trust),  partnership  or other  entity  affiliated  with the  Company  that is a
financing  vehicle of the Company (a "financing  entity") in connection with the
issuance by such financing entity of equity  securities or other securities that
are treated as equity capital for regulatory capital purposes  guaranteed by the
Company  pursuant to an instrument that ranks pari passu with or junior in right
of payment to this Indenture.

      "Special  Event" means the occurrence of an Investment  Company Event or a
Tax Event.

      "Special  Record Date" for the payment of any Defaulted  Interest  means a
date fixed by the Trustee pursuant to Section 3.1.

      "Special Redemption Price" has the meaning set forth in Section 11.2.

      "Stated Maturity" means March 30, 2035.

      "Subsidiary"  means  a  Person  more  than  fifty  percent  (50%)  of  the
outstanding  voting stock or other voting interests of which is owned,  directly
or indirectly,  by the Company or by one or more other  Subsidiaries,  or by the
Company and one or more other  Subsidiaries.  For  purposes of this  definition,
"voting stock" means stock that  ordinarily has voting power for the election of
directors,  whether at all times or only so long as no senior class of stock has
such voting power by reason of any contingency.

      "Tax  Event"  means the  receipt  by the  Company of an Opinion of Counsel
experienced in such matters to the effect that, as a result of (a) 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 (b) any judicial decision or any official
administrative  pronouncement  (including any private  letter ruling,  technical
advice  memorandum or field service advice) or regulatory  procedure,  including
any  notice  or  announcement  of  intent  to adopt  any such  pronouncement  or
procedure  (an  "Administrative  Action"),  regardless  of whether such judicial
decision  or  Administrative  Action  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,  change,  judicial decision or Administrative
Action is enacted,  promulgated or announced, in each case, on or after the date
of issuance of the Securities, there is more than an insubstantial risk that (i)
the Trust is, or will be within  ninety  (90) days of the date of such  opinion,
subject to United States federal  income tax with respect to

                                       8
<PAGE>

income  received  or accrued on the  Securities,  (ii)  interest  payable by the
Company on the Securities is not, or within ninety (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
ninety (90) days of the date of such opinion,  subject to more than a de minimis
amount of other taxes, duties or other governmental charges.

      "Trust" has the meaning specified in the first recital of this Indenture.

      "Trust Agreement" means the Amended and Restated Trust Agreement  executed
and delivered by the Company, the Property Trustee, the Delaware Trustee and the
Administrative Trustees named therein,  contemporaneously with the execution and
delivery  of this  Indenture,  for  the  benefit  of the  holders  of the  Trust
Securities, as amended or supplemented from time to time.

      "Trustee"  means the Person named as the "Trustee" in the first  paragraph
of this  instrument,  solely in its  capacity as such and not in its  individual
capacity,  until a successor  Trustee  shall have  become  such  pursuant to the
applicable provisions of this Indenture,  and, thereafter,  "Trustee" shall mean
or include each Person who is then a Trustee hereunder.

      "Trust  Indenture  Act" means the Trust  Indenture Act of 1939, as amended
and as in effect on the date as of this Indenture.

      "Trust  Securities" has the meaning specified in the first recital of this
Indenture.

      SECTION 1.2. Compliance Certificate and Opinions.

      (a) Upon any  application or request by the Company to the Trustee to take
any  action  under any  provision  of this  Indenture,  the  Company  shall,  if
requested  by the  Trustee,  furnish  to the  Trustee an  Officers'  Certificate
stating that all conditions precedent (including covenants compliance with which
constitutes  a condition  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  (including  covenants  compliance with which  constitutes a condition
precedent), if any, have been complied with.

      (b) Every  certificate  with  respect to  compliance  with a condition  or
covenant  provided for in this Indenture  (other than the  certificate  provided
pursuant to Section 10.3) shall include:

            (i) a statement  by each  individual  signing  such  certificate  or
      opinion that such  individual  has read such covenant or condition and the
      definitions herein relating thereto;

            (ii) a brief statement as to the nature and scope of the examination
      or investigation  upon which the statements or opinions of such individual
      contained  in such  certificate  or opinion  are based;

            (iii) a statement that, in the opinion of such individual, 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

                                       9
<PAGE>

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

      SECTION 1.3. Forms of Documents Delivered to Trustee.

      (a) In any case where several  matters are required to be certified by, or
covered by an opinion of, any specified  Person,  it is not  necessary  that all
such  matters  be  certified  by, or covered by the  opinion  of,  only one such
Person,  or that they be so certified or covered by only one  document,  but one
such Person may certify or give an opinion  with respect to some matters and one
or more other such Persons as to other matters,  and any such Person may certify
or give an opinion as to such matters in one or several documents.

      (b) Any  certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal  matters,  upon a  certificate  or opinion of, or
representations  by,  counsel,  unless such officer knows,  or after  reasonable
inquiry should know,  that the  certificate or opinion or  representations  with
respect to matters  upon  which his or her  certificate  or opinion is based are
erroneous.  Any such certificate or Opinion of Counsel may be based,  insofar as
it  relates  to  factual   matters,   upon  a  certificate  or  opinion  of,  or
representations  by, an officer or  officers  of the  Company  stating  that the
information  with respect to such factual  matters is in the  possession  of the
Company,  unless such counsel knows,  or after  reasonable  inquiry should know,
that the certificate or opinion or representations  with respect to such matters
are erroneous.

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

      (d)  Whenever,  subsequent  to the  receipt  by the  Trustee  of any Board
Resolution,  Officers'  Certificate,  Opinion of Counsel  or other  document  or
instrument,  a clerical,  typographical  or other  inadvertent or  unintentional
error or omission shall be discovered  therein, a new document or instrument may
be  substituted  therefor in corrected form with the same force and effect as if
originally received in the corrected form and, irrespective of the date or dates
of the actual execution  and/or delivery  thereof,  such substitute  document or
instrument shall be deemed to have been executed and/or delivered as of the date
or dates  required  with respect to the document or  instrument  for which it is
substituted.  Without  limiting the generality of the foregoing,  any Securities
issued  under the  authority  of such  defective  document or  instrument  shall
nevertheless be the valid obligations of the Company entitled to the benefits of
this Indenture equally and ratably with all other Outstanding Securities.

      SECTION 1.4. Acts of Holders.

      (a) Any request, demand, authorization, direction, notice, consent, waiver
or other  action  provided by this  Indenture to be given to or taken by Holders
may be embodied in and  evidenced by one or more  instruments  of  substantially
similar  tenor  signed by such  Holders  in person or by an agent  thereof  duly
appointed in writing;  and, except as herein otherwise expressly provided,  such
action shall become effective when such instrument or instruments (including any
appointment  of an agent) is or are delivered to the Trustee,  and,  where it is
hereby expressly required,  to the Company.  Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "Act" of the Holders

                                       10
<PAGE>

signing  such  instrument  or  instruments.  Proof  of  execution  of  any  such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose  of this  Indenture  and  conclusive  in  favor of the  Trustee  and the
Company, if made in the manner provided in this Section 1.4.

      (b)  The  fact  and  date  of the  execution  by any  Person  of any  such
instrument  or  writing  may be proved  by the  affidavit  of a witness  of such
execution or by the certificate of any notary public or other officer authorized
by law to take acknowledgments of deeds,  certifying that the individual signing
such  instrument or writing  acknowledged  to him or her the execution  thereof.
Where such  execution is by a Person acting in other than his or her  individual
capacity,  such certificate or affidavit shall also constitute  sufficient proof
of his or her authority. The fact and date of the execution by any Person of any
such instrument or writing,  or the authority of the Person  executing the same,
may also be proved in any other manner that the Trustee deems  sufficient and in
accordance with such reasonable rules as the Trustee may determine.

      (c)  The  ownership  of  Securities  shall  be  proved  by the  Securities
Register.

      (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Security  shall bind every future Holder of
the same Security and the Holder of every Security issued upon the  registration
of  transfer  thereof or in exchange  therefor or in lieu  thereof in respect of
anything  done or  suffered to be done by the Trustee or the Company in reliance
thereon, whether or not notation of such action is made upon such Security.

      (e) Without  limiting the foregoing,  a Holder entitled to take any action
hereunder with regard to any particular Security may do so with regard to all or
any  part of the  principal  amount  of  such  Security  or by one or more  duly
appointed  agents  each of which may do so  pursuant  to such  appointment  with
regard to all or any part of such principal amount.

      (f) Except as set forth in paragraph  (g) of this Section 1.4, the Company
may set any day as a record date for the purpose of  determining  the Holders of
Outstanding  Securities  entitled  to give,  make or take any  request,  demand,
authorization,  direction,  notice,  consent, waiver or other action provided or
permitted by this Indenture to be given, made or taken by Holders of Securities.
If any record date is set pursuant to this paragraph, the Holders of Outstanding
Securities on such record date, and no other Holders,  shall be entitled to take
the relevant  action,  whether or not such  Holders  remain  Holders  after such
record date;  provided,  that no such action shall be effective hereunder unless
taken on or prior to the  applicable  Expiration  Date (as  defined  in  Section
1.4(h)) by Holders of the requisite  principal amount of Outstanding  Securities
on such record date. Nothing in this paragraph shall be construed to prevent the
Company  from  setting a new record  date for any action for which a record date
has previously  been set pursuant to this  paragraph  (whereupon the record date
previously set shall  automatically and with no action by any Person be canceled
and of no  effect).  Promptly  after any  record  date is set  pursuant  to this
paragraph,  the Company,  at its own expense,  shall cause notice of such record
date, the proposed  action by Holders and the applicable  Expiration  Date to be
given to the Trustee in writing and to each Holder of  Securities  in the manner
set forth in Section 1.6.

      (g) The  Trustee  may set any day as a  record  date  for the  purpose  of
determining the Holders of Outstanding Securities entitled to join in the giving
or making of (i) any Notice of Default,  (ii) any declaration of acceleration or
rescission or annulment thereof referred to in Section 5.2, (iii) any request to
institute  proceedings  referred  to in  Section  5.7(b)  or (iv) any

                                       11
<PAGE>

direction  referred to in Section  5.12.  If any record date is set  pursuant to
this paragraph,  the Holders of Outstanding  Securities on such record date, and
no other Holders, shall be entitled to join in such notice, declaration, request
or direction, whether or not such Holders remain Holders after such record date;
provided,  that no such action shall be effective  hereunder  unless taken on or
prior to the applicable  Expiration  Date by Holders of the requisite  principal
amount of Outstanding  Securities on such record date. Nothing in this paragraph
shall be construed to prevent the Trustee from setting a new record date for any
action  for  which a  record  date has  previously  been  set  pursuant  to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be canceled and of no effect). Promptly after any record
date is set pursuant to this paragraph,  the Trustee,  at the Company's expense,
shall cause notice of such record date,  the proposed  action by Holders and the
applicable  Expiration  Date to be given to the  Company in writing  and to each
Holder of Securities in the manner set forth in Section 1.6.

      (h) With respect to any record date set  pursuant to paragraph  (f) or (g)
of this Section  1.4, the party hereto that sets such record date may  designate
any day as the "Expiration Date" and from time to time may change the Expiration
Date to any  earlier  or  later  day;  provided,  that no such  change  shall be
effective  unless  notice of the  proposed new  Expiration  Date is given to the
other party hereto in writing,  and to each Holder of  Securities  in the manner
set forth in Section 1.6, on or prior to the  existing  Expiration  Date.  If an
Expiration  Date is not designated  with respect to any record date set pursuant
to this  Section 1.4, the party hereto that set such record date shall be deemed
to have initially  designated the ninetieth (90th) day after such record date as
the  Expiration  Date with respect  thereto,  subject to its right to change the
Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no
Expiration Date shall be later than the one hundred  eightieth (180th) day after
the applicable record date.

      SECTION 1.5. Notices, Etc. to Trustee and Company.

      Any request, demand,  authorization,  direction,  notice, consent, waiver,
Act of Holders,  or other document provided or permitted by this Indenture to be
made upon, given or furnished to, or filed with:

      (a) the Trustee by any Holder,  any holder of Preferred  Securities or the
Company  shall be  sufficient  for  every  purpose  hereunder  if  made,  given,
furnished  or filed in writing  to or with and  received  by the  Trustee at its
Corporate Trust Office, or

      (b) the  Company by the  Trustee,  any  Holder or any holder of  Preferred
Securities  shall be sufficient  for every  purpose  hereunder if in writing and
mailed,  first class,  postage prepaid,  to the Company  addressed to it at 4960
Conference  Way N.,  Boca  Raton,  FL 33431 or at any other  address  previously
furnished in writing to the Trustee by the Company.

      SECTION 1.6. Notice to Holders; Waiver.

      Where this  Indenture  provides  for notice to Holders of any event,  such
notice shall be sufficiently given (unless otherwise herein expressly  provided)
if in writing and mailed,  first class, postage prepaid, to each Holder affected
by such  event to the  address of such  Holder as it  appears in the  Securities
Register,  not later than the latest  date,  and not earlier  than the  earliest
date,  prescribed for the giving of such notice. If, by reason of the suspension
of or  irregularities

                                       12
<PAGE>

in regular  mail  service or for any other  reason,  it shall be  impossible  or
impracticable  to mail  notice  of any  event to  Holders  when  said  notice is
required  to be given  pursuant to any  provision  of this  Indenture,  then any
manner of giving such notice as shall be  satisfactory  to the Trustee  shall be
deemed to be a  sufficient  giving of such  notice.  In any case where notice to
Holders  is given by mail,  neither  the  failure to mail such  notice,  nor any
defect in any  notice so  mailed,  to any  particular  Holder  shall  affect the
sufficiency of such notice with respect to other  Holders.  Where this Indenture
provides  for notice in any manner,  such notice may be waived in writing by the
Person  entitled to receive such notice,  either before or after the event,  and
such waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed  with the  Trustee,  but such  filing  shall  not be a  condition
precedent to the validity of any action taken in reliance upon such waiver.

      SECTION 1.7. Effect of Headings and Table of Contents.

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

      SECTION 1.8. Successors and Assigns.

      This Indenture shall be binding upon and shall inure to the benefit of any
successor to the Company and the Trustee,  including  any successor by operation
of law.  Except in connection  with a transaction  involving the Company that is
permitted  under  Article  VIII and  pursuant  to which the  assignee  agrees in
writing to perform the Company's  obligations  hereunder,  the Company shall not
assign its obligations hereunder.

      SECTION 1.9. Separability Clause.

      If any provision in this Indenture or in the Securities  shall be invalid,
illegal or  unenforceable,  the  validity,  legality and  enforceability  of the
remaining  provisions shall not in any way be affected or impaired thereby,  and
there shall be deemed  substituted for the provision at issue a valid, legal and
enforceable provision as similar as possible to the provision at issue.

      SECTION 1.10. Benefits of Indenture.

      Nothing in this Indenture or in the Securities,  express or implied, shall
give to any  Person,  other than the  parties  hereto and their  successors  and
assigns,  the holders of Senior Debt, the Holders of the Securities  and, to the
extent  expressly  provided in Sections 5.2, 5.8, 5.9, 5.11, 5.13, 9.2 and 10.7,
the  holders of  Preferred  Securities,  any  benefit or any legal or  equitable
right, remedy or claim under this Indenture.

      SECTION 1.11. Governing Law.

      This Indenture and the rights and obligations of each of the Holders,  the
Company and the Trustee shall be construed  and enforced in accordance  with and
governed by the laws of the State of New York without  reference to its conflict
of laws provisions (other than Section 5-1401 of the General Obligations Law).

                                       13
<PAGE>

      SECTION 1.12. Submission to Jurisdiction.

      ANY LEGAL  ACTION OR  PROCEEDING  BY OR AGAINST  ANY PARTY  HERETO OR WITH
RESPECT TO OR ARISING OUT OF THIS  INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE
COURTS OF THE STATE OF NEW YORK,  IN AND FOR THE  COUNTY OF NEW YORK,  OR OF THE
UNITED  STATES OF AMERICA  FOR THE  SOUTHERN  DISTRICT OF NEW YORK (IN EACH CASE
SITTING  IN THE  BOROUGH  OF  MANHATTAN).  BY  EXECUTION  AND  DELIVERY  OF THIS
INDENTURE,  EACH PARTY  ACCEPTS,  FOR  ITSELF  AND IN  RESPECT OF ITS  PROPERTY,
GENERALLY AND  UNCONDITIONALLY,  THE  JURISDICTION OF THE AFORESAID  COURTS (AND
COURTS  OF  APPEALS  THEREFROM)  FOR  LEGAL  PROCEEDINGS  ARISING  OUT  OF OR IN
CONNECTION WITH THIS INDENTURE.

      SECTION 1.13. Non-Business Days.

      If any Interest  Payment Date,  Redemption  Date or Stated Maturity of any
Security shall not be a Business Day, then  (notwithstanding any other provision
of this Indenture or the Securities)  payment of interest,  premium,  if any, or
principal or other amounts in respect of such Security shall not be made on such
date,  but shall be made on the next  succeeding  Business  Day (and no interest
shall  accrue in  respect of the  amounts  whose  payment is so delayed  for the
period from and after such  Interest  Payment  Date,  Redemption  Date or Stated
Maturity,  as the case may be, until such next  succeeding  Business Day) except
that,  if such Business Day falls 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 the  Interest  Payment  Date or
Redemption Date or at the Stated Maturity.

                                   ARTICLE II

                                 SECURITY FORMS

      SECTION 2.1. Form of Security.

      Any Security  issued  hereunder  shall be in  substantially  the following
form:

                              Bluegreen Corporation

                        Junior Subordinated Note due 2035

No. _____________                                               $ 23,196,000

      Bluegreen Corporation, a corporation organized and existing under the laws
of  Massachusetts  (hereinafter  called the  "Company,"  which term includes any
successor  Person  under  the  Indenture  hereinafter  referred  to),  for value
received, hereby promises to pay to ________________________,  the principal sum
of Twenty Three Million One Hundred  Ninety Six Thousand  Dollars  ($23,196,000)
[if the Security is a Global  Security,  then  insert-- or such other  principal
amount  represented  hereby as may be set forth in the records of the Securities
Registrar hereinafter referred to in accordance with the Indenture] on March 30,
2035.  The Company  further  promises to pay interest on said principal sum from
March 15, 2005, or from the most recent Interest  Payment Date to which interest
has been paid or duly

                                       14
<PAGE>

provided  for,  quarterly  in arrears  on March 30,  June 30,  September  30 and
December 30 of each year,  commencing June 30, 2005, or if any such day is not a
Business Day, on the next succeeding  Business Day (and no interest shall accrue
in respect of the  amounts  whose  payment is so delayed for the period from and
after such  Interest  Payment  Date until such next  succeeding  Business  Day),
except that, if such Business Day falls 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 the Interest Payment Date, at
a fixed rate equal to 9.16% per annum through the interest payment date in March
30, 2010 and  thereafter at a variable rate equal to LIBOR plus 4.90% per annum,
together  with  Additional  Tax Sums, if any, as provided in Section 10.5 of the
Indenture,  until  the  principal  hereof is paid or duly  provided  for or made
available for payment; provided,  further, that any overdue principal,  premium,
if any, or Additional  Tax Sums and any overdue  installment  of interest  shall
bear  Additional  Interest at a fixed rate equal to 9.16%  through the  interest
payment  date in March 30,  2010  ("Fixed  Rate  Period")  and  thereafter  at a
variable  rate  equal to LIBOR  plus  4.90% per annum  (to the  extent  that the
payment of such interest shall be legally  enforceable),  compounded  quarterly,
from the dates such  amounts are due until they are paid or made  available  for
payment, and such interest shall be payable on demand.

      During the Fixed Rate  Period,  the amount of  interest  payable  shall be
computed on the basis of a 360-day year of twelve  30-day  months and the amount
payable for any partial  period  shall be computed on the basis of the number of
days elapsed in a 360-day year of twelve 30-day months.  Upon  expiration of the
Fixed Rate  Period,  the amount of  interest  payable for any  Interest  Payment
Period will be computed on the basis of a 360-day year and the actual  number of
days  elapsed in the relevant  interest  period.  The  interest so payable,  and
punctually  paid or duly  provided for, on any Interest  Payment Date shall,  as
provided in the Indenture, be paid to the Person in whose name this Security (or
one or more  Predecessor  Securities)  is registered at the close of business on
the Regular Record Date for such interest installment.  Any such interest not so
punctually  paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor  Securities) is registered at the
close of  business on a Special  Record  Date for the payment of such  Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities  not less than ten (10) days prior to such Special Record Date, or be
paid  at any  time  in  any  other  lawful  manner  not  inconsistent  with  the
requirements  of any securities  exchange on which the Securities may be listed,
and upon such  notice as may be  required  by such  exchange,  all as more fully
provided in the Indenture.

      During an Event of Default,  the Company  shall 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 of  principal  of or any  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 this  Security  (other than
(a) repurchases, redemptions or other acquisitions of shares of capital stock of
the Company in  connection  with (1) any  employment  contract,  benefit plan or
other similar  arrangement with or for the benefit of any one or more employees,
officers,  directors or consultants,  (2) a dividend reinvestment or stockholder
stock  purchase  plan and (3) 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 such Event of
Default, (b) as a result of (x) an exchange or conversion of any class or series
of the  Company's  capital  stock (or any capital  stock of a

                                       15
<PAGE>

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,  or  (y)  a  reclassification  of or
combination  with 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 Rights Plan, the issuance of rights, stock or other property
under any 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).

      Payment of principal  of,  premium,  if any, and interest on this Security
shall be made in such coin or currency of the United States of America as at the
time of  payment  is legal  tender for  payment  of public  and  private  debts.
Payments of principal, premium, if any, and interest due at the Maturity of this
Security shall be made at the Place of Payment upon surrender of such Securities
to the Paying  Agent,  and payments of interest  shall be made,  subject to such
surrender where  applicable,  by wire transfer at such place and to such account
at a banking institution in the United States as may be designated in writing to
the Paying Agent at least ten (10)  Business  Days prior to the date for payment
by the Person entitled thereto unless proper written transfer  instructions have
not been received by the relevant record date, in which case such payments shall
be made by check  mailed to the  address of such  Person as such  address  shall
appear in the Security Register.  Notwithstanding the foregoing,  so long as the
Holder of this Security is the Property Trustee, the payment of the principal of
(and  premium,  if any) and  interest  (including  any  overdue  installment  of
interest and  Additional Tax Sums, if any) on this Security will be made at such
place and to such account as may be designated by the Property Trustee.

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

      Unless the certificate of  authentication  hereon has been executed by the
Trustee by manual signature,  this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

                          [FORM OF REVERSE OF SECURITY]

      This  Security  is one of a duly  authorized  issue of  securities  of the
Company (the "Securities") issued under the Junior Subordinated Indenture, dated
as of March 15, 2005 (the  "Indenture"),  between the Company and JPMorgan Chase
Bank, National Association,  as Trustee (in such capacity,  the "Trustee," which
term includes any successor trustee under the

                                       16
<PAGE>

Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights,  limitations of rights,
duties and  immunities  thereunder of the Company,  the Trustee,  the holders of
Senior  Debt,  the Holders of the  Securities  and the holders of the  Preferred
Securities,  and of the terms  upon  which the  Securities  are,  and are to be,
authenticated and delivered.

      All terms used in this  Security  that are defined in the  Indenture or in
the  Amended  and  Restated  Trust  Agreement,  dated as of March  15,  2005 (as
modified,  amended or  supplemented  from time to time, the "Trust  Agreement"),
relating to Bluegreen  Statutory  Trust I (the  "Trust")  among the Company,  as
Depositor,  the Trustees  named therein and the Holders from time to time of the
Trust Securities  issued pursuant  thereto,  shall have the meanings assigned to
them in the Indenture or the Trust Agreement, as the case may be.

      The Company may, on any Interest  Payment  Date,  at its option,  upon not
less than thirty (30) days' nor more than sixty (60) days' written notice to the
Holders of the Securities  (unless a shorter notice period shall be satisfactory
to the  Trustee)  on or after  March  30,  2010 and  subject  to the  terms  and
conditions of Article XI of the Indenture,  redeem this Security in whole at any
time or in part from time to time at a  Redemption  Price  equal to one  hundred
percent (100%) of the principal amount hereof, together, in the case of any such
redemption,  with accrued interest,  including any Additional Interest,  through
but excluding the date fixed as the Redemption Date.

      In addition,  upon the occurrence and during the continuation of a Special
Event, the Company may, at its option,  upon not less than thirty (30) days' nor
more than sixty  (60)  days'  written  notice to the  Holders of the  Securities
(unless a shorter notice period shall be  satisfactory  to the Trustee),  redeem
this Security,  in whole but not in part, subject to the terms and conditions of
Article XI of the Indenture at a Redemption Price equal to one hundred seven and
one half percent (107.5%) of the principal amount hereof,  together, in the case
of  any  such  redemption,  with  accrued  interest,  including  any  Additional
Interest, through but excluding the date fixed as the Redemption Date.

      In the event of  redemption  of this Security in part only, a new Security
or Securities  for the  unredeemed  portion hereof will be issued in the name of
the Holder hereof upon the cancellation  hereof. If less than all the Securities
are to be redeemed,  the particular  Securities to be redeemed shall be selected
not more than sixty (60) days prior to the  Redemption  Date by the Trustee from
the Outstanding Securities not previously called for redemption,  by such method
as the  Trustee  shall deem fair and  appropriate  and which may provide for the
selection for redemption of a portion of the principal amount of any Security.

      The Indenture permits,  with certain  exceptions as therein provided,  the
Company and the Trustee at any time to enter into a  supplemental  indenture  or
indentures for the purpose of modifying in any manner the rights and obligations
of the  Company and of the  Holders of the  Securities,  with the consent of the
Holders  of not less than a  majority  in  principal  amount of the  Outstanding
Securities.  The  Indenture  also  contains  provisions  permitting  Holders  of
specified  percentages in principal  amount of the Securities,  on behalf of the
Holders of all  Securities,  to waive  compliance  by the Company  with  certain
provisions of the  Indenture  and certain past defaults  under the Indenture and
their  consequences.  Any such consent or waiver by the Holder of this  Security
shall be conclusive  and binding upon such Holder and upon all future Holders of
this  Security  and of any  Security  issued upon the  registration  of transfer
hereof or in exchange

                                       17
<PAGE>

herefor or in lieu hereof,  whether or not notation of such consent or waiver is
made upon this Security.

      No reference  herein to the Indenture and no provision of this Security or
of the Indenture  shall alter or impair the obligation of the Company,  which is
absolute and unconditional, to pay the principal of and any premium, if any, and
interest, including any Additional Interest (to the extent legally enforceable),
on this  Security  at the times,  place and rate,  and in the coin or  currency,
herein prescribed.

      As provided in the  Indenture and subject to certain  limitations  therein
set  forth,  the  transfer  of this  Security  is  restricted  to  transfers  to
"Qualified Purchasers" (as such term is defined in the Investment Company Act of
1940, as amended), and is registrable in the Securities Register, upon surrender
of this  Security  for  registration  of transfer at the office or agency of the
Company  maintained  for such  purpose,  duly endorsed by, or  accompanied  by a
written  instrument  of  transfer  in form  satisfactory  to the Company and the
Securities  Registrar  and duly  executed by, the Holder hereof or such Holder's
attorney duly  authorized in writing,  and thereupon one or more new Securities,
of like tenor, of authorized  denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

      The  Securities  are issuable only in registered  form without  coupons in
minimum  denominations of $100,000 and any integral multiple of $1,000 in excess
thereof. As provided in the Indenture and subject to certain limitations therein
set forth,  Securities are exchangeable for a like aggregate principal amount of
Securities  and  of  like  tenor  of a  different  authorized  denomination,  as
requested by the Holder surrendering the same.

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

      The  Company,  the Trustee and any agent of the Company or the Trustee may
treat the Person in whose name this  Security is  registered as the owner hereof
for all  purposes,  whether or not this  Security  be  overdue,  and neither the
Company,  the  Trustee  nor any such agent  shall be  affected  by notice to the
contrary.

      The  Company  and, by its  acceptance  of this  Security  or a  beneficial
interest  herein,  the  Holder of, and any  Person  that  acquires a  beneficial
interest in, this  Security  agree that,  for United States  federal,  state and
local tax purposes, it is intended that this Security constitute indebtedness.

      This  Security  shall be  construed  and enforced in  accordance  with and
governed by the laws of the State of New York, without reference to its conflict
of laws provisions (other than Section 5-1401 of the General Obligations Law).

      IN WITNESS  WHEREOF,  the Company has caused  this  instrument  to be duly
executed on this ____ day of __________, 20__.

                                       18
<PAGE>

                                        Bluegreen Corporation

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

      SECTION 2.2. Restricted Legend.

      (a) Any Security issued hereunder shall bear a legend in substantially the
following form:

      "[IF THIS SECURITY IS A GLOBAL SECURITY INSERT:  THIS SECURITY IS A GLOBAL
      SECURITY WITHIN THE MEANING OF THE INDENTURE  HEREINAFTER  REFERRED TO AND
      IS REGISTERED  IN THE NAME OF THE  DEPOSITORY  TRUST COMPANY  ("DTC") OR A
      NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN
      THE NAME OF A PERSON  OTHER THAN DTC OR ITS  NOMINEE  ONLY IN THE  LIMITED
      CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY
      (OTHER THAN A TRANSFER OF THIS  SECURITY AS A WHOLE BY DTC TO A NOMINEE OF
      DTC OR BY A  NOMINEE  OF DTC TO DTC OR  ANOTHER  NOMINEE  OF  DTC)  MAY BE
      REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

      UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF DTC
      TO THE  ISSUER OR ITS AGENT FOR  REGISTRATION  OF  TRANSFER,  EXCHANGE  OR
      PAYMENT,  AND ANY SECURITY  ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
      OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF DTC
      (AND ANY PAYMENT  HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER  ENTITY AS
      IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE
      OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
      INASMUCH  AS THE  REGISTERED  OWNER  HEREOF,  CEDE & CO.,  HAS AN INTEREST
      HEREIN.]

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A
      TRANSACTION  EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE  "SECURITIES  ACT"),  AND SUCH  SECURITIES,  AND ANY INTEREST
      THEREIN, MAY NOT BE OFFERED,  SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
      OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER
      OF ANY SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE SECURITIES MAY
      BE  RELYING  ON THE  EXEMPTION  FROM THE  PROVISIONS  OF  SECTION 5 OF THE
      SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

      THE HOLDER OF THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  AGREES FOR
      THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITIES

                                       19
<PAGE>

      MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE COMPANY OR
      (II) TO A PERSON  WHOM THE  SELLER  REASONABLY  BELIEVES  IS A  "QUALIFIED
      PURCHASER" (AS DEFINED IN SECTION  2(a)(51) OF THE INVESTMENT  COMPANY ACT
      OF 1940, AS AMENDED),  AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY
      SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

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

      THE HOLDER OF THIS SECURITY,  OR ANY INTEREST  THEREIN,  BY ITS ACCEPTANCE
      HEREOF OR THEREOF 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.  ANY PURCHASER OR
      HOLDER OF THE  SECURITIES  OR ANY INTEREST  THEREIN WILL BE DEEMED TO HAVE
      REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT 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."

      (b) The above legends shall not be removed from any Security  unless there
is delivered to the Company satisfactory evidence,  which may include an Opinion
of Counsel,  as may be reasonably  required to ensure that any future  transfers
thereof may be made without  restriction under or violation of the provisions of
the Securities Act and other applicable law. Upon provision of such satisfactory
evidence,  the Company shall execute and deliver to the Trustee, and the Trustee
shall deliver, upon receipt of a Company Order directing it to do so, a Security
that does not bear the legend.

                                       20
<PAGE>

      SECTION 2.3. Form of Trustee's Certificate of Authentication.

      The Trustee's  certificate of authentication shall be in substantially the
following form:

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

Dated: __________________________

                                        JPMORGAN CHASE BANK, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity, but solely as Trustee

                                        By: __________________________________
                                                   Authorized signatory

      SECTION 2.4. Temporary Securities.

      (a) Pending the  preparation  of  definitive  Securities,  the Company may
execute,  and upon Company  Order the Trustee  shall  authenticate  and deliver,
temporary Securities that are printed, lithographed,  typewritten,  mimeographed
or otherwise  produced,  in any denomination,  substantially of the tenor of the
definitive Securities in lieu of which they are issued and with such appropriate
insertions,  omissions,  substitutions  and  other  variations  as the  officers
executing such Securities may determine, as evidenced by their execution of such
Securities.

      (b) If temporary  Securities are issued, the Company will cause definitive
Securities to be prepared without  unreasonable  delay. After the preparation of
definitive  Securities,  the  temporary  Securities  shall be  exchangeable  for
definitive  Securities upon surrender of the temporary  Securities at the office
or agency of the  Company  designated  for that  purpose  without  charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities,
the Company  shall  execute and the Trustee  shall  authenticate  and deliver in
exchange   therefor  one  or  more  definitive   Securities  of  any  authorized
denominations having the same Original Issue Date and Stated Maturity and having
the same terms as such temporary Securities.  Until so exchanged,  the temporary
Securities  shall in all  respects be entitled to the same  benefits  under this
Indenture as definitive Securities.

      SECTION 2.5. Definitive Securities.

      The  Securities  issued on the Original  Issue Date shall be in definitive
form. The definitive  Securities shall be printed,  lithographed or engraved, or
produced by any  combination  of these  methods,  if required by any  securities
exchange on which the  Securities may be listed,  on a steel engraved  border or
steel engraved  borders or may be produced in any other manner  permitted by the
rules of any securities  exchange on which the Securities may be listed,  all as
determined  by the officers  executing  such  Securities,  as evidenced by their
execution of such Securities.

                                       21
<PAGE>

                                  ARTICLE III

                                 THE SECURITIES

      SECTION 3.1. Payment of Principal and Interest.

      (a) The unpaid principal amount of the Securities shall bear interest at a
fixed rate equal to 9.16% per annum  through the interest  payment date in March
30, 2010 and  thereafter  at a variable rate of LIBOR plus 4.90% per annum until
paid or duly provided for such  interest to accrue from the Original  Issue Date
or from the most recent Interest Payment Date to which interest has been paid or
duly provided for, and any overdue principal, premium, if any, or Additional Tax
Sums and any overdue  installment of interest shall bear Additional  Interest at
the rate  equal to a fixed rate equal to 9.16% per annum  through  the  interest
payment date in March 30, 2010 and  thereafter  at a variable rate of LIBOR plus
4.90% per annum  compounded  quarterly from the dates such amounts are due until
they are paid or funds for the payment thereof are made available for payment.

      (b) Interest and Additional Interest on any Security that is payable,  and
is punctually  paid or duly provided for, on any Interest  Payment Date shall be
paid to the  Person in whose  name  that  Security  (or one or more  Predecessor
Securities)  is registered  at the close of business on the Regular  Record Date
for such interest,  except that interest and any Additional  Interest payable on
the Stated Maturity (or any date of principal  repayment upon early maturity) of
the principal of a Security or on a Redemption  Date shall be paid to the Person
to whom principal is paid. The initial  payment of interest on any Security that
is issued  between a Regular Record Date and the related  Interest  Payment Date
shall be payable as provided in such Security.

      (c) Any  interest  on any  Security  that is due and  payable,  but is not
timely paid or duly  provided for, on any Interest  Payment Date for  Securities
(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  may be paid by the Company,  at its
election in each case, as provided in paragraph (i) or (ii) below:

            (i) The Company may elect to make payment of any Defaulted  Interest
      to the  Persons  in  whose  names  the  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 (a "Special
      Record  Date"),  which shall be fixed in the  following  manner.  At least
      thirty (30) days prior to the date of the  proposed  payment,  the Company
      shall  notify the Trustee in writing of the amount of  Defaulted  Interest
      proposed to be paid on each Security and the date of the proposed payment,
      and at the same time the Company  shall deposit with the Trustee an amount
      of money equal to the aggregate  amount  proposed to be paid in respect of
      such Defaulted  Interest or shall make  arrangements  satisfactory  to the
      Trustee for such deposit prior to the date of the proposed  payment,  such
      money when  deposited  to be held in trust for the  benefit of the Persons
      entitled to such  Defaulted  Interest.  Thereupon  the Trustee shall fix a
      Special  Record Date for the  payment of such  Defaulted  Interest,  which
      shall be not more than  fifteen  (15) days and not less than ten (10) days
      prior to the date of the proposed  payment and not less than ten (10) days
      after the  receipt by the Trustee of the notice of the  proposed  payment.
      The Trustee shall promptly  notify the Company of such Special Record Date
      and, in the name

                                       22
<PAGE>

      and at the  expense of the  Company,  shall cause  notice of the  proposed
      payment of such Defaulted Interest and the Special Record Date therefor to
      be mailed,  first class,  postage prepaid, to each Holder of a Security at
      the address of such Holder as it appears in the  Securities  Register  not
      less than ten (10) days prior to such Special  Record Date.  Notice of the
      proposed  payment of such  Defaulted  Interest and the Special Record Date
      therefor having been so mailed,  such Defaulted  Interest shall be paid to
      the Persons in whose names the Securities (or their respective Predecessor
      Securities) are registered on such Special Record Date; or

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

      (d) Payments of interest on the Securities  shall include interest accrued
to but excluding the respective  Interest  Payment Dates.  During the Fixed Rate
Period,  interest  payments for the Securities shall be computed and paid on the
basis of a 360-day year of twelve 30-day  months and the amount  payable for any
partial period shall be computed on the basis of the number of days elapsed in a
360-day year of twelve 30-day months.  Upon expiration of the Fixed Rate Period,
the amount of interest  payable for any Interest Payment Period will be computed
on the basis of a 360-day  year and the  actual  number of days  elapsed  in the
relevant interest period.

      (e)  Payment  of  principal  of,  premium,  if any,  and  interest  on the
Securities  shall be made in such  coin or  currency  of the  United  States  of
America  as at the time of payment  is legal  tender  for  payment of public and
private debts.  Payments of principal,  premium, if any, and interest due at the
Maturity of such Securities shall be made at the Place of Payment upon surrender
of such  Securities  to the Paying Agent and payments of interest  shall be made
subject to such surrender where  applicable,  by wire transfer at such place and
to  such  account  at a  banking  institution  in the  United  States  as may be
designated  in writing to the Paying Agent at least ten (10) Business Days prior
to the date for payment by the Person  entitled  thereto  unless proper  written
transfer  instructions  have not been  received by the relevant  record date, in
which case such  payments  shall be made by check  mailed to the address of such
Person as such address  shall appear in the Security  Register.  Notwithstanding
the foregoing,  so long as the holder of this Security is the Property  Trustee,
the payment of the  principal of (and premium,  if any) and interest  (including
any overdue  installment  of interest and  Additional  Tax Sums, if any) on this
Security  will be made at such place and to such account as may be designated by
the Property Trustee.

      (f) Subject to the foregoing provisions of this Section 3.1, each Security
delivered under this Indenture upon transfer of or in exchange for or in lieu of
any other Security shall carry the rights to interest accrued and unpaid, and to
accrue, that were carried by such other Security.

                                       23
<PAGE>

      SECTION 3.2. Denominations.

      The Securities  shall be in registered  form without  coupons and shall be
issuable in minimum  denominations  of  $100,000  and any  integral  multiple of
$1,000 in excess thereof.

      SECTION 3.3. Execution, Authentication, Delivery and Dating.

      (a) At any time and from time to time after the  execution and delivery of
this  Indenture,  the Company may deliver  Securities in an aggregate  principal
amount (including all then Outstanding Securities) not in excess of Twenty Three
Million One Hundred Ninety Six Thousand  Dollars  ($23,196,000)  executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication  and delivery of such  Securities,  and the Trustee in accordance
with the  Company  Order shall  authenticate  and deliver  such  Securities.  In
authenticating  such Securities,  and accepting the additional  responsibilities
under this  Indenture  in relation  to such  Securities,  the  Trustee  shall be
entitled to receive, and shall be fully protected in relying upon:

            (i) a copy of any Board Resolution relating thereto; and

            (ii) an Opinion of Counsel stating that: (1) such  Securities,  when
      authenticated  and  delivered  by the Trustee and issued by the Company in
      the manner and  subject to any  conditions  specified  in such  Opinion of
      Counsel, will constitute, and the Indenture constitutes, valid and legally
      binding  obligations of the Company,  each  enforceable in accordance with
      its  terms,  subject  to  bankruptcy,   insolvency,  fraudulent  transfer,
      reorganization,  moratorium  and  similar  laws of  general  applicability
      relating  to  or  affecting   creditors'  rights  and  to  general  equity
      principles;  (2) the Securities  have been duly authorized and executed by
      the Company and have been delivered to the Trustee for  authentication  in
      accordance with this Indenture;  (3) the Securities are not required to be
      registered under the Securities Act; and (4) the Indenture is not required
      to be qualified under the Trust Indenture Act.

      (b) The  Securities  shall be  executed  on behalf of the  Company  by its
Chairman  of the Board,  its Vice  Chairman  of the Board,  its Chief  Executive
Officer,  its President or one of its Vice  Presidents.  The signature of any of
these officers on the Securities may be manual or facsimile.  Securities bearing
the  manual or  facsimile  signatures  of  individuals  who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such
individuals  or any of them  have  ceased  to hold  such  offices  prior  to the
authentication  and delivery of such  Securities or did not hold such offices at
the date of such Securities.

      (c) No Security  shall be entitled to any benefit under this  Indenture or
be valid or obligatory for any purpose,  unless there appears on such Security a
certificate  of  authentication  substantially  in the form  provided for herein
executed  by  the  Trustee  by the  manual  signature  of one of its  authorized
signatories,  and  such  certificate  upon  any  Security  shall  be  conclusive
evidence, and the only evidence,  that such Security has been duly authenticated
and delivered  hereunder.  Notwithstanding the foregoing,  if any Security shall
have been authenticated and delivered hereunder but never issued and sold by the
Company,  and the  Company  shall  deliver  such  Security  to the  Trustee  for
cancellation as provided in Section 3.8, for all purposes of this

                                       24
<PAGE>

Indenture  such Security  shall be deemed never to have been  authenticated  and
delivered  hereunder  and  shall  never  be  entitled  to the  benefits  of this
Indenture.

      (d) Each Security shall be dated the date of its authentication.

      [If DTC Entry insert the following Section:]

      SECTION 3.4. Global Securities.

      (a) Upon the election of the Holder after the Original  Issue Date,  which
election need not be in writing,  the  Securities  owned by such Holder shall be
issued in the form of one or more Global  Securities  registered  in the name of
the Depositary or its nominee.  Each Global Security issued under this Indenture
shall be registered in the name of the Depositary  designated by the Company for
such Global  Security or a nominee thereof and delivered to such Depositary or a
nominee  thereof or  custodian  therefor,  and each such Global  Security  shall
constitute a single Security for all purposes of this Indenture.

      (b)  Notwithstanding  any other  provision  in this  Indenture,  no Global
Security may be exchanged in whole or in part for registered Securities,  and no
transfer of a Global Security in whole or in part may be registered, in the name
of any Person other than the  Depositary  for such Global  Security or a nominee
thereof  unless (i) such  Depositary  advises  the  Trustee  and the  Company in
writing that such Depositary is no longer willing or able to properly  discharge
its responsibilities as Depositary with respect to such Global Security,  and no
qualified  successor  is  appointed  by the Company  within  ninety (90) days of
receipt  by the  Company of such  notice,  (ii) such  Depositary  ceases to be a
clearing agency  registered under the Exchange Act and no successor is appointed
by the Company within ninety (90) days after obtaining  knowledge of such event,
(iii) the Company  executes and delivers to the Trustee a Company  Order stating
that  the  Company  elects  to  terminate  the  book-entry  system  through  the
Depositary or (iv) an Event of Default  shall have  occurred and be  continuing.
Upon the occurrence of any event  specified in clause (i),  (ii),  (iii) or (iv)
above,  the Trustee shall notify the  Depositary  and instruct the Depositary to
notify  all  owners of  beneficial  interests  in such  Global  Security  of the
occurrence of such event and of the availability of Securities to such owners of
beneficial interests requesting the same. The Trustee may conclusively rely, and
be  protected  in  relying,  upon the  written  identification  of the owners of
beneficial  interests  furnished by the Depositary,  and shall not be liable for
any delay  resulting from a delay by the  Depositary.  Upon the issuance of such
Securities and the registration in the Securities Register of such Securities in
the names of the Holders of the beneficial interests therein, the Trustees shall
recognize such holders of beneficial interests as Holders.

      (c) If any Global  Security is to be  exchanged  for other  Securities  or
canceled in part, or if another  Security is to be exchanged in whole or in part
for a beneficial  interest in any Global  Security,  then either (i) such Global
Security shall be so  surrendered  for exchange or  cancellation  as provided in
this  Article  III or (ii) the  principal  amount  thereof  shall be  reduced or
increased  by an amount  equal to (x) the portion  thereof to be so exchanged or
canceled,  or (y) the principal amount of such other Security to be so exchanged
for a  beneficial  interest  therein,  as  the  case  may  be,  by  means  of an
appropriate  adjustment  made  on  the  records  of  the  Securities  Registrar,
whereupon the Trustee, in accordance with the Applicable Depositary  Procedures,
shall  instruct  the  Depositary  or its  authorized  representative  to  make a
corresponding  adjustment

                                       25
<PAGE>

to its records.  Upon any such  surrender or adjustment of a Global  Security by
the  Depositary,  accompanied by  registration  instructions,  the Company shall
execute and the Trustee shall  authenticate and deliver any Securities  issuable
in exchange for such Global Security (or any portion thereof) in accordance with
the  instructions  of the  Depositary.  The Trustee  shall not be liable for any
delay in delivery of such  instructions and may conclusively  rely on, and shall
be fully protected in relying on, such instructions.

      (d) Every  Security  authenticated  and  delivered  upon  registration  of
transfer of, or in exchange for or in lieu of, a Global  Security or any portion
thereof  shall be  authenticated  and  delivered in the form of, and shall be, a
Global  Security,  unless such  Security is  registered  in the name of a Person
other than the Depositary for such Global Security or a nominee thereof.

      (e) Securities  distributed to holders of Book-Entry  Preferred Securities
(as defined in the applicable Trust Agreement) upon the dissolution of the Trust
shall be distributed in the form of one or more Global Securities  registered in
the name of a  Depositary  or its nominee,  and  deposited  with the  Securities
Registrar, as custodian for such Depositary, or with such Depositary, for credit
by the  Depositary to the respective  accounts of the  beneficial  owners of the
Securities  represented  thereby (or such other  accounts  as they may  direct).
Securities  distributed to holders of Preferred Securities other than Book-Entry
Preferred  Securities  upon the  dissolution of the Trust shall not be issued in
the  form  of a  Global  Security  or any  other  form  intended  to  facilitate
book-entry trading in beneficial interests in such Securities.

      (f) The  Depositary or its nominee,  as the  registered  owner of a Global
Security,  shall be the Holder of such Global  Security for all  purposes  under
this  Indenture  and the  Securities,  and owners of  beneficial  interests in a
Global Security shall hold such interests pursuant to the Applicable  Depositary
Procedures.  Accordingly,  any  such  owner's  beneficial  interest  in a Global
Security  shall be shown only on, and the  transfer  of such  interest  shall be
effected only through,  records  maintained by the  Depositary or its nominee or
its Depositary  Participants.  The Securities Registrar and the Trustee shall be
entitled to deal with the Depositary for all purposes of this Indenture relating
to a Global  Security  (including the payment of principal and interest  thereon
and the giving of instructions  or directions by owners of beneficial  interests
therein and the giving of notices) as the sole Holder of the  Security and shall
have no obligations to the owners of beneficial  interests therein.  Neither the
Trustee nor the Securities  Registrar shall have any liability in respect of any
transfers effected by the Depositary.

      (g) The  rights of owners of  beneficial  interests  in a Global  Security
shall be  exercised  only through the  Depositary  and shall be limited to those
established by law and agreements  between such owners and the Depositary and/or
its Depositary Participants.

      (h) No holder of any  beneficial  interest in any Global  Security held on
its  behalf by a  Depositary  shall have any rights  under this  Indenture  with
respect  to such  Global  Security,  and such  Depositary  may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the owner of
such Global  Security for all  purposes  whatsoever.  None of the  Company,  the
Trustee nor any agent of the Company or the Trustee will have any responsibility
or  liability  for any aspect of the records  relating  to or  payments  made on
account of beneficial  ownership  interests of a Global Security or maintaining,
supervising  or  reviewing  any records  relating to such  beneficial  ownership
interests.  Notwithstanding  the  foregoing,  nothing  herein shall  prevent the
Company,  the  Trustee or any agent of the  Company or the  Trustee  from giving

                                       26
<PAGE>

effect to any written certification, proxy or other authorization furnished by a
Depositary  or impair,  as between a Depositary  and such holders of  beneficial
interests,  the operation of customary  practices  governing the exercise of the
rights of the Depositary (or its nominee) as Holder of any Security.

      SECTION 3.5. Registration, Transfer and Exchange Generally.

      (a) The Trustee  shall cause to be kept at the  Corporate  Trust  Office a
register (the  "Securities  Register") in which the registrar and transfer agent
with respect to the Securities  (the  "Securities  Registrar"),  subject to such
reasonable  regulations as it may prescribe,  shall provide for the registration
of Securities and of transfers and exchanges of Securities. The Trustee shall at
all times also be the Securities  Registrar.  The provisions of Article VI shall
apply to the Trustee in its role as Securities Registrar.

      (b)  Subject  to  compliance  with  Section  2.2(b),  upon  surrender  for
registration  of  transfer  of any  Security  at the  offices or agencies of the
Company  designated for that purpose the Company shall execute,  and the Trustee
shall  authenticate  and deliver,  in the name of the  designated  transferee or
transferees,  one or more new Securities of any authorized denominations of like
tenor and aggregate principal amount.

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

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

      (e) Every Security presented or surrendered for transfer or exchange shall
(if so  required  by the  Company  or  the  Trustee)  be  duly  endorsed,  or be
accompanied  by a written  instrument  of transfer in form  satisfactory  to the
Company and the  Securities  Registrar,  duly executed by the Holder  thereof or
such Holder's attorney duly authorized in writing.

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

      (g) Neither the Company nor the Trustee shall be required  pursuant to the
provisions  of this Section 3.5 (g):  (i) to issue,  register the transfer of or
exchange  any  Security  during a period  beginning  at the  opening of business
fifteen  (15) days before the day of  selection  for  redemption  of  Securities
pursuant to Article XI and ending at the close of business on the day of mailing
of the notice of  redemption or (ii) to register the transfer of or exchange any
Security so selected for redemption in whole or in part,  except, in the case of
any  such  Security  to be  redeemed  in part,  any  portion  thereof  not to be
redeemed.

                                       27
<PAGE>

      (h) The Company shall designate an office or offices or agency or agencies
where  Securities may be surrendered  for  registration or transfer or exchange.
The Company  initially  designates the Corporate  Trust Office as its office and
agency for such  purposes.  The Company shall give prompt  written notice to the
Trustee and to the  Holders of any change in the  location of any such office or
agency.

      (i) The Securities  may only be transferred to a "Qualified  Purchaser" as
such term is defined in Section 2(a)(51) of the Investment  Company Act. Neither
the Trustee nor the Securities  Registrar shall be responsible for  ascertaining
whether any transfer hereunder  complies with the registration  provisions of or
any exemptions from the Securities Act,  applicable state securities laws or the
applicable  laws of any other  jurisdiction,  ERISA,  the United States Internal
Revenue Code of 1986, as amended, or the Investment Company Act; provided,  that
if a certificate is  specifically  required by the express terms of this Section
3.5 to be  delivered to the Trustee or the  Securities  Registrar by a Holder or
transferee  of a Security,  the Trustee and the  Securities  Registrar  shall be
under a duty to receive  and examine  the same to  determine  whether or not the
certificate  substantially  conforms  on its  face to the  requirements  of this
Indenture  and  shall  promptly  notify  the party  delivering  the same if such
certificate does not comply with such terms.

      SECTION 3.6. Mutilated, Destroyed, Lost and Stolen Securities.

      (a) If any mutilated  Security is surrendered to the Trustee together with
such security or indemnity as may be required by the Trustee to save the Company
and the Trustee  harmless,  the  Company  shall  execute  and the Trustee  shall
authenticate  and deliver in exchange  therefor a new Security of like tenor and
aggregate   principal   amount  and  bearing  a  number  not   contemporaneously
outstanding.

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

      (c) If any such mutilated,  destroyed,  lost or stolen Security has become
or is about to become  due and  payable,  the  Company  in its  discretion  may,
instead of issuing a new Security, pay such Security.

      (d) Upon the  issuance of any new  Security  under this  Section  3.6, the
Company may require  the payment of a sum  sufficient  to cover any tax or other
governmental  charge  that may be  imposed  in  relation  thereto  and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

      (e) Every new Security  issued pursuant to this Section 3.6 in lieu of any
mutilated,  destroyed,  lost or stolen  Security  shall  constitute  an original
additional contractual obligation of the Company,  whether or not the mutilated,
destroyed,  lost or stolen Security shall be at any time

                                       28
<PAGE>

enforceable  by  anyone,  and  shall be  entitled  to all the  benefits  of this
Indenture  equally and  proportionately  with any and all other  Securities duly
issued hereunder.

      (f) The  provisions of this Section 3.6 are  exclusive and shall  preclude
(to the  extent  lawful)  all other  rights  and  remedies  with  respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities.

      SECTION 3.7. Persons Deemed Owners.

      The Company, the Trustee and any agent of the Company or the Trustee shall
treat the Person in whose name any Security is  registered  as the owner of such
Security for the purpose of  receiving  payment of principal of and any interest
on such Security and for all other purposes whatsoever, and neither the Company,
the Trustee  nor any agent of the  Company or the  Trustee  shall be affected by
notice to the contrary.

      SECTION 3.8. Cancellation.

      All Securities surrendered for payment,  redemption,  transfer or exchange
shall, if surrendered to any Person other than the Trustee,  be delivered to the
Trustee,  and any such  Securities  and Securities  surrendered  directly to the
Trustee for any such purpose  shall be promptly  canceled by it. The Company may
at any time deliver to the Trustee for  cancellation  any Securities  previously
authenticated and delivered  hereunder that the Company may have acquired in any
manner whatsoever, and all Securities so delivered shall be promptly canceled by
the Trustee.  No Securities shall be authenticated in lieu of or in exchange for
any  Securities  canceled as provided in this Section  3.8,  except as expressly
permitted  by this  Indenture.  All  canceled  Securities  shall be  retained or
disposed of by the Trustee in accordance  with its  customary  practices and the
Trustee shall deliver to the Company a certificate of such disposition.

      SECTION 3.9. Reserved.

      SECTION 3.10. Right of Set-Off.

      Notwithstanding  anything to the contrary  herein,  the Company shall have
the right to set off any payment it is otherwise  required to make in respect of
any Security to the extent the Company has theretofore  made, or is currently on
the date of such payment  making,  a payment  relating to such  Security or to a
holder of Preferred  Securities  pursuant to an action  undertaken under Section
5.8 of this Indenture.

      SECTION 3.11. Agreed Tax Treatment.

      Each Security issued  hereunder shall provide that the Company and, by its
acceptance or acquisition of a Security or a beneficial  interest  therein,  the
Holder of, and any Person that acquires a direct or indirect beneficial interest
in, such Security,  intend and agree to treat such Security as  indebtedness  of
the Company for United States Federal, state and local tax purposes and to treat
the Preferred Securities (including but not limited to all payments and proceeds
with respect to the Preferred  Securities) as an undivided  beneficial ownership
interest in the  Securities  (and any other Trust  property)  (and  payments and
proceeds therefrom, respectively) for United

                                       29
<PAGE>

States Federal,  state and local tax purposes.  The provisions of this Indenture
shall be interpreted to further this intention and agreement of the parties.

      SECTION 3.12. CUSIP Numbers.

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

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

      SECTION 4.1. Satisfaction and Discharge of Indenture.

      This Indenture shall, upon Company Request,  cease to be of further effect
(except as to any surviving  rights of  registration  of transfer or exchange of
Securities  herein  expressly  provided  for and as  otherwise  provided in this
Section  4.1) and the  Trustee,  on demand of and at the expense of the Company,
shall execute proper  instruments  acknowledging  satisfaction  and discharge of
this Indenture, when

      (a) either

            (i) all Securities  theretofore  authenticated  and delivered (other
      than (A) Securities  that have been mutilated,  destroyed,  lost or stolen
      and that have been  replaced  or paid as  provided  in Section 3.6 and (B)
      Securities for whose payment money has theretofore been deposited in trust
      or segregated  and held in trust by the Company and  thereafter  repaid to
      the Company or  discharged  from such trust as  provided in Section  10.2)
      have been delivered to the Trustee for cancellation; or

            (ii) all such  Securities not  theretofore  delivered to the Trustee
      for cancellation

                  (A) have become due and payable, or

                  (B) will  become  due and  payable  at their  Stated  Maturity
            within one year of the date of deposit, or

                  (C) are to be called  for  redemption  within  one year  under
            arrangements satisfactory to the Trustee for the giving of notice of
            redemption  by the Trustee in the name,  and at the expense,  of the
            Company,

      and the Company,  in the case of subclause (ii)(A),  (B) or (C) above, has
      deposited  or caused to be deposited  with the Trustee  funds in trust for
      such  purpose  (x) an amount in the  currency or  currencies  in which the
      Securities  are payable,  (y)  Government  Obligations  which  through the
      scheduled  payment  of  principal  and  interest  in  respect

                                       30
<PAGE>

      thereof in accordance  with their terms will  provide,  not later than the
      due date of any payment,  money in an amount or (z) a combination thereof,
      in each case sufficient, in the opinion of a nationally recognized firm of
      independent  public  accountants  expressed  in  a  written  certification
      thereof  delivered  to  the  Trustee,  to pay  and  discharge  the  entire
      indebtedness on such  Securities not theretofore  delivered to the Trustee
      for  cancellation,  for principal and any premium and interest  (including
      any  Additional  Interest)  to the  date of such  deposit  (in the case of
      Securities that have become due and payable) or to the Stated Maturity (or
      any date of principal  repayment upon early maturity) or Redemption  Date,
      as the case may be;

      (b) the  Company  has paid or  caused to be paid all  other  sums  payable
hereunder by the Company; and

      (c) The Company has delivered to the Trustee 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.

Notwithstanding   the  satisfaction   and  discharge  of  this  Indenture,   the
obligations of the Company to the Trustee under Section 6.6, the  obligations of
the Company to any  Authenticating  Agent under Section 6.11 and, if money shall
have been  deposited  with the  Trustee  pursuant to  subclause  (a)(ii) of this
Section  4.1,  the  obligations  of the  Trustee  under  Section 4.2 and Section
10.2(e) shall survive.

      SECTION 4.2. Application of Trust Money.

      Subject to the provisions of Section 10.2(e), all money deposited with the
Trustee  pursuant  to  Section  4.1  shall be held in trust and  applied  by the
Trustee, in accordance with the provisions of the Securities and this Indenture,
to the payment in accordance  with Section 3.1,  either  directly or through any
Paying  Agent  (including  the  Company  acting as its own Paying  Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal and any
premium and interest  (including  any  Additional  Interest)  for the payment of
which such money or  obligations  have been  deposited  with or  received by the
Trustee.  Moneys held by the Trustee under this Section 4.2 shall not be subject
to the claims of holders of Senior Debt under Article XII.

                                   ARTICLE V

                                    REMEDIES

      SECTION 5.1. Events of Default.

      "Event of  Default"  means,  wherever  used  herein  with  respect  to the
Securities,  any one of the following events (whatever the reason for such Event
of Default and whether it shall be  voluntary or  involuntary  or be effected by
operation  of law or pursuant to any  judgment,  decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

                                       31
<PAGE>

      (a) default in the payment of any interest  upon any  Security,  including
any Additional Interest in respect thereof, when it becomes due and payable, and
continuance of such default for a period of thirty (30) days; or

      (b)  default in the  payment  of the  principal  of or any  premium on any
Security at its Maturity; or

      (c) default in the performance,  or breach, of any covenant or warranty of
the Company in this  Indenture and  continuance  of such default or breach for a
period of  thirty  (30)  days  after  there has been  given,  by  registered  or
certified  mail, to the Company by the Trustee or to the Company and the Trustee
by the Holders of at least  twenty five  percent  (25%) in  aggregate  principal
amount of the Outstanding 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;

      (d) the entry by a court having  jurisdiction  in the premises of a decree
or order adjudging the Company a bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization,  arrangement, adjustment or composition
of  or in  respect  of  the  Company  under  any  applicable  Federal  or  state
bankruptcy,  insolvency,  reorganization  or other  similar law, or appointing a
custodian,  receiver,  liquidator,  assignee,  trustee,  sequestrator  or  other
similar official of the Company or of any substantial  part of its property,  or
ordering the winding up or  liquidation of its affairs,  and the  continuance of
any such decree or order for relief or any such other  decree or order  unstayed
and in effect for a period of sixty (60) consecutive days;

      (e) the  institution  by the Company of  proceedings  to be  adjudicated a
bankrupt  or  insolvent,  or the consent by the  Company to the  institution  of
bankruptcy or insolvency proceedings against it, or the filing by the Company of
a  petition  or answer or consent  seeking  reorganization  or relief  under any
applicable  Federal or state  bankruptcy,  insolvency,  reorganization  or other
similar  law,  or the  consent  by it to the filing of such  petition  or to the
appointment  of or  taking  possession  by a  custodian,  receiver,  liquidator,
assignee,  trustee,  sequestrator or other similar official of the Company or of
any substantial  part of its property,  or the making by it of an assignment for
the benefit of creditors,  or the admission by it in writing of its inability to
pay its debts generally as they become due and its willingness to be adjudicated
a bankrupt or  insolvent,  or the taking of  corporate  action by the Company in
furtherance of any such action; or

      (f)  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  Securities to holders of the
Preferred  Securities in  liquidation of their  interests in the Trust,  (2) the
redemption  of  all of  the  outstanding  Preferred  Securities  or (3)  certain
mergers, consolidations or amalgamations, each as and to the extent permitted by
the Trust Agreement.

      SECTION 5.2. Acceleration of Maturity; Rescission and Annulment.

      (a) If an Event of  Default  occurs and is  continuing,  then and in every
such case the Trustee or the Holders of not less than twenty five percent  (25%)
in aggregate  principal  amount of the  Outstanding  Securities  may declare the
principal amount of all the Securities to be due and payable  immediately,  by a
notice in  writing to the  Company  (and to the  Trustee  if given by  Holders),
provided,  that if, upon an Event of Default,  the Trustee or the Holders of not
less than

                                       32
<PAGE>

twenty five percent (25%) in principal amount of the Outstanding Securities fail
to declare the principal of all the Outstanding Securities to be immediately due
and  payable,  the holders of at least  twenty five  percent  (25%) in aggregate
Liquidation  Amount of the Preferred  Securities then outstanding shall have the
right to make such  declaration by a notice in writing to the Property  Trustee,
the Company and the Trustee;  and upon any such declaration the principal amount
of and the accrued  interest  (including  any  Additional  Interest)  on all the
Securities shall become immediately due and payable.

      (b) At any time after such a declaration of  acceleration  with respect to
Securities  has been made and  before a judgment  or decree  for  payment of the
money due has been  obtained  by the  Trustee as  hereinafter  provided  in this
Article V, the  Holders  of a  majority  in  aggregate  principal  amount of the
Outstanding  Securities,  by written  notice to the  Indenture  Trustee,  or the
holders  of  a  majority  in  aggregate  Liquidation  Amount  of  the  Preferred
Securities,  by written  notice to the  Property  Trustee,  the  Company and the
Trustee, may rescind and annul such declaration and its consequences if:

            (i) the  Company  has  paid or  deposited  with  the  Trustee  a sum
      sufficient to pay:

                  (A) all overdue installments of interest on all Securities,

                  (B) any accrued Additional Interest on all Securities,

                  (C) the  principal of and any premium on any  Securities  that
            have become due otherwise than by such  declaration of  acceleration
            and interest (including any Additional Interest) thereon at the rate
            borne by the Securities, and

                  (D) all sums paid or advanced by the Trustee hereunder and the
            reasonable compensation, expenses, disbursements and advances of the
            Trustee, the Property Trustee and their agents and counsel; and

            (ii) all Events of Default  with respect to  Securities,  other than
      the  non-payment of the principal of Securities that has become due solely
      by such  acceleration,  have been cured or waived as  provided  in Section
      5.13;

provided,  that if the Holders of such Securities fail to annul such declaration
and waive such  default,  the holders of not less than a majority  in  aggregate
Liquidation Amount of the Preferred  Securities then outstanding shall also have
the right to rescind and annul such  declaration and its consequences by written
notice to the  Property  Trustee,  the Company and the  Trustee,  subject to the
satisfaction  of the  conditions set forth in paragraph (b) of this Section 5.2.
No such  rescission  shall  affect  any  subsequent  default or impair any right
consequent thereon.

      SECTION 5.3.  Collection  of  Indebtedness  and Suits for  Enforcement  by
Trustee.

      (a) The Company covenants that if:

            (i)  default is made in the payment of any  installment  of interest
      (including  any  Additional  Interest) on any Security  when such interest
      becomes due and payable and such default  continues for a period of thirty
      (30) days, or

                                       33
<PAGE>

            (ii)  default  is made in the  payment of the  principal  of and any
      premium on any Security at the Maturity thereof,

the  Company  will,  upon demand of the  Trustee,  pay to the  Trustee,  for the
benefit of the Holders of such Securities, the whole amount then due and payable
on such  Securities  for principal and any premium and interest  (including  any
Additional  Interest)  and, in addition  thereto,  all amounts owing the Trustee
under Section 6.6.

      (b) If the Company fails to pay such amounts  forthwith  upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial  proceeding for the  collection of the sums so due and unpaid,  and may
prosecute such proceeding to judgment or final decree,  and may enforce the same
against the Company or any other  obligor upon such  Securities  and collect the
moneys  adjudged  or decreed to be payable in the manner  provided by law out of
the property of the Company or any other obligor upon the  Securities,  wherever
situated.

      (c) If an Event of  Default  with  respect  to  Securities  occurs  and is
continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holders of Securities by such appropriate  judicial
proceedings  as the Trustee shall deem most effectual to protect and enforce any
such rights,  whether for the specific  enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted  herein,  or to
enforce any other proper remedy.

      SECTION 5.4. Trustee May File Proofs of Claim.

      In  case  of  any  receivership,   insolvency,  liquidation,   bankruptcy,
reorganization,   arrangement,   adjustment,  composition  or  similar  judicial
proceeding  relative to the Company (or any other obligor upon the  Securities),
its property or its creditors,  the Trustee shall be entitled and empowered,  by
intervention  in such  proceeding  or  otherwise,  to take  any and all  actions
authorized  hereunder  in order to have  claims of the  Holders  and the Trustee
allowed in any such proceeding.  In particular,  the Trustee shall be authorized
to collect and receive any moneys or other  property  payable or  deliverable on
any such  claims  and to  distribute  the  same;  and any  custodian,  receiver,
assignee,  trustee,  liquidator,  sequestrator or other similar  official in any
such  judicial  proceeding  is  hereby  authorized  by each  Holder to make such
payments to the Trustee and, in the event that the Trustee  shall consent to the
making of such payments directly to the Holders, to first pay to the Trustee any
amount  due it for the  reasonable  compensation,  expenses,  disbursements  and
advances of the Trustee, its agents and counsel, and any other amounts owing the
Trustee, any predecessor Trustee and other Persons under Section 6.6.

      SECTION 5.5. Trustee May Enforce Claim Without Possession of Securities.

      All rights of action and claims under this Indenture or the Securities may
be prosecuted  and enforced by the Trustee  without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such  proceeding  instituted  by the Trustee shall be brought in its own name as
trustee of an express  trust,  and any  recovery of judgment  shall,  subject to
Article XII and after  provision  for the  payment of all the amounts  owing the
Trustee, any predecessor Trustee and other Persons under Section 6.6, be for the
ratable  benefit  of the  Holders  of the  Securities  in  respect of which such
judgment has been recovered.

                                       34
<PAGE>

      SECTION 5.6. Application of Money Collected.

      Any money or  property  collected  or to be  applied by the  Trustee  with
respect to the  Securities  pursuant  to this  Article V shall be applied in the
following  order,  at the date or dates fixed by the Trustee and, in case of the
distribution of such money or property on account of principal or any premium or
interest  (including  any  Additional   Interest),   upon  presentation  of  the
Securities  and the notation  thereon of the payment if only  partially paid and
upon surrender thereof if fully paid:

      FIRST:  To the  payment of all amounts due the  Trustee,  any  predecessor
Trustee and other Persons under Section 6.6;

      SECOND:  To the  payment of all Senior  Debt of the  Company if and to the
extent required by Article XII;

      THIRD:  Subject to Article XII, to the payment of the amounts then due and
unpaid upon the Securities for principal and any premium and interest (including
any  Additional  Interest)  in respect of which or for the benefit of which such
money has been collected,  ratably,  without preference or priority of any kind,
according to the amounts due and payable on the Securities for principal and any
premium and interest (including any Additional Interest), respectively; and

      FOURTH: The balance, if any, to the Person or Persons entitled thereto.

      SECTION 5.7. Limitation on Suits.

      Subject to Section 5.8, no Holder of any  Securities  shall have any right
to  institute  any  proceeding,  judicial  or  otherwise,  with  respect to this
Indenture or for the appointment of a custodian,  receiver,  assignee,  trustee,
liquidator,  sequestrator  (or other  similar  official) or for any other remedy
hereunder, unless:

      (a) such Holder has  previously  given written  notice to the Trustee of a
continuing Event of Default with respect to the Securities;

      (b) the Holders of not less than a majority in aggregate  principal amount
of the Outstanding  Securities shall have made written request to the Trustee to
institute  proceedings  in  respect  of such Event of Default in its own name as
Trustee hereunder;

      (c)  such  Holder  or  Holders  have  offered  to the  Trustee  reasonable
indemnity  against  the  costs,  expenses  and  liabilities  to be  incurred  in
compliance with such request;

      (d) the  Trustee  after its receipt of such  notice,  request and offer of
indemnity has failed to institute any such proceeding for sixty (60) days; and

      (e) no direction  inconsistent with such written request has been given to
the Trustee  during such sixty  (60)-day  period by the Holders of a majority in
aggregate principal amount of the Outstanding Securities;

it being  understood and intended that no one or more of such Holders shall have
any right in any manner  whatever  by virtue of, or by  availing  itself of, any
provision of this  Indenture to affect,

                                       35
<PAGE>

disturb or prejudice the rights of any other Holders of Securities, or to obtain
or to seek to obtain priority or preference over any other of such Holders or to
enforce any right under this Indenture, except in the manner herein provided and
for the equal and ratable benefit of all such Holders.

      SECTION 5.8. Unconditional Right of Holders to Receive Principal, Premium,
if any, and Interest; Direct Action by Holders of Preferred Securities.

      Notwithstanding  any other provision in this Indenture,  the Holder of any
Security shall have the right, which is absolute and  unconditional,  to receive
payment of the principal of and any premium on such Security at its Maturity and
payment of interest  (including any  Additional  Interest) on such Security when
due and payable and to institute  suit for the  enforcement of any such payment,
and such right shall not be impaired  without  the consent of such  Holder.  Any
registered  holder of the Preferred  Securities  shall have the right,  upon the
occurrence of an Event of Default described in Section 5.1(a) or Section 5.1(b),
to institute a suit directly  against the Company for  enforcement of payment to
such  holder  of  principal  of and any  premium  and  interest  (including  any
Additional  Interest) on the Securities  having a principal  amount equal to the
aggregate Liquidation Amount of the Preferred Securities held by such holder.

      SECTION 5.9. Restoration of Rights and Remedies.

      If the  Trustee,  any Holder or any  holder of  Preferred  Securities  has
instituted  any  proceeding to enforce any right or remedy under this  Indenture
and such proceeding has been  discontinued  or abandoned for any reason,  or has
been  determined  adversely  to the  Trustee,  such  Holder  or such  holder  of
Preferred Securities, then and in every such case the Company, the Trustee, such
Holders  and  such  holder  of  Preferred   Securities  shall,  subject  to  any
determination  in such  proceeding,  be restored  severally and  respectively to
their former positions hereunder,  and thereafter all rights and remedies of the
Trustee,  such Holder and such holder of Preferred  Securities shall continue as
though no such proceeding had been instituted.

      SECTION 5.10. Rights and Remedies Cumulative.

      Except as otherwise  provided in Section 3.6(f), no right or remedy herein
conferred  upon or  reserved  to the  Trustee or the  Holders is  intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent  permitted by law, be cumulative and in addition to every other right and
remedy  given  hereunder  or now or  hereafter  existing  at law or in equity or
otherwise.  The  assertion or employment  of any right or remedy  hereunder,  or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

      SECTION 5.11. Delay or Omission Not Waiver.

      No delay or omission of the Trustee,  any Holder of any  Securities or any
holder of any Preferred  Security to exercise any right or remedy  accruing upon
any Event of  Default  shall  impair any such  right or remedy or  constitute  a
waiver of any such Event of Default or an acquiescence therein.  Every right and
remedy  given by this  Article V or by law to the  Trustee or to the Holders and
the right and remedy given to the holders of Preferred Securities by Section 5.8
may be exercised from time to time, and as often as may be deemed expedient,  by
the Trustee, the Holders or the holders of Preferred Securities, as the case may
be.

                                       36
<PAGE>

      SECTION 5.12. Control by Holders.

      The Holders of not less than a majority in aggregate  principal  amount of
the Outstanding Securities (or, as the case may be, the holders of a majority in
aggregate  Liquidation  Amount of Preferred  Securities) 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; provided, that:

      (a) such  direction  shall not be in conflict with any rule of law or with
this Indenture,

      (b) the Trustee  may take any other  action  deemed  proper by the Trustee
that is not inconsistent with such direction, and

      (c) subject to the  provisions  of Section 6.2, the Trustee shall have the
right to decline to follow such  direction if a Responsible  Officer or Officers
of the Trustee shall, in good faith, reasonably determine that the proceeding so
directed  would be unjustly  prejudicial  to the Holders not joining in any such
direction or would involve the Trustee in personal liability.

      SECTION 5.13. Waiver of Past Defaults.

      (a) The Holders of not less than a majority in aggregate  principal amount
of the  Outstanding  Securities  or the  holders of not less than a majority  in
aggregate  Liquidation  Amount of the  Preferred  Securities  may waive any past
Event of Default hereunder and its consequences except an Event of Default:

            (i) in the  payment of the  principal  of or any premium or interest
      (including any Additional  Interest) on any Security (unless such Event of
      Default has been cured and the Company has paid to or  deposited  with the
      Trustee a sum sufficient to pay all  installments  of interest  (including
      any  Additional  Interest)  due and past due and all  principal of and any
      premium on all Securities due otherwise than by acceleration), or

            (ii) in respect of a covenant or provision hereof that under Article
      IX cannot be modified or amended without the consent of each Holder of any
      Outstanding Security.

      (b) Any such waiver  shall be deemed to be on behalf of the Holders of all
the  Securities  or, in the case of a waiver by holders of Preferred  Securities
issued by such Trust, by all holders of Preferred Securities.

      (c) Upon any such waiver,  such Event of Default  shall cease to exist and
any Event of Default  arising  therefrom  shall be deemed to have been cured for
every  purpose  of  this  Indenture;  but no such  waiver  shall  extend  to any
subsequent or other Event of Default or impair any right consequent thereon.

      SECTION 5.14. Undertaking for Costs.

      All parties to this  Indenture  agree,  and each Holder of any Security by
his or her 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

                                       37
<PAGE>

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 insuch 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 5.14 shall not apply to any suit  instituted
by the  Trustee,  to any suit  instituted  by any  Holder,  or group of Holders,
holding in the  aggregate  more than ten percent  (10%) in  aggregate  principal
amount of the  Outstanding  Securities,  or to any suit instituted by any Holder
for the  enforcement  of the payment of the  principal  of or any premium on the
Security  after the Stated  Maturity or any interest  (including  any Additional
Interest) on any Security after it is due and payable.

      SECTION 5.15. Waiver of Usury, Stay or Extension Laws.

      The Company  covenants  (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or  advantage  of, any usury,  stay or  extension  law wherever
enacted,  now or at any time hereafter in force,  which may affect the covenants
or the performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby  expressly  waives all benefit or  advantage  of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

                                   ARTICLE VI

                                   THE TRUSTEE

      SECTION 6.1. Corporate Trustee Required.

      There  shall at all  times be a  Trustee  hereunder  with  respect  to the
Securities.  The Trustee  shall be a corporation  organized  and doing  business
under  the laws of the  United  States or of any state  thereof,  authorized  to
exercise  corporate  trust powers,  having a combined  capital and surplus of at
least  $50,000,000,  subject to  supervision  or examination by Federal or state
authority and having an office  within the United  States.  If such  corporation
publishes  reports of  condition  at least  annually,  pursuant to law or to the
requirements of such supervising or examining authority,  then, for the purposes
of this Section 6.1, the combined capital and surplus of such corporation  shall
be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so  published.  If at any time the Trustee shall cease to be
eligible in accordance  with the provisions of this Section 6.1, it shall resign
immediately  in the  manner and with the effect  hereinafter  specified  in this
Article VI.

      SECTION 6.2. Certain Duties and Responsibilities.

      Except during the continuance of an Event of Default:

            (i) the  Trustee  undertakes  to perform  such  duties and only such
      duties as are  specifically  set forth in this  Indenture,  and no implied
      covenants or  obligations  shall be read into this  Indenture  against the
      Trustee; and

            (ii) in the  absence  of bad  faith on its  part,  the  Trustee  may
      conclusively  rely, as to the truth of the statements and the  correctness
      of the opinions expressed therein, upon

                                       38
<PAGE>

      certificates  or opinions  furnished to the Trustee and  conforming to the
      requirements  of this  Indenture;  provided,  that in the case of any such
      certificates  or opinions  that by any provision  hereof are  specifically
      required to be furnished to the Trustee, the Trustee shall be under a duty
      to examine the same to determine whether or not they substantially conform
      on their face to the requirements of this Indenture.

      (b) If an Event  of  Default  known to the  Trustee  has  occurred  and is
continuing,  the Trustee shall, prior to the receipt of directions, if any, from
the  Holders  of at  least a  majority  in  aggregate  principal  amount  of the
Outstanding  Securities  (or,  if  applicable,  from the  holders  of at least a
majority in aggregate Liquidation Amount of Preferred Securities), exercise such
of the rights and powers vested in it by this Indenture, and use the same degree
of care and skill in its  exercise,  as a prudent  person would  exercise or use
under the circumstances in the conduct of such person's own affairs.

      (c)  Notwithstanding  the foregoing,  no provision of this Indenture shall
require  the  Trustee  to expend or risk its own  funds or  otherwise  incur any
financial liability in the performance of any of its duties hereunder, or in the
exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate  indemnity  against such risk
or liability is not reasonably  assured to it. Whether or not therein  expressly
so  provided,  every  provision  of this  Indenture  relating  to the conduct or
affecting  the  liability of or  affording  protection  to the Trustee  shall be
subject to the  provisions of this Section 6.2. To the extent that, at law or in
equity,  the Trustee has duties and  liabilities  relating to the  Holders,  the
Trustee shall not be liable to any Holder or any holder of Preferred  Securities
for the Trustee's good faith reliance on the provisions of this  Indenture.  The
provisions  of this  Indenture,  to the extent that they restrict the duties and
liabilities of the Trustee otherwise existing at law or in equity, are agreed by
the Company and the Holders and the holders of Preferred  Securities  to replace
such other duties and liabilities of the Trustee.

      (d) No  provisions  of this  Indenture  shall be  construed to relieve the
Trustee from  liability with respect to matters that are within the authority of
the Trustee under this Indenture for its own negligent action, negligent failure
to act or willful misconduct, except that:

            (i) the Trustee  shall not be liable for any error or judgment  made
      in good faith by an authorized officer of the Trustee,  unless it shall be
      proved that the Trustee was negligent in ascertaining the pertinent facts;

            (ii) the  Trustee  shall not be liable  with  respect  to any action
      taken or omitted to be taken by it in good  faith in  accordance  with the
      direction  of the  Holders of at least a majority in  aggregate  principal
      amount of the Outstanding  Securities (or, as the case may be, the holders
      of a majority in aggregate  Liquidation  Amount of  Preferred  Securities)
      relating to the time,  method and place of conducting  any  proceeding for
      any remedy available to the Trustee under this Indenture; and

            (iii) the Trustee  shall be under no  liability  for interest on any
      money received by it hereunder  except as otherwise agreed in writing with
      the Company and money held by the Trustee in trust  hereunder  need not be
      segregated from other funds except to the extent required by law.

                                       39
<PAGE>

      (e) If at any time the  Trustee  hereunder  is not the same  Person as the
Property Trustee under the Trust Agreement:

            (i)  whenever  a  reference  is  made  herein  to  the  dissolution,
      termination or liquidation of the Trust,  the Trustee shall be entitled to
      assume that no such dissolution,  termination, or liquidation has occurred
      so long as the  Securities are or continue to be registered in the name of
      such  Property  Trustee,  and the Trustee  shall be charged with notice or
      knowledge  of such  dissolution,  termination  or  liquidation  only  upon
      written  notice  thereof given to the Trustee by the  Depositor  under the
      Trust Agreement; and

            (ii) the Trustee shall not be charged with notice or knowledge  that
      any Person is a holder of Preferred Securities or Common Securities issued
      by the Trust or  whether  any group of  holders  of  Preferred  Securities
      constitutes  any  specified   percentage  of  all  outstanding   Preferred
      Securities  for any  purpose  under this  Indenture,  unless and until the
      Trustee is furnished  with a list of holders by such Property  Trustee and
      the  aggregate   Liquidation  Amount  of  the  Preferred  Securities  then
      outstanding.  The Trustee may conclusively  rely and shall be protected in
      relying on such list.

      (f) Notwithstanding  Section 1.10, the Trustee shall not, and shall not be
deemed to, owe any fiduciary duty to the holders of any of the Trust  Securities
issued by the Trust and shall not be liable to any such  holder  (other than for
the willful  misconduct  or  negligence  of the  Trustee) if the Trustee in good
faith (i) pays over or distributes  to a registered  Holder of the Securities or
to the Company or to any other  Person,  cash,  property or  securities to which
such holders of such Trust Securities shall be entitled or (ii) takes any action
or omits to take any action at the  request  of the  Holder of such  Securities.
Nothing in this  paragraph  shall affect the obligation of any other such Person
to hold such  payment  for the  benefit of, and to pay such amount over to, such
holders of Preferred Securities or Common Securities or their representatives.

      SECTION 6.3. Notice of Defaults.

      Within ninety (90) days after the occurrence of any default actually known
to the Trustee, the Trustee shall give the Holders notice of such default unless
such default shall have been cured or waived;  provided, that except in the case
of a default in the  payment of the  principal  of or any premium or interest on
any  Securities,  the Trustee shall be fully protected in withholding the notice
if and so long as the board of  directors,  the  executive  committee or a trust
committee of directors and/or Responsible  Officers of the Trustee in good faith
determines  that  withholding  the  notice  is in the  interest  of  holders  of
Securities;  and  provided,  further,  that in the  case of any  default  of the
character  specified in Section 5.1(c), no such notice to Holders shall be given
until at least thirty (30) days after the occurrence thereof. For the purpose of
this Section 6.3, the term  "default"  means any event which is, or after notice
or lapse of time or both would become, an Event of Default.

      SECTION 6.4. Certain Rights of Trustee.

      Subject to the provisions of Section 6.2:

      (a) the  Trustee may  conclusively  rely and shall be fully  protected  in
acting or refraining  from acting in good faith and in accordance with the terms
hereof upon any resolution,

                                       40
<PAGE>

certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture,  note or other paper or document believed by it
to be  genuine  and to have been  signed or  presented  by the  proper  party or
parties;

      (b) if (i) in  performing  its duties under this  Indenture the Trustee is
required to decide between alternative courses of action, (ii) in construing any
of the provisions of this Indenture the Trustee finds  ambiguous or inconsistent
with any other provisions contained herein or (iii) the Trustee is unsure of the
application of any provision of this Indenture, then, except as to any matter as
to which the Holders are entitled to decide  under the terms of this  Indenture,
the Trustee  shall  deliver a notice to the  Company  requesting  the  Company's
written instruction as to the course of action to be taken and the Trustee shall
take such action,  or refrain from taking such action,  as the Trustee  shall be
instructed  in  writing to take,  or to refrain  from  taking,  by the  Company;
provided,  that if the  Trustee  does not  receive  such  instructions  from the
Company  within ten  Business  Days after it has  delivered  such notice or such
reasonably  shorter period of time set forth in such notice the Trustee may, but
shall be under no duty to, take such action, or refrain from taking such action,
as the Trustee shall deem advisable and in the best interests of the Holders, in
which event the Trustee shall have no liability  except for its own  negligence,
bad faith or willful misconduct;

      (c)  any  request  or  direction  of the  Company  shall  be  sufficiently
evidenced by a Company  Request or Company Order and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution;

      (d) the Trustee may consult with counsel  (which counsel may be counsel to
the Trustee,  the Company or any of its  Affiliates,  and may include any of its
employees)  and the advice of such  counsel or any  Opinion of Counsel  shall be
full and complete  authorization  and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

      (e) the Trustee shall be under no obligation to exercise any of the rights
or powers  vested in it by this  Indenture at the request or direction of any of
the Holders or any holder of Preferred  Securities  pursuant to this  Indenture,
unless such Holders (or such holders of Preferred Securities) shall have offered
to the Trustee security or indemnity  reasonably  satisfactory to it against the
costs,   expenses  (including  reasonable  attorneys'  fees  and  expenses)  and
liabilities  that might be incurred  by it in  compliance  with such  request or
direction, including reasonable advances as may be requested by the Trustee;

      (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,  direction,  consent, order, bond, indenture,
note or other paper or document, but the Trustee in its discretion may make such
inquiry or  investigation  into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such inquiry or  investigation,  it shall be
entitled to examine the books,  records and premises of the Company,  personally
or by agent or attorney;

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

                                       41
<PAGE>

      (h) whenever in the  administration  of this  Indenture  the Trustee shall
deem it desirable to receive  instructions  with respect to enforcing any remedy
or right or taking any other  action  with  respect to  enforcing  any remedy or
right  hereunder,  the  Trustees (i) may request  instructions  from the Holders
(which  instructions  may  only be given by the  Holders  of the same  aggregate
principal  amount of  Outstanding  Securities as would be entitled to direct the
Trustee under this Indenture in respect of such remedy,  right or action),  (ii)
may refrain from enforcing such remedy or right or taking such action until such
instructions  are received and (iii) shall be protected in acting in  accordance
with such instructions;

      (i) except as otherwise expressly provided by this Indenture,  the Trustee
shall not be under any obligation to take any action that is discretionary under
the provisions of this Indenture;

      (j) without  prejudice to any other rights  available to the Trustee under
applicable  law,  when the  Trustee  incurs  expenses  or  renders  services  in
connection with any bankruptcy,  insolvency or other  proceeding  referred to in
clauses  (d) or (e) of  the  definition  of  Event  of  Default,  such  expenses
(including  legal  fees  and  expenses  of  its  agents  and  counsel)  and  the
compensation   for  such  services  are  intended  to  constitute   expenses  of
administration  under any  bankruptcy  laws or law relating to creditors  rights
generally;

      (k) whenever in the  administration  of this  Indenture  the Trustee shall
deem it  desirable  that a matter  be  proved or  established  prior to  taking,
suffering or omitting any action  hereunder,  the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part,
conclusively rely upon an Officers'  Certificate  addressing such matter, which,
upon receipt of such request, shall be promptly delivered by the Company;

      (l) the  Trustee  shall  not be  charged  with  knowledge  of any Event of
Default unless either (i) a Responsible Officer of the Trustee shall have actual
knowledge or (ii) the Trustee shall have received  written  notice  thereof from
the Company or a Holder; and

      (m) in the  event  that  the  Trustee  is also  acting  as  Paying  Agent,
Authenticating  Agent  or  Securities   Registrar  hereunder,   the  rights  and
protections  afforded to the Trustee  pursuant to this  Article VI shall also be
afforded such Paying Agent, Authenticating Agent, or Securities Registrar.

      SECTION 6.5. May Hold Securities.

      The Trustee,  any  Authenticating  Agent, any Paying Agent, any Securities
Registrar  or any other agent of the  Company,  in its  individual  or any other
capacity,  may become the owner or pledgee of Securities  and may otherwise deal
with the  Company  with the same  rights it would  have if it were not  Trustee,
Authenticating Agent, Paying Agent, Securities Registrar or such other agent.

      SECTION 6.6. Compensation; Reimbursement; Indemnity.

      (a) The Company agrees:

            (i) to pay to the Trustee from time to time reasonable  compensation
      for all  services  rendered by it hereunder in such amounts as the Company
      and  the  Trustee  shall

                                       42
<PAGE>

      agree in  writing  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);

            (ii) to reimburse  the Trustee  upon its request for all  reasonable
      expenses,  disbursements  and advances  incurred or made by the Trustee in
      accordance with any provision of this Indenture  (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, bad faith or willful misconduct; and

            (iii)  to  the  fullest  extent  permitted  by  applicable  law,  to
      indemnify the Trustee and its Affiliates,  and their officers,  directors,
      shareholders,  agents, representatives and employees for, and to hold them
      harmless against,  any loss,  damage,  liability,  tax (other than income,
      franchise or other taxes  imposed on amounts paid  pursuant to (i) or (ii)
      hereof),  penalty,  expense  or  claim of any  kind or  nature  whatsoever
      incurred without  negligence,  bad faith or willful misconduct on its part
      arising out of or in connection with the acceptance or  administration  of
      this trust or the performance of the Trustee's duties hereunder, including
      the costs and expenses of defending  itself against any claim or liability
      in  connection  with the exercise or  performance  of any of its powers or
      duties hereunder.

      (b) To secure the Company's  payment  obligations in this Section 6.6, the
Company  hereby  grants and pledges to the Trustee and the Trustee  shall have a
lien prior to the  Securities  on all money or property held or collected by the
Trustee,  other  than  money or  property  held in trust  to pay  principal  and
interest on particular Securities.  Such lien shall survive the satisfaction and
discharge of this Indenture or the resignation or removal of the Trustee.

      (c) The  obligations  of the Company  under this Section 6.6 shall survive
the satisfaction and discharge of this Indenture and the earlier  resignation or
removal of the Trustee.

      (d) In no event  shall the  Trustee be liable for any  indirect,  special,
punitive or consequential loss or damage of any kind whatsoever,  including, but
not  limited  to, lost  profits,  even if the  Trustee  has been  advised of the
likelihood of such loss or damage and regardless of the form of action.

      (e) In no event  shall the  Trustee be liable for any  failure or delay in
the performance of its obligations hereunder because of circumstances beyond its
control,  including,  but not  limited  to,  acts of God,  flood,  war  (whether
declared or undeclared),  terrorism,  fire, riot,  embargo,  government  action,
including any laws,  ordinances,  regulations,  governmental  action or the like
which delay,  restrict or prohibit the providing of the services contemplated by
this Indenture.

      SECTION 6.7. Resignation and Removal; Appointment of Successor.

      (a) No  resignation  or removal of the  Trustee  and no  appointment  of a
successor  Trustee  pursuant to this Article VI shall become effective until the
acceptance of appointment by the successor Trustee under Section 6.8.

      (b) The Trustee may resign at any time by giving written notice thereof to
the Company.

                                       43
<PAGE>

      (c) Unless an Event of Default shall have occurred and be continuing,  the
Trustee may be removed at any time by the Company by a Board  Resolution.  If an
Event of Default  shall have  occurred  and be  continuing,  the  Trustee may be
removed by Act of the Holders of a majority in aggregate principal amount of the
Outstanding Securities, delivered to the Trustee and to the Company.

      (d) If the Trustee shall resign, be removed or become incapable of acting,
or if a vacancy  shall occur in the office of Trustee for any reason,  at a time
when no Event of Default shall have occurred and be continuing,  the Company, by
a Board  Resolution,  shall  promptly  appoint  a  successor  Trustee,  and such
successor  Trustee and the retiring  Trustee  shall  comply with the  applicable
requirements  of Section 6.8. If the Trustee shall resign,  be removed or become
incapable  of acting,  or if a vacancy  shall occur in the office of Trustee for
any  reason,  at a time when an Event of  Default  shall  have  occurred  and be
continuing,  the  Holders,  by Act of the  Holders  of a majority  in  aggregate
principal  amount  of the  Outstanding  Securities,  shall  promptly  appoint  a
successor  Trustee,  and such successor  Trustee and the retiring  Trustee shall
comply with the applicable  requirements of Section 6.8. If no successor Trustee
shall  have  been so  appointed  by the  Company  or the  Holders  and  accepted
appointment  within sixty (60) days after the giving of a notice of  resignation
by the Trustee or the  removal of the Trustee in the manner  required by Section
6.8,  any Holder who has been a bona fide Holder of a Security  for at least six
months may, on behalf of such Holder and all others similarly situated,  and any
resigning  Trustee  may, at the expense of the  Company,  petition  any court of
competent jurisdiction for the appointment of a successor Trustee.

      (e) The Company shall give notice to all Holders in the manner provided in
Section  1.6 of each  resignation  and  each  removal  of the  Trustee  and each
appointment  of a successor  Trustee.  Each notice shall include the name of the
successor Trustee and the address of its Corporate Trust Office.

      SECTION 6.8. Acceptance of Appointment by Successor.

      (a) In case of the  appointment  hereunder  of a successor  Trustee,  each
successor  Trustee so appointed  shall execute,  acknowledge  and deliver to the
Company and to the retiring  Trustee an instrument  accepting such  appointment,
and thereupon the  resignation  or removal of the retiring  Trustee shall become
effective  and  such  successor  Trustee,  without  any  further  act,  deed  or
conveyance,  shall become vested with all the rights,  powers, trusts and duties
of the  retiring  Trustee;  but, on the request of the Company or the  successor
Trustee,  such retiring Trustee shall, upon payment of its charges,  execute and
deliver an instrument  transferring  to such  successor  Trustee all the rights,
powers and trusts of the retiring  Trustee and shall duly  assign,  transfer and
deliver to such  successor  Trustee all property and money held by such retiring
Trustee hereunder.

      (b) Upon request of any such successor Trustee,  the Company shall execute
any and all instruments  for more fully and certainly  vesting in and confirming
to such successor Trustee all rights, powers and trusts referred to in paragraph
(a) of this Section 6.8.

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

                                       44
<PAGE>

      SECTION 6.9. Merger, Conversion, Consolidation or Succession to Business.

      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  qualified  and eligible  under this Article
VI. In case any Securities shall have been authenticated,  but not delivered, by
the Trustee then in office, any successor by merger, conversion or consolidation
or as  otherwise  provided  above  in this  Section  6.9 to such  authenticating
Trustee  may  adopt  such   authentication   and  deliver  the   Securities   so
authenticated, and in case any Securities shall not have been authenticated, any
successor to the Trustee may authenticate  such Securities either in the name of
any  predecessor  Trustee or in the name of such successor  Trustee,  and in all
cases the  certificate of  authentication  shall have the full force which it is
provided anywhere in the Securities or in this Indenture that the certificate of
the Trustee shall have.

      SECTION 6.10. Not Responsible for Recitals or Issuance of Securities.

      The recitals contained herein and in the Securities,  except the Trustee's
certificates of authentication, shall be taken as the statements of the Company,
and neither the Trustee nor any Authenticating  Agent assumes any responsibility
for their  correctness.  The Trustee makes no representations as to the validity
or sufficiency of this Indenture or of the  Securities.  Neither the Trustee nor
any Authenticating  Agent shall be accountable for the use or application by the
Company of the Securities or the proceeds thereof.

      SECTION 6.11. Appointment of Authenticating Agent.

      (a) The Trustee may appoint an Authenticating Agent or Agents with respect
to the Securities,  which shall be authorized to act on behalf of the Trustee to
authenticate   Securities   issued  upon  original   issue  and  upon  exchange,
registration  of transfer or partial  redemption  thereof or pursuant to Section
3.6, and Securities so  authenticated  shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes as if authenticated
by the Trustee  hereunder.  Wherever  reference is made in this Indenture to the
authentication  and  delivery  of  Securities  by the  Trustee or the  Trustee's
certificate  of  authentication,  such  reference  shall be  deemed  to  include
authentication and delivery on behalf of the Trustee by an Authenticating Agent.
Each  Authenticating  Agent shall be  acceptable to the Company and shall at all
times be a corporation organized and doing business under the laws of the United
States of  America,  or of any State or  Territory  thereof or the  District  of
Columbia,  authorized under such laws to act as Authenticating  Agent,  having a
combined  capital  and  surplus  of not less than  $50,000,000  and  subject  to
supervision or examination by Federal or state authority. If such Authenticating
Agent publishes reports of condition at least annually pursuant to law or to the
requirements of said supervising or examining  authority,  then for the purposes
of this  Section 6.11 the  combined  capital and surplus of such  Authenticating
Agent 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 6.11, such  Authenticating  Agent shall resign immediately in the manner
and with the effect specified in this Section 6.11.

                                       45
<PAGE>

      (b) Any  Person  into  which an  Authenticating  Agent  may be  merged  or
converted or with which it may be consolidated, or any Person resulting from any
merger,  conversion or consolidation to which such Authenticating Agent shall be
a party, or any Person  succeeding to all or substantially  all of the corporate
trust business of an Authenticating Agent shall be the successor  Authenticating
Agent  hereunder,  provided such Person shall be otherwise  eligible  under this
Section 6.11, without the execution or filing of any paper or any further act on
the part of the Trustee or the Authenticating Agent.

      (c) An  Authenticating  Agent may  resign  at any time by  giving  written
notice  thereof to the Trustee and to the  Company.  The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to such Authenticating Agent and to the Company. Upon receiving such a notice of
resignation  or  upon  such  a  termination,   or  in  case  at  any  time  such
Authenticating  Agent  shall  cease  to  be  eligible  in  accordance  with  the
provisions  of  this  Section   6.11,   the  Trustee  may  appoint  a  successor
Authenticating  Agent eligible under the provisions of this Section 6.11,  which
shall be acceptable to the Company, and shall give notice of such appointment to
all  Holders.  Any  successor   Authenticating  Agent  upon  acceptance  of  its
appointment hereunder shall become vested with all the rights, powers and duties
of its  predecessor  hereunder,  with like effect as if  originally  named as an
Authenticating Agent.

      (d) The Company  agrees to pay to each  Authenticating  Agent from time to
time  reasonable  compensation  for its services under this Section 6.11 in such
amounts as the Company and the Authenticating  Agent shall agree in writing from
time to time.

      (e) If an appointment of an Authenticating  Agent is made pursuant to this
Section  6.11,  the  Securities  may  have  endorsed  thereon,   an  alternative
certificate of authentication in substantially the following form:

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

Dated: _________________________

                                        JPMORGAN CHASE BANK, NATIONAL
                                        ASSOCIATION, as Trustee

                                        By: ____________________________________
                                            Authenticating Agent

                                        By: ____________________________________
                                            Authorized Signatory

                                       46
<PAGE>

                                  ARTICLE VII

                      HOLDER'S LISTS AND REPORTS BY COMPANY

      SECTION 7.1. Company to Furnish Trustee Names and Addresses of Holders.

      The Company will furnish or cause to be furnished to the Trustee:

      (a)  semiannually,  on or before June 30 and  December 31 of each year,  a
list,  in such form as the  Trustee  may  reasonably  require,  of the names and
addresses  of the Holders as of a date not more than  fifteen (15) days prior to
the delivery thereof, and

      (b) at such other times as the  Trustee  may  request in  writing,  within
thirty (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  fifteen (15) days prior to
the time such list is furnished,

in each case to the extent such  information  is in the possession or control of
the Company and has not  otherwise  been received by the Trustee in its capacity
as Securities Registrar.

      SECTION 7.2. Preservation of Information, Communications to Holders.

      (a) The  Trustee  shall  preserve,  in as current a form as is  reasonably
practicable,  the names and  addresses  of Holders  contained in the most recent
list  furnished  to the  Trustee as  provided  in Section  7.1 and the names and
addresses  of Holders  received  by the Trustee in its  capacity  as  Securities
Registrar.  The  Trustee may  destroy  any list  furnished  to it as provided in
Section 7.1 upon receipt of a new list so furnished.

      (b) The rights of Holders to  communicate  with other Holders with respect
to  their  rights  under  this  Indenture  or  under  the  Securities,  and  the
corresponding rights and privileges of the Trustee,  shall be as provided in the
Trust Indenture Act.

      (c) Every Holder of Securities,  by receiving and holding the same, agrees
with the Company and the  Trustee  that  neither the Company nor the Trustee nor
any  agent  of  either  of them  shall  be held  accountable  by  reason  of the
disclosure  of  information  as to the names and  addresses  of the Holders made
pursuant to the Trust Indenture Act.

      SECTION 7.3. Reports by Company.

      (a) The Company shall furnish to the Holders and to prospective purchasers
of Securities,  upon their  request,  the  information  required to be furnished
pursuant to Rule 144A(d)(4)  under the Securities Act. The delivery  requirement
set forth in the preceding  sentence may be satisfied by compliance with Section
7.3(b) hereof.

      (b) The Company shall furnish to each of (i) the Trustee, (ii) the Holders
and to  subsequent  holders of  Securities,  (iii) Cohen Bros.  & Company,  1818
Market Street, 28th Floor, Philadelphia, Pennsylvania 19103, Attn: Mitchell Kahn
or such other  address as  designated  by Cohen  Bros.  & Company)  and (iv) any
beneficial owner of the Securities  reasonably  identified to the Company (which
identification  may be made either by such beneficial  owner or by Cohen Bros. &
Company),   a  duly  completed  and  executed   certificate   substantially  and
substantively  in

                                       47
<PAGE>

the form  attached  hereto as  Exhibit A,  including  the  financial  statements
referenced in such Exhibit,  which certificate and financial statements shall be
so furnished by the Company not later than forty-five (45) days after the end of
each of the first three  fiscal  quarters of each fiscal year of the Company and
not later  than  ninety  (90)  days  after  the end of each  fiscal  year of the
Company. The delivery requirements under this Section 7.3(b) may be satisfied by
compliance with Section 8.16(b) of the Trust Agreement.

      (c) If the Company  intends to file its annual and  quarterly  information
with the Securities and Exchange  Commission  (the  "Commission")  in electronic
form  pursuant  to  Regulation  S-T of the  Commission  using  the  Commission's
Electronic Data Gathering,  Analysis and Retrieval ("EDGAR") system, the Company
shall notify the Trustee in the manner prescribed herein of each such annual and
quarterly  filing.  The Trustee is hereby  authorized and directed to access the
EDGAR system for purposes of  retrieving  the  financial  information  so filed.
Compliance  with the foregoing shall  constitute  delivery by the Company of its
financial statements to the Trustee in compliance with the provisions of Section
314(a) of the Trust Indenture Act, if applicable. The Trustee shall have no duty
to search for or obtain any  electronic  or other filings that the Company makes
with  the   Commission,   regardless  of  whether  such  filings  are  periodic,
supplemental or otherwise. Delivery of reports, information and documents to the
Trustee  pursuant  to this  Section  7.3(c)  shall be  solely  for  purposes  of
compliance  with this Section 7.3(c) and, if applicable,  with Section 314(a) of
the Trust Indenture Act. The Trustee's receipt of such reports,  information and
documents shall not constitute notice to it of the content thereof or any matter
determinable from the content thereof,  including the Company's  compliance with
any of its covenants hereunder, as to which the Trustee is entitled to rely upon
Officers' Certificates.

                                  ARTICLE VIII

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

      SECTION 8.1. Company May Consolidate, Etc., Only on Certain Terms.

      The Company shall not  consolidate  with or merge into any other Person or
convey, transfer or lease its properties and assets substantially as an entirety
to any Person, and no Person shall consolidate with or merge into the Company or
convey, transfer or lease its properties and assets substantially as an entirety
to the Company, unless:

      (a) if the Company shall  consolidate with or merge into another Person or
convey, transfer or lease its properties and assets substantially as an entirety
to any Person, the entity formed by such consolidation or into which the Company
is merged or the Person that acquires by conveyance or transfer, or that leases,
the properties and assets of the Company  substantially  as an entirety shall be
an entity  organized and existing under the laws of the United States of America
or any  State or  Territory  thereof  or the  District  of  Columbia  and  shall
expressly assume, by an indenture supplemental hereto, executed and delivered to
the  Trustee,  in  form  reasonably  satisfactory  to the  Trustee,  the due and
punctual payment of the principal of and any premium and interest (including any
Additional Interest) on all the Securities and the performance of every covenant
of this Indenture on the part of the Company to be performed or observed;

                                       48
<PAGE>

      (b)  immediately  after  giving  effect to such  transaction,  no Event of
Default,  and no event  that,  after  notice  or lapse of time,  or both,  would
constitute an Event of Default, shall have happened and be continuing; and

      (c) the Company has delivered to the Trustee an Officers'  Certificate and
an Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer or lease and, if a  supplemental  indenture  is required in  connection
with such transaction,  any such supplemental indenture comply with this Article
VIII and that all  conditions  precedent  herein  provided  for relating to such
transaction  have  been  complied  with;  and the  Trustee  may rely  upon  such
Officers'  Certificate  and Opinion of Counsel as conclusive  evidence that such
transaction complies with this Section 8.1.

      SECTION 8.2. Successor Company Substituted.

      (a) Upon any consolidation or merger by the Company with or into any other
Person,  or any  conveyance,  transfer or lease by the Company of its properties
and assets substantially as an entirety to any Person in accordance with Section
8.1 and the execution and delivery to the Trustee of the supplemental  indenture
described in Section 8.1(a),  the successor entity formed by such  consolidation
or into which the  Company is merged or to which such  conveyance,  transfer  or
lease is made shall succeed to, and be  substituted  for, and may exercise every
right and power of, the Company under this  Indenture with the same effect as if
such successor Person had been named as the Company herein;  and in the event of
any such  conveyance  or transfer,  following the execution and delivery of such
supplemental indenture, the Company shall be discharged from all obligations and
covenants under the Indenture and the Securities.

      (b) Such successor  Person may cause to be executed,  and may issue either
in its own  name or in the  name of the  Company,  any or all of the  Securities
issuable  hereunder that  theretofore  shall not have been signed by the Company
and  delivered  to the Trustee;  and,  upon the order of such  successor  Person
instead of the Company and subject to all the terms,  conditions and limitations
in this Indenture  prescribed,  the Trustee shall authenticate and shall deliver
any  Securities  that  previously  shall have been signed and  delivered  by the
officers of the Company to the Trustee for  authentication,  and any  Securities
that such successor  Person  thereafter shall cause to be executed and delivered
to the Trustee on its behalf. All the Securities so issued shall in all respects
have the same legal rank and  benefit  under this  Indenture  as the  Securities
theretofore or thereafter issued in accordance with the terms of this Indenture.

      (c) In case of any such consolidation,  merger, sale, conveyance or lease,
such changes in phraseology and form may be made in the Securities thereafter to
be issued as may be appropriate to reflect such occurrence.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

      SECTION 9.1. Supplemental Indentures without Consent of Holders.

      Without the consent of any Holders,  the  Company,  when  authorized  by a
Board Resolution,  and the Trustee, at any time and from time to time, may enter
into one or more

                                       49
<PAGE>

indentures  supplemental hereto, in form reasonably satisfactory to the Trustee,
for any of the following purposes:

      (a) to evidence the succession of another  Person to the Company,  and the
assumption by any such  successor of the covenants of the Company  herein and in
the Securities; or

      (b) to cure any ambiguity,  to correct or supplement any provision  herein
that may be defective or  inconsistent  with any other provision  herein,  or to
make or amend any other provisions with respect to matters or questions  arising
under this Indenture,  which shall not be inconsistent with the other provisions
of this Indenture,  provided, that such action pursuant to this clause (b) shall
not adversely affect in any material respect the interests of any Holders or the
holders of the Preferred Securities; or

      (c) to add to the covenants, restrictions or obligations of the Company or
to add to the Events of Default,  provided,  that such  action  pursuant to this
clause (c) shall not adversely  affect in any material  respect the interests of
any Holders or the holders of the Preferred Securities; or

      (d) to modify,  eliminate or add to any provisions of the Indenture or the
Securities  to such extent as shall be necessary  to ensure that the  Securities
are treated as  indebtedness of the Company for United States Federal income tax
purposes,  provided,  that such  action  pursuant  to this  clause (d) shall not
adversely  affect in any  material  respect the  interests of any Holders or the
holders of the Preferred Securities.

      SECTION 9.2. Supplemental Indentures with Consent of Holders.

      (a)  With the  consent  of the  Holders  of not less  than a  majority  in
aggregate principal amount of the Outstanding Securities, by Act of said Holders
delivered to the Company and the  Trustee,  the Company,  when  authorized  by a
Board  Resolution,  and the Trustee may enter into an  indenture  or  indentures
supplemental  hereto for the purpose of adding any  provisions to or changing in
any  manner  or  eliminating  any of the  provisions  of  this  Indenture  or of
modifying  in any  manner the rights of the  Holders  of  Securities  under this
Indenture;  provided,  that no such  supplemental  indenture shall,  without the
consent of the Holder of each Outstanding Security,

            (i) change the Stated  Maturity of the  principal  or any premium of
      any Security or change the date of payment of any  installment of interest
      (including  any  Additional  Interest)  on any  Security,  or  reduce  the
      principal  amount  thereof or the rate of interest  thereon or any premium
      payable upon the redemption  thereof or change the place of payment where,
      or the coin or currency  in which,  any  Security  or interest  thereon is
      payable,  or  restrict  or  impair  the  right to  institute  suit for the
      enforcement of any such payment on or after such date, or

            (ii) reduce the  percentage  in  aggregate  principal  amount of the
      Outstanding  Securities,  the consent of whose Holders is required for any
      such supplemental  indenture,  or the consent of whose Holders is required
      for any waiver of compliance  with any  provision of this  Indenture or of
      defaults hereunder and their consequences  provided for in this Indenture,
      or

            (iii) modify any of the provisions of this Section 9.2, Section 5.13
      or Section 10.7, except to increase any percentage in aggregate  principal
      amount of the

                                       50
<PAGE>

      Outstanding  Securities,  the consent of whose Holders is required for any
      reason,  or to provide that certain  other  provisions  of this  Indenture
      cannot be  modified  or waived  without  the consent of the Holder of each
      Security;

provided, further, that, so long as any Preferred Securities remain outstanding,
no amendment  under this  Section 9.2 shall be effective  until the holders of a
majority in Liquidation Amount of the Preferred  Securities shall have consented
to such amendment;  provided, further, that if the consent of the Holder of each
Outstanding  Security is required for any amendment under this  Indenture,  such
amendment shall not be effective until the holder of each Outstanding  Preferred
Security shall have consented to such amendment.

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

      SECTION 9.3. Execution of Supplemental Indentures.

      In  executing  or  accepting  the   additional   trusts   created  by  any
supplemental indenture permitted by this Article IX or the modifications thereby
of the trusts  created by this  Indenture,  the  Trustee  shall be  entitled  to
receive, and shall be fully protected in conclusively relying upon, an Officers'
Certificate  and an  Opinion  of  Counsel  stating  that the  execution  of such
supplemental  indenture is authorized or permitted by this  Indenture,  and that
all conditions  precedent  herein provided for relating to such action have been
complied  with.  The Trustee may, but shall not be obligated  to, enter into any
such  supplemental  indenture  that affects the  Trustee's  own rights,  duties,
indemnities or immunities under this Indenture or otherwise. Copies of the final
form of each  supplemental  indenture  shall be  delivered by the Trustee at the
expense of the  Company to each  Holder,  and,  if the  Trustee is the  Property
Trustee,  to each holder of Preferred  Securities,  promptly after the execution
thereof.

      SECTION 9.4. Effect of Supplemental Indentures.

      Upon the execution of any  supplemental  indenture  under this Article IX,
this Indenture shall be modified in accordance therewith,  and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities and every holder of Preferred Securities theretofore or thereafter
authenticated  and  delivered  hereunder  or  under  the  Trust  Agreement,   as
applicable shall be bound thereby.

      SECTION 9.5. Reference in Securities to Supplemental Indentures.

      Securities   authenticated  and  delivered  after  the  execution  of  any
supplemental indenture pursuant to this Article IX may, and shall if required by
the  Company,  bear a notation in form  approved by the Company as to any matter
provided for in such supplemental  indenture. If the Company shall so determine,
new Securities so modified as to conform,  in the opinion of the Company, to any
such  supplemental  indenture  may be prepared  and  executed by the Company and
authenticated   and  delivered  by  the  Trustee  in  exchange  for  Outstanding
Securities.

                                       51
<PAGE>

                                   ARTICLE X

                                    COVENANTS

      SECTION 10.1. Payment of Principal, Premium, if any, and Interest.

      The  Company  covenants  and agrees for the  benefit of the Holders of the
Securities that it will duly and punctually pay the principal of and any premium
and interest (including any Additional Interest) on the Securities in accordance
with the terms of the Securities and this Indenture.

      SECTION 10.2. Money for Security Payments to be Held in Trust.

      (a) If the  Company  shall at any time act as its own  Paying  Agent  with
respect to the Securities,  it will, on or before each due date of the principal
of and any  premium or  interest  (including  any  Additional  Interest)  on the
Securities,  segregate and hold in trust for the benefit of the Persons entitled
thereto a sum  sufficient  to pay the  principal  and any  premium  or  interest
(including Additional Interest) so becoming due until such sums shall be paid to
such  Persons or otherwise  disposed of as herein  provided,  and will  promptly
notify the Trustee in writing of its failure so to act.

      (b) Whenever the Company  shall have one or more Paying  Agents,  it will,
prior to 10:00 a.m., New York City time, on each due date of the principal of or
any premium or interest  (including any Additional  Interest) on any Securities,
deposit with a Paying Agent a sum sufficient to pay such amount,  such sum to be
held as provided in the Trust Indenture Act and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its failure so to act.

      (c) The Company will cause each Paying Agent for the Securities other than
the Trustee to execute and  deliver to the Trustee an  instrument  in which such
Paying Agent shall agree with the  Trustee,  subject to the  provisions  of this
Section 10.2, that such Paying Agent will (i) comply with the provisions of this
Indenture  and the Trust  Indenture  Act  applicable to it as a Paying Agent and
(ii) during the  continuance of any default by the Company (or any other obligor
upon the  Securities) in the making of any payment in respect of the Securities,
upon the written  request of the Trustee,  forthwith pay to the Trustee all sums
held in trust by such Paying Agent for payment in respect of the Securities.

      (d)  The  Company  may at any  time,  for the  purpose  of  obtaining  the
satisfaction  and discharge of this Indenture or for any other purpose,  pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying  Agent,  such sums to be held by the Trustee
upon the same  trusts as those upon which such sums were held by the  Company or
such Paying  Agent;  and,  upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further  liability  with respect to
such money.

      (e) Any money deposited with the Trustee or any Paying Agent, or then held
by the Company in trust for the payment of the  principal  of and any premium or
interest  (including  any  Additional  Interest) on any  Security and  remaining
unclaimed  for two years after such  principal  and any premium or interest  has
become due and payable shall (unless otherwise  required by

                                       52
<PAGE>

mandatory  provision of  applicable  escheat or abandoned or unclaimed  property
law) be paid on Company Request to the Company, or (if then held by the Company)
shall (unless otherwise required by mandatory provision of applicable escheat or
abandoned or unclaimed  property  law) be  discharged  from such trust;  and the
Holder of such Security shall thereafter, as an unsecured general creditor, look
only to the Company for payment  thereof,  and all  liability  of the Trustee or
such Paying  Agent with respect to such trust  money,  and all  liability of the
Company as trustee thereof, shall thereupon cease; provided, that the Trustee or
such Paying Agent, before being required to make any such repayment,  may at the
expense of the Company cause to be published  once, in a newspaper  published in
the English language,  customarily published on each Business Day and of general
circulation in the Borough of Manhattan,  The City of New York, notice that such
money remains  unclaimed and that, after a date specified  therein,  which shall
not be less  than  thirty  (30)  days  from  the date of such  publication,  any
unclaimed balance of such money then remaining will be repaid to the Company.

      SECTION 10.3. Statement as to Compliance.

      The Company  shall  deliver to the Trustee,  within one hundred and twenty
(120) days after the end of each  fiscal year of the  Company  ending  after the
date hereof,  an Officers'  Certificate  covering the preceding  calendar  year,
stating whether or not to the knowledge of the signers thereof the Company is in
default in the  performance  or observance of any of the terms,  provisions  and
conditions  of  this  Indenture  (without  regard  to any  period  of  grace  or
requirement  of  notice  provided  hereunder),  and if the  Company  shall be in
default, specifying all such defaults and the nature and status thereof of which
they may have knowledge.  The delivery  requirements of this Section 10.3 may be
satisfied by compliance with Section 8.16(a) of the Trust Agreement.

      SECTION 10.4. Calculation Agent.

      (a) The Company  hereby  agrees that for so long as any of the  Securities
remain  Outstanding,  there will at all times be an agent appointed to calculate
LIBOR in respect of each Interest  Payment Date in accordance  with the terms of
Schedule A (the "Calculation  Agent").  The Company has initially  appointed the
Property Trustee as Calculation Agent for purposes of determining LIBOR for each
Interest  Payment Date. The  Calculation  Agent may be removed by the Company at
any time.  So long as the  Property  Trustee  holds any of the  Securities,  the
Calculation  Agent shall be the  Property  Trustee,  except as  described in the
immediately  preceding sentence. If the Calculation Agent is unable or unwilling
to act as such or is removed by the Company,  the Company will promptly  appoint
as a replacement  Calculation Agent the London office of a leading bank which is
engaged in transactions in Eurodollar  deposits in the international  Eurodollar
market  and which  does not  control  or is not  controlled  by or under  common
control with the Company or its Affiliates. The Calculation Agent may not resign
its duties without a successor having been duly appointed.

      (b) The  Calculation  Agent shall be  required  to agree that,  as soon as
possible  after 11:00 a.m.  (London time) on each LIBOR  Determination  Date (as
defined in Schedule A), but in no event later than 11:00 a.m.  (London  time) on
the  Business Day  immediately  following  each LIBOR  Determination  Date,  the
Calculation  Agent will calculate the interest rate (the Interest  Payment shall
be rounded to the nearest cent, with half a cent being rounded  upwards) for the
related  Interest Payment Date, and will communicate such rate and amount to the
Company,  the

                                       53
<PAGE>

Trustee,  each Paying Agent and the Depositary.  The Calculation Agent will also
specify to the Company the quotations upon which the foregoing rates and amounts
are based and, in any event,  the  Calculation  Agent  shall  notify the Company
before 5:00 p.m. (London time) on each LIBOR Determination Date that either: (i)
it has  determined or is in the process of determining  the foregoing  rates and
amounts or (ii) it has not  determined  and is not in the process of determining
the  foregoing  rates and  amounts,  together  with its  reasons  therefor.  The
Calculation  Agent's  determination  of the foregoing  rates and amounts for any
Interest  Payment  Date will (in the  absence  of  manifest  error) be final and
binding upon all parties.  For the sole purpose of calculating the interest rate
for the Securities, "Business Day" shall be defined as any day on which dealings
in deposits in Dollars are transacted in the London interbank market.

      SECTION 10.5. Additional Tax Sums.

      So long as no Event of Default has occurred and is continuing,  if (a) the
Trust is the  Holder of all of the  Outstanding  Securities  and (b) a Tax Event
described in clause (i) or (iii) in the  definition  of Tax Event in Section 1.1
hereof has occurred and is  continuing,  the Company shall pay to the Trust (and
its permitted  successors or assigns under the related Trust  Agreement)  for so
long as the Trust (or its  permitted  successor or  assignee) is the  registered
holder of the Outstanding Securities,  such amounts as may be necessary in order
that the amount of Distributions  (including any Additional  Interest Amount (as
defined  in the  Trust  Agreement))  then due and  payable  by the  Trust on the
Preferred  Securities and Common Securities that at any time remain  outstanding
in  accordance  with the terms  thereof  shall not be reduced as a result of any
Additional Taxes arising from such Tax Event (additional such amounts payable by
the Company to the Trust, the "Additional Tax Sums"). Whenever in this Indenture
or the  Securities  there  is a  reference  in any  context  to the  payment  of
principal  of or interest on the  Securities,  such  mention  shall be deemed to
include  mention of the payments of the Additional Tax Sums provided for in this
Section 10.5 to the extent that, in such context,  Additional Tax Sums are, were
or would be  payable in  respect  thereof  pursuant  to the  provisions  of this
Section  10.5 and  express  mention of the  payment of  Additional  Tax Sums (if
applicable)  in any  provisions  hereof  shall  not be  construed  as  excluding
Additional Tax Sums in those provisions hereof where such express mention is not
made.

      SECTION 10.6. Additional Covenants.

      (a) The Company  covenants and agrees with each Holder of Securities  that
if an Event of Default shall have occurred and be  continuing,  it shall not (i)
declare or pay any dividends or distributions on, or redeem,  purchase,  acquire
or make a  liquidation  payment  with  respect  to, any shares of the  Company's
capital stock (for the avoidance of doubt,  the term  "capital  stock"  includes
both common stock and preferred stock of the Company),  (ii) vote in favor of or
permit  or  otherwise  allow  any of its  subsidiaries  to  declare  or pay  any
dividends  or  distributions  on,  or  redeem,  purchase,   acquire  or  make  a
liquidation  payment  with respect to or  otherwise  retire,  any shares of such
subsidiaries preferred stock (for the avoidance of doubt, whether such preferred
stock is perpetual or  otherwise),  or (iii) make any payment of principal of or
any  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  Securities  (other than (A)  repurchases,  redemptions or other
acquisitions  of shares of capital stock of the Company in  connection  with any
employment  contract,  benefit plan or other similar arrangement with or for the
benefit of any one or more employees,  officers,  directors or  consultants,  in

                                       54
<PAGE>

connection with a dividend reinvestment or stockholder stock purchase plan or 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 such Event of Default,  (B) as a
result of (x) an 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,
or (y) a  reclassification  of or  combination  with 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 Rights Plan,  the issuance of
rights,  stock or other  property  under any 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).

      (b) The Company also covenants with each Holder of Securities (i) to hold,
directly or indirectly,  one hundred percent (100%) of the Common  Securities of
the Trust,  provided,  that any permitted successor of the Company hereunder may
succeed to the Company's ownership of such Common Securities,  (ii) as holder of
such Common Securities,  not to voluntarily  dissolve,  wind-up or liquidate the
Trust other than (A) in connection  with a distribution of the Securities to the
holders  of the  Preferred  Securities  in  liquidation  of the  Trust or (B) in
connection with certain mergers,  consolidations  or amalgamations  permitted by
the  Trust  Agreement  and  (iii)  to use  its  reasonable  commercial  efforts,
consistent  with the terms and provisions of the Trust  Agreement,  to cause the
Trust to continue to be taxable as a grantor trust and not as a corporation  for
United States Federal income tax purposes.

      SECTION 10.7. Waiver of Covenants.

      The  Company  may  omit in any  particular  instance  to  comply  with any
covenant or condition contained in Section 10.6 if, before or after the time for
such  compliance,  the  Holders of at least a majority  in  aggregate  principal
amount of the Outstanding Securities shall, by Act of such Holders, and at least
a majority of the aggregate  Liquidation Amount of the Preferred Securities then
outstanding,  by consent of such holders,  either waive such  compliance in such
instance or generally waive  compliance with such covenant or condition,  but no
such waiver shall extend to or affect such  covenant or condition  except to the
extent so expressly waived,  and, until such waiver shall become effective,  the
obligations  of the Company in respect of any such  covenant or condition  shall
remain in full force and effect.

      SECTION 10.8. Treatment of Securities.

      The Company will treat the  Securities as  indebtedness,  and the amounts,
other than payments of principal,  payable in respect of the principal amount of
such  Securities as interest,  for all U.S.  federal  income tax  purposes.  All
payments  in  respect  of the  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-9 or  W-8BEN  (or any  substitute  or  successor  form)
establishing  its U.S. or non-U.S.  status for U.S. federal income tax purposes,
or any  other  applicable  form  establishing  a  complete  exemption  from U.S.
withholding tax.

                                       55
<PAGE>

                                   ARTICLE XI

                            REDEMPTION OF SECURITIES

      SECTION 11.1. Optional Redemption.

      The Company may, at its option,  on any Interest Payment Date, on or after
March 30, 2010,  redeem the Securities in whole at any time or in part from time
to time,  at a  Redemption  Price  equal to one  hundred  percent  (100%) of the
principal amount thereof (or of the redeemed  portion  thereof,  as applicable),
together, in the case of any such redemption,  with accrued interest,  including
any Additional Interest,  through but excluding the date fixed as the Redemption
Date (the "Optional Redemption Price").

      SECTION 11.2. Special Event Redemption.

      Prior to March 30, 2010,  upon the occurrence and during the  continuation
of a Special Event,  the Company may, at its option,  redeem the Securities,  in
whole but not in part, at a Redemption  Price equal to one hundred seven and one
half percent (107.5%) of the principal amount thereof,  together, in the case of
any such redemption,  with accrued interest,  including any Additional Interest,
through  but  excluding  the date  fixed as the  Redemption  Date (the  "Special
Redemption Price").

      SECTION 11.3. Election to Redeem; Notice to Trustee.

      The election of the Company to redeem any Securities, in whole or in part,
shall  be  evidenced  by or  pursuant  to a  Board  Resolution.  In  case of any
redemption  at the election of the  Company,  the Company  shall,  not less than
forty-five  (45) days and not more  than  seventy-five  (75)  days  prior to the
Redemption  Date (unless a shorter notice shall be satisfactory to the Trustee),
notify the Trustee and the Property Trustee under the Trust Agreement in writing
of such date and of the  principal  amount of the  Securities to be redeemed and
provide  the  additional  information  required  to be included in the notice or
notices  contemplated  by  Section  11.5.  In  the  case  of any  redemption  of
Securities,  in whole or in part, (a) prior to the expiration of any restriction
on such redemption  provided in this Indenture or the Securities or (b) pursuant
to an election of the Company which is subject to a condition  specified in this
Indenture  or the  Securities,  the Company  shall  furnish the Trustee  with an
Officers'  Certificate and an Opinion of Counsel evidencing compliance with such
restriction or condition.

      SECTION 11.4. Selection of Securities to be Redeemed.

      (a) If less than all the  Securities  are to be redeemed,  the  particular
Securities to be redeemed shall be selected and redeemed on a pro rata basis not
more than sixty (60) days prior to the  Redemption  Date by the Trustee from the
Outstanding Securities not previously called for redemption,  provided, that the
unredeemed  portion  of the  principal  amount  of any  Security  shall be in an
authorized  denomination  (which  shall not be less than the minimum  authorized
denomination) for such Security.

      (b) The  Trustee  shall  promptly  notify  the  Company  in writing of the
Securities  selected for redemption and, in the case of any Securities  selected
for partial  redemption,  the principal  amount thereof to be redeemed.  For all
purposes  of  this  Indenture,   unless  the  context

                                       56
<PAGE>

otherwise  requires,  all  provisions  relating to the  redemption of Securities
shall  relate,  in the case of any Security  redeemed or to be redeemed  only in
part, to the portion of the  principal  amount of such Security that has been or
is to be redeemed.

      (c) The  provisions of  paragraphs  (a) and (b) of this Section 11.4 shall
not apply  with  respect to any  redemption  affecting  only a single  Security,
whether such  Security is to be redeemed in whole or in part. In the case of any
such redemption in part, the unredeemed  portion of the principal  amount of the
Security  shall be in an authorized  denomination  (which shall not be less than
the minimum authorized denomination) for such Security.

      SECTION 11.5. Notice of Redemption.

      (a)  Notice of  redemption  shall be given not  later  than the  thirtieth
(30th)  day,  and not  earlier  than  the  sixtieth  (60th)  day,  prior  to the
Redemption  Date to each Holder of  Securities  to be  redeemed,  in whole or in
part,  (unless a shorter notice shall be  satisfactory  to the Property  Trustee
under the related Trust Agreement).

      (b) With respect to Securities to be redeemed,  in whole or in part,  each
notice of redemption shall state:

            (i) the Redemption Date;

            (ii) the  Redemption  Price or, if the  Redemption  Price  cannot be
      calculated  prior to the time  the  notice  is  required  to be sent,  the
      estimate of the Redemption  Price, as calculated by the Company,  together
      with a  statement  that it is an estimate  and that the actual  Redemption
      Price will be calculated on the fifth Business Day prior to the Redemption
      Date (and if an estimate is  provided,  a further  notice shall be sent of
      the  actual  Redemption  Price on the date that such  Redemption  Price is
      calculated);

            (iii) if less than all  Outstanding  Securities  are to be redeemed,
      the identification (and, in the case of partial redemption, the respective
      principal amounts) of the particular Securities to be redeemed;

            (iv) that on the Redemption  Date, the Redemption  Price will become
      due and payable upon each such Security or portion  thereof,  and that any
      interest  (including  any  Additional  Interest) on such  Security or such
      portion, as the case may be, shall cease to accrue on and after said date;
      and

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

      (c) Notice of  redemption  of  Securities  to be redeemed,  in whole or in
part,  at the  election of the Company  shall be given by the Company or, at the
Company's request,  by the Trustee in the name and at the expense of the Company
and shall be  irrevocable.  The  notice if mailed in the manner  provided  above
shall be  conclusively  presumed  to have been duly  given,  whether  or not the
Holder receives such notice.  In any case, a failure to give such notice by mail
or any  defect  in the  notice  to the  Holder of any  Security  designated  for
redemption  as a  whole  or in  part  shall  not  affect  the  validity  of  the
proceedings for the redemption of any other Security.

                                       57
<PAGE>

      SECTION 11.6. Deposit of Redemption Price.

      Prior to 10:00 a.m., New York City time, on the Redemption  Date specified
in the notice of redemption  given as provided in Section 11.5, the Company will
deposit with the Trustee or with one or more Paying Agents (or if the Company is
acting as its own Paying Agent,  the Company will segregate and hold in trust as
provided in Section 10.2) an amount of money  sufficient  to pay the  Redemption
Price of, and any accrued interest  (including any Additional  Interest) on, all
the Securities (or portions thereof) that are to be redeemed on that date.

      SECTION 11.7. Payment of Securities Called for Redemption.

      (a) If any  notice of  redemption  has been given as  provided  in Section
11.5, the Securities or portion of Securities  with respect to which such notice
has been  given  shall  become  due and  payable on the date and at the place or
places stated in such notice at the applicable  Redemption Price,  together with
accrued interest (including any Additional  Interest) to the Redemption Date. On
presentation and surrender of such Securities at a Place of Payment specified in
such notice,  the Securities or the specified portions thereof shall be paid and
redeemed  by the  Company at the  applicable  Redemption  Price,  together  with
accrued interest (including any Additional Interest) to the Redemption Date.

      (b) Upon  presentation of any Security  redeemed in part only, the Company
shall  execute  and the  Trustee  shall  authenticate  and deliver to the Holder
thereof,  at the  expense of the  Company,  a new  Security  or  Securities,  of
authorized denominations,  in aggregate principal amount equal to the unredeemed
portion of the Security so presented  and having the same  Original  Issue Date,
Stated Maturity and terms.

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

                                  ARTICLE XII

                           SUBORDINATION OF SECURITIES

      SECTION 12.1. Securities Subordinate to Senior Debt.

      The Company  covenants and agrees,  and each Holder of a Security,  by its
acceptance  thereof,  likewise covenants and agrees,  that, to the extent and in
the  manner  hereinafter  set forth in this  Article  XII,  the  payment  of the
principal of and any premium and interest (including any Additional Interest) on
each and all of the Securities are hereby expressly made subordinate and subject
in right of payment to the prior payment in full of all Senior Debt.

      SECTION  12.2.  No Payment  When Senior Debt in Default;  Payment  Over of
Proceeds Upon Dissolution, Etc.

      (a) In the event and during the continuation of any default by the Company
in the payment of any principal of or any premium or interest on any Senior Debt
(following  any grace  period,  if  applicable)  when the same  becomes  due and
payable, whether at maturity or at a date fixed for prepayment or by declaration
of acceleration  or otherwise,  then, upon written notice of

                                       58
<PAGE>

such  default to the  Company by the  holders of such Senior Debt or any trustee
therefor, unless and until such default shall have been cured or waived or shall
have  ceased  to  exist,  no  direct or  indirect  payment  (in cash,  property,
securities,  by  set-off  or  otherwise)  shall be made or  agreed to be made on
account of the principal of or any premium or interest (including any Additional
Interest) on any of the Securities, or in respect of any redemption,  repayment,
retirement, purchase or other acquisition of any of the Securities.

      (b) In the event of a bankruptcy, insolvency or other proceeding described
in clause (d) or (e) of the definition of Event of Default (each such event,  if
any, herein sometimes referred to as a "Proceeding"), all Senior Debt (including
any interest thereon  accruing after the  commencement of any such  proceedings)
shall first be paid in full before any payment or distribution, whether in cash,
securities  or  other  property,  shall  be  made  to any  Holder  of any of the
Securities on account  thereof.  Any payment or  distribution,  whether in cash,
securities or other property  (other than securities of the Company or any other
entity provided for by a plan of  reorganization  or readjustment the payment of
which is  subordinate,  at least to the extent  provided in these  subordination
provisions with respect to the indebtedness evidenced by the Securities,  to the
payment of all Senior Debt at the time outstanding and to any securities  issued
in respect thereof under any such plan of reorganization or readjustment), which
would  otherwise  (but  for  these  subordination   provisions)  be  payable  or
deliverable in respect of the Securities shall be paid or delivered  directly to
the holders of Senior Debt in accordance with the priorities then existing among
such holders  until all Senior Debt  (including  any interest  thereon  accruing
after the commencement of any Proceeding) shall have been paid in full.

      (c) In the  event of any  Proceeding,  after  payment  in full of all sums
owing with respect to Senior Debt, the Holders of the Securities,  together with
the  holders of any  obligations  of the  Company  ranking on a parity  with the
Securities,  shall be  entitled  to be paid  from the  remaining  assets  of the
Company the amounts at the time due and owing on account of unpaid  principal of
and  any  premium  and  interest  (including  any  Additional  Interest)  on the
Securities and such other obligations before any payment or other  distribution,
whether in cash, property or otherwise,  shall be made on account of any capital
stock or any  obligations  of the Company  ranking  junior to the Securities and
such other  obligations.  If,  notwithstanding  the  foregoing,  any  payment or
distribution  of any character on any security,  whether in cash,  securities or
other  property  (other  than  securities  of the  Company  or any other  entity
provided for by a plan of reorganization or readjustment the payment of which is
subordinate,  at least to the extent provided in these subordination  provisions
with respect to the indebtedness evidenced by the Securities,  to the payment of
all Senior Debt at the time outstanding and to any securities  issued in respect
thereof under any such plan of reorganization or readjustment) shall be received
by the  Trustee or any Holder in  contravention  of any of the terms  hereof and
before  all  Senior  Debt  shall  have  been  paid  in  full,  such  payment  or
distribution  or  security  shall be  received  in trust for the benefit of, and
shall be paid over or delivered  and  transferred  to, the holders of the Senior
Debt at the time  outstanding in accordance  with the  priorities  then existing
among such holders for  application  to the payment of all Senior Debt remaining
unpaid,  to the extent  necessary  to pay all such  Senior Debt  (including  any
interest  thereon accruing after the commencement of any Proceeding) in full. In
the event of the  failure of the  Trustee or any Holder to endorse or assign any
such  payment,  distribution  or security,  each holder of Senior Debt is hereby
irrevocably authorized to endorse or assign the same.

                                       59
<PAGE>

      (d) The Trustee and the Holders, at the expense of the Company, shall take
such reasonable action (including the delivery of this Indenture to an agent for
any  holders of Senior  Debt or consent to the filing of a  financing  statement
with respect hereto) as may, in the opinion of counsel designated by the holders
of a majority in principal amount of the Senior Debt at the time outstanding, be
necessary  or  appropriate  to assure  the  effectiveness  of the  subordination
effected by these provisions.

      (e) The  provisions  of this  Section  12.2 shall not  impair any  rights,
interests,  remedies or powers of any secured creditor of the Company in respect
of any  security  interest  the  creation  of  which  is not  prohibited  by the
provisions of this Indenture.

      (f) The securing of any obligations of the Company, otherwise ranking on a
parity with the  Securities or ranking  junior to the  Securities,  shall not be
deemed to prevent such obligations from constituting,  respectively, obligations
ranking on a parity with the Securities or ranking junior to the Securities.

      SECTION 12.3. Payment Permitted If No Default.

      Nothing contained in this Article XII or elsewhere in this Indenture or in
any of the Securities shall prevent (a) the Company,  at any time, except during
the pendency of the conditions  described in paragraph (a) of Section 12.2 or of
any Proceeding  referred to in Section 12.2, from making payments at any time of
principal of and any premium or interest (including any Additional  Interest) on
the  Securities or (b) the  application  by the Trustee of any moneys  deposited
with it  hereunder  to the payment of or on account of the  principal of and any
premium or interest (including any Additional Interest) on the Securities or the
retention of such payment by the Holders, if, at the time of such application by
the Trustee,  it did not have knowledge (in  accordance  with Section 12.8) that
such payment would have been  prohibited by the  provisions of this Article XII,
except as provided in Section 12.8.

      SECTION 12.4. Subrogation to Rights of Holders of Senior Debt.

      Subject to the  payment in full of all amounts due or to become due on all
Senior Debt, or the provision  for such payment in cash or cash  equivalents  or
otherwise in a manner satisfactory to the holders of Senior Debt, the Holders of
the   Securities   shall  be  subrogated  to  the  extent  of  the  payments  or
distributions made to the holders of such Senior Debt pursuant to the provisions
of this Article XII (equally and ratably with the holders of all indebtedness of
the Company  that by its  express  terms is  subordinated  to Senior Debt of the
Company to  substantially  the same extent as the Securities are subordinated to
the Senior Debt and is entitled to like rights of  subrogation  by reason of any
payments or distributions  made to holders of such Senior Debt) to the rights of
the holders of such Senior Debt to receive  payments and  distributions of cash,
property and securities applicable to the Senior Debt until the principal of and
any premium and interest  (including any Additional  Interest) on the Securities
shall  be paid in  full.  For  purposes  of such  subrogation,  no  payments  or
distributions  to the  holders  of the  Senior  Debt of any  cash,  property  or
securities  to which the  Holders  of the  Securities  or the  Trustee  would be
entitled  except for the  provisions  of this Article XII, and no payments  made
pursuant to the  provisions of this Article XII to the holders of Senior Debt by
Holders of the  Securities  or the Trustee,  shall,  as among the  Company,  its
creditors  other than holders of Senior Debt, and the Holders of the

                                       60
<PAGE>

Securities,  be deemed to be a payment or  distribution  by the Company to or on
account of the Senior Debt.

      SECTION 12.5. Provisions Solely to Define Relative Rights.

      The  provisions  of this Article XII are and are  intended  solely for the
purpose of defining the relative  rights of the Holders of the Securities on the
one hand and the holders of Senior Debt on the other hand.  Nothing contained in
this Article XII or elsewhere in this Indenture or in the Securities is intended
to or  shall  (a)  impair,  as  between  the  Company  and  the  Holders  of the
Securities,   the   obligations   of  the   Company,   which  are  absolute  and
unconditional,  to pay to the Holders of the Securities the principal of and any
premium and interest  (including any  Additional  Interest) on the Securities as
and when the same shall become due and payable in  accordance  with their terms,
(b)  affect the  relative  rights  against  the  Company  of the  Holders of the
Securities  and  creditors of the Company other than their rights in relation to
the  holders  of Senior  Debt or (c)  prevent  the  Trustee or the Holder of any
Security  (or to  the  extent  expressly  provided  herein,  the  holder  of any
Preferred   Security)  from  exercising  all  remedies  otherwise  permitted  by
applicable law upon default under this  Indenture,  including  filing and voting
claims in any Proceeding,  subject to the rights, if any, under this Article XII
of the holders of Senior Debt to receive cash, property and securities otherwise
payable or deliverable to the Trustee or such Holder.

      SECTION 12.6. Trustee to Effectuate Subordination.

      Each Holder of a Security by his or her acceptance  thereof authorizes and
directs the Trustee on his or her behalf to take such action as may be necessary
or appropriate to acknowledge or effectuate the  subordination  provided in this
Article XII and appoints the Trustee his or her attorney-in-fact for any and all
such purposes.

      SECTION 12.7. No Waiver of Subordination Provisions.

      (a) No right of any present or future holder of any Senior Debt 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 be
otherwise charged with.

      (b) Without in any way limiting the  generality  of paragraph  (a) of this
Section  12.7,  the  holders of Senior  Debt may,  at any time and from to time,
without  the  consent  of or  notice  to  the  Trustee  or  the  Holders  of the
Securities,  without incurring  responsibility to such Holders of the Securities
and without  impairing or releasing the  subordination  provided in this Article
XII or the  obligations  hereunder  of such  Holders  of the  Securities  to the
holders  of Senior  Debt,  do any one or more of the  following:  (i) change the
manner,  place or terms of payment or extend the time of payment of, or renew or
alter,  Senior Debt, or otherwise  amend or supplement in any manner Senior Debt
or any instrument  evidencing the same or any agreement  under which Senior Debt
is outstanding, (ii) sell, exchange, release or otherwise deal with any property
pledged,  mortgaged or otherwise  securing Senior Debt, (iii) release any Person
liable in any

                                       61
<PAGE>

manner  for the  payment  of  Senior  Debt and (iv)  exercise  or  refrain  from
exercising any rights against the Company and any other Person.

      SECTION 12.8. Notice to Trustee.

      (a) The Company shall give prompt written notice to a Responsible  Officer
of the Trustee of any fact known to the Company  that would  prohibit the making
of  any   payment  to  or  by  the   Trustee  in  respect  of  the   Securities.
Notwithstanding  the  provisions  of this Article XII or any other  provision of
this Indenture, the Trustee shall not be charged with knowledge of the existence
of any facts that would  prohibit the making of any payment to or by the Trustee
in respect of the  Securities,  unless  and until a  Responsible  Officer of the
Trustee shall have received  written notice thereof from the Company or a holder
of Senior Debt or from any trustee, agent or representative therefor;  provided,
that if the Trustee  shall not have  received  the notice  provided  for in this
Section  12.8 at least two  Business  Days  prior to the date upon  which by the
terms  hereof any monies may become  payable  for any  purpose  (including,  the
payment of the  principal  of and any  premium  on or  interest  (including  any
Additional  Interest) on any Security),  then,  anything herein contained to the
contrary  notwithstanding,  the Trustee  shall have full power and  authority to
receive  such  monies and to apply the same to the  purpose  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.

      (b) The  Trustee  shall be  entitled  to rely on the  delivery  to it of a
written  notice by a Person  representing  himself  or herself to be a holder of
Senior Debt (or a trustee, agent,  representative or attorney-in-fact  therefor)
to  establish  that such  notice has been given by a holder of Senior Debt (or a
trustee, agent,  representative or attorney-in-fact therefor). 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 Senior Debt to  participate in
any  payment or  distribution  pursuant  to this  Article  XII,  the Trustee may
request such Person to furnish  evidence to the reasonable  satisfaction  of the
Trustee as to the amount of Senior Debt 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 XII, 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 12.9.  Reliance on Judicial  Order or  Certificate  of Liquidating
Agent.

      Upon any payment or distribution  of assets of the Company  referred to in
this  Article  XII,  the  Trustee  and the  Holders of the  Securities  shall be
entitled to  conclusively  rely upon any order or decree entered by any court of
competent  jurisdiction in which such Proceeding is pending, or a certificate of
the trustee in bankruptcy,  receiver,  liquidating trustee, custodian,  assignee
for the benefit of  creditors,  agent or other  Person  making  such  payment or
distribution,  delivered to the Trustee or to the Holders of Securities, for the
purpose of ascertaining  the Persons  entitled to participate in such payment or
distribution,  the  holders of the  Senior  Debt 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
XII.

                                       62
<PAGE>

      SECTION 12.10. Trustee Not Fiduciary for Holders of Senior Debt.

      The Trustee, in its capacity as trustee under this Indenture, shall not be
deemed to owe any fiduciary  duty to the holders of Senior Debt and shall not be
liable to any such  holders  if it shall in good  faith  mistakenly  pay over or
distribute  to Holders of  Securities  or to the Company or to any other  Person
cash,  property  or  securities  to which any  holders  of Senior  Debt shall be
entitled by virtue of this Article XII or otherwise.

      SECTION 12.11. Rights of Trustee as Holder of Senior Debt; Preservation of
Trustee's Rights.

      The Trustee in its individual capacity shall be entitled to all the rights
set forth in this  Article  XII with  respect to any Senior Debt that may at any
time be held by it, to the same extent as any other holder of Senior  Debt,  and
nothing in this Indenture shall deprive the Trustee of any of its rights as such
holder.

      SECTION 12.12. Article Applicable to Paying Agents.

      If at any time any Paying  Agent  other than the  Trustee  shall have been
appointed  by the Company and be then acting  hereunder,  the term  "Trustee" as
used in this  Article  XII  shall in such case  (unless  the  context  otherwise
requires) be construed  as extending to and  including  such Paying Agent within
its meaning as fully for all intents and  purposes as if such Paying  Agent were
named in this Article XII in addition to or in place of the  Trustee;  provided,
that  Sections 12.8 and 12.11 shall not apply to the Company or any Affiliate of
the Company if the Company or such Affiliate acts as Paying Agent.

                                     * * * *

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

                                     * * * *

                                       63
<PAGE>

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

                                        BLUEGREEN CORPORATION

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

                                        JPMORGAN CHASE BANK, NATIONAL
                                        ASSOCIATION, as Trustee

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

                                       64
<PAGE>

                                                                      Schedule A

                             DETERMINATION OF LIBOR

      With  respect  to  the  Securities,  the  London  interbank  offered  rate
("LIBOR")  shall be determined by the  Calculation  Agent in accordance with the
following provisions (in each case rounded to the nearest .000001%):

(1) On the second  LIBOR  Business  Day (as defined  below) prior to an Interest
Payment Date subsequent to expiration of the Fixed Rate Period (each such day, a
"LIBOR  Determination  Date"),  LIBOR  for  any  given  security  shall  for the
following interest payment period equal the rate, as obtained by the Calculation
Agent  from  Bloomberg  Financial  Markets  Commodities  News,  for  three-month
Eurodollar  deposits that appears on Dow Jones 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 Page
3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date.

(2) If, on any LIBOR  Determination Date, such rate does not appear on Dow Jones
Telerate  Page  3750 or such  other  page as may  replace  such 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  Eurodollar deposits 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 such arithmetic mean of such  quotations.  If, on any LIBOR  Determination
Date,  only one or none of the Reference  Banks provide such  quotations,  LIBOR
shall be deemed to be the arithmetic mean of the offered quotations that leading
banks in the City of New York selected by the  Calculation  Agent are quoting on
the relevant LIBOR Determination Date for [three-month Eurodollar deposits in an
amount  determined by the Calculation Agent by reference to the principal London
offices of leading banks in the London interbank  market;  provided that, 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 as
determined on the previous LIBOR Determination Date.

(3) As used  herein:  "Reference  Banks"  means four  major  banks in the London
interbank  market  selected by the Calculation  Agent;  and "LIBOR Business Day"
means a day on which commercial banks are open for business  (including dealings
in foreign exchange and foreign currency deposits) in London.

                    Form of Officer's Financial Certificate

      The   undersigned,   the  [Chief   Financial   Officer/Treasurer/Assistant
Treasurer/ Secretary/ Assistant Secretary, Chairman/ViceChairman/Chief Executive
Officer/President/Vice  President] hereby certifies,  pursuant to Section 7.3(b)
of  the  Junior  Subordinated  Indenture,  dated  as  of  March  15,  2005  (the
"Indenture"),  among  Bluegreen  Corporation  (the "Company") and JPMorgan Chase
Bank, National Association, as trustee, that, as of [date], [20__], the Company,
if applicable, and its Subsidiary had the following ratios and balances:

As of [Quarterly/Annual Financial Date], 20__

                                  Schedule A-1
<PAGE>

Senior secured indebtedness for borrowed money ("Debt")                  $_____

Senior unsecured Debt                                                    $_____

Subordinated Debt                                                        $_____

Total Debt                                                               $_____

Ratio of (x) senior secured and unsecured Debt to (y) total Debt          _____%

[FOR FISCAL YEAR END:  Attached  hereto are the audited  consolidated  financial
statements  (including the balance sheet, income statement and statement of cash
flows,  and  notes  thereto,   together  with  the  report  of  the  independent
accountants  thereon) of the Company and its  consolidated  subsidiaries for the
three years ended [date], 20__.]

[FOR FISCAL  QUARTER END:  Attached  hereto are the unaudited  consolidated  and
consolidating  financial  statements  (including  the  balance  sheet and income
statement)  of the  Company  and its  consolidated  subsidiaries  for the fiscal
quarter ended [date], 20__.]

      The  financial  statements  fairly  present in all material  respects,  in
accordance with U.S.  generally accepted  accounting  principles  ("GAAP"),  the
financial  position of the Company and its  consolidated  subsidiaries,  and the
results of operations and changes in financial condition as of the date, and for
the [quarter] [annual] period ended [date],  20__, and such financial statements
have been prepared in accordance with GAAP consistently  applied  throughout the
period involved (expect as otherwise noted therein).

                                  Schedule A-2
<PAGE>

      IN WITNESS  WHEREOF,  the  undersigned  has duly executed  this  Officer's
Financial Certificate as of the day and year first written above.

                                        By: ____________________________________
                                        Name: __________________________________
                                        Title: _________________________________

                                           Bluegreen Corporation
                                           4960 Conference Way N.
                                           Boca Raton, FL 33431
                                           (561) 912-8010

                                  Schedule A-3EXHIBIT 10.3

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

                      AMENDED AND RESTATED TRUST AGREEMENT

                                      among

                             BLUEGREEN CORPORATION,
                                  as Depositor

                            WILMINGTON TRUST COMPANY
                               as Property Trustee

                            WILMINGTON TRUST COMPANY

                               as Delaware Trustee

                                       and

                    THE ADMINISTRATIVE TRUSTEES NAMED HEREIN
                           as Administrative Trustees

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

                             Dated as of May 4, 2005

                          BLUEGREEN STATUTORY TRUST II

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      ----
<S>                                                                                                     <C>
ARTICLE I.    Defined Terms..............................................................................1
     SECTION 1.1.   Definitions..........................................................................1

ARTICLE II.   The Trust.................................................................................10
     SECTION 2.1.   Name................................................................................10
     SECTION 2.2.   Office of the Delaware Trustee; Principal Place of Business.........................10
     SECTION 2.3.   Initial Contribution of Trust Property; Fees, Costs and Expenses....................11
     SECTION 2.4.   Purposes of Trust...................................................................11
     SECTION 2.5.   Authorization to Enter into Certain Transactions....................................11
     SECTION 2.6.   Assets of Trust.....................................................................14
     SECTION 2.7.   Title to Trust Property.............................................................14

ARTICLE III.  Payment Account; Paying Agents............................................................15
     SECTION 3.1.   Payment Account.....................................................................15
     SECTION 3.2.   Appointment of Paying Agents........................................................15

ARTICLE IV.   Distributions; Redemption.................................................................16
     SECTION 4.1.   Distributions.......................................................................16
     SECTION 4.2.   Redemption..........................................................................17
     SECTION 4.3.   Subordination of Common Securities..................................................19
     SECTION 4.4.   Payment Procedures..................................................................20
     SECTION 4.5.   Withholding Tax.....................................................................20
     SECTION 4.6.   Tax Returns and Other Reports.......................................................21
     SECTION 4.7.   Payment of Taxes, Duties, Etc. of the Trust.........................................21
     SECTION 4.8.   Payments under Indenture or Pursuant to Direct Actions..............................21
     SECTION 4.9.   Exchanges...........................................................................21
     SECTION 4.10.  Calculation Agent...................................................................22
     SECTION 4.11.  Certain Accounting Matters..........................................................22

ARTICLE V.    Securities................................................................................23
     SECTION 5.1.   Initial Ownership...................................................................23
     SECTION 5.2.   Authorized Trust Securities.........................................................23
     SECTION 5.3.   Issuance of the Common Securities; Subscription and Purchase of Notes...............24
     SECTION 5.4.   The Securities Certificates.........................................................24
     SECTION 5.5.   Rights of Holders...................................................................25
     SECTION 5.6.   Book-Entry Preferred Securities.....................................................25
     SECTION 5.7.   Registration of Transfer and Exchange of Preferred Securities Certificates..........27
     SECTION 5.8.   Mutilated, Destroyed, Lost or Stolen Securities Certificates........................28
     SECTION 5.9.   Persons Deemed Holders..............................................................29
     SECTION 5.10.  Cancellation........................................................................29
     SECTION 5.11.  Ownership of Common Securities by Depositor.........................................29
     SECTION 5.12.  Restricted Legends..................................................................30
     SECTION 5.13.  Form of Certificate of Authentication...............................................33
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                                                     <C>
ARTICLE VI.   Meetings; Voting; Acts of Holders.........................................................33
     SECTION 6.1.   Notice of Meetings..................................................................33
     SECTION 6.2.   Meetings of Holders of the Preferred Securities.....................................33
     SECTION 6.3.   Voting Rights.......................................................................34
     SECTION 6.4.   Proxies, Etc........................................................................34
     SECTION 6.5.   Holder Action by Written Consent....................................................34
     SECTION 6.6.   Record Date for Voting and Other Purposes...........................................34
     SECTION 6.7.   Acts of Holders.....................................................................34
     SECTION 6.8.   Inspection of Records...............................................................35
     SECTION 6.9.   Limitations on Voting Rights........................................................36
     SECTION 6.10.  Acceleration of Maturity; Rescission of Annulment; Waivers of Past Defaults.........36

ARTICLE VII.  Representations and Warranties............................................................39
     SECTION 7.1.   Representations and Warranties of the Property Trustee and the Delaware Trustee.....39
     SECTION 7.2.   Representations and Warranties of Depositor.........................................40

ARTICLE VIII. The Trustees..............................................................................41
     SECTION 8.1.   Number of Trustees..................................................................41
     SECTION 8.2.   Property Trustee Required...........................................................41
     SECTION 8.3.   Delaware Trustee Required...........................................................41
     SECTION 8.4.   Appointment of Administrative Trustees..............................................42
     SECTION 8.5.   Duties and Responsibilities of the Trustees.........................................42
     SECTION 8.6.   Notices of Defaults and Extensions..................................................44
     SECTION 8.7.   Certain Rights of Property Trustee..................................................44
     SECTION 8.8.   Delegation of Power.................................................................46
     SECTION 8.9.   May Hold Securities.................................................................46
     SECTION 8.10.  Compensation; Reimbursement; Indemnity..............................................47
     SECTION 8.11.  Resignation and Removal; Appointment of Successor...................................48
     SECTION 8.12.  Acceptance of Appointment by Successor..............................................49
     SECTION 8.13.  Merger, Conversion, Consolidation or Succession to Business.........................49
     SECTION 8.14.  Not Responsible for Recitals or Issuance of Securities..............................50
     SECTION 8.15.  Property Trustee May File Proofs of Claim...........................................50
     SECTION 8.16.  Reports to and from the Property Trustee............................................51

ARTICLE IX.   Termination, Liquidation and Merger.......................................................51
     SECTION 9.1.   Dissolution Upon Expiration Date....................................................51
     SECTION 9.2.   Early Termination...................................................................52
     SECTION 9.3.   Termination.........................................................................52
     SECTION 9.4.   Liquidation.........................................................................52
     SECTION 9.5.   Mergers, Consolidations, Amalgamations or Replacements of Trust.....................54

ARTICLE X.    Information to Purchaser..................................................................55
     SECTION 10.1.  Depositor Obligations to Purchaser..................................................55
     SECTION 10.2.  Property Trustee's Obligations to Purchaser.........................................55

ARTICLE XI.   Miscellaneous Provisions..................................................................55
     SECTION 11.1.  Limitation of Rights of Holders.....................................................55
     SECTION 11.2.  Agreed Tax Treatment of Trust and Trust Securities..................................56
     SECTION 11.3.  Amendment...........................................................................56
     SECTION 11.4.  Separability........................................................................57
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                     <C>
     SECTION 11.5.  Governing Law.......................................................................57
     SECTION 11.6.  Successors..........................................................................58
     SECTION 11.7.  Headings............................................................................58
     SECTION 11.8.  Reports, Notices and Demands........................................................58
     SECTION 11.9.  Agreement Not to Petition...........................................................59

Exhibit A  Certificate of Trust of Bluegreen Statutory Trust II
Exhibit B  Form of Common Securities Certificate
Exhibit C  Form of Preferred Securities Certificate
Exhibit D  Junior Subordinated Indenture
Exhibit E  Form of Transferee Certificate to be Executed by Transferees other than QIBs
Exhibit F  Form of Transferor Certificate to be Executed by QIBs
Exhibit G  Form of Officer's Certificate

Schedule A Calculation of LIBOR
</TABLE>

                                       iii
<PAGE>

      AMENDED AND RESTATED TRUST  AGREEMENT,  dated as of May 4, 2005, among (i)
Bluegreen Corporation,  a Massachusetts corporation (including any successors or
permitted assigns,  the "Depositor"),  (ii) Wilmington Trust Company, a Delaware
banking  corporation,  as property  trustee  (in such  capacity,  the  "Property
Trustee"),  (iii) Wilmington Trust Company, a Delaware banking  corporation,  as
Delaware  trustee (in such  capacity,  the "Delaware  Trustee"),  (iv) George F.
Donovan,  an  individual  and Anthony M.  Puleo,  an  individual,  each of whose
address is c/o  Bluegreen  Corporation,  4960  Conference  Way N.,  Boca  Raton,
Florida  33431,  as  administrative  trustees  (in  such  capacities,   each  an
"Administrative Trustee" and, collectively,  the "Administrative  Trustees" and,
together with the Property Trustee and the Delaware Trustee, the "Trustees") and
(v) the several Holders, as hereinafter defined.

                                   WITNESSETH

      WHEREAS, the Depositor, the Property Trustee and the Delaware Trustee have
heretofore created a Delaware statutory trust pursuant to the Delaware Statutory
Trust Act by entering  into a Trust  Agreement,  dated as of April 29, 2005 (the
"Original Trust  Agreement"),  and by executing and filing with the Secretary of
State of the State of Delaware the  Certificate of Trust,  substantially  in the
form attached as Exhibit A; and

      WHEREAS,  the Depositor  and the Trustees  desire to amend and restate the
Original  Trust  Agreement  in its  entirety as set forth herein to provide for,
among other  things,  (i) the issuance of the Common  Securities by the Trust to
the  Depositor,  (ii) the issuance and sale of the  Preferred  Securities by the
Trust pursuant to the  Subscription  Agreement and (iii) the  acquisition by the
Trust from the  Depositor of all of the right,  title and interest in and to the
Notes;

      NOW,  THEREFORE,  in  consideration  of the agreements and obligations set
forth  herein and for other good and  valuable  consideration,  the  receipt and
sufficiency of which are hereby acknowledged, each party, for the benefit of the
other parties and for the benefit of the Holders, hereby amends and restates the
Original Trust Agreement in its entirety and agrees as follows:

                                   ARTICLE I.

                                  DEFINED TERMS

SECTION 1.1. Definitions.

      For all purposes of this Trust  Agreement,  except as otherwise  expressly
provided or unless the context otherwise requires:

            (a) the terms  defined in this Article I have the meanings  assigned
      to them in this Article I;

            (b) the words "include",  "includes" and "including" shall be deemed
      to be followed by the phrase "without limitation";

<PAGE>

            (c) all  accounting  terms  used  but not  defined  herein  have the
      meanings  assigned  to them in  accordance  with United  States  generally
      accepted accounting principles;

            (d) unless the  context  otherwise  requires,  any  reference  to an
      "Article", a "Section", a "Schedule" or an "Exhibit" refers to an Article,
      a Section,  a Schedule  or an  Exhibit,  as the case may be, of or to this
      Trust Agreement;

            (e) the words "hereby", "herein", "hereof" and "hereunder" and other
      words of similar  import refer to this Trust  Agreement as a whole and not
      to any particular Article, Section or other subdivision;

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

            (g) the  masculine,  feminine or neuter  genders  used herein  shall
      include the masculine, feminine and neuter genders.

      "Act" has the meaning specified in Section 6.7.

      "Additional  Interest"  has the  meaning  specified  in Section 1.1 of the
Indenture.

      "Additional  Interest Amount" means, with respect to Trust Securities of a
given  Liquidation  Amount  and/or a given  period,  the  amount  of  Additional
Interest paid by the Depositor on a Like Amount of Notes for such period.

      "Additional  Taxes"  has  the  meaning  specified  in  Section  1.1 of the
Indenture.

      "Additional  Tax Sums" has the meaning  specified  in Section  10.5 of the
Indenture.

      "Administrative  Trustee"  means  each  of the  Persons  identified  as an
"Administrative Trustee" in the preamble to this Trust Agreement, solely in each
such Person's  capacity as  Administrative  Trustee of the Trust and not in such
Person's individual capacity, or any successor  Administrative Trustee appointed
as herein provided.

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

      "Applicable  Depositary Procedures" means, with respect to any transfer or
transaction involving a Book-Entry Preferred Security,  the rules and procedures
of the Depositary for such Book-Entry  Preferred  Security,  in each case to the
extent applicable to such transaction and as in effect from time to time.

      "Bankruptcy Event" means, with respect to any Person:

                                       2
<PAGE>

            (a) the entry of a decree or order by a court having jurisdiction in
      the  premises  (i)  judging  such  Person a bankrupt  or  insolvent,  (ii)
      approving   as   properly   filed  a  petition   seeking   reorganization,
      arrangement,  adjudication  or composition of or in respect of such Person
      under   any   applicable   Federal   or  state   bankruptcy,   insolvency,
      reorganization  or  other  similar  law,  (iii)  appointing  a  custodian,
      receiver,  liquidator,  assignee,  trustee,  sequestrator or other similar
      official of such Person or of any substantial part of its property or (iv)
      ordering the winding up or liquidation of its affairs, and the continuance
      of any such decree or order  unstayed  and in effect for a period of sixty
      (60) consecutive days; or

            (b) the  institution by such Person of proceedings to be adjudicated
      a  bankrupt  or  insolvent,  or the  consent by it to the  institution  of
      bankruptcy or insolvency  proceedings against it, or the filing by it of a
      petition or answer or consent seeking  reorganization  or relief under any
      applicable  Federal or State  bankruptcy,  insolvency,  reorganization  or
      other similar law, or the consent by it to the filing of any such petition
      or to the  appointment  of a custodian,  receiver,  liquidator,  assignee,
      trustee,  sequestrator  or  similar  official  of  such  Person  or of any
      substantial part of its property, or the making by it of an assignment for
      the  benefit  of  creditors,  or the  admission  by it in  writing  of its
      inability  to  pay  its  debts  generally  as  they  become  due  and  its
      willingness  to be  adjudicated a bankrupt or insolvent,  or the taking of
      corporate action by such Person in furtherance of any such action.

      "Bankruptcy  Laws"  means all Federal  and state  bankruptcy,  insolvency,
reorganization  and other similar laws,  including the United States  Bankruptcy
Code.

      "Book-Entry Preferred Security" means a Preferred Security,  the ownership
and transfers of which shall be made through book entries by a Depositary.

      "Business Day" means a day other than (a) a Saturday or Sunday,  (b) a day
on which banking institutions in the City of New York are authorized or required
by law or executive  order to remain  closed or (c) a day on which the Corporate
Trust Office is closed for business.

      "Calculation Agent" has the meaning specified in Section 4.10.

      "Closing Date" has the meaning specified in the Placement Agreement.

      "Code" means the United States Internal Revenue Code of 1986, as amended.

      "Commission" means the Securities and Exchange Commission, as from time to
time  constituted,  created  under the Exchange Act or, if at any time after the
execution of this Trust Agreement such Commission is not existing and performing
the duties assigned to it, then the body performing such duties at such time.

      "Common Securities  Certificate" means a certificate  evidencing ownership
of Common Securities, substantially in the form attached as Exhibit B.

                                       3
<PAGE>

      "Common  Security"  means a common  security of the Trust,  denominated as
such and  representing  an  undivided  beneficial  interest in the assets of the
Trust,  having a  Liquidation  Amount of $1,000 and  having  the terms  provided
therefor in this Trust Agreement.

      "Corporate  Trust  Office"  means the  principal  office  of the  Property
Trustee at which any  particular  time its  corporate  trust  business  shall be
administered,  which  office at the date of this Trust  Agreement  is located at
Rodney Square North, 1100 North Market Street, Wilmington,  Delaware 19890-0001,
Attention: Corporate Capital Markets.

      "Definitive Preferred Securities  Certificates" means Preferred Securities
issued in  certificated,  fully  registered  form that are not Global  Preferred
Securities.

      "Delaware  Statutory  Trust  Act"  means  Chapter  38 of  Title  12 of the
Delaware Code, 12 Del. Code ss. 3801 et seq., or any successor  statute thereto,
in each case as amended from time to time.

      "Delaware  Trustee" means the Person identified as the "Delaware  Trustee"
in the  preamble  to this Trust  Agreement,  solely in its  capacity as Delaware
Trustee of the Trust and not in its  individual  capacity,  or its  successor in
interest in such capacity, or any successor Delaware Trustee appointed as herein
provided.

      "Depositary"  means an organization  registered as a clearing agency under
the  Exchange  Act that is  designated  as  Depositary  by the  Depositor or any
successor thereto. DTC will be the initial Depositary.

      "Depository  Participant"  means a broker,  dealer,  bank, other financial
institution  or other Person for whom from time to time the  Depositary  effects
book-entry transfers and pledges of securities deposited with the Depositary.

      "Depositor"  has the  meaning  specified  in the  preamble  to this  Trust
Agreement and any successors and permitted assigns.

      "Depositor Affiliate" has the meaning specified in Section 4.9.

      "Distribution Date" has the meaning specified in Section 4.1(a)(i).

      "Distributions"  means amounts payable in respect of the Trust  Securities
as provided in Section 4.1.

      "DTC" means The Depository Trust Company or any successor thereto.

      "Early Termination Event" has the meaning specified in Section 9.2.

      "Event of Default"  means any one of the  following  events  (whatever the
reason for such event and whether it shall be  voluntary  or  involuntary  or be
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order,  rule or regulation of any  administrative  or  governmental
body):

                                       4
<PAGE>

            (a) the occurrence of a Note Event of Default; or

            (b) default by the Trust in the payment of any Distribution  when it
      becomes due and payable,  and continuation of such default for a period of
      thirty (30) days; or

            (c) default by the Trust in the payment of any  Redemption  Price of
      any Trust Security when it becomes due and payable; or

            (d) default in the performance,  or breach,  in any material respect
      of any covenant or warranty of the Trustees in this Trust Agreement (other
      than those specified in clause (b) or (c) above) and  continuation of such
      default  or breach for a period of thirty  (30) days after  there has been
      given,  by  registered  or  certified  mail,  to the  Trustees  and to the
      Depositor  by the  Holders  of at  least  twenty  five  percent  (25%)  in
      aggregate  Liquidation  Amount of the Outstanding  Preferred  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)  the  occurrence  of a  Bankruptcy  Event  with  respect  to the
      Property  Trustee if a successor  Property  Trustee has not been appointed
      within ninety (90) days thereof.

      "Exchange  Act"  means  the  Securities  Exchange  Act of  1934,  and  any
successor statute thereto, in each case as amended from time to time.

      "Expiration Date" has the meaning specified in Section 9.1.

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

      "Global  Preferred  Security"  means a  Preferred  Securities  Certificate
evidencing ownership of Book-Entry Preferred Securities.

      "Holder" means a Person in whose name a Trust Security or Trust Securities
are registered in the Securities Register; any such Person shall be a beneficial
owner within the meaning of the Delaware Statutory Trust Act.

      "Indemnified Person" has the meaning specified in Section 8.10(c).

      "Indenture" means the Junior Subordinated Indenture executed and delivered
by the Depositor and the Note Trustee  contemporaneously  with the execution and
delivery of this Trust Agreement, for the benefit of the holders of the Notes, a
copy of which is attached hereto as Exhibit D, as amended or  supplemented  from
time to time.

      "Indenture Redemption Price" has the meaning specified in Section 4.2(c).

      "Interest  Payment  Date" has the meaning  specified in Section 1.1 of the
Indenture.

      "Investment  Company Act" means the Investment Company Act of 1940, or any
successor statute thereto, in each case as amended from time to time.

                                       5
<PAGE>

      "Investment Company Event" has the meaning specified in Section 1.1 of the
Indenture.

      "LIBOR" has the meaning specified in Schedule A.

      "LIBOR Business Day" has the meaning specified in Schedule A.

      "LIBOR Determination Date" has the meaning specified in Schedule A.

      "Lien" means any lien,  pledge,  charge,  encumbrance,  mortgage,  deed of
trust, adverse ownership interest, hypothecation,  assignment, security interest
or preference,  priority or other security agreement or preferential arrangement
of any kind or nature whatsoever.

      "Like  Amount"  means  (a)  with  respect  to a  redemption  of any  Trust
Securities,  Trust Securities having a Liquidation Amount equal to the principal
amount  of  Notes  to be  contemporaneously  redeemed  or  paid at  maturity  in
accordance  with the  Indenture,  the  proceeds of which will be used to pay the
Redemption Price of such Trust Securities, (b) with respect to a distribution of
Notes to Holders of Trust  Securities  in connection  with a dissolution  of the
Trust,  Notes having a principal  amount equal to the Liquidation  Amount of the
Trust  Securities of the Holder to whom such Notes are  distributed and (c) with
respect to any  distribution of Additional  Interest Amounts to Holders of Trust
Securities,  Notes having a principal amount equal to the Liquidation  Amount of
the Trust Securities in respect of which such distribution is made.

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

      "Liquidation Date" means the date on which assets are to be distributed to
Holders in accordance with Section 9.4(a) hereunder following dissolution of the
Trust.

      "Liquidation Distribution" has the meaning specified in Section 9.4(d).

      "Majority  in  Liquidation  Amount  of  the  Preferred  Securities"  means
Preferred Securities representing more than fifty percent (50%) of the aggregate
Liquidation  Amount of all (or a specified group of) then Outstanding  Preferred
Securities.

      "Note Event of Default" means any "Event of Default"  specified in Section
5.1 of the Indenture.

      "Note  Redemption  Date"  means,  with respect to any Notes to be redeemed
under the  Indenture,  the date fixed for  redemption  of such  Notes  under the
Indenture.

      "Note  Trustee"  means  the  Person  identified  as the  "Trustee"  in the
Indenture,  solely in its capacity as Trustee  pursuant to the Indenture and not
in its individual  capacity,  or its successor in interest in such capacity,  or
any successor Trustee appointed as provided in the Indenture.

      "Notes" means the Depositor's Junior Subordinated Notes issued pursuant to
the Indenture.

      "Officers'  Certificate" means a certificate signed by the Chief Executive
Officer,  the  President  or an  Executive  Vice  President,  and by  the  Chief
Financial Officer, Treasurer or an

                                       6
<PAGE>

Assistant  Treasurer,  of the  Depositor,  and  delivered to the  Trustees.  Any
Officers'  Certificate  delivered with respect to compliance with a condition or
covenant  provided  for in this  Trust  Agreement  (other  than the  certificate
provided pursuant to Section 8.16(a)) shall include:

            (a) a statement by each officer  signing the  Officers'  Certificate
      that such officer 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 such  officer  in  rendering  the  Officers'
      Certificate;

            (c) a  statement  that 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 such officer,  such
      condition or covenant has been complied with.

      "Operative  Documents" means the Placement Agreement,  the Indenture,  the
Trust Agreement, the Subscription Agreement, the Notes and the Trust Securities.

      "Opinion  of  Counsel"  means a written  opinion  of  counsel,  who may be
counsel for, or an employee of, the Depositor or any Affiliate of the Depositor.

      "Original  Issue Date"  means the date of  original  issuance of the Trust
Securities.

      "Original  Trust  Agreement" has the meaning  specified in the recitals to
this Trust Agreement.

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

            (a) Trust Securities theretofore canceled by the Property Trustee or
      delivered to the Property Trustee for cancellation;

            (b) Trust  Securities  for which payment or redemption  money in the
      necessary amount has been theretofore  deposited with the Property Trustee
      or any Paying  Agent in trust for the  Holders  of such Trust  Securities;
      provided, that if such Trust Securities are to be redeemed, notice of such
      redemption has been duly given pursuant to this Trust Agreement; and

            (c) Trust  Securities  that have been paid or in exchange  for or in
      lieu of which other Trust  Securities  have been  executed  and  delivered
      pursuant  to  the  provisions  of  this  Trust  Agreement,   unless  proof
      satisfactory  to the  Property  Trustee is  presented  that any such Trust
      Securities  are held by Holders in whose hands such Trust  Securities  are
      valid, legal and binding obligations of the Trust;

                                       7
<PAGE>

provided,  that in determining whether the Holders of the requisite  Liquidation
Amount of the Outstanding  Preferred Securities have given any request,  demand,
authorization,   direction,  notice,  consent  or  waiver  hereunder,  Preferred
Securities owned by the Depositor, any Trustee or any Affiliate of the Depositor
or of any Trustee shall be disregarded and deemed not to be Outstanding,  except
that (i) in  determining  whether any Trustee shall be protected in relying upon
any such request, demand,  authorization,  direction, notice, consent or waiver,
only  Preferred  Securities  that such Trustee  knows to be so owned shall be so
disregarded  and (ii) the foregoing  shall not apply at any time when all of the
Outstanding Preferred Securities are owned by the Depositor,  one or more of the
Trustees and/or any such Affiliate. Preferred Securities so owned that have been
pledged in good faith may be regarded as Outstanding if the pledgee  establishes
to the satisfaction of the Administrative Trustees the pledgee's right so to act
with  respect  to such  Preferred  Securities  and that the  pledgee  is not the
Depositor, any Trustee or any Affiliate of the Depositor or of any Trustee.

      "Owner"  means  each  Person  who is the  beneficial  owner of  Book-Entry
Preferred  Securities  as  reflected in the records of the  Depositary  or, if a
Depositary Participant is not the beneficial owner, then the beneficial owner as
reflected in the records of the Depositary Participant.

      "Paying Agent" means any Person authorized by the Administrative  Trustees
to pay  Distributions  or other  amounts in respect of any Trust  Securities  on
behalf of the Trust.

      "Payment Account" means a segregated  non-interest-bearing corporate trust
account  maintained  by the  Property  Trustee for the benefit of the Holders in
which all  amounts  paid in respect of the Notes will be held and from which the
Property Trustee,  through the Paying Agent,  shall make payments to the Holders
in accordance with Sections 3.1, 4.1 and 4.2.

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

      "Placement Agent" means Credit Suisse First Boston LLC, as Placement Agent
pursuant to the Placement Agreement, whose address is Eleven Madison Avenue, New
York, New York 10010.

      "Placement  Agreement" means the Placement  Agreement,  dated as of May 4,
2005, executed and delivered by the Trust, the Depositor and Credit Suisse First
Boston LLC, as placement agent.

      "Preferred Security" means a preferred security of the Trust,  denominated
as such and representing an undivided  beneficial  interest in the assets of the
Trust,  having a  Liquidation  Amount of $1,000 and  having  the terms  provided
therefor in this Trust Agreement.

      "Preferred   Securities   Certificate"  means  a  certificate   evidencing
ownership of Preferred Securities, substantially in the form attached as Exhibit
C.

                                       8
<PAGE>

      "Property  Trustee" means the Person identified as the "Property  Trustee"
in the  preamble  to this Trust  Agreement,  solely in its  capacity as Property
Trustee of the Trust and not in its  individual  capacity,  or its  successor in
interest in such capacity, or any successor Property Trustee appointed as herein
provided.

      "Purchaser"  means Credit Suisse First Boston,  acting  through its Cayman
Islands  branch,  as  purchaser  of the  Preferred  Securities  pursuant  to the
Subscription  Agreement,  whose  address is c/o Credit  Suisse First Boston LLC,
Eleven Madison Avenue, New York, New York 10010.

      "QIB"  means a  "qualified  institutional  buyer" as  defined in Rule 144A
under the Securities Act.

      "Redemption  Date"  means,  with  respect  to  any  Trust  Security  to be
redeemed,  the date  fixed for such  redemption  by or  pursuant  to this  Trust
Agreement;  provided, that each Note Redemption Date and the stated maturity (or
any date of  principal  repayment  upon early  maturity) of the Notes shall be a
Redemption Date for a Like Amount of Trust Securities.

      "Redemption  Price"  means,  with  respect  to  any  Trust  Security,  the
Liquidation  Amount  of  such  Trust  Security,   plus  accumulated  and  unpaid
Distributions to the Redemption Date, plus the related amount of the premium, if
any, paid by the Depositor upon the concurrent redemption or payment at maturity
of a Like Amount of Notes.

      "Reference Banks" has the meaning specified in Schedule A.

      "Responsible  Officer" means,  with respect to the Property  Trustee,  any
Senior Vice  President,  any Vice President,  any Assistant Vice President,  the
Secretary,  any Assistant Secretary, the Treasurer, any Assistant Treasurer, any
Trust  Officer or Assistant  Trust Officer or any other officer in the Corporate
Trust  Office  of the  Property  Trustee  with  direct  responsibility  for  the
administration  of this  Trust  Agreement  and also  means,  with  respect  to a
particular  corporate trust matter, any other officer of the Property Trustee to
whom  such  matter  is  referred  because  of that  officer's  knowledge  of and
familiarity with the particular subject.

      "Securities  Act"  means the  Securities  Act of 1933,  and any  successor
statute thereto, in each case as amended from time to time.

      "Securities   Certificate"   means  any  one  of  the  Common   Securities
Certificates or the Preferred Securities Certificates.

      "Securities  Register"  and  "Securities  Registrar"  have the  respective
meanings specified in Section 5.7.

      "Special Event Redemption Price" has the meaning specified in Section 11.2
of the Indenture.

      "Subscription  Agreement"  means  the  Preferred  Securities  Subscription
Agreement,  dated as of May 4, 2005,  by and among the Company,  the Trust,  the
Purchaser and Credit Suisse First Boston LLC (as to certain provisions thereof).

                                       9
<PAGE>

      "Successor Securities" has the meaning specified in Section 9.5(a).

      "Tax Event" has the meaning specified in Section 1.1 of the Indenture.

      "Trust" means the Delaware  statutory trust known as "Bluegreen  Statutory
Trust II," which was created on April 29,  2005,  under the  Delaware  Statutory
Trust  Act  pursuant  to the  Original  Trust  Agreement  and the  filing of the
Certificate of Trust, and continued pursuant to this Trust Agreement.

      "Trust  Agreement"  means  this  Amended  and  Restated  Trust  Agreement,
including all Schedules and Exhibits  (other than Exhibit D), as the same may be
modified,  amended  or  supplemented  from time to time in  accordance  with the
applicable provisions hereof.

      "Trustees" means the Administrative Trustees, the Property Trustee and the
Delaware Trustee, each as defined in this Article I.

      "Trust Property" means (a) the Notes, (b) any cash on deposit in, or owing
to,  the  Payment  Account  and (c) all  proceeds  and  rights in respect of the
foregoing and any other property and assets for the time being held or deemed to
be held by the Property Trustee pursuant to the trusts of this Trust Agreement.

      "Trust  Security" means any one of the Common  Securities or the Preferred
Securities.

                                   ARTICLE II.

                                    THE TRUST

      SECTION 2.1. Name.

      The trust  continued  hereby shall be known as "Bluegreen  Statutory Trust
II,"  as such  name  may be  modified  from  time to time by the  Administrative
Trustees  following  written  notice to the Holders of Trust  Securities and the
other  Trustees,  in which name the  Trustees  may conduct  the  business of the
Trust,  make and execute  contracts and other instruments on behalf of the Trust
and sue and be sued.

      SECTION 2.2. Office of the Delaware Trustee; Principal Place of Business.

      The  address of the  Delaware  Trustee in the State of  Delaware is Rodney
Square  North,  1100  North  Market  Street,  Wilmington,  Delaware  19890-0001,
Attention:  Corporate  Capital  Markets,  or such other  address in the State of
Delaware as the Delaware Trustee may designate by written notice to the Holders,
the  Depositor,  the  Property  Trustee  and the  Administrative  Trustees.  The
principal  executive  office  of the  Trust is c/o  Bluegreen  Corporation  4960
Conference  Way N.,  Boca  Raton,  Florida  33431,  Attention:  Chief  Financial
Officer,  as such address may be changed from time to time by the Administrative
Trustees following written notice to the Holders and the other Trustees.

                                       10
<PAGE>

      SECTION 2.3.  Initial  Contribution  of Trust  Property;  Fees,  Costs and
Expenses.

      The Property Trustee acknowledges receipt from the Depositor in connection
with  the  Original  Trust  Agreement  of the sum of ten  dollars  ($10),  which
constituted the initial Trust Property.  The Depositor shall pay all fees, costs
and expenses of the Trust (except with respect to the Trust  Securities) as they
arise or shall, upon request of any Trustee, promptly reimburse such Trustee for
any such fees, costs and expenses paid by such Trustee. The Depositor shall make
no claim  upon  the  Trust  Property  for the  payment  of such  fees,  costs or
expenses.

      SECTION 2.4. Purposes of Trust.

      (a) The exclusive purposes and functions of the Trust are to (i) issue and
sell Trust  Securities  and use the proceeds from such sale to acquire the Notes
and (ii) engage in only those activities  necessary or incidental  thereto.  The
Delaware  Trustee,  the  Property  Trustee and the  Administrative  Trustees are
trustees of the Trust, and have all the rights,  powers and duties to the extent
set forth herein.  The Trustees hereby acknowledge that they are trustees of the
Trust.

      (b) So long as this Trust Agreement  remains in effect,  the Trust (or the
Trustees  acting on behalf of the  Trust)  shall  not  undertake  any  business,
activities or transaction  except as expressly  provided  herein or contemplated
hereby. In particular, the Trust (or the Trustees acting on behalf of the Trust)
shall not (i) acquire any investments or engage in any activities not authorized
by this  Trust  Agreement,  (ii) sell,  assign,  transfer,  exchange,  mortgage,
pledge,  set-off or otherwise  dispose of any of the Trust Property or interests
therein,  including to Holders, except as expressly provided herein, (iii) incur
any  indebtedness  for  borrowed  money or issue  any other  debt,  (iv) take or
consent to any action that would result in the placement of a Lien on any of the
Trust  Property,  (v) take or  consent to any action  that would  reasonably  be
expected  to cause  (or,  in the case of the  Property  Trustee,  to the  actual
knowledge of a Responsible Officer would cause) the Trust to become taxable as a
corporation  or  classified  as other  than a grantor  trust for  United  States
federal income tax purposes, (vi) take or consent to any action that would cause
(or,  in the  case  of  the  Property  Trustee,  to the  actual  knowledge  of a
Responsible  Officer  would  cause)  the  Notes  to be  treated  as  other  than
indebtedness  of the Depositor for United States  federal income tax purposes or
(vii) take or consent to any  action  that would  cause (or,  in the case of the
Property Trustee,  to the actual knowledge of a Responsible Officer would cause)
the Trust to be deemed to be an "investment  company"  required to be registered
under the Investment Company Act.

      SECTION 2.5. Authorization to Enter into Certain Transactions.

      (a) The Trustees shall conduct the affairs of the Trust in accordance with
and  subject  to the  terms of this  Trust  Agreement.  In  accordance  with the
following  provisions  (i) and (ii),  the Trustees  shall have the  authority to
enter into all  transactions  and  agreements  determined  by the Trustees to be
appropriate in exercising the authority,  express or implied,  otherwise granted
to the  Trustees,  under  this  Trust  Agreement,  and to  perform  all  acts in
furtherance thereof, including the following:

                                       11
<PAGE>

            (i)  As  among  the  Trustees,  each  Administrative  Trustee  shall
      severally have the power,  authority and authorization to act on behalf of
      the Trust with respect to the following matters:

                  (A) the issuance and sale of the Trust Securities;

                  (B) to cause the Trust to enter into, and to execute,  deliver
            and  perform on behalf of the  Trust,  such  agreements,  documents,
            instruments,  certificates and other writings as may be necessary or
            desirable in connection with the purposes and function of the Trust,
            including,  without  limitation,  a common  securities  subscription
            agreement and a junior subordinated note subscription  agreement and
            to cause  the  Trust to  perform  the  Placement  Agreement  and the
            Subscription Agreement;

                  (C) assisting in the sale of the  Preferred  Securities in one
            or more transactions  exempt from registration  under the Securities
            Act, and in compliance with applicable  state securities or blue sky
            laws;

                  (D) assisting in the sending of notices (other than notices of
            default) and other  information  regarding the Trust  Securities and
            the Notes to the Holders in accordance with this Trust Agreement;

                  (E)  the   appointment   of  a  successor   Paying  Agent  and
            Calculation Agent in accordance with this Trust Agreement;

                  (F) execution  and delivery of the Trust  Securities on behalf
            of the Trust in accordance with this Trust Agreement;

                  (G)  execution and delivery of closing  certificates,  if any,
            pursuant to the Placement Agreement;

                  (H)  preparation  and filing of all applicable tax returns and
            tax  information  reports that are required to be filed on behalf of
            the Trust;

                  (I)  establishing a record date with respect to all actions to
            be taken  hereunder  that  require a record date to be  established,
            except as provided in Section 6.10(a);

                  (J) unless otherwise  required by the Delaware Statutory Trust
            Act,  to  execute  on behalf of the Trust  (either  acting  alone or
            together with the other  Administrative  Trustees) any documents and
            other  writings  that such  Administrative  Trustee has the power to
            execute pursuant to this Trust Agreement; and

                  (K) the taking of any action  incidental  to the  foregoing as
            such  Administrative  Trustee  may from  time to time  determine  is
            necessary  or  advisable  to give  effect to the terms of this Trust
            Agreement.

                                       12
<PAGE>

            (ii) As among the  Trustees,  the  Property  Trustee  shall have the
      power,  authority  and  authorization  to act on behalf of the Trust  with
      respect to the following matters:

                  (A) the receipt and holding of legal title of the Notes;

                  (B) the establishment of the Payment Account;

                  (C) the receipt of interest,  principal and any other payments
            made in respect of the Notes and the holding of such  amounts in the
            Payment Account;

                  (D) the  distribution  through  the  Paying  Agent of  amounts
            distributable to the Holders in respect of the Trust Securities;

                  (E) the exercise of all of the rights,  powers and  privileges
            of a holder of the Notes in accordance  with the terms of this Trust
            Agreement;

                  (F) the  sending of notices of default  and other  information
            regarding  the  Trust  Securities  and the Notes to the  Holders  in
            accordance with this Trust Agreement;

                  (G) the  distribution of the Trust Property in accordance with
            the terms of this Trust Agreement;

                  (H) to the  extent  provided  in  this  Trust  Agreement,  the
            winding up of the  affairs of and  liquidation  of the Trust and the
            preparation, execution and filing of the certificate of cancellation
            of the Trust with the Secretary of State of the State of Delaware;

                  (I) application for a taxpayer  identification  number for the
            Trust;

                  (J) the authentication of the Preferred Securities as provided
            in this Trust Agreement; and

                  (K) the taking of any action  incidental  to the  foregoing as
            the Property Trustee may from time to time determine is necessary or
            advisable  to give effect to the terms of this Trust  Agreement  and
            protect  and  conserve  the Trust  Property  for the  benefit of the
            Holders  (without  consideration of the effect of any such action on
            any particular Holder).

      (b) In connection with the issue and sale of the Preferred Securities, the
Depositor  shall  have the right and  responsibility  to assist  the Trust  with
respect  to, or effect on behalf of the Trust,  the  following  (and any actions
taken by the Depositor in furtherance of the following prior to the date of this
Trust Agreement are hereby ratified and confirmed in all respects):

            (i) the  negotiation of the terms of, and the execution and delivery
      of, the Placement  Agreement and the Subscription  Agreement providing for
      the sale of the

                                       13
<PAGE>

      Preferred  Securities in one or more transactions exempt from registration
      under  the  Securities  Act,  and  in  compliance  with  applicable  state
      securities or blue sky laws; and

            (ii) the taking of any other actions necessary or desirable to carry
      out any of the foregoing activities.

      (c)  Notwithstanding  anything herein to the contrary,  the Administrative
Trustees are  authorized and directed to conduct the affairs of the Trust and to
operate  the Trust so that the Trust  will not be taxable  as a  corporation  or
classified as other than a grantor trust for United  States  federal  income tax
purposes, so that the Notes will be treated as indebtedness of the Depositor for
United  States  federal  income tax  purposes  and so that the Trust will not be
deemed  to be an  "investment  company"  required  to be  registered  under  the
Investment  Company  Act. In this  connection,  each  Administrative  Trustee is
authorized  to take any  action,  not  inconsistent  with  applicable  law,  the
Certificate of Trust or this Trust Agreement,  that such Administrative  Trustee
determines  in his or her  discretion  to be  necessary  or  desirable  for such
purposes,  as long as such  action  does not  adversely  affect in any  material
respect the interests of the Holders of the Outstanding Preferred Securities. In
no event shall the Administrative Trustees be liable to the Trust or the Holders
for any failure to comply with this  Section 2.5 to the extent that such failure
results  solely  from a change  in law or  regulation  or in the  interpretation
thereof.

      (d) Any action  taken by a Trustee  in  accordance  with its powers  shall
constitute  the act of and serve to bind the Trust.  In dealing with any Trustee
acting on behalf of the Trust,  no Person  shall be required to inquire into the
authority of such Trustee to bind the Trust.  Persons dealing with the Trust are
entitled to rely  conclusively  on the power and authority of any Trustee as set
forth in this Trust Agreement.

      SECTION 2.6. Assets of Trust.

      The assets of the Trust shall consist of the Trust Property.

      SECTION 2.7. Title to Trust Property.

      (a) Legal title to all Trust  Property shall be vested at all times in the
Property  Trustee and shall be held and  administered by the Property Trustee in
trust for the benefit of the Trust and the Holders in accordance with this Trust
Agreement.

      (b) The  Holders  shall not have any right or title to the Trust  Property
other  than  the  undivided  beneficial  interest  in the  assets  of the  Trust
conferred by their Trust Securities and they shall have no right to call for any
partition  or division  of  property,  profits or rights of the Trust  except as
described below. The Trust Securities shall be personal property giving only the
rights specifically set forth therein and in this Trust Agreement.

                                       14
<PAGE>

                                  ARTICLE III.

                         PAYMENT ACCOUNT; PAYING AGENTS

      SECTION 3.1. Payment Account.

      (a) On or prior to the Closing Date, the Property  Trustee shall establish
the  Payment  Account.  The  Property  Trustee  and the Paying  Agent shall have
exclusive  control  and sole right of  withdrawal  with  respect to the  Payment
Account for the purpose of making deposits in and  withdrawals  from the Payment
Account in accordance with this Trust  Agreement.  All monies and other property
deposited or held from time to time in the Payment  Account shall be held by the
Property Trustee in the Payment Account for the exclusive benefit of the Holders
and for Distribution as herein provided.

      (b) The Property  Trustee shall deposit in the Payment  Account,  promptly
upon  receipt,  all  payments  of  principal  of or  interest  on, and any other
payments with respect to, the Notes.  Amounts held in the Payment  Account shall
not be invested by the Property Trustee pending distribution thereof.

      SECTION 3.2. Appointment of Paying Agents.

      The Property  Trustee is appointed as the initial  Paying Agent and hereby
accepts such appointment.  The Paying Agent shall make  Distributions to Holders
from the Payment Account and shall report the amounts of such  Distributions  to
the Property  Trustee and the  Administrative  Trustees.  Any Paying Agent shall
have the revocable  power to withdraw funds from the Payment  Account solely for
the purpose of making the  Distributions  referred to above. The  Administrative
Trustees  may  revoke  such  power and  remove  the  Paying  Agent in their sole
discretion.  Any Person  acting as Paying  Agent shall be permitted to resign as
Paying  Agent  upon  thirty  (30)  days'  written  notice to the  Administrative
Trustees and the Property  Trustee.  If the Property  Trustee shall no longer be
the Paying Agent or a successor  Paying  Agent shall resign or its  authority to
act be revoked,  the  Administrative  Trustees shall appoint a successor  (which
shall be a bank or trust company) to act as Paying Agent.  Such successor Paying
Agent appointed by the Administrative  Trustees shall execute and deliver to the
Trustees an instrument in which such successor Paying Agent shall agree with the
Trustees that as Paying Agent,  such successor  Paying Agent will hold all sums,
if any,  held by it for  payment to the  Holders in trust for the benefit of the
Holders  entitled  thereto  until such sums shall be paid to such  Holders.  The
Paying Agent shall return all unclaimed  funds to the Property  Trustee and upon
removal of a Paying  Agent such Paying  Agent shall also return all funds in its
possession to the Property  Trustee.  The provisions of Article VIII shall apply
to the  Property  Trustee also in its role as Paying  Agent,  for so long as the
Property Trustee shall act as Paying Agent and, to the extent applicable, to any
other Paying Agent appointed hereunder. Any reference in this Trust Agreement to
the Paying Agent shall include any co-paying  agent unless the context  requires
otherwise.

                                       15
<PAGE>

                                   ARTICLE IV.

                            DISTRIBUTIONS; REDEMPTION

SECTION 4.1. Distributions.

      (a) The Trust Securities  represent undivided  beneficial interests in the
Trust Property,  and Distributions  (including any Additional  Interest Amounts)
will be made on the Trust  Securities at the rate and on the dates that payments
of  interest  (including  any  Additional  Interest)  are  made  on  the  Notes.
Accordingly:

            (i)  Distributions on the Trust Securities shall be cumulative,  and
      shall accumulate whether or not there are funds of the Trust available for
      the payment of Distributions.  Distributions  shall accumulate from May 4,
      2005,  and,  except as provided  in clause  (ii)  below,  shall be payable
      quarterly in arrears on January  30th,  April 30th,  July 30th and October
      30th of each year,  commencing  on July 30,  2005.  If any date on which a
      Distribution  is  otherwise  payable  on  the  Trust  Securities  is not a
      Business Day, then the payment of such  Distribution  shall be made on the
      next  succeeding  Business Day (and no interest shall accrue in respect of
      the amounts whose payment is so delayed for the period from and after each
      such date until the next  succeeding  Business Day),  except that, if such
      Business  Day falls 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 (each date on which
      Distributions  are payable in accordance  with this Section  4.1(a)(i),  a
      "Distribution Date");

            (ii)  Distributions   shall  accumulate  in  respect  of  the  Trust
      Securities  at a fixed rate per annum  equal to 9.158% of the  Liquidation
      Amount of the Trust Securities through the Distribution Date in July, 2010
      and a variable rate per annum, reset quarterly,  equal to LIBOR plus 4.85%
      of the Liquidation Amount of the Trust Securities, thereafter. LIBOR shall
      be determined by the Calculation  Agent in accordance with Schedule A. The
      amount  of  Distributions   payable  for  any  period  less  than  a  full
      Distribution  period  shall be computed on the basis of a 360-day year and
      the actual number of days elapsed in the relevant Distribution period. The
      amount of  Distributions  payable for any full  interest  period  shall be
      computed by dividing the applicable  rate per annum by four. The amount of
      Distributions payable for any period shall include any Additional Interest
      Amounts in respect of such period; and

            (iii)  Distributions  on the Trust  Securities  shall be made by the
      Paying  Agent  from the  Payment  Account  and  shall be  payable  on each
      Distribution Date only to the extent that the Trust has funds then on hand
      and   available   in  the   Payment   Account  for  the  payment  of  such
      Distributions.

      (b)  Distributions  on the Trust Securities with respect to a Distribution
Date shall be payable to the Holders  thereof as they  appear on the  Securities
Register  for the Trust  Securities  at the close of  business  on the  relevant
record  date,  which  shall be at the close of  business  on the  fifteenth  day
(whether  or not a Business  Day)  preceding  the  relevant  Distribution  Date.
Distributions  payable on any Trust  Securities  that are not punctually paid on
any Distribution

                                       16
<PAGE>

Date as a result of the  Depositor  having  failed to make an  interest  payment
under the Notes  will cease to be payable to the Person in whose name such Trust
Securities  are  registered  on the  relevant  record date,  and such  defaulted
Distributions and any Additional Interest Amounts will instead be payable to the
Person in whose name such Trust  Securities are registered on the special record
date, or other specified date for determining Holders entitled to such defaulted
Distribution and Additional Interest Amount, established in the same manner, and
on the same date,  as such is  established  with  respect to the Notes under the
Indenture.

      SECTION 4.2. Redemption.

      (a) On each Note  Redemption  Date and on the stated maturity (or any date
of principal  repayment upon early maturity) of the Notes and on each other date
on (or in respect of) which any principal on the Notes is repaid, the Trust will
be required to redeem a Like Amount of Trust Securities at the Redemption Price.

      (b)  Notice  of  redemption  shall  be given by the  Property  Trustee  by
first-class  mail,  postage  prepaid,  mailed not less than thirty (30) nor more
than  sixty  (60)  days  prior to the  Redemption  Date to each  Holder of Trust
Securities to be redeemed,  at such Holder's address appearing in the Securities
Register. All notices of redemption shall state:

            (i) the Redemption Date;

            (ii) the  Redemption  Price or, if the  Redemption  Price  cannot be
      calculated  prior to the time  the  notice  is  required  to be sent,  the
      estimate of the Redemption  Price provided  pursuant to the Indenture,  as
      calculated  by the  Depositor,  together  with a  statement  that it is an
      estimate and that the actual  Redemption  Price will be  calculated by the
      Calculation  Agent on the fifth Business Day prior to the Redemption  Date
      (and if an estimate is  provided,  a further  notice  shall be sent of the
      actual  Redemption  Price  on the  date  that  such  Redemption  Price  is
      calculated);

            (iii) if less than all the  Outstanding  Trust  Securities are to be
      redeemed, the identification (and, in the case of partial redemption,  the
      respective  Liquidation Amounts) and Liquidation Amounts of the particular
      Trust Securities to be redeemed;

            (iv) that on the Redemption  Date, the Redemption  Price will become
      due and payable upon each such Trust Security,  or portion thereof,  to be
      redeemed and that  Distributions  thereon will cease to accumulate on such
      Trust  Security  or such  portion,  as the case may be, on and after  said
      date, except as provided in Section 4.2(d);

            (v) the  place  or  places  where  the  Trust  Securities  are to be
      surrendered for the payment of the Redemption Price; and

            (vi) such other provisions as the Property Trustee deems relevant.

      (c) The Trust Securities (or portion thereof)  redeemed on each Redemption
Date  shall be  redeemed  at the  Redemption  Price with the  proceeds  from the
contemporaneous  redemption or payment at maturity of Notes.  Redemptions of the
Trust  Securities (or portion  thereof)  shall be made and the Redemption  Price
shall be payable on each Redemption Date only to the extent

                                       17
<PAGE>

that the Trust has funds then on hand and  available in the Payment  Account for
the payment of such  Redemption  Price.  Under the  Indenture,  the Notes may be
redeemed by the  Depositor  on any Interest  Payment  Date,  at the  Depositor's
option,  on or after July 30, 2010, in whole or in part,  from time to time at a
redemption price equal to 100% of the principal amount thereof, together, in the
case of any such  redemption,  with accrued  interest,  including any Additional
Interest,  to but  excluding  the date  fixed  for  redemption  (the  "Indenture
Redemption  Price").  The Notes may also be  redeemed by the  Depositor,  at its
option,  in whole but not in part, upon the occurrence of an Investment  Company
Event or a Tax Event at the Special Event  Redemption Price (as set forth in the
Indenture).

      (d) If the Property Trustee gives a notice of redemption in respect of any
Preferred Securities,  then by 10:00 A.M., New York City time, on the Redemption
Date, the Depositor shall deposit  sufficient funds with the Property Trustee to
pay the Redemption  Price.  If such deposit has been made by such time,  then by
12:00 noon,  New York City time, on the Redemption  Date,  the Property  Trustee
will, with respect to Book-Entry Preferred Securities,  irrevocably deposit with
the Depositary for such Book-Entry Preferred Securities, to the extent available
therefor,  funds sufficient to pay the applicable Redemption Price and will give
such  Depositary  irrevocable  instructions  and authority to pay the Redemption
Price to the Holders of the  Preferred  Securities.  With  respect to  Preferred
Securities that are not Book-Entry  Preferred  Securities,  the Property Trustee
will  irrevocably  deposit  with  the  Paying  Agent,  to the  extent  available
therefor,  funds sufficient to pay the applicable Redemption Price and will give
the Paying Agent  irrevocable  instructions  and authority to pay the Redemption
Price  to the  Holders  of the  Preferred  Securities  upon  surrender  of their
Preferred Securities Certificates.  Notwithstanding the foregoing, Distributions
payable on or prior to the Redemption Date for any Trust  Securities (or portion
thereof)  called for  redemption  shall be payable to the  Holders of such Trust
Securities  as they appear on the  Securities  Register on the  relevant  record
dates for the related  Distribution  Dates.  If notice of redemption  shall have
been given and funds deposited as required,  then upon the date of such deposit,
all rights of Holders  holding Trust  Securities (or portion  thereof) so called
for  redemption  will  cease,  except the right of such  Holders to receive  the
Redemption Price and any Distribution payable in respect of the Trust Securities
on or prior to the Redemption Date, but without interest,  and, in the case of a
partial redemption, the right of such Holders to receive a new Trust Security or
Securities of authorized denominations, in aggregate Liquidation Amount equal to
the unredeemed portion of such Trust Security or Securities, and such Securities
(or portion thereof) called for redemption will cease to be Outstanding.  In the
event that any date on which any  Redemption  Price is payable is not a Business
Day, then payment of the  Redemption  Price payable on such date will be made on
the next succeeding Business Day (and no interest shall accrue in respect of the
amounts whose payment is so delayed for the period from and after each such date
until the next succeeding Business Day), except that, if such Business Day falls
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.  In the event that payment of the  Redemption  Price in
respect of any Trust  Securities (or portion  thereof)  called for redemption is
improperly  withheld or refused and not paid either by the Trust,  Distributions
on such Trust Securities(or portion thereof) will continue to accumulate, as set
forth in Section 4.1, from the  Redemption  Date  originally  established by the
Trust for such Trust Securities(or  portion thereof) to the date such Redemption
Price is actually  paid, in which case the actual  payment date will be the date
fixed for redemption for purposes of calculating the Redemption Price.

                                       18
<PAGE>

      (e)  Subject to Section  4.3(a),  if less than all the  Outstanding  Trust
Securities  are  to  be  redeemed  on a  Redemption  Date,  then  the  aggregate
Liquidation  Amount of Trust  Securities  to be redeemed  shall be allocated pro
rata to the  Common  Securities  and the  Preferred  Securities  based  upon the
relative  aggregate  Liquidation  Amounts  of  the  Common  Securities  and  the
Preferred Securities.  The Preferred Securities to be redeemed shall be selected
on a pro rata basis  based upon their  respective  Liquidation  Amounts not more
than sixty (60) days prior to the Redemption  Date by the Property  Trustee from
the  Outstanding  Preferred  Securities  not previously  called for  redemption;
provided,  however,  that with respect to Holders that would be required to hold
less than one hundred (100) but more than zero (0) Trust  Securities as a result
of such redemption,  the Trust shall redeem Trust Securities of each such Holder
so that after such  redemption  such Holder shall hold either one hundred  (100)
Trust Securities or such Holder no longer holds any Trust Securities,  and shall
use such method (including,  without limitation, by lot) as the Trust shall deem
fair and  appropriate;  and  provided,  further,  that so long as the  Preferred
Securities are Book-Entry Preferred Securities,  such selection shall be made in
accordance  with  the  Applicable   Depositary   Procedures  for  the  Preferred
Securities by such  Depositary.  The Property  Trustee shall promptly notify the
Securities Registrar in writing of the Preferred Securities (or portion thereof)
selected for redemption  and, in the case of any Preferred  Securities  selected
for partial redemption,  the Liquidation Amount thereof to be redeemed.  For all
purposes of this Trust Agreement,  unless the context  otherwise  requires,  all
provisions  relating to the redemption of Preferred  Securities shall relate, in
the case of any Preferred Securities redeemed or to be redeemed only in part, to
the portion of the aggregate Liquidation Amount of Preferred Securities that has
been or is to be redeemed.

      (f) The Trust in issuing the Trust  Securities may use "CUSIP" numbers (if
then  generally in use),  and, if so, the Property  Trustee  shall  indicate the
"CUSIP"  numbers of the Trust  Securities in notices of  redemption  and related
materials as a convenience to Holders;  provided, that any such notice may state
that no  representation  is made as to the correctness of such numbers either as
printed on the Trust  Securities or as contained in any notice of redemption and
related materials.

      SECTION 4.3. Subordination of Common Securities.

      (a) Payment of Distributions  (including any Additional  Interest Amounts)
on, the Redemption Price of and the Liquidation  Distribution in respect of, the
Trust  Securities,  as  applicable,  shall be made,  pro rata  among the  Common
Securities and the Preferred  Securities based on the Liquidation  Amount of the
respective  Trust  Securities;  provided,  that  if on  any  Distribution  Date,
Redemption Date or Liquidation  Date an Event of Default shall have occurred and
be continuing, no payment of any Distribution (including any Additional Interest
Amounts) on, Redemption Price of or Liquidation  Distribution in respect of, any
Common Security, and no other payment on account of the redemption,  liquidation
or other acquisition of Common Securities,  shall be made unless payment in full
in cash of all  accumulated and unpaid  Distributions  (including any Additional
Interest Amounts) on all Outstanding  Preferred  Securities for all Distribution
periods  terminating  on or  prior  thereto,  or in the case of  payment  of the
Redemption  Price the full amount of such  Redemption  Price on all  Outstanding
Preferred  Securities then called for  redemption,  or in the case of payment of
the Liquidation Distribution the full amount of such Liquidation Distribution on
all Outstanding Preferred Securities,  shall have been made or provided for, and
all funds immediately available to the Property Trustee

                                       19
<PAGE>

shall  first be  applied  to the  payment  in full in cash of all  Distributions
(including any Additional  Interest  Amounts) on, or the Redemption  Price of or
the Liquidation  Distribution  in respect of, the Preferred  Securities then due
and payable.

      (b) In the case of the occurrence of any Event of Default,  the Holders of
the Common  Securities shall have no right to act with respect to any such Event
of Default  under this Trust  Agreement  until all such  Events of Default  with
respect  to the  Preferred  Securities  have been  cured,  waived  or  otherwise
eliminated.  Until all such Events of Default  under this Trust  Agreement  with
respect to the  Preferred  Securities  have been so cured,  waived or  otherwise
eliminated,  the Property  Trustee  shall act solely on behalf of the Holders of
the  Preferred  Securities  and  not on  behalf  of the  Holders  of the  Common
Securities,  and only the Holders of all the Preferred  Securities will have the
right to direct the Property Trustee to act on their behalf.

      SECTION 4.4. Payment Procedures.

      Payments of Distributions (including any Additional Interest Amounts), the
Redemption  Price,  Liquidation  Amount or any other  amounts  in respect of the
Preferred  Securities  shall be made by wire  transfer at such place and to such
account at a banking  institution  in the United  States as may be designated in
writing at least ten (10)  Business  Days  prior to the date for  payment by the
Person entitled  thereto unless proper written  transfer  instructions  have not
been received by the relevant  record date, in which case such payments shall be
made by check mailed to the address of such Person as such address  shall appear
in  the  Securities  Register.  If  any  Preferred  Securities  are  held  by  a
Depositary,  such  Distributions  thereon  shall  be made to the  Depositary  in
immediately  available funds. Payments in respect of the Common Securities shall
be made in such manner as shall be mutually agreed between the Property  Trustee
and the Holder of all the Common Securities.

      SECTION 4.5. Withholding Tax.

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

                                       20
<PAGE>

      SECTION 4.6. Tax Returns and Other Reports.

      (a) The Administrative Trustees shall prepare (or cause to be prepared) at
the principal office of the Trust in the United States,  as defined for purposes
of Treasury  regulations section  301.7701-7,  at the Depositor's  expense,  and
file, all United States federal, state and local tax and information returns and
reports required to be filed by or in respect of the Trust.  The  Administrative
Trustees  shall  prepare  at the  principal  office of the  Trust in the  United
States, as defined for purposes of Treasury regulations section 301.7701-7,  and
furnish (or cause to be prepared and  furnished),  by January 31 in each taxable
year of the Trust to each Holder all Internal  Revenue Service forms and returns
required to be provided by the Trust. The Administrative  Trustees shall provide
the  Depositor  and the  Property  Trustee  with a copy of all such  returns and
reports promptly after such filing or furnishing.

      SECTION 4.7. Payment of Taxes, Duties, Etc. of the Trust.

      Upon receipt under the Notes of  Additional  Tax Sums and upon the written
direction of the  Administrative  Trustees,  the Property Trustee shall promptly
pay,  solely out of monies on deposit  pursuant  to this  Trust  Agreement,  any
Additional  Taxes  imposed on the Trust by the United States or any other taxing
authority.

      SECTION 4.8. Payments under Indenture or Pursuant to Direct Actions.

      Any amount payable  hereunder to any Holder of Preferred  Securities shall
be reduced by the amount of any corresponding  payment such Holder (or any Owner
with  respect  thereto)  has  directly  received  pursuant to Section 5.8 of the
Indenture or Section 6.10(b) of this Trust Agreement.

      SECTION 4.9. Exchanges.

      (a) If at any time the Depositor or any of its Affiliates (in either case,
a "Depositor  Affiliate")  is the Owner or Holder of any  Preferred  Securities,
such Depositor Affiliate shall have the right to deliver to the Property Trustee
all or such portion of its  Preferred  Securities  as it elects and,  subject to
compliance  with  Sections 2.2 and 3.5 of the  Indenture,  receive,  in exchange
therefor,  a Like  Amount  of Notes.  Such  election  (i)  shall be  exercisable
effective on any Distribution Date by such Depositor Affiliate delivering to the
Property  Trustee a written notice of such election  specifying the  Liquidation
Amount of Preferred Securities with respect to which such election is being made
and the Distribution Date on which such exchange shall occur, which Distribution
Date shall be not less than ten (10)  Business Days after the date of receipt by
the Property  Trustee of such election notice and (ii) shall be conditioned upon
such  Depositor  Affiliate  having  delivered  or caused to be  delivered to the
Property  Trustee or its designee the Preferred  Securities that are the subject
of such election by 10:00 A.M. New York time, on the Distribution  Date on which
such exchange is to occur. After the exchange, such Preferred Securities will be
canceled  and will no longer be deemed to be  Outstanding  and all rights of the
Depositor Affiliate with respect to such Preferred Securities will cease.

      (b) In the case of an exchange  described in Section 4.9(a),  the Property
Trustee  on behalf of the Trust  will,  on the date of such  exchange,  exchange
Notes having a principal amount equal to a proportional  amount of the aggregate
Liquidation Amount of the Outstanding

                                       21
<PAGE>

Common Securities, based on the ratio of the aggregate Liquidation Amount of the
Preferred  Securities  exchanged  pursuant  to  Section  4.9(a)  divided  by the
aggregate Liquidation Amount of the Preferred Securities Outstanding immediately
prior to such exchange,  for such proportional  amount of Common Securities held
by the  Depositor  (which  contemporaneously  shall be canceled and no longer be
deemed to be Outstanding); provided, that the Depositor delivers or causes to be
delivered to the Property  Trustee or its designee the required amount of Common
Securities to be exchanged by 10:00 A.M. New York time, on the Distribution Date
on which such exchange is to occur.

      SECTION 4.10. Calculation Agent.

      (a) The Property Trustee shall initially,  and, subject to the immediately
following sentence, for so long as it holds any of the Notes, be the Calculation
Agent  for  purposes  of  determining  LIBOR  for each  Distribution  Date.  The
Calculation Agent may be removed by the Administrative  Trustees at any time. If
the Calculation Agent is unable or unwilling to act as such or is removed by the
Administrative  Trustees, the Administrative Trustees will promptly appoint as a
replacement  Calculation  Agent the  London  office of a leading  bank  which is
engaged in transactions in three-month  U.S. Dollar deposits in Europe and which
does not  control  or is not  controlled  by or under  common  control  with the
Administrative  Trustee or its Affiliates.  The Calculation Agent may not resign
its duties without a successor having been duly appointed.

      (b) The  Calculation  Agent shall be  required  to agree that,  as soon as
possible after 11:00 a.m. (London time) on each LIBOR Determination Date, but in
no event later than 11:00 a.m.  (London  time) on the Business  Day  immediately
following each LIBOR  Determination  Date, the Calculation  Agent will calculate
the interest rate and  Distribution  amount  (rounded to the nearest cent,  with
half a cent being rounded upwards) for the related  Distribution  Date, and will
communicate such rate and amount to the Depositor,  the Property  Trustee,  each
Paying Agent and the Depositary.  The Calculation Agent will also specify to the
Administrative  Trustees  the  quotations  upon  which the  foregoing  rates and
amounts  are based and, in any event,  the  Calculation  Agent shall  notify the
Administrative   Trustees   before  5:00  p.m.   (London  time)  on  each  LIBOR
Determination  Date that either:  (i) it has  determined or is in the process of
determining the foregoing rates and amounts or (ii) it has not determined and is
not in the process of determining the foregoing rates and amounts, together with
its reasons  therefor.  The Calculation  Agent's  determination of the foregoing
rates and  amounts  for any  Distribution  Date will (in the absence of manifest
error)  be  final  and  binding  upon  all  parties.  For the  sole  purpose  of
calculating the interest rate for the Trust Securities,  "Business Day" shall be
defined as any day on which  dealings in deposits in Dollars are  transacted  in
the London interbank market.

      SECTION 4.11. Certain Accounting Matters.

      (a) At all times  during the  existence of the Trust,  the  Administrative
Trustees shall keep, or cause to be kept at the principal office of the Trust in
the United  States,  as defined for  purposes of  Treasury  Regulations  section
301.7701-7, full books of account, records and supporting documents, which shall
reflect in reasonable detail each transaction of the Trust. The books of account
shall be  maintained on the accrual  method of  accounting,  in accordance  with
generally accepted accounting principles, consistently applied.

                                       22
<PAGE>

      (b) The Administrative  Trustees shall either (i) if the Depositor is then
subject  to such  reporting  requirements,  cause  each  Form 10-K and Form 10-Q
prepared by the Depositor and filed with the  Commission in accordance  with the
Exchange  Act to be  delivered  to  each  Holder,  with a copy  to the  Property
Trustee,  within  thirty (30) days after the filing  thereof or (ii) cause to be
prepared at the principal  office of the Trust in the United States,  as defined
for purposes of Treasury  Regulations section 301.7701-7,  and delivered to each
of the Holders,  with a copy to the Property  Trustee,  within  ninety (90) days
after the end of each Fiscal Year,  annual  financial  statements  of the Trust,
including a balance  sheet of the Trust as of the end of such Fiscal  Year,  and
the related  statements of income or loss. If the Depositor files its annual and
quarterly reports on Forms 10-K and 10-Q, respectively,  with the Securities and
Exchange Commission (the "Commission") in electronic form pursuant to Regulation
S -T of the  Commission  using the  Commissioner's  Electronic  Data  Gathering,
Analysis and Retrieval ("EDGAR") system, the Depositor shall notify the Property
Trustee  in the  manner  prescribed  herein of each such  annual  and  quarterly
filing.  The Property  Trustee is hereby  authorized  and directed to access the
EDGAR system for purposes of retrieving the financial  information so filed. The
Property  Trustee  shall have no duty to search for or obtain any  electronic or
other  filings  that the  Depositor  makes with the  Commission,  regardless  of
whether  such  filings are  periodic,  supplemental  or  otherwise.  Delivery of
reports,  information  and  documents to the Property  Trustee  pursuant to this
Section  4.11(b)  shall be solely for purposes of  compliance  with this Section
4.11(b) and, if applicable, with Section 314(a) of the Trust Indenture Act.. The
Property Trustee's receipt of such reports,  information and documents shall not
constitute  notice to it of the content thereof or any matter  determinable from
the  content  thereof,  including  the  Depositor's  compliance  with any of its
covenants  hereunder,  as to which the Property Trustee is entitled to rely upon
Officers' Certificates.

      (c) The Trust  shall  maintain  one or more bank  accounts  in the  United
States, as defined for purposes of Treasury  Regulations section 301.7701-7,  in
the name and for the sole  benefit of the  Trust;  provided,  however,  that all
payments of funds in respect of the Notes held by the Property  Trustee shall be
made  directly to the  Payment  Account and no other funds of the Trust shall be
deposited  in the  Payment  Account.  The sole  signatories  for  such  accounts
(including the Payment Account) shall be designated by the Property Trustee.

                                   ARTICLE V.

                                   SECURITIES

      SECTION 5.1. Initial Ownership.

      Upon the  creation  of the Trust  and the  contribution  by the  Depositor
referred to in Section 2.3 and until the issuance of the Trust  Securities,  and
at any time during which no Trust  Securities  are  Outstanding,  the  Depositor
shall be the sole beneficial owner of the Trust.

      SECTION 5.2. Authorized Trust Securities.

      The Trust shall be authorized to issue one series of Preferred  Securities
having an aggregate  Liquidation  Amount of $25,000,000 and one series of Common
Securities having an aggregate Liquidation Amount of $774,000.

                                       23
<PAGE>

      SECTION 5.3. Issuance of the Common Securities;  Subscription and Purchase
of Notes.

      On the Closing Date, an  Administrative  Trustee,  on behalf of the Trust,
shall  execute  and deliver to the  Depositor  Common  Securities  Certificates,
registered in the name of the  Depositor,  evidencing an aggregate of 774 Common
Securities having an aggregate  Liquidation Amount of $774,000,  against receipt
by the  Trust of the  aggregate  purchase  price of such  Common  Securities  of
$774,000.  Contemporaneously  therewith  and with  the sale by the  Trust to the
Holders of an  aggregate  of 25,000  Preferred  Securities  having an  aggregate
Liquidation Amount of $25,000,000,  an Administrative  Trustee, on behalf of the
Trust,  shall  subscribe  for and  purchase  from  the  Depositor  Notes,  to be
registered in the name of the Property Trustee on behalf of the Trust and having
an aggregate principal amount equal to $25,774,000,  and, in satisfaction of the
purchase  price for such Notes,  the Property  Trustee,  on behalf of the Trust,
shall  deliver to the  Depositor  the sum of  $25,774,000  (being the  aggregate
amount paid by the Holders for the Preferred  Securities  and the amount paid by
the Depositor for the Common Securities).

      SECTION 5.4. The Securities Certificates.

      (a) The  Preferred  Securities  Certificates  shall be issued  in  minimum
denominations of $100,000 Liquidation Amount and integral multiples of $1,000 in
excess  thereof,  and the  Common  Securities  Certificates  shall be  issued in
minimum  denominations of $10,000  Liquidation  Amount and integral multiples of
$1,000 in excess  thereof.  The  Securities  Certificates  shall be  executed on
behalf  of  the  Trust  by  manual  or  facsimile  signature  of  at  least  one
Administrative  Trustee.  Securities  Certificates  bearing  the  signatures  of
individuals who were, at the time when such signatures  shall have been affixed,
authorized to sign such Securities  Certificates on behalf of the Trust shall be
validly   issued  and  entitled  to  the  benefits  of  this  Trust   Agreement,
notwithstanding  that such individuals or any of them shall have ceased to be so
authorized prior to the delivery of such Securities Certificates or did not have
such authority at the date of delivery of such Securities Certificates.

      (b) On the Closing Date,  upon the written order of an authorized  officer
of  the  Depositor,   the   Administrative   Trustees  shall  cause   Securities
Certificates  to be  executed  on behalf of the  Trust  and  delivered,  without
further corporate action by the Depositor, in authorized denominations.

      (c) The Preferred  Securities  issued to QIBs shall be, except as provided
in Section 5.6,  Book-Entry  Preferred  Securities  issued in the form of one or
more Global Preferred  Securities  registered in the name of the Depositary,  or
its  nominee  and  deposited  with the  Depositary  or the  Property  Trustee as
custodian for the  Depositary  for credit by the  Depositary  to the  respective
accounts of the Depositary  Participants thereof (or such other accounts as they
may direct).  The Preferred Securities issued to a Person other than a QIB shall
be issued in the form of Definitive Preferred Securities Certificates.

      (d) A Preferred  Security  shall not be valid until  authenticated  by the
manual  signature  of a  Responsible  Officer  of  the  Property  Trustee.  Such
signature  shall be conclusive  evidence  that the  Preferred  Security has been
authenticated under this Trust Agreement. Upon written

                                       24
<PAGE>

order of the Trust signed by one  Administrative  Trustee,  the Property Trustee
shall  authenticate  and deliver  one or more  Preferred  Security  Certificates
evidencing the Preferred Securities for original issue. The Property Trustee may
appoint an authenticating agent that is a U.S. Person acceptable to the Trust to
authenticate  the  Preferred  Securities.  A  Common  Security  need  not  be so
authenticated  and shall be valid upon  execution by one or more  Administrative
Trustees. The form of this certificate of authentication can be found in Section
5.13.

      (e) Upon  issuance  of the Trust  Securities  as  provided  in this  Trust
Agreement,  the Trust Securities so issued shall be deemed to be validly issued,
fully paid and  nonassessable,  and each Holder thereof shall be entitled to the
benefits provided by this Trust Agreement.

      SECTION 5.5. Rights of Holders.

      The  Trust  Securities  shall  have  no,  and the  issuance  of the  Trust
Securities is not subject to,  preemptive or similar  rights and when issued and
delivered to Holders  against  payment of the purchase  price  therefor  will be
fully  paid and  non-assessable  by the  Trust.  Except as  provided  in Section
5.11(b), the Holders of the Trust Securities, in their capacities as such, shall
be  entitled  to  the  same  limitation  of  personal   liability   extended  to
stockholders  of private  corporations  for profit  organized  under the General
Corporation Law of the State of Delaware.

      SECTION 5.6. Book-Entry Preferred Securities.

      (a) A Global Preferred Security may be exchanged, in whole or in part, for
Definitive  Preferred  Securities  Certificates  registered  in the names of the
Owners only if such exchange  complies  with Section 5.7 and (i) the  Depositary
advises the Administrative Trustees and the Property Trustee in writing that the
Depositary   is  no  longer   willing  or  able   properly  to   discharge   its
responsibilities with respect to the Global Preferred Security, and no qualified
successor is appointed by the Administrative Trustees within ninety (90) days of
receipt of such  notice,  (ii) the  Depositary  ceases to be a  clearing  agency
registered  under  the  Exchange  Act and the  Administrative  Trustees  fail to
appoint a qualified  successor within ninety (90) days of obtaining knowledge of
such  event,  (iii) the  Administrative  Trustees  at their  option  advise  the
Property  Trustee in writing that the Trust elects to terminate  the  book-entry
system  through the  Depositary or (iv) a Note Event of Default has occurred and
is continuing.  Upon the occurrence of any event  specified in clause (i), (ii),
(iii) or (iv) above, the Administrative Trustees shall notify the Depositary and
instruct the Depositary to notify all Owners of Book-Entry Preferred Securities,
the Delaware  Trustee and the Property  Trustee of the  occurrence of such event
and of the availability of the Definitive Preferred  Securities  Certificates to
Owners of the Preferred  Securities  requesting  the same.  Upon the issuance of
Definitive Preferred Securities  Certificates,  the Trustees shall recognize the
Holders  of  the  Definitive  Preferred  Securities   Certificates  as  Holders.
Notwithstanding the foregoing,  if an Owner of a beneficial interest in a Global
Preferred  Security  wishes at any time to  transfer  an interest in such Global
Preferred  Security  to a  Person  other  than a QIB,  such  transfer  shall  be
effected,  subject to the Applicable Depositary  Procedures,  in accordance with
the  provisions  of this Section 5.6 and Section 5.7, and the  transferee  shall
receive a Definitive  Preferred  Securities  Certificate in connection with such
transfer. A holder of a Definitive  Preferred  Securities  Certificate that is a
QIB may, upon request, and in accordance with the provisions of this Section 5.6
and Section 5.7, exchange such Definitive Preferred Securities Certificate for a
beneficial interest in a Global Preferred Security.

                                       25
<PAGE>

      (b) If any Global  Preferred  Security is to be exchanged  for  Definitive
Preferred  Securities  Certificates  or canceled in part,  or if any  Definitive
Preferred Securities  Certificate is to be exchanged in whole or in part for any
Global Preferred Security,  then either (i) such Global Preferred Security shall
be so surrendered  for exchange or cancellation as provided in this Article V or
(ii) the  aggregate  Liquidation  Amount  represented  by such Global  Preferred
Security  shall be reduced,  subject to Section  5.4, or  increased by an amount
equal to the  Liquidation  Amount  represented  by that  portion  of the  Global
Preferred  Security to be so exchanged or canceled,  or equal to the Liquidation
Amount represented by such Definitive Preferred Securities Certificates to be so
exchanged for any Global Preferred Security,  as the case may be, by means of an
appropriate  adjustment  made  on  the  records  of  the  Securities  Registrar,
whereupon the Property  Trustee,  in accordance  with the Applicable  Depositary
Procedures,  shall instruct the Depositary or its authorized  representative  to
make a corresponding  adjustment to its records.  Upon any such surrender to the
Administrative  Trustees or the  Securities  Registrar  of any Global  Preferred
Security  or  Securities  by  the   Depositary,   accompanied  by   registration
instructions, the Administrative Trustees, or any one of them, shall execute the
Definitive Preferred Securities Certificates in accordance with the instructions
of the  Depositary,  and the  Property  Trustee,  upon  receipt  thereof,  shall
authenticate and deliver such Definitive Preferred Securities Certificates. None
of the  Securities  Registrar or the  Trustees  shall be liable for any delay in
delivery of such  instructions and may conclusively  rely on, and shall be fully
protected in relying on, such instructions.

      (c) Every Securities  Certificate executed and delivered upon registration
or transfer of, or in exchange for or in lieu of, a Global Preferred Security or
any portion  thereof  shall be executed and  delivered in the form of, and shall
be,  a  Global  Preferred  Security,   unless  such  Securities  Certificate  is
registered  in the name of a Person  other than the  Depositary  for such Global
Preferred Security or a nominee thereof.

      (d) The  Depositary  or its  nominee,  as  registered  owner  of a  Global
Preferred  Security,  shall be the Holder of such Global Preferred  Security for
all purposes under this Trust Agreement and the Global Preferred  Security,  and
Owners with respect to a Global  Preferred  Security  shall hold such  interests
pursuant to the Applicable Depositary  Procedures.  The Securities Registrar and
the Trustees  shall be entitled to deal with the  Depositary for all purposes of
this Trust Agreement relating to the Global Preferred Securities  (including the
payment  of the  Liquidation  Amount  of  and  Distributions  on the  Book-Entry
Preferred  Securities  represented  thereby  and the giving of  instructions  or
directions by Owners of Book-Entry Preferred Securities  represented thereby and
the giving of notices) as the sole Holder of the Book-Entry Preferred Securities
represented thereby and shall have no obligations to the Owners thereof. None of
the Trustees nor the Securities Registrar shall have any liability in respect of
any transfers effected by the Depositary.

      (e) The rights of the Owners of the Book-Entry  Preferred Securities shall
be  exercised  only  through  the  Depositary  and  shall  be  limited  to those
established by law, the Applicable  Depositary Procedures and agreements between
such Owners and the  Depositary  and/or the Depositary  Participants;  provided,
that, solely for the purpose of determining whether the Holders of the requisite
amount of  Preferred  Securities  have voted on any matter  provided for in this
Trust  Agreement,  to the extent that Preferred  Securities are represented by a
Global Preferred  Security,  the Trustees may conclusively rely on, and shall be
fully protected in relying

                                       26
<PAGE>

on, any written instrument (including a proxy) delivered to the Property Trustee
by the Depositary setting forth the Owners' votes or assigning the right to vote
on any  matter to any other  Persons  either in whole or in part.  To the extent
that Preferred  Securities are represented by a Global Preferred  Security,  the
initial   Depositary  will  make  book-entry   transfers  among  the  Depositary
Participants and receive and transmit payments on the Preferred  Securities that
are represented by a Global Preferred Security to such Depositary  Participants,
and none of the  Depositor  or the  Trustees  shall have any  responsibility  or
obligation with respect thereto.

      (f) To the extent that a notice or other  communication  to the Holders is
required  under this Trust  Agreement,  for so long as Preferred  Securities are
represented  by a Global  Preferred  Security,  the Trustees shall give all such
notices and  communications to the Depositary,  and shall have no obligations to
the Owners.

      SECTION 5.7. Registration of Transfer and Exchange of Preferred Securities
Certificates.

      (a) The Property  Trustee shall keep or cause to be kept, at the Corporate
Trust Office, a register or registers (the  "Securities  Register") in which the
registrar  and  transfer  agent  with  respect  to  the  Trust  Securities  (the
"Securities  Registrar"),  subject  to  such  reasonable  regulations  as it may
prescribe,   shall  provide  for  the   registration  of  Preferred   Securities
Certificates  and Common  Securities  Certificates and registration of transfers
and  exchanges of Preferred  Securities  Certificates  as herein  provided.  The
Property  Trustee  shall at all  times  also be the  Securities  Registrar.  The
provisions  of Article VIII shall apply to the  Property  Trustee in its role as
Securities Registrar.

      (b) Subject to Section 5.7(d), upon surrender for registration of transfer
of any  Preferred  Securities  Certificate  at the  office or agency  maintained
pursuant to Section 5.7(f), the Administrative Trustees or any one of them shall
execute by manual or facsimile  signature  and deliver to the Property  Trustee,
and upon receipt thereof the Property Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees,  one or more new Preferred
Securities  Certificates  in  authorized   denominations  of  a  like  aggregate
Liquidation  Amount as may be required by this Trust Agreement dated the date of
execution by such Administrative Trustee or Trustees. At the option of a Holder,
Preferred   Securities   Certificates  may  be  exchanged  for  other  Preferred
Securities  Certificates  in authorized  denominations  and of a like  aggregate
Liquidation Amount upon surrender of the Preferred Securities  Certificate to be
exchanged  at the  office or  agency  maintained  pursuant  to  Section  5.7(f).
Whenever any Preferred Securities  Certificates are so surrendered for exchange,
the  Administrative  Trustees  or any one of them  shall  execute  by  manual or
facsimile  signature  and  deliver to the  Property  Trustee,  and upon  receipt
thereof the Property  Trustee  shall  authenticate  and deliver,  the  Preferred
Securities  Certificates  that the Holder  making the  exchange  is  entitled to
receive.

      (c) The Securities Registrar shall not be required, (i) to issue, register
the transfer of or exchange any Preferred  Security during a period beginning at
the  opening of  business  fifteen  (15) days  before the day of  selection  for
redemption of such Preferred Securities pursuant to Article IV and ending at the
close of business on the day of mailing of the notice of  redemption  or (ii) to
register  the  transfer of or exchange  any  Preferred  Security so selected for
redemption in

                                       27
<PAGE>

whole or in part,  except,  in the case of any  such  Preferred  Security  to be
redeemed in part, any portion thereof not to be redeemed.

      (d) Every Preferred  Securities  Certificate  presented or surrendered for
registration  of transfer or exchange shall be duly endorsed,  or be accompanied
by a written  instrument  of transfer  in form  satisfactory  to the  Securities
Registrar duly executed by the Holder or such Holder's  attorney duly authorized
in writing and (i) if such Preferred Securities Certificate is being transferred
otherwise  than  to a  QIB,  accompanied  by a  certificate  of  the  transferee
substantially  in the  form  set  forth  as  Exhibit  E  hereto  or (ii) if such
Preferred Securities Certificate is being transferred to a QIB, accompanied by a
certificate of the transferor  substantially  in the form set forth as Exhibit F
hereto.

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

      (f) The  Administrative  Trustees shall  designate an office or offices or
agency or agencies where Preferred  Securities  Certificates  may be surrendered
for registration of transfer or exchange,  and initially designate the Corporate
Trust  Office as its office and agency  for such  purposes.  The  Administrative
Trustees shall give prompt written notice to the Depositor, the Property Trustee
and to the Holders of any change in the location of any such office or agency.

      SECTION 5.8. Mutilated, Destroyed, Lost or Stolen Securities Certificates.

      (a) If any mutilated  Securities  Certificate  shall be surrendered to the
Securities Registrar together with such security or indemnity as may be required
by the Securities Registrar and the Administrative Trustees to save each of them
harmless,  the  Administrative  Trustees,  or any one of them,  on behalf of the
Trust,  shall  execute and make  available  for  delivery  and,  with respect to
Preferred  Securities,  the Property  Trustee  shall  authenticate,  in exchange
therefor a new Securities Certificate of like class, tenor and denomination.

      (b) If the Securities Registrar shall receive evidence to its satisfaction
of the destruction,  loss or theft of any Securities Certificate and there shall
be delivered to the Securities  Registrar and the  Administrative  Trustees such
security or indemnity as may be required by them to save each of them  harmless,
then in the absence of notice that such Securities  Certificate  shall have been
acquired by a protected purchaser,  the Administrative  Trustees,  or any one of
them,  on behalf of the Trust,  shall  execute and make  available for delivery,
and,  with  respect  to  Preferred   Securities,   the  Property  Trustee  shall
authenticate,  in exchange for or in lieu of any such destroyed,  lost or stolen
Securities  Certificate,  a new Securities  Certificate of like class, tenor and
denomination.

      (c) In  connection  with the  issuance of any new  Securities  Certificate
under this Section 5.8, the Administrative  Trustees or the Securities Registrar
may  require  the  payment  of a sum  sufficient  to  cover  any  tax  or  other
governmental charge that may be imposed in connection therewith.

                                       28
<PAGE>

      (d) Any duplicate  Securities  Certificate issued pursuant to this Section
5.8 shall constitute  conclusive evidence of an undivided beneficial interest in
the assets of the Trust corresponding to that evidenced by the mutilated,  lost,
stolen or destroyed Securities Certificate,  as if originally issued, whether or
not the lost, stolen or destroyed  Securities  Certificate shall be found at any
time.

      (e)  If  any  such  mutilated,   destroyed,   lost  or  stolen  Securities
Certificate  has become or is about to become due and payable,  the Depositor in
its  discretion  may,  instead of issuing a new Trust  Security,  pay such Trust
Security.

      (f) The  provisions of this Section 5.8 are  exclusive and shall  preclude
(to the  extent  lawful)  all other  rights  and  remedies  with  respect to the
replacement of mutilated, destroyed, lost or stolen Securities Certificates.

      SECTION 5.9. Persons Deemed Holders.

      The Trustees and the Securities  Registrar  shall each treat the Person in
whose name any  Securities  Certificate  shall be registered  in the  Securities
Register  as the  owner of the Trust  Securities  evidenced  by such  Securities
Certificate  for the  purpose  of  receiving  Distributions  and  for all  other
purposes whatsoever, and none of the Trustees and the Securities Registrar shall
be bound by any notice to the contrary.

      SECTION 5.10. Cancellation.

      All Preferred  Securities  Certificates  surrendered  for  registration of
transfer or exchange or for payment  shall,  if  surrendered to any Person other
than the Property Trustee,  be delivered to the Property  Trustee,  and any such
Preferred  Securities   Certificates  and  Preferred   Securities   Certificates
surrendered  directly  to the  Property  Trustee for any such  purpose  shall be
promptly canceled by it. The Administrative  Trustees may at any time deliver to
the Property  Trustee for  cancellation  any Preferred  Securities  Certificates
previously  delivered  hereunder  that  the  Administrative  Trustees  may  have
acquired in any manner whatsoever,  and all Preferred Securities Certificates so
delivered  shall be promptly  canceled by the  Property  Trustee.  No  Preferred
Securities  Certificates  shall  be  executed  and  delivered  in  lieu of or in
exchange for any Preferred Securities  Certificates canceled as provided in this
Section  5.10,  except as  expressly  permitted  by this  Trust  Agreement.  All
canceled Preferred Securities  Certificates shall be disposed of by the Property
Trustee in  accordance  with its customary  practices  and the Property  Trustee
shall deliver to the Administrative Trustees a certificate of such disposition.

      SECTION 5.11. Ownership of Common Securities by Depositor.

      (a) On the Closing Date, the Depositor shall acquire, and thereafter shall
retain,  beneficial and record ownership of the Common  Securities.  Neither the
Depositor nor any successor  Holder of the Common  Securities  may transfer less
than all the Common  Securities,  and the Depositor or any such successor Holder
may transfer the Common  Securities  only (i) in connection with a consolidation
or merger of the Depositor into another Person,  or any conveyance,  transfer or
lease by the Depositor of its properties and assets substantially as an entirety
to any Person (in which event such Common Securities will be transferred to such
surviving entity, transferee or lessee, as the case may be), pursuant to Section
8.1 of the

                                       29
<PAGE>

Indenture or (ii) to the  Depositor or an  Affiliate of the  Depositor,  in each
such case in compliance  with  applicable law (including the Securities Act, and
applicable  state securities and blue sky laws). To the fullest extent permitted
by law, any attempted  transfer of the Common Securities other than as set forth
in the immediately preceding sentence shall be void. The Administrative Trustees
shall  cause each  Common  Securities  Certificate  issued to the  Depositor  to
contain a legend stating  substantially  "THIS  CERTIFICATE IS NOT  TRANSFERABLE
EXCEPT  IN  COMPLIANCE  WITH  APPLICABLE  LAW  AND  SECTION  5.11  OF THE  TRUST
AGREEMENT."

      (b) Any Holder of the Common  Securities shall be liable for the debts and
obligations  of the Trust in the manner and to the extent set forth with respect
to the Depositor and agrees that it shall be subject to all liabilities to which
the Depositor may be subject and, prior to becoming such a Holder, shall deliver
to the Administrative  Trustees an instrument of assumption satisfactory to such
Trustees.

      SECTION 5.12. Restricted Legends.

      (a)  Each  Preferred   Security   Certificate   shall  bear  a  legend  in
substantially the following form:

      "[IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS PREFERRED SECURITY IS
      A GLOBAL SECURITY  WITHIN THE MEANING OF THE TRUST  AGREEMENT  HEREINAFTER
      REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY  TRUST COMPANY
      ("DTC") OR A NOMINEE OF DTC. THIS PREFERRED  SECURITY IS EXCHANGEABLE  FOR
      SECURITIES  REGISTERED  IN THE  NAME OF A  PERSON  OTHER  THAN  DTC OR ITS
      NOMINEE  ONLY  IN  THE  LIMITED  CIRCUMSTANCES   DESCRIBED  IN  THE  TRUST
      AGREEMENT,  AND NO  TRANSFER  OF THIS  PREFERRED  SECURITY  (OTHER  THAN A
      TRANSFER OF THIS PREFERRED  SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC
      OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED
      EXCEPT IN LIMITED CIRCUMSTANCES.

      UNLESS  THIS   PREFERRED   SECURITY   IS   PRESENTED   BY  AN   AUTHORIZED
      REPRESENTATIVE  OF DTC TO  BLUEGREEN  STATUTORY  TRUST II OR ITS AGENT FOR
      REGISTRATION OF TRANSFER,  EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY
      ISSUED IS  REGISTERED  IN THE NAME OF CEDE & CO. OR IN SUCH  OTHER NAME AS
      REQUESTED BY AN AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT HEREON
      IS MADE TO  CEDE & CO.  OR TO SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN
      AUTHORIZED  REPRESENTATIVE  OF DTC),  ANY  TRANSFER,  PLEDGE  OR OTHER USE
      HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL  INASMUCH AS
      THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

      THE PREFERRED  SECURITIES  REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY
      ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION

                                       30
<PAGE>

      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES  ACT"), AND
      SUCH  PREFERRED  SECURITIES OR ANY INTEREST  THEREIN,  MAY NOT BE OFFERED,
      SOLD OR OTHERWISE  TRANSFERRED IN THE ABSENCE OF SUCH  REGISTRATION  OR AN
      APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY PREFERRED SECURITIES
      IS HEREBY  NOTIFIED  THAT THE SELLER OF THE  PREFERRED  SECURITIES  MAY BE
      RELYING  ON  THE  EXEMPTION  FROM  THE  PROVISIONS  OF  SECTION  5 OF  THE
      SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

      THE HOLDER OF THE PREFERRED  SECURITIES  REPRESENTED  BY THIS  CERTIFICATE
      AGREES  FOR THE  BENEFIT  OF THE  TRUST  AND THE  DEPOSITOR  THAT (A) SUCH
      PREFERRED SECURITIES MAY BE OFFERED,  RESOLD OR OTHERWISE TRANSFERRED ONLY
      (I) TO THE TRUST, (II) TO A PERSON WHOM THE SELLER REASONABLY  BELIEVES IS
      A  "QUALIFIED  INSTITUTIONAL  BUYER"  (AS  DEFINED  IN RULE 144A UNDER THE
      SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, OR
      (III) TO AN  INSTITUTIONAL  "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" WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2),
      (3) OR (7) OF RULE 501, 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, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE  SECURITIES
      LAWS  OF  ANY  STATE  OF  THE  UNITED  STATES  OR  ANY  OTHER   APPLICABLE
      JURISDICTION AND, IN THE CASE OF (III),  SUBJECT TO THE RIGHT OF THE TRUST
      AND THE DEPOSITOR TO REQUIRE AN OPINION OF COUNSEL  ADDRESSING  COMPLIANCE
      WITH THE U.S. SECURITIES LAWS, AND OTHER INFORMATION  SATISFACTORY TO EACH
      OF THEM AND (B) THE HOLDER  WILL  NOTIFY ANY  PURCHASER  OF ANY  PREFERRED
      SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

      THE PREFERRED  SECURITIES  WILL BE ISSUED AND MAY BE  TRANSFERRED  ONLY IN
      BLOCKS HAVING AN AGGREGATE  LIQUIDATION  AMOUNT OF NOT LESS THAN $100,000.
      TO THE  FULLEST  EXTENT  PERMITTED  BY  LAW,  ANY  ATTEMPTED  TRANSFER  OF
      PREFERRED  SECURITIES,  OR ANY  INTEREST  THEREIN,  IN A BLOCK  HAVING  AN
      AGGREGATE LIQUIDATION AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000
      IN  EXCESS  THEREOF  SHALL BE  DEEMED  TO BE VOID  AND OF NO LEGAL  EFFECT
      WHATSOEVER.  TO THE FULLEST  EXTENT  PERMITTED BY LAW, ANY SUCH  PURPORTED
      TRANSFEREE  SHALL  BE  DEEMED  NOT  TO BE THE  HOLDER  OF  SUCH  PREFERRED
      SECURITIES FOR ANY PURPOSE,  INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
      LIQUIDATION  AMOUNT OF OR DISTRIBUTIONS ON SUCH PREFERRED  SECURITIES,  OR
      ANY INTEREST

                                       31
<PAGE>

      THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST
      WHATSOEVER IN SUCH PREFERRED SECURITIES.

      THE HOLDER OF THIS SECURITY,  OR ANY INTEREST  THEREIN,  BY ITS ACCEPTANCE
      HEREOF OR THEREOF 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 PREFERRED  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,  OR ANY INTEREST  THEREIN,  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 THE
      PREFERRED  SECURITIES  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 OR HOLDING 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.

      (b) The  above  legend  shall  not be  removed  from any of the  Preferred
Securities  Certificates  unless there is delivered to the Property  Trustee and
the Depositor satisfactory evidence, which may include an opinion of counsel, as
may be reasonably  required to ensure that any future  transfers  thereof may be
made without  restriction  under the  provisions of the Securities Act and other
applicable law. Upon provision of such satisfactory evidence, one or more of the
Administrative  Trustees on behalf of the Trust shall execute and deliver to the
Property Trustee,  and the Property Trustee shall  authenticate and deliver,  at
the  written  direction  of  the  Administrative  Trustees  and  the  Depositor,
Preferred Securities Certificates that do not bear the legend.

                                       32
<PAGE>

      SECTION 5.13. Form of Certificate of Authentication.

      The  Property  Trustee's   certificate  of  authentication   shall  be  in
substantially the following form:

      This represents  Preferred  Securities referred to in the within-mentioned
      Trust Agreement.

Dated:                               Wilmington Trust Company, not in its
                                     individual capacity, but solely as Property
                                     Trustee

                                     By:
                                          ---------------------------------
                                          Authorized officer

                                   ARTICLE VI.

                        MEETINGS; VOTING; ACTS OF HOLDERS

      SECTION 6.1. Notice of Meetings.

      Notice of all meetings of the Holders of the Preferred Securities, stating
the time,  place and  purpose  of the  meeting,  shall be given by the  Property
Trustee pursuant to Section 10.8 to each Holder of Preferred Securities, at such
Holder's registered address, at least fifteen (15) days and not more than ninety
(90) days before the meeting. At any such meeting,  any business properly before
the  meeting  may be so  considered  whether  or not stated in the notice of the
meeting. Any adjourned meeting may be held as adjourned without further notice.

      SECTION 6.2. Meetings of Holders of the Preferred Securities.

      (a) No annual  meeting of Holders is  required  to be held.  The  Property
Trustee,  however,  shall  call a  meeting  of  the  Holders  of  the  Preferred
Securities  to vote on any matter upon the written  request of the Holders of at
least  twenty  five  percent  (25%)  in  aggregate  Liquidation  Amount  of  the
Outstanding Preferred Securities and the Administrative Trustees or the Property
Trustee may, at any time in their  discretion,  call a meeting of the Holders of
the  Preferred  Securities  to vote on any matters as to which such  Holders are
entitled to vote.

      (b) The  Holders  of at least a  Majority  in  Liquidation  Amount  of the
Preferred  Securities,  present in person or by proxy, shall constitute a quorum
at any meeting of the Holders of the Preferred Securities.

      (c) If a quorum  is  present  at a  meeting,  an  affirmative  vote by the
Holders  present,   in  person  or  by  proxy,   holding  Preferred   Securities
representing  at  least  a  Majority  in  Liquidation  Amount  of the  Preferred
Securities  held by the Holders  present,  either in person or by proxy, at such
meeting shall constitute the action of the Holders of the Preferred  Securities,
unless this Trust  Agreement  requires a lesser or greater number of affirmative
votes.

                                       33
<PAGE>

      SECTION 6.3. Voting Rights.

      Holders  shall be  entitled  to one vote for each  $10,000 of  Liquidation
Amount  represented  by their  Outstanding  Trust  Securities  in respect of any
matter as to which such Holders are entitled to vote.

      SECTION 6.4. Proxies, Etc.

      At any meeting of Holders, any Holder entitled to vote thereat may vote by
proxy,  provided,  that no proxy shall be voted at any  meeting  unless it shall
have been placed on file with the  Administrative  Trustees,  or with such other
officer or agent of the Trust as the  Administrative  Trustees  may direct,  for
verification prior to the time at which such vote shall be taken.  Pursuant to a
resolution of the Property Trustee,  proxies may be solicited in the name of the
Property Trustee or one or more officers of the Property  Trustee.  Only Holders
of record shall be entitled to vote.  When Trust  Securities are held jointly by
several  Persons,  any one of them may vote at any meeting in person or by proxy
in  respect  of such  Trust  Securities,  but if more than one of them  shall be
present at such  meeting in person or by proxy,  and such joint  owners or their
proxies so present  disagree  as to any vote to be cast,  such vote shall not be
received in respect of such Trust Securities.  A proxy purporting to be executed
by or on behalf of a Holder shall be deemed valid unless  challenged at or prior
to its  exercise,  and  the  burden  of  proving  invalidity  shall  rest on the
challenger.  No proxy  shall be valid  more than three  years  after its date of
execution.

      SECTION 6.5. Holder Action by Written Consent.

      Any action that may be taken by Holders at a meeting may be taken  without
a meeting and  without  prior  notice if Holders  holding at least a Majority in
Liquidation  Amount of all Preferred  Securities  entitled to vote in respect of
such action (or such lesser or greater  proportion  thereof as shall be required
by any other provision of this Trust  Agreement)  shall consent to the action in
writing;  provided,  that  notice of such  action is  promptly  provided  to the
Holders of Preferred  Securities that did not consent to such action. Any action
that may be taken  by the  Holders  of all the  Common  Securities  may be taken
without a meeting and without  prior notice if such Holders shall consent to the
action in writing.

      SECTION 6.6. Record Date for Voting and Other Purposes.

      Except as provided in Section 6.10(a), for the purposes of determining the
Holders  who are  entitled  to notice of and to vote at any meeting or to act by
written  consent,  or to participate in any distribution on the Trust Securities
in respect of which a record date is not  otherwise  provided  for in this Trust
Agreement,  or for the purpose of any other action, the Administrative  Trustees
may from time to time fix a date,  not more than  ninety  (90) days prior to the
date of any meeting of Holders or the payment of a Distribution or other action,
as the case may be, as a record date for the  determination  of the  identity of
the Holders of record for such purposes.

      SECTION 6.7. Acts of Holders.

      (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided or permitted by this Trust Agreement to be given,  made
or taken by Holders may

                                       34
<PAGE>

be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by an agent thereof duly  appointed in
writing;  and, except as otherwise  expressly provided herein, such action shall
become  effective  when such  instrument  or  instruments  are  delivered  to an
Administrative  Trustee. Such instrument or instruments (and the action embodied
therein and evidenced  thereby) are herein sometimes referred to as the "Act" of
the Holders signing such  instrument or  instruments.  Proof of execution of any
such  instrument or of a writing  appointing  any such agent shall be sufficient
for any purpose of this Trust Agreement and conclusive in favor of the Trustees,
if made in the manner provided in this Section 6.7.

      (b)  The  fact  and  date  of the  execution  by any  Person  of any  such
instrument  or  writing  may be proved  by the  affidavit  of a witness  of such
execution or by a certificate of a notary public or other officer  authorized by
law to take  acknowledgments  of deeds,  certifying that the individual  signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution  is  by a  signer  acting  in a  capacity  other  than  such  signer's
individual  capacity,  such  certificate  or  affidavit  shall  also  constitute
sufficient proof of such signer's authority.  The fact and date of the execution
of any such instrument or writing,  or the authority of the Person executing the
same, may also be proved in any other manner that any Trustee receiving the same
deems sufficient.

      (c) The ownership of Trust  Securities  shall be proved by the  Securities
Register.

      (d) Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Trust  Security shall bind every future Holder
of the same Trust  Security and the Holder of every Trust  Security  issued upon
the registration of transfer thereof or in exchange  therefor or in lieu thereof
in respect of anything done, omitted or suffered to be done by the Trustees, the
Administrative  Trustees  or the  Trust  in  reliance  thereon,  whether  or not
notation of such action is made upon such Trust Security.

      (e) Without  limiting the foregoing,  a Holder entitled  hereunder to take
any action hereunder with regard to any particular Trust Security may do so with
regard to all or any part of the Liquidation Amount of such Trust Security or by
one or more  duly  appointed  agents  each of which may do so  pursuant  to such
appointment with regard to all or any part of such Liquidation Amount.

      (f) If any dispute  shall arise  among the  Holders or the  Trustees  with
respect to the authenticity,  validity or binding nature of any request, demand,
authorization, direction, notice, consent, waiver or other Act of such Holder or
Trustee  under this  Article  VI, then the  determination  of such matter by the
Property Trustee shall be conclusive with respect to such matter.

      SECTION 6.8. Inspection of Records.

      Upon  reasonable  written  notice to the  Administrative  Trustees and the
Property  Trustee,  the records of the Trust shall be open to  inspection by any
Holder during normal business hours for any purpose  reasonably  related to such
Holder's interest as a Holder.

                                       35
<PAGE>

      SECTION 6.9. Limitations on Voting Rights.

      (a)  Except as  expressly  provided  in this  Trust  Agreement  and in the
Indenture  and as otherwise  required by law, no Holder of Preferred  Securities
shall  have  any  right  to  vote  or  in  any  manner  otherwise   control  the
administration,  operation and management of the Trust or the obligations of the
parties  hereto,  nor shall anything herein set forth, or contained in the terms
of the  Securities  Certificates,  be construed so as to constitute  the Holders
from time to time as partners or members of an association.

      (b) So long as any Notes are held by the Property Trustee on behalf of the
Trust, the Property  Trustee shall not (i) direct the time,  method and place of
conducting  any  proceeding  for any remedy  available to the Note  Trustee,  or
exercise any trust or power  conferred  on the Property  Trustee with respect to
the Notes,  (ii) waive any past default that may be waived under Section 5.13 of
the Indenture,  (iii) exercise any right to rescind or annul a declaration  that
the  principal  of all the Notes shall be due and payable or (iv) consent to any
amendment, modification or termination of the Indenture or the Notes, where such
consent shall be required,  without, in each case,  obtaining the prior approval
of the Holders of at least a Majority  in  Liquidation  Amount of the  Preferred
Securities; provided, that where a consent under the Indenture would require the
consent  of each  holder  of Notes  (or each  Holder  of  Preferred  Securities)
affected thereby, no such consent shall be given by the Property Trustee without
the prior written consent of each Holder of Preferred  Securities.  The Property
Trustee shall not revoke any action previously  authorized or approved by a vote
of the Holders of the Preferred  Securities,  except by a subsequent vote of the
Holders of the  Preferred  Securities.  In addition to obtaining  the  foregoing
approvals of the Holders of the Preferred Securities, prior to taking any of the
foregoing actions,  the Property Trustee shall, at the expense of the Depositor,
obtain an Opinion of Counsel experienced in such matters to the effect that such
action shall not cause the Trust to be taxable as a corporation or classified as
other than a grantor trust for United States federal income tax purposes.

      (c) If any proposed  amendment to the Trust Agreement provides for, or the
Trustees otherwise propose to effect, (i) any action that would adversely affect
in any  material  respect  the  powers,  preferences  or  special  rights of the
Preferred  Securities,  whether by way of  amendment  to the Trust  Agreement or
otherwise or (ii) the dissolution, winding-up or termination of the Trust, other
than  pursuant  to the  terms  of this  Trust  Agreement,  then the  Holders  of
Outstanding  Preferred  Securities  as a class will be  entitled to vote on such
amendment  or proposal  and such  amendment  or proposal  shall not be effective
except with the  approval  of the Holders of at least a Majority in  Liquidation
Amount of the Preferred Securities.  Notwithstanding any other provision of this
Trust  Agreement,  no  amendment  to this Trust  Agreement  may be made if, as a
result  of  such  amendment,  it  would  cause  the  Trust  to be  taxable  as a
corporation  or  classified  as other  than a grantor  trust for  United  States
federal income tax purposes.

      SECTION 6.10. Acceleration of Maturity;  Rescission of Annulment;  Waivers
of Past Defaults.

      (a) For so long as any Preferred Securities remain Outstanding, if, upon a
Note Event of Default,  the Note  Trustee  fails or the holders of not less than
twenty five percent (25%) in principal  amount of the outstanding  Notes fail to
declare the principal of all of the Notes to be

                                       36
<PAGE>

immediately due and payable,  the Holders of at least twenty-five  percent (25%)
in Liquidation  Amount of the Preferred  Securities then Outstanding  shall have
the  right to make  such  declaration  by a notice in  writing  to the  Property
Trustee,  the Depositor and the Note Trustee. At any time after a declaration of
acceleration  with  respect to the Notes has been made and before a judgment  or
decree for  payment of the money due has been  obtained  by the Note  Trustee as
provided in the  Indenture,  the  Holders of at least a Majority in  Liquidation
Amount of the Preferred  Securities,  by written notice to the Property Trustee,
the Depositor and the Note Trustee,  may rescind and annul such  declaration and
its consequences if:

            (i) the Depositor has paid or deposited  with the Note Trustee a sum
      sufficient to pay:

                  (A) all overdue installments of interest on all of the Notes;

                  (B) any accrued Additional Interest on all of the Notes;

                  (C) the  principal of and  premium,  if any, on any Notes that
            have become due otherwise than by such  declaration of  acceleration
            and interest and  Additional  Interest  thereon at the rate borne by
            the Notes; and

                  (D) all sums paid or  advanced by the Note  Trustee  under the
            Indenture and the reasonable compensation,  expenses,  disbursements
            and advances of the Note  Trustee,  the  Property  Trustee and their
            agents and counsel; and

            (ii) all Note Events of Default,  other than the  non-payment of the
      principal  of the Notes that has  become due solely by such  acceleration,
      have been cured or waived as provided in Section 5.13 of the Indenture.

      Upon receipt by the Property Trustee of written notice  requesting such an
acceleration, or rescission and annulment thereof, by Holders of any part of the
Preferred Securities, a record date shall be established for determining Holders
of  Outstanding  Preferred  Securities  entitled to join in such  notice,  which
record date shall be at the close of business  on the day the  Property  Trustee
receives such notice.  The Holders on such record date, or their duly designated
proxies,  and only  such  Persons,  shall be  entitled  to join in such  notice,
whether or not such Holders  remain  Holders  after such record date;  provided,
that, unless such declaration of acceleration,  or rescission and annulment,  as
the  case may be,  shall  have  become  effective  by  virtue  of the  requisite
percentage  having  joined in such  notice  prior to the day that is ninety (90)
days after such record date,  such notice of  declaration  of  acceleration,  or
rescission and annulment,  as the case may be, shall  automatically  and without
further  action by any Holder be canceled and of no further  effect.  Nothing in
this  paragraph  shall  prevent a Holder,  or a proxy of a Holder,  from giving,
after  expiration  of such  ninety  (90)-day  period,  a new  written  notice of
declaration of acceleration,  or rescission and annulment  thereof,  as the case
may be, that is identical to a written notice that has been canceled pursuant to
the proviso to the preceding sentence, in which event a new record date shall be
established pursuant to the provisions of this Section 6.10(a).

      (b) For so long as any Preferred  Securities  remain  Outstanding,  to the
fullest extent permitted by law and subject to the terms of this Trust Agreement
and the  Indenture,  upon a Note Event of Default  specified in paragraph (a) or
(b) of Section 5.1 of the Indenture, any Holder of

                                       37
<PAGE>

Preferred  Securities  shall have the right to institute a  proceeding  directly
against the Depositor, pursuant to Section 5.8 of the Indenture, for enforcement
of payment to such Holder of any amounts  payable in respect of Notes  having an
aggregate  principal  amount equal to the  aggregate  Liquidation  Amount of the
Preferred Securities of such Holder.  Except as set forth in Section 6.10(a) and
this Section 6.10(b), the Holders of Preferred Securities shall have no right to
exercise directly any right or remedy available to the holders of, or in respect
of, the Notes.

      (c)  Notwithstanding  paragraphs  (a) and (b) of this  Section  6.10,  the
Holders of at least a Majority in Liquidation Amount of the Preferred Securities
may, on behalf of the Holders of all the  Preferred  Securities,  waive any Note
Event of Default,  except any Note Event of Default  arising from the failure to
pay any  principal  of or  premium,  if  any,  or  interest  on  (including  any
Additional Interest) the Notes (unless such Note Event of Default has been cured
and a sum  sufficient  to pay  all  matured  installments  of  interest  and all
principal and premium,  if any, on all Notes due otherwise than by  acceleration
has been  deposited with the Note Trustee) or a Note Event of Default in respect
of a covenant  or  provision  that under the  Indenture  cannot be  modified  or
amended  without the consent of the holder of each  outstanding  Note.  Upon any
such waiver,  such Note Event of Default shall cease to exist and any Note Event
of  Default  arising  therefrom  shall be deemed  to have  been  cured for every
purpose of the Indenture;  but no such waiver shall affect any  subsequent  Note
Event of Default or impair any right consequent thereon.

      (d)  Notwithstanding  paragraphs  (a) and (b) of this  Section  6.10,  the
Holders of at least a Majority in Liquidation Amount of the Preferred Securities
may, on behalf of the Holders of all the  Preferred  Securities,  waive any past
Event of  Default  and its  consequences.  Upon such  waiver,  any such Event of
Default shall cease to exist,  and any Event of Default arising  therefrom shall
be deemed to have been cured, for every purpose of this Trust Agreement,  but no
such waiver shall extend to any  subsequent  or other Event of Default or impair
any right consequent thereon.

      (e) The  Holders  of a Majority  in  Liquidation  Amount of the  Preferred
Securities  shall  have the  right to  direct  the  time,  method  and  place of
conducting any proceeding  for any remedy  available to the Property  Trustee in
respect of this Trust  Agreement or the Notes or  exercising  any trust or power
conferred upon the Property Trustee under this Trust Agreement;  provided, that,
subject to Sections 8.5 and 8.7, the  Property  Trustee  shall have the right to
decline to follow any such  direction if the Property  Trustee  being advised by
counsel  determines that the action so directed may not lawfully be taken, or if
the  Property  Trustee in good faith  shall,  by an officer or  officers  of the
Property Trustee, determine that the proceedings so directed would be illegal or
involve  it in  personal  liability  or be unduly  prejudicial  to the rights of
Holders not party to such direction, and provided, further, that nothing in this
Trust  Agreement  shall  impair  the right of the  Property  Trustee to take any
action deemed proper by the Property Trustee and which is not inconsistent  with
such direction.

                                       38
<PAGE>

                                  ARTICLE VII.

                         REPRESENTATIONS AND WARRANTIES

      SECTION 7.1.  Representations  and Warranties of the Property  Trustee and
the Delaware Trustee.

      The Property Trustee and the Delaware Trustee, each severally on behalf of
and as to  itself,  hereby  represents  and  warrants  for  the  benefit  of the
Depositor and the Holders that:

      (a) the  Property  Trustee is a Delaware  banking  corporation  with trust
powers, duly organized,  validly existing and in good standing under the laws of
the State of Delaware;

      (b) the Property  Trustee has full  corporate  power,  authority and legal
right to execute, deliver and perform its obligations under this Trust Agreement
and has taken all  necessary  action to authorize  the  execution,  delivery and
performance by it of this Trust Agreement;

      (c) the Delaware Trustee is a Delaware banking corporation, duly organized
with trust powers,  validly  existing and in good standing under the laws of the
State of  Delaware  and with its  principal  place of  business  in the State of
Delaware;

      (d) the Delaware  Trustee has full  corporate  power,  authority and legal
right to execute, deliver and perform its obligations under this Trust Agreement
and has taken all  necessary  action to authorize  the  execution,  delivery and
performance by it of this Trust Agreement;

      (e) this Trust Agreement has been duly authorized,  executed and delivered
by the Property  Trustee and the  Delaware  Trustee and  constitutes  the legal,
valid and binding  agreement  of each of the  Property  Trustee and the Delaware
Trustee enforceable  against each of them in accordance with its terms,  subject
to  applicable  bankruptcy,  insolvency  and similar laws  affecting  creditors'
rights  generally and to general  principles of equity and the discretion of the
court (regardless of whether considered in a proceeding in equity or at law);

      (f) the execution,  delivery and  performance of this Trust Agreement have
been duly  authorized by all necessary  corporate or other action on the part of
the Property Trustee and the Delaware Trustee and do not require any approval of
stockholders  of  the  Property  Trustee  and  the  Delaware  Trustee  and  such
execution,  delivery and performance will not (i) violate the Charter or By-laws
of the Property  Trustee or the Delaware  Trustee or (ii) violate any applicable
law,  governmental  rule or  regulation  of the  United  States  or the State of
Delaware,  as the case may be,  governing  the banking  and trust  powers of the
Property  Trustee  or the  Delaware  Trustee or any  order,  judgment  or decree
applicable to the Property Trustee or the Delaware Trustee;

      (g)  neither the  authorization,  execution  or  delivery by the  Property
Trustee or the Delaware  Trustee of this Trust Agreement nor the consummation of
any of the  transactions  by  the  Property  Trustee  or  the  Delaware  Trustee
contemplated  herein  requires  the consent or approval of, the giving of notice
to, the registration  with or the taking of any other action with respect to any
governmental authority or agency under any existing law of the United States or

                                       39
<PAGE>

the State of Delaware  governing  the banking and trust  powers of the  Property
Trustee or the Delaware Trustee, as the case may be; and

      (h) to the  best of  each  of the  Property  Trustee's  and  the  Delaware
Trustee's  knowledge,  there are no proceedings pending or threatened against or
affecting  the Property  Trustee or the Delaware  Trustee in any court or before
any  governmental  authority,  agency or  arbitration  board or  tribunal  that,
individually  or in the aggregate,  would  materially  and adversely  affect the
Trust or would question the right,  power and authority of the Property  Trustee
or the  Delaware  Trustee,  as the case may be,  to enter  into or  perform  its
obligations as one of the Trustees under this Trust Agreement.

      SECTION 7.2. Representations and Warranties of Depositor.

      The  Depositor  hereby  represents  and  warrants  for the  benefit of the
Holders that:

      (a) the Depositor is a corporation duly organized, validly existing and in
good standing under the laws of its state of incorporation;

      (b) the Depositor has full corporate  power,  authority and legal right to
execute,  deliver and perform its obligations under this Trust Agreement and has
taken all necessary action to authorize the execution,  delivery and performance
by it of this Trust Agreement;

      (c) this Trust Agreement has been duly authorized,  executed and delivered
by the Depositor and constitutes the legal,  valid and binding  agreement of the
Depositor  enforceable  against  the  Depositor  in  accordance  with its terms,
subject  to  applicable  bankruptcy,   insolvency  and  similar  laws  affecting
creditors' rights generally and to general principles of equity;

      (d) the  Securities  Certificates  issued at the Closing Date on behalf of
the  Trust  have  been duly  authorized  and will  have  been  duly and  validly
executed,  issued and delivered by the applicable Trustees pursuant to the terms
and  provisions  of, and in  accordance  with the  requirements  of,  this Trust
Agreement and the Holders will be, as of such date,  entitled to the benefits of
this Trust Agreement;

      (e) the execution,  delivery and  performance of this Trust Agreement have
been duly  authorized by all necessary  corporate or other action on the part of
the Depositor and do not require any approval of  stockholders  of the Depositor
and such execution,  delivery and performance  will not (i) violate the articles
or certificate of incorporation or by-laws (or other  organizational  documents)
of the  Depositor  or (ii)  violate any  applicable  law,  governmental  rule or
regulation  governing the  Depositor or any material  portion of its property or
any order,  judgment  or decree  applicable  to the  Depositor  or any  material
portion of its property;

      (f) neither the  authorization,  execution or delivery by the Depositor of
this Trust  Agreement nor the  consummation  of any of the  transactions  by the
Depositor contemplated herein requires the consent or approval of, the giving of
notice to, the registration  with or the taking of any other action with respect
to any  governmental  authority or agency under any existing law  governing  the
Depositor or any material portion of its property; and

                                       40
<PAGE>

      (g) there are no  proceedings  pending or, to the best of the  Depositor's
knowledge, threatened against or affecting the Depositor or any material portion
of its  property in any court or before any  governmental  authority,  agency or
arbitration  board or tribunal that,  individually  or in the  aggregate,  would
materially and adversely affect the Trust or would question the right, power and
authority  of the  Depositor,  as the case may be, to enter into or perform  its
obligations under this Trust Agreement.

                                  ARTICLE VIII.

                                  THE TRUSTEES

      SECTION 8.1. Number of Trustees.

      The number of  Trustees  shall be four (4),  provided,  that the  Property
Trustee  and the  Delaware  Trustee  may be the same  Person,  in which case the
number of Trustees  shall be three (3).  The number of Trustees may be increased
or decreased by Act of the Holder of the Common  Securities  subject to Sections
8.2,  8.3, and 8.4. The death,  resignation,  retirement,  removal,  bankruptcy,
incompetence  or incapacity to perform the duties of a Trustee shall not operate
to annul, dissolve or terminate the Trust.

      SECTION 8.2. Property Trustee Required.

      There shall at all times be a Property  Trustee  hereunder with respect to
the Trust Securities.  The Property Trustee shall be a corporation organized and
doing  business  under the laws of the  United  States or of any state  thereof,
authorized to exercise  corporate  trust powers,  having a combined  capital and
surplus of at least fifty million dollars ($50,000,000),  subject to supervision
or  examination  by federal or state  authority  and having an office within the
United  States.  If any such  Person  publishes  reports of  condition  at least
annually  pursuant to law or to the requirements of its supervising or examining
authority,  then for the purposes of this Section 8.2, 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
the  Property  Trustee  shall  cease  to be  eligible  in  accordance  with  the
provisions  of this Section 8.2, it shall resign  immediately  in the manner and
with the effect hereinafter specified in this Article VIII.

      SECTION 8.3. Delaware Trustee Required.

      (a) If required by the Delaware  Statutory  Trust Act,  there shall at all
times be a Delaware Trustee with respect to the Trust  Securities.  The Delaware
Trustee shall either be (i) a natural person who is at least 21 years of age and
a  resident  of the  State  of  Delaware  or (ii) a legal  entity  that  has its
principal  place of  business  in the  State of  Delaware,  otherwise  meets the
requirements  of  applicable  Delaware  law and  shall act  through  one or more
persons  authorized  to bind such entity.  If at any time the  Delaware  Trustee
shall cease to be eligible in  accordance  with the  provisions  of this Section
8.3, it shall resign  immediately in the manner and with the effect  hereinafter
specified in this Article VIII.

      (b) The Delaware Trustee shall not be entitled to exercise any powers, nor
shall the Delaware Trustee have any of the duties and  responsibilities,  of the
Property Trustee or the

                                       41
<PAGE>

Administrative  Trustees set forth herein.  The Delaware Trustee shall be one of
the  trustees of the Trust for the sole and limited  purpose of  fulfilling  the
requirements of Section 3807 of the Delaware  Statutory Trust Act and for taking
such  actions  as are  required  to be taken by a  Delaware  trustee  under  the
Delaware   Statutory  Trust  Act.  The  duties  (including   fiduciary  duties),
liabilities  and  obligations  of the Delaware  Trustee  shall be limited to (a)
accepting legal process served on the Trust in the State of Delaware and (b) the
execution of any  certificates  required to be filed with the Secretary of State
of the State of Delaware that the Delaware  Trustee is required to execute under
Section  3811 of the  Delaware  Statutory  Trust Act and there shall be no other
duties (including  fiduciary duties) or obligations,  express or implied, at law
or in equity, of the Delaware Trustee.

      SECTION 8.4. Appointment of Administrative Trustees.

      (a)  There  shall  at all  times  be one or more  Administrative  Trustees
hereunder  with respect to the Trust  Securities.  Each  Administrative  Trustee
shall be  either  a  natural  person  who is at least 21 years of age or a legal
entity  that  shall act  through  one or more  persons  authorized  to bind that
entity. Each of the individuals identified as an "Administrative Trustee" in the
preamble of this Trust Agreement hereby accepts his or her appointment as such.

      (b)  Except  where a  requirement  for  action  by a  specific  number  of
Administrative Trustees is expressly set forth in this Trust Agreement,  any act
required  or  permitted  to be taken  by,  and any  power of the  Administrative
Trustees  may  be   exercised   by,  or  with  the  consent  of,  any  one  such
Administrative  Trustee.  Whenever  a vacancy  in the  number of  Administrative
Trustees  shall  occur,  until such vacancy is filled by the  appointment  of an
Administrative  Trustee in  accordance  with Section  8.11,  the  Administrative
Trustees in office,  regardless of their number (and  notwithstanding  any other
provision  of this Trust  Agreement),  shall have all the powers  granted to the
Administrative  Trustees  and shall  discharge  all the duties  imposed upon the
Administrative Trustees by this Trust Agreement.

      SECTION 8.5. Duties and Responsibilities of the Trustees.

      (a) The rights,  immunities,  duties and  responsibilities of the Trustees
shall be as provided by this Trust  Agreement and there shall be no other duties
(including  fiduciary duties) or obligations,  express or implied,  at law or in
equity, of the Trustees; provided, however, that if an Event of Default known to
the Property Trustee has occurred and is continuing, the Property Trustee shall,
prior to the  receipt  of  directions,  if any,  from the  Holders of at least a
Majority in Liquidation Amount of the Preferred Securities, exercise such of the
rights and powers vested in it by this Trust Agreement,  and use the same degree
of care and skill in its  exercise,  as a prudent  person would  exercise or use
under  the   circumstances   in  the  conduct  of  such  person's  own  affairs.
Notwithstanding  the  foregoing,  no  provision  of this Trust  Agreement  shall
require any of the Trustees to expend or risk its own funds or  otherwise  incur
any financial liability in the performance of any of its duties hereunder, or in
the exercise of any of its or their  rights or powers,  if it or they shall have
reasonable  grounds  for  believing  that  repayment  of such funds or  adequate
indemnity  against  such risk or  liability  is not  reasonably  assured  to it.
Whether or not herein  expressly  so  provided,  every  provision  of this Trust
Agreement  relating to the conduct or  affecting  the  liability of or affording
protection  to the Trustees  shall be subject to the  provisions of this Section
8.5.  To the  extent  that,  at law or in  equity,  a  Trustee  has  duties  and
liabilities

                                       42
<PAGE>

relating to the Trust or to the Holders, such Trustee shall not be liable to the
Trust or to any Holder for such  Trustee's good faith reliance on the provisions
of this Trust Agreement.  The provisions of this Trust Agreement,  to the extent
that they restrict the duties and liabilities of the Trustees otherwise existing
at law or in equity, are agreed by the Depositor and the Holders to replace such
other duties and liabilities of the Trustees.

      (b) All payments made by the Property Trustee or a Paying Agent in respect
of the Trust  Securities  shall be made only from the revenue and proceeds  from
the Trust Property and only to the extent that there shall be sufficient revenue
or proceeds from the Trust  Property to enable the Property  Trustee or a Paying
Agent to make payments in accordance with the terms hereof.  Each Holder, by its
acceptance of a Trust  Security,  agrees that it will look solely to the revenue
and  proceeds  from the Trust  Property  to the  extent  legally  available  for
distribution  to it as herein  provided and that the Trustees are not personally
liable to it for any amount  distributable  in respect of any Trust  Security or
for any other  liability in respect of any Trust  Security.  This Section 8.5(b)
does not limit the liability of the Trustees  expressly  set forth  elsewhere in
this Trust Agreement.

      (c) No  provisions of this Trust  Agreement  shall be construed to relieve
the Property  Trustee from liability with respect to matters that are within the
authority  of the  Property  Trustee  under  this  Trust  Agreement  for its own
negligent action, negligent failure to act or willful misconduct, except that:

            (i) the  Property  Trustee  shall  not be  liable  for any  error or
      judgment  made in good  faith by an  authorized  officer  of the  Property
      Trustee, unless it shall be proved that the Property Trustee was negligent
      in ascertaining the pertinent facts;

            (ii) the  Property  Trustee  shall not be liable with respect to any
      action taken or omitted to be taken by it in good faith in accordance with
      the direction of the Holders of at least a Majority in Liquidation  Amount
      of the  Preferred  Securities  relating  to the time,  method and place of
      conducting any proceeding for any remedy available to the Property Trustee
      hereunder  or  under  the  Indenture,  or  exercising  any  trust or power
      conferred upon the Property Trustee under this Trust Agreement;

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

            (iv) the  Property  Trustee  shall not be liable for any interest on
      any money received by it; and money held by the Property  Trustee need not
      be  segregated  from  other  funds  held by it except in  relation  to the
      Payment Account maintained by the Property Trustee pursuant to Section 3.1
      and except to the extent otherwise required by law; and

            (v) the Property Trustee shall not be responsible for monitoring the
      compliance  by the  Administrative  Trustees or the  Depositor  with their
      respective duties

                                       43
<PAGE>

      under this Trust  Agreement,  nor shall the Property Trustee be liable for
      the default or misconduct of any other Trustee or the Depositor.

      SECTION 8.6. Notices of Defaults and Extensions.

      (a) Within  ninety (90) days after the  occurrence  of a default  actually
known to the Property  Trustee,  the Property  Trustee shall transmit  notice of
such  default to the Holders,  the  Administrative  Trustees and the  Depositor,
unless such default shall have been cured or waived;  provided,  that, except in
the case of a default  in the  payment  of the  principal  of or any  premium or
interest (including any Additional Interest) on any Trust Security, the Property
Trustee shall be fully  protected in  withholding  such notice if and so long as
the  board  of  directors,  the  executive  committee  or a trust  committee  of
directors  and/or  Responsible  Officers of the  Property  Trustee in good faith
determines  that the  withholding  of such  notice  is in the  interests  of the
Holders of the Trust  Securities.  For the purpose of this Section 8.6, the term
"default"  means  any event  that is,  or after  notice or lapse of time or both
would become, an Event of Default.

      (b) RESERVED.

      (c) The  Property  Trustee  shall not be deemed to have  knowledge  of any
default or Event of Default  unless the  Property  Trustee  shall have  received
written  notice thereof from the Depositor,  any  Administrative  Trustee or any
Holder or unless a  Responsible  Officer  of the  Property  Trustee  shall  have
obtained actual knowledge of such default or Event of Default.

      (d) The  Property  Trustee  shall  notify  all  Holders  of the  Preferred
Securities of any notice of default received with respect to the Notes.

      SECTION 8.7. Certain Rights of Property Trustee.

      Subject to the provisions of Section 8.5:

      (a) the Property Trustee may  conclusively  rely and shall be protected in
acting or refraining  from acting in good faith and in accordance with the terms
hereof  upon  any   resolution,   Opinion  of  Counsel,   certificate,   written
representation  of a Holder or transferee,  certificate of auditors or any other
resolution,   certificate,   statement,  instrument,  opinion,  report,  notice,
request,  direction,  consent,  order, appraisal,  bond, debenture,  note, other
evidence of indebtedness or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;

      (b) if (i) in  performing  its  duties  under  this  Trust  Agreement  the
Property  Trustee is required to decide between  alternative  courses of action,
(ii) in construing  any of the  provisions of this Trust  Agreement the Property
Trustee finds a provision  ambiguous or inconsistent  with any other  provisions
contained  herein or (iii) the Property  Trustee is unsure of the application of
any provision of this Trust Agreement, then, except as to any matter as to which
the Holders of the Preferred  Securities are entitled to vote under the terms of
this  Trust  Agreement,  the  Property  Trustee  shall  deliver  a notice to the
Depositor  requesting the  Depositor's  written  instruction as to the course of
action to be taken and the Property  Trustee shall take such action,  or refrain
from taking such action,  as the Property Trustee shall be instructed in writing
to take,  or to refrain from taking,  by the  Depositor;  provided,  that if the
Property Trustee does not receive such

                                       44
<PAGE>

instructions  of the  Depositor  within  ten  (10)  Business  Days  after it has
delivered  such notice or such  reasonably  shorter  period of time set forth in
such notice,  the Property Trustee may, but shall be under no duty to, take such
action,  or refrain from taking such action,  as the Property Trustee shall deem
advisable and in the best interests of the Holders,  in which event the Property
Trustee  shall have no  liability  except for its own  negligence,  bad faith or
willful misconduct;

      (c) any  direction  or act of the  Depositor  contemplated  by this  Trust
Agreement shall be  sufficiently  evidenced by an Officers'  Certificate  unless
otherwise expressly provided herein;

      (d) any direction or act of an Administrative Trustee contemplated by this
Trust  Agreement shall be  sufficiently  evidenced by a certificate  executed by
such Administrative Trustee and setting forth such direction or act;

      (e) the  Property  Trustee  shall  have  no duty to see to any  recording,
filing  or   registration   of  any  instrument   (including  any  financing  or
continuation  statement  or any  filing  under  tax or  securities  laws) or any
re-recording, re-filing or re-registration thereof;

      (f) the Property  Trustee may consult with counsel  (which  counsel may be
counsel to the Property Trustee, the Depositor or any of its Affiliates, and may
include any of its  employees)  and the advice of such counsel shall be full and
complete  authorization and protection in respect of any action taken,  suffered
or  omitted  by it  hereunder  in good  faith  and in  reliance  thereon  and in
accordance  with such advice;  the Property  Trustee shall have the right at any
time to seek instructions  concerning the administration of this Trust Agreement
from any court of competent jurisdiction;

      (g) the Property  Trustee  shall be under no obligation to exercise any of
the rights or powers  vested in it by this  Trust  Agreement  at the  request or
direction of any of the Holders  pursuant to this Trust  Agreement,  unless such
Holders  shall have  offered to the  Property  Trustee  reasonable  security  or
indemnity against the costs,  expenses (including reasonable attorneys' fees and
expenses) and  liabilities  that might be incurred by it in compliance with such
request or direction,  including  reasonable advances as may be requested by the
Property Trustee;

      (h) the Property Trustee shall not be bound to make any investigation into
the  facts  or  matters  stated  in  any  resolution,   certificate,  statement,
instrument,   opinion,  report,  notice,  request,  direction,  consent,  order,
approval, bond, debenture, note or other evidence of indebtedness or other paper
or document,  unless  requested in writing to do so by one or more Holders,  but
the Property  Trustee may make such further inquiry or  investigation  into such
facts or matters as it may see fit, and, if the Property Trustee shall determine
to make such  inquiry or  investigation,  it shall be  entitled  to examine  the
books,  records and premises of the Depositor as may  reasonably  relate to such
facts or matters, personally or by agent or attorney;

      (i) the Property Trustee may execute any of the trusts or powers hereunder
or perform  any duties  hereunder  either  directly or by or through its agents,
attorneys,  custodians  or  nominees  and  the  Property  Trustee  shall  not be
responsible  for any  negligence  or  misconduct  on the part of any such agent,
attorney, custodian or nominee appointed with due care by it hereunder;

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<PAGE>

      (j) whenever in the  administration  of this Trust  Agreement the Property
Trustee  shall  deem it  desirable  to  receive  instructions  with  respect  to
enforcing any remedy or right  hereunder,  the Property  Trustee (i) may request
instructions  from  the  Holders  (which  instructions  may only be given by the
Holders of the same proportion in Liquidation  Amount of the Trust Securities as
would be entitled to direct the Property  Trustee under this Trust  Agreement in
respect of such remedy,  right or action),  (ii) may refrain from enforcing such
remedy or right or taking such other action until such instructions are received
and (iii) shall be protected in acting in accordance with such instructions;

      (k) except as otherwise  expressly  provided by this Trust Agreement,  the
Property  Trustee  shall not be under any  obligation to take any action that is
discretionary under the provisions of this Trust Agreement;

      (l)  without  prejudice  to any other  rights  available  to the  Property
Trustee under  applicable  law,  when the Property  Trustee  incurs  expenses or
renders services in connection with a Bankruptcy Event, such expenses (including
legal fees and expenses of its agents and counsel) and the compensation for such
services  are  intended  to  constitute  expenses  of  administration  under any
bankruptcy law or law relating to creditors rights generally; and

      (m) whenever in the  administration  of this Trust  Agreement the Property
Trustee shall deem it desirable that a matter be proved or established  prior to
taking, suffering or omitting any action hereunder, the Property Trustee (unless
other  evidence be herein  specifically  prescribed)  may, in the absence of bad
faith on its part,  request and rely on an  Officers'  Certificate  which,  upon
receipt of such request, shall be promptly delivered by the Depositor.

      No provision of this Trust Agreement shall be deemed to impose any duty or
obligation  on any  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 such  Person  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.

      SECTION 8.8. Delegation of Power.

      Any Trustee may, by power of attorney or otherwise,  delegate to any other
Person  its,  his or her  power  for the  purpose  of  executing  any  documents
contemplated in Section 2.5. The Trustees shall have power to delegate from time
to time to such of their number or to the Depositor the doing of such things and
the execution of such  instruments  either in the name of the Trust or the names
of the Trustees or otherwise as the Trustees may deem  expedient,  to the extent
such  delegation  is  not  prohibited  by  applicable  law  or  contrary  to the
provisions of this Trust Agreement.

      SECTION 8.9. May Hold Securities.

      Any  Trustee  or any  other  agent of any  Trustee  or the  Trust,  in its
individual  or any other  capacity,  may  become  the owner or  pledgee of Trust
Securities and except as provided in the definition of the term "Outstanding" in
Article I, may otherwise  deal with the Trust with the same rights it would have
if it were not a Trustee or such other agent.

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<PAGE>

      SECTION 8.10. Compensation; Reimbursement; Indemnity.

      The Depositor agrees:

      (a) to pay to the Property  Trustee and the Delaware  Trustee from time to
time such reasonable compensation for all services rendered by them hereunder as
may be agreed by the  Depositor  and the  Trustees in writing  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);

      (b) to  reimburse  the  Property  Trustee and the  Delaware  Trustee  upon
request for all reasonable expenses, disbursements and advances incurred or made
by such  Trustees  in  accordance  with any  provision  of this Trust  Agreement
(including the reasonable  compensation  and the expenses and  disbursements  of
their agents and counsel),  except any such expense,  disbursement or advance as
may be  attributable  to their  own  gross  negligence,  bad  faith  or  willful
misconduct; and

      (c) to the fullest  extent  permitted by applicable  law, to indemnify and
hold harmless (i) each Trustee (including in its individual capacity),  (ii) any
Affiliate of any Trustee, (iii) any officer,  director,  shareholder,  employee,
representative  or agent of any Trustee or any Affiliate of any Trustee and (iv)
any  employee  or agent of the Trust  (referred  to  herein  as an  "Indemnified
Person") from and against any loss, damage,  liability,  tax (other than income,
franchise or other taxes imposed on amounts paid pursuant to Section  8.10(a) or
(b) hereof), penalty, expense or claim of any kind or nature whatsoever incurred
without negligence,  bad faith or willful misconduct on its part, arising out of
or in connection with the acceptance or  administration  of the Trust hereunder,
including the advancement of funds to cover the reasonable costs and expenses of
defending  itself against any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder.

      The Trust shall have no payment, reimbursement or indemnity obligations to
the Trustees  under this Section 8.10. The provisions of this Section 8.10 shall
survive the  termination  of this Trust  Agreement  and the  earlier  removal or
resignation of any Trustee.

      No  Trustee  may claim any Lien on any Trust  Property  whether  before or
after  termination  of the Trust as a result of any amount due  pursuant to this
Section 8.10.

      To the fullest extent  permitted by law, in no event shall the Trustees be
liable for any indirect,  special,  punitive or consequential  loss or damage of
any kind whatsoever,  including,  but not limited to, lost profits,  even if the
Trustee has been advised of the likelihood of such loss or damage and regardless
of the form of action.

      In no event  shall the  Trustees be liable for any failure or delay in the
performance of their obligations hereunder because of circumstances beyond their
control,  including,  but not  limited  to,  acts of God,  flood,  war  (whether
declared or undeclared),  terrorism,  fire, riot,  embargo,  government  action,
including any laws,  ordinances,  regulations,  governmental  action or the like
which delay,  restrict or prohibit the providing of the services contemplated by
this Trust Agreement.

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<PAGE>

      SECTION 8.11. Resignation and Removal; Appointment of Successor.

      (a) No  resignation  or removal of any  Trustee  and no  appointment  of a
successor Trustee pursuant to this Article VIII shall become effective until the
acceptance  of  appointment  by the  successor  Trustee in  accordance  with the
applicable requirements of Section 8.12.

      (b) A Trustee may resign at any time by giving  written  notice thereof to
the Depositor and, in the case of the Property Trustee and the Delaware Trustee,
to the Holders.

      (c) Unless an Event of Default shall have occurred and be continuing,  the
Property Trustee or the Delaware Trustee,  or both of them, may be removed (with
or without cause) at any time by Act of the Holder of Common  Securities.  If an
Event of Default shall have occurred and be continuing,  the Property Trustee or
the Delaware Trustee, or both of them, may be removed (with or without cause) at
such time by Act of the Holders of at least a Majority in Liquidation  Amount of
the Preferred  Securities,  delivered to the removed  Trustee (in its individual
capacity and on behalf of the Trust). An  Administrative  Trustee may be removed
(with or without  cause) only by Act of the Holder of the Common  Securities  at
any time.

      (d) If any Trustee shall resign,  be removed or become incapable of acting
as  Trustee,  or if a vacancy  shall  occur in the office of any Trustee for any
reason,  at a  time  when  no  Event  of  Default  shall  have  occurred  and be
continuing,  the  Holder of the Common  Securities,  by Act of the Holder of the
Common Securities,  shall promptly appoint a successor Trustee or Trustees,  and
such successor Trustee and the retiring Trustee shall comply with the applicable
requirements  of Section 8.12. If the Property  Trustee or the Delaware  Trustee
shall  resign,  be  removed  or become  incapable  of  continuing  to act as the
Property Trustee or the Delaware Trustee,  as the case may be, at a time when an
Event of Default  shall have  occurred  and be  continuing,  the  Holders of the
Preferred Securities,  by Act of the Holders of a Majority in Liquidation Amount
of the Preferred Securities, shall promptly appoint a successor Property Trustee
or Delaware Trustee, and such successor Property Trustee or Delaware Trustee and
the  retiring  Property  Trustee  or  Delaware  Trustee  shall  comply  with the
applicable  requirements  of Section  8.12. If an  Administrative  Trustee shall
resign, be removed or become incapable of acting as Administrative Trustee, at a
time when an Event of Default shall have occurred and be continuing,  the Holder
of the  Common  Securities  by Act of the  Holder  of  Common  Securities  shall
promptly  appoint  a  successor   Administrative   Trustee  and  such  successor
Administrative Trustee and the retiring Administrative Trustee shall comply with
the applicable  requirements of Section 8.12. If no successor Trustee shall have
been so  appointed  by the  Holder of the  Common  Securities  or Holders of the
Preferred Securities, as the case may be, and accepted appointment in the manner
required by Section 8.12 within thirty (30) days after the giving of a notice of
resignation  by a  Trustee,  the  removal of a  Trustee,  or a Trustee  becoming
incapable  of  acting  as such  Trustee,  any  Holder  who has been a Holder  of
Preferred  Securities  for at least six (6) months may, on behalf of himself and
all others similarly  situated,  and any resigning Trustee may, in each case, at
the expense of the Depositor,  petition any court of competent  jurisdiction for
the appointment of a successor Trustee.

      (e) The Depositor  shall give notice of each  resignation and each removal
of the  Property  Trustee or the  Delaware  Trustee  and each  appointment  of a
successor  Property  Trustee or  Delaware  Trustee to all  Holders in the manner
provided in Section 10.8. Each notice shall

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<PAGE>

include the name of the successor  Property  Trustee or Delaware Trustee and the
address of its Corporate Trust Office if it is the Property Trustee.

      (f)  Notwithstanding  the  foregoing or any other  provision of this Trust
Agreement,  in the event any Administrative Trustee or a Delaware Trustee who is
a  natural  person  dies or  becomes,  in the  opinion  of the  Holder of Common
Securities,  incompetent or  incapacitated,  the vacancy  created by such death,
incompetence  or  incapacity  may be  filled  by (i)  the  unanimous  act of the
remaining  Administrative  Trustees  if there  are at least  two of them or (ii)
otherwise  by the Holder of the Common  Securities  (with the  successor in each
case being a Person who satisfies the eligibility requirement for Administrative
Trustees or Delaware Trustee,  as the case may be, set forth in Sections 8.3 and
8.4).

      (g) Upon the appointment of a successor  Delaware Trustee,  such successor
Delaware  Trustee shall file a Certificate  of Amendment to the  Certificate  of
Trust in accordance with Section 3810 of the Delaware Statutory Trust Act.

      SECTION 8.12. Acceptance of Appointment by Successor.

      (a) In case of the  appointment  hereunder  of a successor  Trustee,  each
successor Trustee shall execute and deliver to the Depositor and to the retiring
Trustee  (if such  retiring  Trustee is the  Property  Trustee  or the  Delaware
Trustee) an instrument accepting such appointment, and thereupon the resignation
or  removal  of the  retiring  Trustee  shall  become  effective  and each  such
successor  Trustee,  without any further act, deed or  conveyance,  shall become
vested with all the rights,  powers,  trusts and duties of the retiring Trustee;
but, on request of the Trust or any  successor  Trustee  such  retiring  Trustee
shall,  upon payment of its charges,  duly assign,  transfer and deliver to such
successor  Trustee all Trust  Property,  all proceeds  thereof and money held by
such retiring  Trustee  hereunder  with respect to the Trust  Securities and the
Trust.

      (b) Upon request of any such successor Trustee, the Trust (or the retiring
Trustee if requested by the Depositor) shall execute any and all instruments for
more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in the preceding paragraph.

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

      SECTION 8.13. Merger, Conversion, Consolidation or Succession to Business.

      Any Person into which the Property  Trustee or the Delaware 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 such Trustee
shall be a party,  or any  Person  succeeding  to all or  substantially  all the
corporate trust business of such Trustee, shall be the successor of such Trustee
hereunder,  without the  execution  or filing of any paper or any further act on
the part of any of the  parties  hereto,  provided,  that such  Person  shall be
otherwise qualified and eligible under this Article VIII.

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<PAGE>

      SECTION 8.14. Not Responsible for Recitals or Issuance of Securities.

      The recitals contained herein and in the Securities  Certificates shall be
taken as the statements of the Trust and the Depositor,  and the Trustees do not
assume  any  responsibility   for  their  correctness.   The  Trustees  make  no
representations  as to the title to, or value or  condition  of, the property of
the Trust or any part  thereof,  nor as to the validity or  sufficiency  of this
Trust Agreement,  the Notes or the Trust  Securities.  The Trustees shall not be
accountable  for the use or  application by the Depositor of the proceeds of the
Notes. It is expressly  understood and agreed by the parties hereto that insofar
as any document,  agreement or certificate is executed on behalf of the Trust by
any  Trustee  (i) such  document,  agreement  or  certificate  is  executed  and
delivered by such Trustee,  not in its individual capacity but solely as Trustee
under this Trust Agreement in the exercise of the powers and authority conferred
and vested in it, (ii) each of the representations,  undertakings and agreements
made on the  part of the  Trust  is made and  intended  not as  representations,
warranties,  covenants,  undertakings  and  agreements  by  any  Trustee  in its
individual capacity but is made and intended for the purpose of binding only the
Trust and  (iii)  under no  circumstance  shall any  Trustee  in its  individual
capacity be personally liable for the payment of any indebtedness or expenses of
the  Trust  or  be  liable  for  the  breach  or  failure  of  any   obligation,
representation,  warranty or covenant made or undertaken by the Trust under this
Trust Agreement or any other document, agreement or certificate.

      SECTION 8.15. Property Trustee May File Proofs of Claim.

      (a) In case of any  Bankruptcy  Event (or event  that with the  passage of
time would become a Bankruptcy Event) relative to the Trust or any other obligor
upon the Trust  Securities or the property of the Trust or of such other obligor
or  their  creditors,   the  Property  Trustee   (irrespective  of  whether  any
Distributions  on the  Trust  Securities  shall  then  be due  and  payable  and
irrespective  of whether the Property  Trustee shall have made any demand on the
Trust for the  payment  of any past due  Distributions)  shall be  entitled  and
empowered,  to the fullest  extent  permitted  by law, by  intervention  in such
proceeding or otherwise:

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

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

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

                                       50
<PAGE>

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

      SECTION 8.16. Reports to and from the Property Trustee.

      (a) The Depositor  and the  Administrative  Trustees  shall deliver to the
Property  Trustee,  not later than forty five (45) days after the end of each of
the first three fiscal  quarters of the Depositor and not later than ninety (90)
days after the end of each fiscal year of the Depositor ending after the date of
this Trust  Agreement,  an Officers'  Certificate  covering the preceding fiscal
period,  stating  whether or not to the  knowledge  of the  signers  thereof the
Depositor,  the  Administrative  Trustees  or the  Trust are in  default  in the
performance or observance of any of the terms, provisions and conditions of this
Trust Agreement  (without regard to any period of grace or requirement of notice
provided  hereunder) and, if the Depositor,  the Administrative  Trustees or the
Trust  shall be in  default,  specifying  all such  defaults  and the nature and
status thereof of which they have knowledge.

      (b) The  Depositor  shall  furnish to (i) the Property  Trustee,  (ii) the
Purchaser,  (iii) any Owner of the Preferred Securities reasonably identified to
the  Depositor  or the Trust  (which  identification  may be made either by such
Owner or by the Placement Agent or Purchaser) and (iv) any designee of (i), (ii)
or (iii) above, a duly  completed and executed  certificate in the form attached
hereto as Exhibit G,  including  the  financial  statements  referenced  in such
Exhibit, which certificate and financial statements shall be so furnished by the
Depositor not later than forty five (45) days after the end of each of the first
three fiscal  quarters of each fiscal year of the  Depositor  and not later than
ninety  (90)  days  after  the end of each  fiscal  year of the  Depositor.  The
delivery  requirements under this Section 8.16(b) may be satisfied by compliance
with Section 7.3(b) of the Indenture.

      (c) The  Property  Trustee  shall  receive all reports,  certificates  and
information,  which  it is  entitled  to  obtain  under  each  of the  Operative
Documents, and deliver to (i) the Purchaser,  (ii) the Placement Agent and (iii)
a designee  of (i) or (ii)  above,  as  identified  in  writing to the  Property
Trustee,  copies of all such reports,  certificates or information promptly upon
receipt thereof.

                                   ARTICLE IX.

                       TERMINATION, LIQUIDATION AND MERGER

      SECTION 9.1. Dissolution Upon Expiration Date.

      Unless earlier dissolved,  the Trust shall automatically  dissolve on July
30, 2040 (the "Expiration  Date"), and the Trust Property shall be liquidated in
accordance with Section 9.4.

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<PAGE>

      SECTION 9.2. Early Termination.

      The first to occur of any of the following events is an "Early Termination
Event", upon the occurrence of which the Trust shall be dissolved:

      (a) the occurrence of a Bankruptcy Event in respect of, or the dissolution
or liquidation  of, the  Depositor,  in its capacity as the Holder of the Common
Securities, unless the Depositor shall have transferred the Common Securities as
provided by Section  5.11, in which case this  provision  shall refer instead to
any such successor Holder of the Common Securities;

      (b) the written  direction to the Property  Trustee from the Holder of the
Common  Securities at any time to dissolve the Trust and, after  satisfaction of
any  liabilities  of the Trust as required by applicable  law, to distribute the
Notes to Holders in exchange for the Preferred  Securities  (which  direction is
optional  and  wholly  within  the  discretion  of  the  Holder  of  the  Common
Securities).

      (c) the redemption of all of the Preferred  Securities in connection  with
the payment at maturity or redemption of all the Notes; and

      (d) the  entry  of an order  for  dissolution  of the  Trust by a court of
competent jurisdiction.

      SECTION 9.3. Termination.

      The respective  obligations and  responsibilities  of the Trustees and the
Trust  shall  terminate  upon the  latest  to occur  of the  following:  (a) the
distribution  by the Property  Trustee to Holders of all amounts  required to be
distributed hereunder upon the liquidation of the Trust pursuant to Section 9.4,
or upon the redemption of all of the Trust  Securities  pursuant to Section 4.2;
(b) the satisfaction of any expenses owed by the Trust; and (c) the discharge of
all  administrative  duties  of  the  Administrative  Trustees,   including  the
performance  of any tax reporting  obligations  with respect to the Trust or the
Holders.

      SECTION 9.4. Liquidation.

      (a) If an Early Termination Event specified in Section 9.2(a),  (b) or (d)
occurs  or upon the  Expiration  Date,  the  Trust  shall be  liquidated  by the
Property  Trustee as expeditiously as the Property Trustee shall determine to be
possible by distributing,  after satisfaction of liabilities to creditors of the
Trust as  provided  by  applicable  law,  to each Holder a Like Amount of Notes,
subject to Section 9.4(d).  Notice of liquidation shall be given by the Property
Trustee  not less than  thirty  (30) nor more than  sixty (60) days prior to the
Liquidation  Date to each Holder of Trust  Securities at such  Holder's  address
appearing in the Securities Register. All such notices of liquidation shall:

            (i) state the Liquidation Date;

            (ii)  state  that  from and after the  Liquidation  Date,  the Trust
      Securities  will no longer be deemed to be  Outstanding  and  (subject  to
      Section 9.4(d)) any Securities

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<PAGE>

      Certificates  not  surrendered  for exchange will be deemed to represent a
      Like Amount of Notes; and

            (iii)  provide such  information  with  respect to the  mechanics by
      which  Holders  may  exchange  Securities  Certificates  for Notes,  or if
      Section  9.4(d)  applies,  receive  a  Liquidation  Distribution,  as  the
      Property Trustee shall deem appropriate.

      (b) Except where Section 9.2(c) or 9.4(d) applies,  in order to effect the
liquidation of the Trust and distribution of the Notes to Holders,  the Property
Trustee,  either itself acting as exchange agent or through the appointment of a
separate  exchange agent,  shall  establish a record date for such  distribution
(which shall not be more than forty-five (45) days prior to the Liquidation Date
nor  prior to the  date on  which  notice  of such  liquidation  is given to the
Holders) and establish  such  procedures as it shall deem  appropriate to effect
the   distribution  of  Notes  in  exchange  for  the   Outstanding   Securities
Certificates.

      (c) Except where Section 9.2(c) or 9.4(d)  applies,  after the Liquidation
Date, (i) the Trust Securities will no longer be deemed to be Outstanding,  (ii)
certificates  representing  a Like  Amount of Notes will be issued to Holders of
Securities  Certificates,  upon surrender of such  Certificates  to the exchange
agent for exchange,  (iii) the Depositor  shall use its best efforts to have the
Notes  listed  on the  New  York  Stock  Exchange  or on  such  other  exchange,
interdealer  quotation  system  or  self-regulatory  organization  on which  the
Preferred  Securities are then listed, if any, (iv) Securities  Certificates not
so  surrendered  for exchange will be deemed to represent a Like Amount of Notes
bearing  accrued and unpaid  interest in an amount equal to the  accumulated and
unpaid Distributions on such Securities Certificates until such certificates are
so surrendered (and until such  certificates are so surrendered,  no payments of
interest or principal  will be made to Holders of Securities  Certificates  with
respect to such Notes) and (v) all rights of Holders  holding  Trust  Securities
will cease,  except the right of such Holders to receive Notes upon surrender of
Securities Certificates.

      (d)   Notwithstanding  the  other  provisions  of  this  Section  9.4,  if
distribution  of the Notes in the manner  provided  herein is  determined by the
Property  Trustee not to be permitted or practical,  the Trust Property shall be
liquidated,  and the Trust  shall be wound up by the  Property  Trustee  in such
manner as the  Property  Trustee  determines.  In such  event,  Holders  will be
entitled to receive out of the assets of the Trust available for distribution to
Holders, after satisfaction of liabilities to creditors of the Trust as provided
by applicable law, an amount equal to the Liquidation  Amount per Trust Security
plus accumulated and unpaid  Distributions  thereon to the date of payment (such
amount being the "Liquidation  Distribution").  If, upon any such winding up the
Liquidation  Distribution  can be paid  only  in  part  because  the  Trust  has
insufficient  assets  available  to  pay  in  full  the  aggregate   Liquidation
Distribution, then, subject to the next succeeding sentence, the amounts payable
by the Trust on the Trust  Securities  shall be paid on a pro rata basis  (based
upon Liquidation Amounts).  The Holder of the Common Securities will be entitled
to receive  Liquidation  Distributions  upon any such winding up pro rata (based
upon Liquidation Amounts) with Holders of all Trust Securities,  except that, if
an Event of Default has occurred and is  continuing,  the  Preferred  Securities
shall have a priority over the Common Securities as provided in Section 4.3.

                                       53
<PAGE>

      SECTION 9.5.  Mergers,  Consolidations,  Amalgamations  or Replacements of
Trust.

      The Trust  may not  merge  with or into,  consolidate,  amalgamate,  or be
replaced  by,  or  convey,   transfer  or  lease  its   properties   and  assets
substantially  as an entirety to, any Person except pursuant to this Article IX.
At the request of the Holders of the Common  Securities,  without the consent of
the  Holders  of the  Preferred  Securities,  the Trust may merge  with or into,
consolidate,  amalgamate,  or be  replaced  by or convey,  transfer or lease its
properties and assets  substantially as an entirety to a trust organized as such
under the laws of any State; provided, that:

      (a)  such  successor  entity  either  (i)  expressly  assumes  all  of the
obligations  of the  Trust  under  this  Trust  Agreement  with  respect  to the
Preferred  Securities or (ii)  substitutes  for the Preferred  Securities  other
securities having substantially the same terms as the Preferred Securities (such
other  Securities,   the  "Successor  Securities")  so  long  as  the  Successor
Securities  have the same priority as the Preferred  Securities  with respect to
distributions and payments upon liquidation, redemption and otherwise;

      (b) a trustee of such successor entity  possessing  substantially the same
powers and duties as the Property Trustee is appointed to hold the Notes;

      (c) if the  Preferred  Securities  or the Notes are  rated,  such  merger,
consolidation, amalgamation, replacement, conveyance, transfer or lease does not
cause the Preferred Securities or the Notes (including any Successor Securities)
to be downgraded by any nationally  recognized  statistical rating  organization
that then assigns a rating to the Preferred Securities or the Notes;

      (d) the Preferred  Securities are listed, or any Successor Securities will
be listed  upon  notice of  issuance,  on any  national  securities  exchange or
interdealer  quotation system on which the Preferred Securities are then listed,
if any;

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

      (f) such successor entity has a purpose substantially identical to that of
the Trust;

      (g)  prior  to  such  merger,  consolidation,  amalgamation,  replacement,
conveyance,  transfer or lease, the Depositor has received an Opinion of Counsel
to the effect that (i) such merger,  consolidation,  amalgamation,  replacement,
conveyance,  transfer or lease does not adversely affect the rights, preferences
and  privileges  of the  Holders  of the  Preferred  Securities  (including  any
Successor  Securities)  in any material  respect;  (ii)  following  such merger,
consolidation, amalgamation, replacement, conveyance, transfer or lease, neither
the  Trust  nor  such  successor  entity  will be  required  to  register  as an
"investment  company" under the Investment  Company Act and (iii) following such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease,
the Trust (or the successor  entity) will continue to be classified as a grantor
trust for U.S. federal income tax purposes; and

      (h) the  Depositor  or its  permitted  transferee  owns all of the  common
securities of such successor entity.

                                       54
<PAGE>

Notwithstanding  the foregoing,  the Trust shall not, except with the consent of
Holders of all of the Preferred Securities, consolidate,  amalgamate, merge with
or into,  or be replaced  by or convey,  transfer  or lease its  properties  and
assets  substantially  as an  entirety  to any other  Person or permit any other
entity to consolidate,  amalgamate, merge with or into, or replace, the Trust if
such consolidation,  amalgamation, merger, replacement,  conveyance, transfer or
lease  would  cause  the  Trust  or the  successor  entity  to be  taxable  as a
corporation  or  classified  as other  than a grantor  trust for  United  States
federal  income  tax  purposes  or cause the Notes to be  treated  as other than
indebtedness of the Depositor for United States federal income tax purposes.

                                   ARTICLE X.

                            INFORMATION TO PURCHASER

      SECTION 10.1. Depositor Obligations to Purchaser.

      Notwithstanding any other provision herein, the Depositor shall furnish to
(a)  the  Purchaser,  (b)  any  Owner  of the  Preferred  Securities  reasonably
identified  to the  Depositor  or the Trust  (which  identification  may be made
either  by such  Owner  or by the  Placement  Agent  or  Purchaser)  and (c) any
designee  of (a) or (b) above,  copies of all  correspondence,  notices,  forms,
filings,  reports and other documents  required to be provided by the Depositor,
whether acting through an Administrative  Trustee or otherwise,  to the Property
Trustee or Delaware  Trustee  under this Trust  Agreement.  Notwithstanding  the
foregoing,  the  delivery  requirements  under this Section 10.1 shall be deemed
satisfied  to the extent the  foregoing  recipients  otherwise  receive any such
copies of correspondence,  notices,  forms, filings,  reports or other documents
pursuant to any other provision of this Trust Agreement or pursuant to any other
Operative Document.

      SECTION 10.2. Property Trustee's Obligations to Purchaser.

      Notwithstanding  any other provision  herein,  the Property  Trustee shall
furnish to (a) the Purchaser,  (b) the Placement Agent and (c) a designee of (a)
or (b) above as identified in writing to the Property Trustee, copies of all (i)
correspondence, notices, forms, filings, reports and other documents received by
the Property  Trustee or Delaware  Trustee from the  Depositor,  whether  acting
through an Administrative Trustee or otherwise,  under this Trust Agreement, and
(ii) all correspondence,  notices,  forms, filings,  reports and other documents
required to be provided to the Depositor or a Holder by the Property  Trustee or
Delaware Trustee under this Trust Agreement.

                                   ARTICLE XI.

                            MISCELLANEOUS PROVISIONS

      SECTION 11.1. Limitation of Rights of Holders.

      Except as set forth in Section  9.2, the death,  bankruptcy,  termination,
dissolution  or  incapacity  of any Person  having an  interest,  beneficial  or
otherwise,  in Trust  Securities  shall not  operate  to  terminate  this  Trust
Agreement, nor annul, dissolve or terminate the Trust nor entitle

                                       55
<PAGE>

the legal representatives or heirs of such Person or any Holder for such Person,
to claim an accounting, take any action or bring any proceeding in any court for
a partition or winding up of the arrangements contemplated hereby, nor otherwise
affect the rights,  obligations  and liabilities of the parties hereto or any of
them.

      SECTION 11.2. Agreed Tax Treatment of Trust and Trust Securities.

      The parties  hereto  and,  by its  acceptance  or  acquisition  of a Trust
Security or a beneficial  interest  therein,  the Holder of, and any Person that
acquires a beneficial interest in, such Trust Security intend and agree to treat
the Trust as a grantor  trust for  United  States  federal,  state and local tax
purposes, and to treat the Trust Securities (including all payments and proceeds
with  respect  to such  Trust  Securities)  as  undivided  beneficial  ownership
interests  in  the  Trust   Property  (and  payments  and  proceeds   therefrom,
respectively)  for United  States  federal,  state and local tax purposes and to
treat the Notes as  indebtedness  of the Depositor  for United  States  federal,
state and local tax purposes.  The provisions of this Trust  Agreement  shall be
interpreted to further this intention and agreement of the parties.

      SECTION 11.3. Amendment.

      (a) This Trust  Agreement may be amended from time to time by the Property
Trustee,  the  Administrative   Trustees  and  the  Holder  of  all  the  Common
Securities,  without the consent of any Holder of the Preferred Securities,  (i)
to cure any ambiguity,  correct or supplement  any provision  herein that may be
defective or inconsistent  with any other provision  herein, or to make or amend
any other  provisions  with respect to matters or questions  arising  under this
Trust  Agreement,  which shall not be inconsistent  with the other provisions of
this Trust Agreement, (ii) to modify, eliminate or add to any provisions of this
Trust  Agreement  to such extent as shall be  necessary to ensure that the Trust
will  neither be  taxable as a  corporation  nor be  classified  as other than a
grantor  trust for United States  federal  income tax purposes at all times that
any Trust  Securities are Outstanding or to ensure that the Notes are treated as
indebtedness of the Depositor for United States federal income tax purposes,  or
to ensure that the Trust will not be  required  to  register  as an  "investment
company"  under the  Investment  Company  Act or (iii) to add to the  covenants,
restrictions  or  obligations of the  Depositor;  provided,  that in the case of
clauses  (i),  (ii) or (iii),  such  action  shall not  adversely  affect in any
material respect the interests of any Holder.

      (b) Except as provided in Section  11.3(c),  any  provision  of this Trust
Agreement may be amended by the Property Trustee,  the  Administrative  Trustees
and the  Holder of all of the  Common  Securities  and with (i) the  consent  of
Holders of at least a Majority in Liquidation Amount of the Preferred Securities
and (ii)  receipt by the  Trustees  of an Opinion of Counsel to the effect  that
such  amendment  or the  exercise  of any  power  granted  to  the  Trustees  in
accordance  with such  amendment  will not cause  the Trust to be  taxable  as a
corporation  or  classified  as other  than a grantor  trust for  United  States
federal income tax purposes or affect the treatment of the Notes as indebtedness
of the  Depositor for United  States  federal  income tax purposes or affect the
Trust's  exemption  from  status (or from any  requirement  to  register)  as an
"investment company" under the Investment Company Act.

                                       56
<PAGE>

      (c) Notwithstanding  any other provision of this Trust Agreement,  without
the  consent  of each  Holder,  this Trust  Agreement  may not be amended to (i)
change the accrual rate,  amount,  currency or timing of any  Distribution on or
the redemption price of the Trust  Securities or otherwise  adversely affect the
amount of any  Distribution  or other payment  required to be made in respect of
the Trust  Securities as of a specified  date, (ii) restrict or impair the right
of a Holder to  institute  suit for the  enforcement  of any such  payment on or
after such date, (iii) reduce the percentage of aggregate  Liquidation Amount of
Outstanding Preferred  Securities,  the consent of whose Holders is required for
any such  amendment,  or the consent of whose Holders is required for any waiver
of  compliance  with  any  provision  of this  Trust  Agreement  or of  defaults
hereunder  and their  consequences  provided for in this Trust  Agreement;  (iv)
impair or adversely  affect the rights and interests of the Holders in the Trust
Property,  or  permit  the  creation  of any Lien on any  portion  of the  Trust
Property;  or (v) modify the definition of "Outstanding,"  this Section 11.3(c),
Sections 4.1, 4.2, 4.3, 6.10(e) or Article IX.

      (d)  Notwithstanding  any other  provision  of this  Trust  Agreement,  no
Trustee  shall enter into or consent to any  amendment  to this Trust  Agreement
that would cause the Trust to be taxable as a corporation or to be classified as
other than a grantor trust for United States federal income tax purposes or that
would  cause the Notes to fail or cease to be  treated  as  indebtedness  of the
Depositor for United States  federal income tax purposes or that would cause the
Trust to fail or cease to qualify  for the  exemption  from  status (or from any
requirement to register) as an "investment company" under the Investment Company
Act.

      (e) If any amendment to this Trust  Agreement is made, the  Administrative
Trustees or the Property Trustee shall promptly provide to the Depositor and the
Note Trustee a copy of such amendment.

      (f) No Trustee shall be required to enter into any amendment to this Trust
Agreement  that affects its own rights,  duties or  immunities  under this Trust
Agreement.  The Trustees  shall be entitled to receive an Opinion of Counsel and
an Officers'  Certificate  stating that any amendment to this Trust Agreement is
in compliance  with this Trust  Agreement and all  conditions  precedent  herein
provided for relating to such action have been met.

      (g) No amendment or  modification  to this Trust  Agreement that adversely
affects in any material respect the rights, duties, liabilities,  indemnities or
immunities  of the Delaware  Trustee  hereunder  shall be permitted  without the
prior written consent of the Delaware Trustee.

      SECTION 11.4. Separability.

      If any provision in this Trust Agreement or in the Securities Certificates
shall  be  invalid,  illegal  or  unenforceable,   the  validity,  legality  and
enforceability  of the remaining  provisions shall not in any way be affected or
impaired  thereby,  and there shall be deemed  substituted  for the provision at
issue a valid,  legal and  enforceable  provision  as similar as possible to the
provision at issue.

      SECTION 11.5. Governing Law.

      THIS  TRUST  AGREEMENT  AND  THE  RIGHTS  AND  OBLIGATIONS  OF EACH OF THE
HOLDERS, THE TRUST, THE DEPOSITOR AND THE TRUSTEES WITH RESPECT

                                       57
<PAGE>

TO THIS TRUST AGREEMENT AND THE TRUST SECURITIES SHALL BE CONSTRUED AND ENFORCED
IN  ACCORDANCE  WITH AND  GOVERNED BY THE LAWS OF THE STATE OF DELAWARE  WITHOUT
REFERENCE TO ITS CONFLICTS OF LAWS PROVISIONS.

      SECTION 11.6. Successors.

      This Trust  Agreement shall be binding upon and shall inure to the benefit
of any  successor to the  Depositor,  the Trust and any Trustee,  including  any
successor by operation of law. Except in connection with a transaction involving
the Depositor that is permitted under Article VIII of the Indenture and pursuant
to which the assignee agrees in writing to perform the  Depositor's  obligations
hereunder, the Depositor shall not assign its obligations hereunder.

      SECTION 11.7. Headings.

      The Article and Section  headings are for  convenience  only and shall not
affect the construction of this Trust Agreement.

      SECTION 11.8. Reports, Notices and Demands.

      (a)  Any  report,  notice,  demand  or  other  communication  that  by any
provision of this Trust Agreement is required or permitted to be given or served
to or upon  any  Holder  or the  Depositor  may be given or  served  in  writing
delivered  in person,  or by  reputable,  overnight  courier,  by telecopy or by
deposit  thereof,  first-class  postage  prepaid,  in the  United  States  mail,
addressed,  (a) in the case of a Holder of Preferred Securities,  to such Holder
as such Holder's name and address may appear on the Securities Register; and (b)
in the case of the  Holder of all the Common  Securities  or the  Depositor,  to
Bluegreen  Corporation  4960  Conference  Way N.,  Boca  Raton,  Florida  33431,
Attention: Chief Financial Officer, or to such other address as may be specified
in a written notice by the Holder of all the Common Securities or the Depositor,
as the case may be, to the  Property  Trustee.  Such report,  notice,  demand or
other communication to or upon a Holder or the Depositor shall be deemed to have
been given when  received  in person,  within  one (1)  Business  Day  following
delivery by overnight courier, when telecopied with receipt confirmed, or within
three (3) Business Days following  delivery by mail,  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.

      (b) Any notice,  demand or other  communication  that by any  provision of
this Trust  Agreement  is required or permitted to be given or served to or upon
the Property Trustee, the Delaware Trustee,  the Administrative  Trustees or the
Trust shall be given in writing by deposit thereof, first-class postage prepaid,
in the U.S. mail, personal delivery or facsimile transmission, addressed to such
Person as follows:  (a) with  respect to the  Property  Trustee and the Delaware
Trustee to Wilmington  Trust  Company,  Rodney  Square North,  1100 North Market
Street, Wilmington,  Delaware 19890-0001,  Attention: Corporate Capital Markets,
facsimile no. (302) 636-4140;  (b) with respect to the Administrative  Trustees,
to them at the address above for notices to the  Depositor,  marked  "Attention:
Administrative  Trustees of Bluegreen  Statutory Trust II," and (c) with respect
to the Trust, to its principal executive office specified in Section

                                       58
<PAGE>

2.2,  with  a copy  to the  Property  Trustee.  Such  notice,  demand  or  other
communication to or upon the Trust,  the Property Trustee or the  Administrative
Trustees  shall be  deemed  to have  been  sufficiently  given or made only upon
actual  receipt  of the  writing  by the  Trust,  the  Property  Trustee  or the
Administrative Trustees.

      SECTION 11.9. Agreement Not to Petition.

      Each of the  Trustees  and the  Depositor  agree  for the  benefit  of the
Holders  that,  until at least  one year and one day  after  the  Trust has been
terminated  in  accordance  with Article IX, they shall not file, or join in the
filing of, a petition  against the Trust under any  Bankruptcy  Law or otherwise
join  in  the  commencement  of any  proceeding  against  the  Trust  under  any
Bankruptcy Law. If the Depositor takes action in violation of this Section 11.9,
the Property Trustee agrees, for the benefit of Holders,  that at the expense of
the Depositor,  it shall file an answer with the applicable  bankruptcy court or
otherwise  properly contest the filing of such petition by the Depositor against
the Trust or the  commencement  of such  action and raise the  defense  that the
Depositor  has agreed in writing  not to take such action and should be estopped
and  precluded  therefrom  and such other  defenses,  if any, as counsel for the
Property Trustee or the Trust may assert.

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

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       59
<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto have  executed  this Amended and
Restated Trust Agreement as of the day and year first above written.

                                           Bluegreen Corporation,
                                           as Depositor

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

Wilmington Trust Company, as               Wilmington Trust Company, as Delaware
Property Trustee                           Trustee

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

------------------------------------       ------------------------------------
Administrative Trustee                     Administrative Trustee
Name:                                      Name:

------------------------------------
Administrative Trustee
Name:

<PAGE>

                                                                       Exhibit A

                              CERTIFICATE OF TRUST

                                       OF

                          BLUEGREEN STATUTORY TRUST II

            This  Certificate  of Trust  of  Bluegreen  Statutory  Trust II (the
"Trust")  is being  duly  executed  and  filed  on  behalf  of the  Trust by the
undersigned, as trustees, to form a statutory trust under the Delaware Statutory
Trust Act (12 Del. C. ss.3801 et seq.) (the "Act"). --- -- ---

            1. Name. The name of the statutory trust formed by this  Certificate
of Trust is: Bluegreen Statutory Trust II.

            2. Delaware Trustee. The name and business address of the trustee of
the Trust with its  principal  place of business  in the State of  Delaware  are
Wilmington  Trust  Company,  Rodney  Square  North,  1100 North  Market  Street,
Wilmington, Delaware 19890-0001, Attention: Corporate Capital Markets.

            3. Effective Date. This Certificate of Trust shall be effective upon
its filing with the Secretary of State of the State of Delaware.

            IN  WITNESS  WHEREOF,   the  undersigned  have  duly  executed  this
Certificate of Trust in accordance with Section 3811(a)(1) of the Act.

                                 WILMINGTON TRUST COMPANY, not in its individual
                                 capacity, but solely as Property Trustee

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

                                 WILMINGTON TRUST COMPANY, not in its individual
                                 capacity, but solely as Delaware Trustee

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

                                      A-1
<PAGE>

                                                                       Exhibit B

                     [FORM OF COMMON SECURITIES CERTIFICATE]

 THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
        AS AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
 SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
   EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION. THIS CERTIFICATE IS NOT
  TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE
                                 TRUST AGREEMENT

Certificate Number

         C-                                          _________ Common Securities

                    Certificate Evidencing Common Securities

                                       of

                          Bluegreen Statutory Trust II

                                Common Securities

                 (liquidation amount $1,000 per Common Security)

      Bluegreen  Statutory Trust II, a statutory trust created under the laws of
the   State   of    Delaware    (the    "Trust"),    hereby    certifies    that
______________________    (the   "Holder")   is   the   registered    owner   of
____________common   securities  of  the  Trust  representing  undivided  common
beneficial  interests in the assets of the Trust and  designated  the  Bluegreen
Statutory  Trust II Common  Securities  (liquidation  amount  $1,000  per Common
Security) (the "Common  Securities").  Except in accordance with Section 5.11 of
the  Trust  Agreement  (as  defined  below),   the  Common  Securities  are  not
transferable and, to the fullest extent permitted by law, any attempted transfer
hereof  other than in  accordance  therewith  shall be void.  The  designations,
rights, privileges, restrictions,  preferences and other terms and provisions of
the  Common  Securities  are set forth in, and this  certificate  and the Common
Securities represented hereby are issued and shall in all respects be subject to
the terms and  provisions  of, the Amended and Restated  Trust  Agreement of the
Trust,  dated as of May 4, 2005,  as the same may be  amended  from time to time
(the "Trust Agreement"),  among Bluegreen Corporation, as Depositor,  Wilmington
Trust  Company,  as Property  Trustee,  Wilmington  Trust  Company,  as Delaware
Trustee, the Administrative Trustees named therein and the Holders, from time to
time, of Trust Securities.  The Trust will furnish a copy of the Trust Agreement
to the Holder without charge upon written  request to the Trust at its principal
place of business or registered office.

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

                                      B-1
<PAGE>

      This Common  Securities  Certificate shall be governed by and construed in
accordance with the laws of the State of Delaware.

      Terms used but not defined herein have the meanings set forth in the Trust
Agreement.

      IN WITNESS WHEREOF,  one of the  Administrative  Trustees of the Trust has
executed   on  behalf  of  the  Trust   this   certificate   this  ____  day  of
________________.

                                           BLUEGREEN STATUTORY TRUST II

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

                                      B-2
<PAGE>

                                                                       Exhibit C

                   [FORM OF PREFERRED SECURITIES CERTIFICATE]

      "[IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS PREFERRED SECURITY IS
A GLOBAL SECURITY WITHIN THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF THE  DEPOSITORY  TRUST COMPANY  ("DTC") OR A
NOMINEE OF DTC. THIS PREFERRED SECURITY IS EXCHANGEABLE FOR PREFERRED SECURITIES
REGISTERED  IN THE NAME OF A PERSON  OTHER THAN DTC OR ITS  NOMINEE  ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT,  AND NO TRANSFER OF THIS
PREFERRED  SECURITY (OTHER THAN A TRANSFER OF THIS PREFERRED SECURITY AS A WHOLE
BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE  OF DTC TO DTC OR ANOTHER  NOMINEE OF
DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

      UNLESS  THIS   PREFERRED   SECURITY   IS   PRESENTED   BY  AN   AUTHORIZED
REPRESENTATIVE  OF  DTC  TO  BLUEGREEN  STATUTORY  TRUST  II OR  ITS  AGENT  FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY  TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR  OTHERWISE  BY OR TO ANY
PERSON IS WRONGFUL  INASMUCH AS THE REGISTERED OWNER HEREOF,  CEDE & CO., HAS AN
INTEREST HEREIN.]

      THE PREFERRED  SECURITIES  REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY
ISSUED IN A TRANSACTION  EXEMPT FROM  REGISTRATION  UNDER THE  SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES  ACT"),  AND SUCH PREFERRED  SECURITIES OR ANY
INTEREST  THEREIN  MAY NOT BE  OFFERED,  SOLD OR  OTHERWISE  TRANSFERRED  IN THE
ABSENCE  OF  SUCH  REGISTRATION  OR  AN  APPLICABLE  EXEMPTION  THEREFROM.  EACH
PURCHASER OF ANY PREFERRED  SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE
PREFERRED  SECURITIES  MAY BE RELYING ON THE  EXEMPTION  FROM THE  PROVISIONS OF
SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

      THE HOLDER OF THE PREFERRED  SECURITIES  REPRESENTED  BY THIS  CERTIFICATE
AGREES FOR THE BENEFIT OF THE TRUST AND THE  DEPOSITOR  THAT (A) SUCH  PREFERRED
SECURITIES  MAY BE  OFFERED,  RESOLD OR  OTHERWISE  TRANSFERRED  ONLY (I) TO THE
TRUST,  (II) TO A PERSON WHOM THE SELLER  REASONABLY  BELIEVES  IS A  "QUALIFIED
INSTITUTIONAL  BUYER" (AS  DEFINED IN RULE 144A UNDER THE  SECURITIES  ACT) IN A
TRANSACTION  MEETING THE REQUIREMENTS OF RULE 144A, OR (III) TO AN INSTITUTIONAL
"ACCREDITED  INVESTOR"  WITHIN THE MEANING OF SUBPARAGRAPH  (a) (1), (2), (3) OR
(7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE

                                      C-1
<PAGE>

SECURITY FOR ITS OWN  ACCOUNT,  OR FOR THE ACCOUNT OF AN  "ACCREDITED  INVESTOR"
WITHIN THE MEANING OF  SUBPARAGRAPH  (a) (1),  (2),  (3) OR (7) OF RULE 501, 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, IN EACH CASE IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
OR ANY OTHER APPLICABLE  JURISDICTION AND, IN THE CASE OF (III),  SUBJECT TO THE
RIGHT OF THE TRUST AND THE DEPOSITOR TO REQUIRE AN OPINION OF COUNSEL ADDRESSING
COMPLIANCE WITH THE U.S. SECURITIES LAWS, AND OTHER INFORMATION  SATISFACTORY TO
EACH OF THEM AND (B) THE HOLDER  WILL  NOTIFY  ANY  PURCHASER  OF ANY  PREFERRED
SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

      THE PREFERRED  SECURITIES  WILL BE ISSUED AND MAY BE  TRANSFERRED  ONLY IN
BLOCKS HAVING AN AGGREGATE  LIQUIDATION AMOUNT OF NOT LESS THAN $100,000. TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF PREFERRED  SECURITIES
OR ANY INTEREST  THEREIN IN A BLOCK HAVING AN  AGGREGATE  LIQUIDATION  AMOUNT OF
LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS  THEREOF SHALL BE DEEMED TO
BE VOID AND OF NO LEGAL EFFECT  WHATSOEVER.  TO THE FULLEST EXTENT  PERMITTED BY
LAW, ANY SUCH PURPORTED  TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH
PREFERRED SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT
OF LIQUIDATION  AMOUNT OF OR DISTRIBUTIONS  ON SUCH PREFERRED  SECURITIES OR ANY
INTEREST  THEREIN,  AND SUCH  PURPORTED  TRANSFEREE  SHALL BE  DEEMED TO HAVE NO
INTEREST WHATSOEVER IN SUCH PREFERRED SECURITIES.

      THE HOLDER OF THIS  SECURITY  OR ANY  INTEREST  THEREIN BY ITS  ACCEPTANCE
HEREOF  OR  THEREOF  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  PREFERRED
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  OR ANY
INTEREST  THEREIN 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
THE  PREFERRED  SECURITIES  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

                                      C-2
<PAGE>

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 OR HOLDING 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.

                                      C-3
<PAGE>

                                                  _________ Preferred Securities
Certificate Number                         ________ Aggregate Liquidation Amount

                                    CUSIP NO.

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

                   Certificate Evidencing Preferred Securities

                                       of

                          Bluegreen Statutory Trust II

                              Preferred Securities
               (liquidation amount $1,000 per Preferred Security)

      Bluegreen  Statutory Trust II, a statutory trust created under the laws of
the State of Delaware (the "Trust"),  hereby certifies that  ___________________
(the "Holder") is the registered owner of ___________  Preferred  Securities [if
the Preferred Security is a Global Security,  then insert--,or such other number
of Preferred Securities represented hereby as may be set forth in the records of
the Securities  Registrar  hereinafter  referred to in accordance with the Trust
Agreement (as defined below),] of the Trust representing an undivided  preferred
beneficial  interest  in the assets of the Trust and  designated  the  Bluegreen
Statutory Trust II Preferred Securities (liquidation amount $1,000 per Preferred
Security)  (the  "Preferred  Securities").  Subject  to the  terms of the  Trust
Agreement (as defined below),  the Preferred  Securities are transferable on the
books and records of the Trust, in person or by a duly authorized attorney, upon
surrender of this  certificate  duly endorsed and in proper form for transfer as
provided  in  Section  5.7  of the  Trust  Agreement  (as  defined  below).  The
designations, rights, privileges, restrictions,  preferences and other terms and
provisions of the Preferred  Securities  are set forth in, and this  certificate
and the  Preferred  Securities  represented  hereby  are issued and shall in all
respects be subject to the terms and  provisions  of, the  Amended and  Restated
Trust  Agreement  of the  Trust,  dated  as of May 4,  2005,  as the same may be
amended from time to time (the "Trust Agreement"),  among Bluegreen Corporation,
a Massachusetts corporation, as Depositor, Wilmington Trust Company, as Property
Trustee,  Wilmington  Trust Company,  as Delaware  Trustee,  the  Administrative
Trustees named therein and the Holders,  from time to time, of Trust Securities.
The Trust  will  furnish a copy of the Trust  Agreement  to the  Holder  without
charge upon written  request to the Property  Trustee at its principal  place of
business or registered office.

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

      This Preferred  Securities  Certificate shall be governed by and construed
in accordance with the laws of the State of Delaware.

                                      C-4
<PAGE>

      All  capitalized  terms used but not defined in this Preferred  Securities
Certificate  are used  with  the  meanings  specified  in the  Trust  Agreement,
including the Schedules and Exhibits thereto.

      IN WITNESS WHEREOF,  one of the  Administrative  Trustees of the Trust has
executed  on behalf of the Trust  this  certificate  this __ day of  __________,
____.

                                           BLUEGREEN STATUTORY TRUST II

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

      This represents  Preferred  Securities referred to in the within-mentioned
Trust Agreement.

Dated:                                     WILMINGTON TRUST COMPANY, not in its
                                           individual capacity, but solely as
                                           Property Trustee

                                           By:
                                                --------------------------------
                                           Authorized officer

                                      C-5
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

      The Trust promises to pay Distributions from May 4, 2005, or from the most
recent  Distribution Date to which Distributions have been paid or duly provided
for,  quarterly in arrears on January  30th,  April 30th,  July 30th and October
30th of each year,  commencing on July 30, 2005, at a fixed rate per annum equal
to 9.158% of the Liquidation Amount of the Preferred  Securities  represented by
this Preferred  Securities  Certificate  through the Distribution  Date in July,
2010 and a variable rate per annum,  reset quarterly,  equal to LIBOR plus 4.85%
of the  Liquidation  Amount  of the  Preferred  Securities  represented  by this
Preferred  Securities  Certificate,  thereafter,  together  with any  Additional
Interest Amounts, in respect to such period.

      Distributions  on the Trust  Securities  shall be made by the Paying Agent
from the Payment Account and shall be payable on each  Distribution Date only to
the extent  that the Trust has funds then on hand and  available  in the Payment
Account for the payment of such Distributions.

      Distributions  on the Securities  must be paid on the dates payable to the
extent that the Trust has funds available for the payment of such  Distributions
in  the  Payment  Account  of  the  Trust.   The  Trust's  funds  available  for
Distribution  to the  Holders  of the  Preferred  Securities  will be limited to
payments received from the Depositor.

      On each Note  Redemption  Date,  on the  stated  maturity  (or any date of
principal  repayment upon early maturity) of the Notes and on each other date on
(or in respect of) which any principal on the Notes is repaid, the Trust will be
required to redeem a Like Amount of Trust  Securities at the  Redemption  Price.
Under the Indenture,  the Notes may be redeemed by the Depositor on any Interest
Payment Date, at the Depositor's  option,  on or after July 30, 2010 in whole or
in part from time to time at a  redemption  price equal to one  hundred  percent
(100%) of the  principal  amount  thereof or the redeemed  portion  thereof,  as
applicable, together, in the case of any such redemption, with accrued interest,
including  any  Additional  Interest,  to  but  excluding  the  date  fixed  for
redemption.  The Notes may also be redeemed by the Depositor,  at its option, at
any time, in whole but not in part, upon the occurrence of an Investment Company
Event or a Tax Event at the Special Event Redemption Price.

      The Trust Securities redeemed on each Redemption Date shall be redeemed at
the Redemption  Price with the proceeds from the  contemporaneous  redemption or
payment at maturity of Notes.  Redemptions  of the Trust  Securities (or portion
thereof)  shall be made  and the  Redemption  Price  shall  be  payable  on each
Redemption  Date only to the  extent  that the Trust has funds  then on hand and
available in the Payment Account for the payment of such Redemption Price.

      Payments of Distributions (including any Additional Interest Amounts), the
Redemption  Price,  Liquidation  Amount or any other  amounts  in respect of the
Preferred  Securities  shall be made by wire  transfer at such place and to such
account at a banking  institution  in the United  States as may be designated in
writing at least ten (10)  Business  Days  prior to the date for  payment by the
Person entitled  thereto unless proper written  transfer  instructions  have not
been received by the relevant  record date, in which case such payments shall be
made by check mailed to the address of such Person as such address  shall appear
in the Security Register. If any

                                      C-6
<PAGE>

Preferred Securities are held by a Depositary,  such Distributions shall be made
to the Depositary in immediately available funds.

      The indebtedness  evidenced by the Notes is, to the extent provided in the
Indenture,  subordinate  and junior in right of payment to the prior  payment in
full of all Senior  Debt (as  defined in the  Indenture),  and this  Security is
issued subject to the provisions of the Indenture with respect thereto.

                                      C-7
<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED,  the undersigned  assigns and transfers this Preferred
Securities Certificate to:

        (Insert assignee's social security or tax identification number)

                    (Insert address and zip code of assignee)

and irrevocably appoints

agent to transfer  this  Preferred  Securities  Certificate  on the books of the
Trust. The agent may substitute another to act for him or her.

Date:
           -------------------------

Signature:
           ---------------------------------------------------------------------
              (Sign exactly as your name appears on the other side of this
                          Preferred Securities Certificate)

The  signature(s)  should be  guaranteed  by an eligible  guarantor  institution
(banks,  stockbrokers,  savings  and loan  associations  and credit  unions with
membership in an approved signature guarantee  medallion  program),  pursuant to
S.E.C. Rule 17Ad-15.

                                      C-8
<PAGE>

                                                                       Exhibit D

                          Junior Subordinated Indenture

                                      D-1
<PAGE>

                                                                       Exhibit E

                         FORM OF TRANSFEREE CERTIFICATE
                  TO BE EXECUTED BY TRANSFEREES OTHER THAN QIBS

                                                                 __________, [ ]

Bluegreen Corporation
Bluegreen Statutory Trust II
4960 Conference Way N.
Boca Raton, Florida 33431

            Re:  Purchase  of $1,000  stated  liquidation  amount  of  Preferred
      Securities (the "Preferred Securities") of Bluegreen Statutory Trust II

Ladies and Gentlemen:

            In  connection  with our  purchase of the  Preferred  Securities  we
confirm that:

            1. We  understand  that the  Preferred  Securities  (the  "Preferred
Securities")  of  Bluegreen  Statutory  Trust II (the  "Trust")  and the  Junior
Subordinated Notes due 2035 (the "Subordinated  Notes") of Bluegreen Corporation
(the "Company") (the Preferred  Securities and the  Subordinated  Notes together
being referred to herein as the "Offered Securities"),  have not been registered
under the Securities Act of 1933, as amended (the "Securities Act"), and may not
be offered or sold except as permitted in the  following  sentence.  We agree on
our own behalf and on behalf of any investor account for which we are purchasing
the Offered  Securities that, if we decide to offer, sell or otherwise  transfer
any such Offered Securities,  such offer, sale or transfer will be made only (a)
to  the  Trust,  (b)  to  a  person  we  reasonably   believe  is  a  "qualified
institutional buyer" (a "QIB") (as defined in Rule 144 under the Securities Act)
in  a  transaction   meeting  the  requirements  of  Rule  144A  or  (c)  to  an
institutional  "accredited investor" within the meaning of subparagraph (a) (1),
(2), (3) or (7) of Rule 501 under the Securities  Act that is acquiring  Offered
Securities  for  its own  account,  or for the  account  of such an  "accredited
investor," for investment  purposes and not with a view to, or for offer or sale
in connection with, any distribution thereof in violation of the Securities Act,
in each case in accordance  with any applicable  securities laws of any state of
the United States or any other applicable  jurisdiction and, in the case of (c),
subject  to the right of the Trust and the  depositor  to  require an opinion of
counsel  and  other  information  satisfactory  to each of them.  The  foregoing
restrictions  on resale will not apply  subsequent to the date on which,  in the
written  opinion  of  counsel,  the  Preferred  Securities  are not  "restricted
securities"  within the  meaning of Rule 144 under the  Securities  Act.  If any
resale or other  transfer  of the  Offered  Securities  is  proposed  to be made
pursuant to clause (c) above,  the  transferor  shall  deliver a letter from the
transferee  substantially  in the form of this letter to the Property Trustee as
Transfer Agent, which shall provide as applicable,  among other things, that the
transferee is an "accredited  investor"  within the meaning of subparagraph  (a)
(1), (2), (3) or (7) of Rule 501 under the Securities Act that is acquiring such
Securities for investment  purposes and not for distribution in violation of the
Securities  Act.  We  acknowledge  on our behalf  and on behalf of any  investor
account for which we are  purchasing  Securities  that the Trust and the Company
reserve the right prior to any offer,  sale or other transfer pursuant to clause
(c) to require the  delivery of any  opinion of counsel,  certifications  and/or
other

                                      E-1
<PAGE>

information  satisfactory  to the Trust and the Company.  We understand that the
certificates  for any  Offered  Security  that we  receive  will  bear a  legend
substantially to the effect of the foregoing.

            2.  We  are  an   "accredited   investor"   within  the  meaning  of
subparagraph  (a) (1),  (2),  (3) or (7) of Rule 501  under the  Securities  Act
purchasing  for  our  own  account  or for the  account  of such an  "accredited
investor," and we are acquiring the Offered  Securities for investment  purposes
and not with view to, or for offer or sale in connection  with, any distribution
in violation of the Securities Act, and we have such knowledge and experience in
financial  and business  matters as to be capable of  evaluating  the merits and
risks of our  investment in the Offered  Securities,  and we and any account for
which we are  acting  are each  able to bear  the  economic  risks of our or its
investment.

            3. We are acquiring the Offered  Securities  purchased by us for our
own  account (or for one or more  accounts as to each of which we exercise  sole
investment  discretion  and have  authority to make, and do make, the statements
contained in this letter) and not with a view to any distribution of the Offered
Securities,  subject, nevertheless, to the understanding that the disposition of
our property will at all times be and remain within our control.

            4. In the event that we purchase  any  Preferred  Securities  or any
Subordinated  Notes,  we  will  acquire  such  Preferred  Securities  having  an
aggregate  stated   liquidation  amount  of  not  less  than  $100,000  or  such
Subordinated Notes having an aggregate  principal amount not less than $100,000,
for our own account and for each separate account for which we are acting.

            5. We  acknowledge  that we  either  (A)  are not a  fiduciary  of a
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 are
not  purchasing  the Offered  Securities  on behalf of or with "plan  assets" by
reason  of any  Plan's  investment  in the  entity,  (B)  are  eligible  for the
exemptive  relief  available  under  one or  more  of the  following  prohibited
transaction class exemptions  ("PTCEs") issued by the U.S.  Department of Labor:
PTCE 96-23, 95-60, 91-38, 90-1 or 84-14 or another applicable exemption,  or (C)
our  purchase and holding of this  security,  or any  interest  therein,  is not
prohibited  by Section 406 of ERISA or Section  4975 of the Code with respect to
such purchase or holding.

            6. We  acknowledge  that the Trust and the  Company  and others will
rely  upon  the   truth  and   accuracy   of  the   foregoing   acknowledgments,
representations,  warranties  and  agreements  and  agree  that  if  any  of the
acknowledgments,  representations, warranties and agreements deemed to have been
made by our purchase of the Offered Securities are no longer accurate,  we shall
promptly  notify the Company.  If we are acquiring  any Offered  Securities as a
fiduciary or agent for one or more investor accounts,  we represent that we have
sole discretion with respect to each such investor account and that we have full
power to make the foregoing  acknowledgments,  representations  and agreement on
behalf of each such investor account.

                                      E-2
<PAGE>

                                            (Name of Purchaser)

                                            By:
                                                   -----------------------------

                                            Date:
                                                   -----------------------------

            Upon  transfer,  the Offered  Securities  would be registered in the
name of the new beneficial owner as follows.

Name:
         -----------------------------------------

Address:
         -----------------------------------------

Taxpayer ID Number:
                    ------------------------------

                                      E-3
<PAGE>

                                                                       Exhibit F

                         FORM OF TRANSFEROR CERTIFICATE
                             TO BE EXECUTED FOR QIBs

                                                                 __________, [ ]

Bluegreen Corporation
Bluegreen Statutory Trust II
4960 Conference Way N.
Boca Raton, Florida 33431

            Re:   Purchase of $1,000 stated liquidation amount of
                  Preferred Securities (the "Preferred Securities") of Bluegreen
                  Statutory Trust II

      Reference  is hereby made to the Amended and Restated  Trust  Agreement of
Bluegreen  Statutory Trust II, dated as of May 4, 2005 (the "Trust  Agreement"),
among  George F.  Donovan  and  Anthony M. Puleo,  as  Administrative  Trustees,
Wilmington Trust Company,  as Delaware  Trustee,  Wilmington  Trust Company,  as
Property Trustee, Bluegreen Corporation, as Depositor, and the holders from time
to time of undivided  beneficial  interests in the assets of Bluegreen Statutory
Trust II.  Capitalized terms used but not defined herein shall have the meanings
given them in the Trust Agreement.

      This letter  relates to  $________________________  aggregate  liquidation
amount of Preferred  Securities which are held in the name of _____________ (the
"Transferor").

      In accordance with Article V of the Trust Agreement, the Transferor hereby
certifies  that such Preferred  Securities  are being  transferred in accordance
with (i) the transfer  restrictions  set forth in the Preferred  Securities  and
(ii) Rule 144A under the Securities Act ("Rule 144A"),  to a transferee that the
Transferor  reasonably  believes is purchasing the Preferred  Securities for its
own account or an account with respect to which the  transferee  exercises  sole
investment  discretion  and the  transferee and any such account is a "qualified
institutional  buyer" within the meaning of Rule 144A, in a transaction  meeting
the requirements of Rule 144A and in accordance with applicable  securities laws
of any state of the United States or any other jurisdiction.

      You are entitled to rely upon this letter and are  irrevocably  authorized
to  produce  this  letter  or a copy  hereof  to  any  interested  party  in any
administrative  or legal  proceeding  or official  inquiry  with  respect to the
matters covered hereby.

                                          (Name of Transferor)

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

                                      F-1
<PAGE>

                                                                       Exhibit G

                     Form of Officer's Financial Certificate

      The   undersigned,   the  [Chief   Financial   Officer/Treasurer/Assistant
Treasurer/ Secretary/ Assistant Secretary, Chairman/ViceChairman/Chief Executive
Officer/President/Vice  President] hereby certifies, pursuant to Section 8.16(b)
of the Amended and Restated Trust  Agreement,  dated as of May 4, 2005, that, as
of [date],  [20__],  the  Company  had the  following  ratios and  balances on a
consolidated basis:

As of [Quarterly/Annual Financial Date]

Senior secured indebtedness for borrowed money ("Debt")                  $_____

Senior unsecured Debt                                                    $_____

Subordinated Debt                                                        $_____

Total Debt                                                               $_____

Ratio of (x) senior secured and unsecured Debt to (y) total Debt          _____%

[FOR FISCAL YEAR END:  Attached  hereto are the audited  consolidated  financial
statements  (including the balance sheet, income statement and statement of cash
flows,  and  notes  thereto,   together  with  the  report  of  the  independent
accountants  thereon) of the Company and its  consolidated  subsidiaries for the
three years ended [date], 20__.]

[FOR FISCAL  QUARTER END:  Attached  hereto are the unaudited  consolidated  and
consolidating  financial  statements  (including  the  balance  sheet and income
statement)  of the  Company  and its  consolidated  subsidiaries  for the fiscal
quarter ended [date], 20__.]

      The  financial  statements  fairly  present in all material  respects,  in
accordance with U.S.  generally accepted  accounting  principles  ("GAAP"),  the
financial  position of the Company and its  consolidated  subsidiaries,  and the
results of operations and changes in financial condition as of the date, and for
the [quarter] [annual] period ended [date],  20__, and such financial statements
have been prepared in accordance with GAAP consistently  applied  throughout the
period involved (expect as otherwise noted therein).

                                      G-1
<PAGE>

      IN WITNESS WHEREOF,  the undersigned has executed this Officer's Financial
Certificate as of this _____ day of _____________, 20__.

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

                                              Bluegreen Corporation
                                              4960 Conference Way N.
                                              Boca Raton, Florida 33431
                                              561-912-8270

                                      G-2
<PAGE>

                                                                      Schedule A

      With respect to the Trust  Securities,  the London interbank  offered rate
("LIBOR")  shall be determined by the  Calculation  Agent in accordance with the
following provisions (in each case rounded to the nearest .000001%):

(1) On the second LIBOR  Business Day (as defined below) prior to a Distribution
Date (each such day, a "LIBOR Determination Date"), LIBOR for any given security
shall, for the following distribution period, equal the rate, as obtained by the
Calculation  Agent  from  Bloomberg  Financial  Markets  Commodities  News,  for
three-month U.S. Dollar deposits in Europe,  which appears on Dow Jones 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 Page 3750,  as of 11:00 a.m.  (London  time) on such LIBOR
Determination Date.

(2) If, on any LIBOR  Determination Date, such rate does not appear on Dow Jones
Telerate  Page  3750 or such  other  page as may  replace  such 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 such arithmetic mean of such  quotations.  If, on any LIBOR  Determination
Date,  only one or none of the Reference  Banks provide such  quotations,  LIBOR
shall be deemed to be the arithmetic mean of the offered quotations that leading
banks in the City of New York selected by the  Calculation  Agent are quoting on
the relevant LIBOR  Determination  Date for three-month  U.S. Dollar deposits in
Europe in an amount  determined  by the  Calculation  Agent by  reference to the
principal  London  offices of  leading  banks in the  London  interbank  market;
provided, that 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 as determined on the previous LIBOR Determination Date.

(3) As used  herein:  "Reference  Banks"  means four  major  banks in the London
interbank  market  selected by the Calculation  Agent;  and "LIBOR Business Day"
means a day on which commercial banks are open for business  (including dealings
in foreign exchange and foreign currency deposits) in London.

                                  Schedule A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}]]