Document:

exv10w5

 

Exhibit 10.5

EMPLOYMENT AGREEMENT

Gary N. Jacobs

This Employment Agreement (this “Agreement”) is entered into as of September 16, 2005, (the
“Effective Date”) by and between MGM MIRAGE (“Employer”, “we” or “us”), and Gary N. Jacobs
(“Employee” or “you”).

	1.	 	Employment. We hereby employ you, and you hereby accept employment by us, as our
Executive Vice President, General Counsel and Secretary of MGM MIRAGE to perform such
executive, managerial or administrative duties as we may specify from time to time during the
Specified Term (as defined in Section 2). In construing the provisions of this Agreement, the
term “Employer”, “we” or “us” includes all of our subsidiary, parent and affiliated companies,
but specifically excludes Tracinda Corporation, its stockholder or stockholders, and its
subsidiaries.
	 
	2.	 	Term. The term of your employment under this Agreement commences on the Effective
Date and it terminates on January 4, 2010 (the “Specified Term”). Unless a new written
employment agreement is executed by the parties, upon the expiration of the Specified Term,
all terms and conditions of this Agreement will continue, except that the new Specified Term
of the Agreement shall be three (3) months, which shall renew for successive three (3) month
periods on each successive three (3) month anniversary, if the Agreement is not otherwise
terminated pursuant to its terms. This Agreement replaces and supersedes in all respects the
Employment Agreement between you and us dated June 1, 2002 (the “Prior Agreement”).
	 
	3.	 	Compensation. During the Specified Term, we shall pay you a minimum annual salary of
$700,000, which is unchanged from the Prior Agreement payable in arrears at such frequencies
and times as we pay our other employees. You are also eligible to receive generally
applicable fringe benefits commensurate with our employees in the most senior executive
positions. We will also reimburse you for all reasonable business and travel expenses you
incur in performing your duties under this Agreement, payable in accordance with our customary
practices and policies, as we may modify and amend them from time to time. You shall be
entitled to an annual bonus (“Bonus”) determined under our Annual Performance-Based Incentive
Plan for Executive Officers, or any successor plan (the “Bonus Plan”), with your participation
to be determined on a pro rata basis to the extent the termination date of this Agreement does
not coincide with the end of our fiscal year (such Bonus shall be paid at such time as we pay
Bonuses under the Bonus Plan to our other senior executives with respect to such fiscal year,
but not later than March 31 following the end of such fiscal year). You shall also be
eligible to receive additional bonuses as determined by us in our sole and absolute
discretion.
	 
	4.	 	Extent of Services. You agree that your employment by us is full time and exclusive.
You further agree to perform your duties in a competent, trustworthy and businesslike manner.
You agree that during the Specified Term, you will not render any services of any kind
(whether or not for compensation) for any person or entity other than us, and that you will
not engage in any other business activity (whether or not for compensation) that is similar to
or conflicts with your duties under this Agreement, without the approval of the Board of
Directors of MGM

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MIRAGE or the person or persons designated by the Board of Directors to determine such
matters. Subject to the above-referenced discretion of the Board of Directors, it is
understood that you may continue to serve in the capacities specified on Exhibit B hereto.

	5.	 	Policies and Procedures. You agree and acknowledge that you are bound by our
policies and procedures as they may be modified and amended by us from time to time. In the
event the terms in this Agreement conflict with our policies and procedures, the terms of this
Agreement shall take precedence. As you are aware, problem gaming and underage gambling can
have adverse effects on individuals and the gaming industry as a whole. You acknowledge that
you have read and are familiar with our policies, procedures and manuals and agree to abide by
them. Because these matters are of such importance to us, you specifically confirm that you
are familiar with and will comply with our policies of prohibiting underage gaming, supporting
programs to treat compulsive gambling and promoting diversity in all aspects of our business.
	 
	6.	 	Licensing Requirements. You acknowledge that we are engaged in a business that is or
may be subject to and exists because of privileged licenses issued by governmental authorities
in Nevada, New Jersey, Michigan, Mississippi, Illinois, Macau S.A.R., the United Kingdom, and
other jurisdictions in which we are engaged in a gaming business or where we have applied to
(or during the Specified Term may apply to) engage in a gaming business. You shall apply for
and obtain any license, qualification, clearance or other similar approval which we or any
regulatory authority which has jurisdiction over us requests or requires that you obtain.
	 
	7.	 	Failure to Satisfy Licensing Requirement. We have the right to terminate your
employment under Section 10.1 of this Agreement if: (i) you fail to satisfy any licensing
requirement referred to in Section 6 above; (ii) we are directed to cease business with you by
any governmental authority referred to in Section 6 above; (iii) we determine, in our
reasonable judgment, that you were, are or might be involved in, or are about to be involved
in, any activity, relationship(s) or circumstance which could or does jeopardize our business,
reputation or such licenses; or (iv) any of our licenses is threatened to be, or is, denied,
curtailed, suspended or revoked as a result of your employment by us or as a result of your
actions.
	 
	8.	 	Restrictive Covenants

	 	8.1	 	Competition. You acknowledge that, in the course of performing your
responsibilities under this Agreement, you will form relationships and become
acquainted with Confidential Information. You further acknowledge that such
relationships and the Confidential Information are valuable to us, and the
restrictions on your future employment contained in this Agreement, if any, are
reasonably necessary in order for us to remain competitive in our various businesses.
In consideration of this Agreement and the compensation payable to you under this
Agreement, and in recognition of our heightened need for protection from abuse of
relationships formed or Confidential Information garnered before and during the
Specified Term of this Agreement, you covenant and agree that, except as otherwise
explicitly provided in Section 10 of this Agreement, if you are not employed by us for
the entire Specified Term, then during the entire Restrictive Period you shall not
directly or indirectly be employed by, provide consultation or other services to,
engage in, participate in or

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otherwise be connected in any way (other than through passive ownership of 1% or
less of the outstanding voting securities) with any Competitor. The terms
“Confidential Information,” “Restrictive Period” and “Competitor” are defined in
Section 23. Your obligations during the Specified Term and Restrictive Period
under this Section 8.1 include but are not limited to the following:

	 	8.1.1	 	You will not make known to any third party the names and
addresses of any of our customers, or any other information pertaining to
those customers.
	 
	 	8.1.2	 	You will not call on, solicit and/or take away, or attempt
to call on, solicit and/or take away, any of our customers, either for your
own account or for any third party.
	 
	 	8.1.3	 	You will not call on, solicit and/or take away, any of our
potential or prospective customers, on whom you called or with whom you became
acquainted during employment by us (either before or during the Specified
Term), either for your own account or for any third party.
	 
	 	8.1.4	 	You will not approach or solicit any of our employees with a
view towards enticing such employee to leave our employ to work for you or for
any third party, or hire any of our employees, without our prior written
consent, which we may give or withhold in our sole discretion.

	 	8.2	 	Confidentiality. You further covenant and agree that you will not at
any time during or after the Specified Term, without our prior written consent,
disclose to any other person or business entities any Confidential Information or
utilize any Confidential Information in any way, including communications with or
contact with any of our customers or other persons or entities with whom we do
business, other than in connection with your employment hereunder.
	 
	 	8.3	 	Employer’s Property. You hereby confirm that the Confidential
Information constitutes our sole and exclusive property (regardless of whether you
possessed or claim to have possessed any of such Confidential Information prior to the
date hereof). You agree that upon termination of your active employment with us, you
will promptly return to us all notes, notebooks, memoranda, computer disks, and any
other similar repositories of Confidential Information (regardless of whether you
possessed such Confidential Information prior to the date hereof) containing or
relating in any way to the Confidential Information, including but not limited to the
documents referred to on Exhibit A hereto. Such repositories of Confidential
Information also include but are not limited to any so-called personal files or other
personal data compilations in any form, which in any manner contain any Confidential
Information.
	 
	 	8.4	 	Notice to Employer. You agree to notify us immediately of any other
persons or entities for whom you work or provide services during the Specified Term or
within the Restrictive Period. You further agree to promptly notify us, during the
Specified Term, of any contacts made by

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any gaming licensee which concern or relate to an offer to employ you or for you to
provide consulting or other services.

	9.	 	Representation and Additional Agreements. You hereby represent, warrant and agree
that:

	 	9.1	 	The covenants and agreements contained in Sections 4 and 8 above are
reasonable in their geographic scope, duration and content; our agreement to employ
you and a portion of the compensation and consideration we have agreed to pay you
under Section 3 of this Agreement, are in partial consideration for such covenants and
agreements; you agree that you will not raise any issue of the reasonableness of the
geographic scope, duration or content of such covenants and agreements in any
proceeding to enforce such covenants and agreements, and such covenants and agreements
shall survive the termination of this Agreement;
	 
	 	9.2	 	The enforcement of any remedy under this Agreement will not prevent you from
earning a livelihood, because your past work history and abilities are such that you
can reasonably expect to find work in other areas and lines of business;
	 
	 	9.3	 	The covenants and agreements stated in Sections 4, 6, 7 and 8 of this
Agreement are essential for our reasonable protection;
	 
	 	9.4	 	We have reasonably relied on your representations, warranties and agreements,
including those set forth in this Section 9; and
	 
	 	9.5	 	You have the full right to enter into this Agreement and by entering into and
performance of this Agreement, you will not violate or conflict with any arrangements
or agreements you may have with any other person or entity.
	 
	 	9.6	 	You agree that in the event of your breach of any covenants and agreements
set forth in Sections 4 and 8 above, we may seek to enforce such covenants and
agreements through any equitable remedy, including specific performance or injunction,
without waiving any claim for damages. In any such event, you waive any claim that we
have an adequate remedy at law.

	10.	 	Termination.

	 	10.1	 	Employer’s Good Cause Termination. We have the right to terminate
this Agreement at any time during the Specified Term hereof for Employer’s Good Cause
(which term is defined in Section 23). Upon any such termination, we will have no
further liability or obligations whatsoever to you under this Agreement except as
provided under Sections 10.1.1, 10.1.2, and 10.1.3 below.

	 	10.1.1	 	In the event Employer’s Good Cause termination is the result of your death
during the Specified Term, your beneficiary (as designated by you on our
benefit records) will be entitled to receive (x) your salary through your
death (to the extent not previously paid) and for a twelve (12) month period
following your death,

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such amount to be paid at regular payroll intervals, (y) any Bonus
attributable to our most recently completed fiscal year to the extent not
previously paid (determined through application of the Bonus formula with
respect to such year on a non-discretionary basis), and (z) an additional
amount equal to what your Bonus would have been for the fiscal year in
which your death occurs (determined through application of the Bonus
formula with respect to such year on a non-discretionary basis), pro rated
through the date of your death. Such Bonuses shall be paid to your
beneficiary at such time as we pay Bonuses to our other senior executives
with respect to such fiscal year (but not later than March 31 following
the end of the applicable fiscal year).

	 	10.1.2	 	In the event Employer’s Good Cause termination is the result of your
Disability (which term is defined in Section 23), we will pay you or your
beneficiary in the event of your death during the period in which payments are
being made (x) your salary through the date of termination (to the extent not
previously paid), and for an additional twelve (12) month period following the
date of termination, such amount to be paid at regular payroll intervals, net
of payments received by you from any short term disability policy which is
either self-insured by us or the premiums of which were paid by us (and not
charged as compensation to you), (y) any Bonus attributable to our most
recently completed fiscal year to the extent not previously paid (determined
through application of the Bonus formula with respect to such year on a
non-discretionary basis), and (z) an additional amount equal to what your
Bonus would have been for the fiscal year in which your termination occurs
(determined through application of the Bonus formula with respect to such year
on a non-discretionary basis), pro rated through the date of termination.
Such Bonuses shall be paid at such time as we pay Bonuses to our other senior
executives with respect to the fiscal year in which your termination occurs
(but not later than March 31 following the end of the applicable fiscal year).
	 
	 	10.1.3	 	You or your beneficiary will be entitled to exercise your vested but
unexercised stock options, if any, as of the date of termination to acquire
Company stock, upon compliance with all of the terms and conditions required
to exercise such options and to such stock as has vested pursuant to the
Restricted Stock Plan without regard to any deferred vesting provisions
arising out of your senior employment status, and, if Employer’s Good Cause
termination is the result of your death or disability during the Specified
Term, you or your beneficiary (as applicable) shall be entitled to exercise
such additional stock options as would have been vested as of the first
anniversary of the date of termination, upon compliance with all of the terms
and conditions required to exercise such options, and to all of your
restricted stock pursuant to the Restricted Stock Plan without regard to any
deferred vesting provisions.

	 	10.2	 	Employer’s No Cause Termination. We have the right to terminate this
Agreement on written notice to you in our sole discretion for any cause we deem
sufficient or for no cause, at any time during the Specified Term. Upon such
termination, our sole liability to you shall be as follows:

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	 	10.2.1	 	We will treat you as an inactive employee through the Specified Term and (i)
pay your salary for the period remaining in the Specified Term, (ii) pay your
Bonus (or Bonuses) through the Restrictive Period, and (iii) maintain you as a
participant in all health and insurance programs in which you and your
dependents, if applicable, are then participating (as such programs may be
changed by us from time to time for its employees in positions comparable to
yours and subject to satisfying the eligibility requirements of such programs
to the extent imposed by third party providers) through the first to occur of
(x) the end of the Specified Term or (y) the date on which you become eligible
to receive equivalent health and/or insurance benefits, as applicable from a
new employer. However, you would not be eligible for flex or vacation time,
discretionary bonus or new stock option grants, but (subject to Section 10.5.1
of this Agreement, if applicable) you would continue to vest previously
granted stock options and restricted stock, if any, and to receive continued
Employer contributions to and vesting of benefits in the Supplemental
Executive Retirement Plans (“SERP I” and “SERP II”) and Deferred Compensation
Plans (“DCP I” AND “DCP II”) for the inactive status or the remaining period
of the Specified Term so long as you remain in inactive status for such
period; and
	 
	 	10.2.2	 	You will be entitled to exercise your vested but unexercised stock options,
if any, to acquire Company stock while you are on inactive status and upon
termination of your inactive status, upon your compliance with all of the
terms and conditions required to exercise such options.
	 
	 	10.2.3	 	In determining your Bonus (or Bonuses) for the period through the
Restrictive Period, the Bonus formula applicable to you will be no less
favorable than the Bonus formula which was applicable to you for the fiscal
year in which your termination occurred, provided however that application of
the Bonus formula with respect to you shall be on a non-discretionary basis
(except to the extent all participants in the Bonus Plan are treated in an
identical fashion with respect to their Bonuses). Such Bonuses shall be paid
at such time as we pay Bonuses to our other senior executives with respect to
such fiscal year or years (but not later than March 31 following the end of
the applicable fiscal year). In the event: (x) your employment terminates
pursuant to Section 10.2 following a Change of Control (as defined), or (y) in
any fiscal year during which or after you are terminated pursuant to Section
10.2, bonuses are paid to senior executives outside of the Bonus Plan, your
Bonuses shall not be subject to reduction through operation of the
parenthetical in the first sentence of this Section 10.2.3.

Upon any such termination, you will continue to be bound by the restrictions in
Section 8 above. Notwithstanding anything herein to the contrary, while you are in
an inactive status, you may be employed by or provide consultation services to a
non-Competitor, provided that we will be entitled to offset the compensation being
paid by us during the Specified Term by the compensation and/or consultant’s fees
being paid to you, and provided further, that we will not be required to continue
to

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provide benefits to the extent that you are entitled to receive benefits from a
third party. In addition, at any time after the end of the Restrictive Period, if
you are in an inactive status, you may notify us in writing that you desire to
terminate your inactive status (an “Employee Inactive Termination Notice”) and
immediately thereafter we will have no further liability or obligations to you,
except under Section 10.2.2 above.

	 	10.3	 	Employee’s Good Cause Termination. You may terminate this Agreement
for Employee’s Good Cause (which term is defined in Section 23). Prior to any
termination under this Section 10.3 being effective, you agree to give us thirty (30)
days’ advance written notice specifying the facts and circumstances of our alleged
breach. During such thirty (30) day period, we may either cure the breach (in which
case your notice will be considered withdrawn and this Agreement will continue in full
force and effect) or declare that we dispute that Employee’s Good Cause exists, in
which case this Agreement will continue in full force until the dispute is resolved in
accordance with Section 11. In the event this Agreement is terminated under this
Section 10.3, you will be treated as if you had been terminated pursuant to Section
10.2 and shall be entitled to all the compensation and benefits provided for therein.
	 
	 	10.4	 	Employee’s No Cause Termination. In the event you terminate your
employment under this Agreement without cause, we will have no further liability or
obligations whatsoever to you hereunder, except that you will be entitled to (i)
exercise your vested but unexercised stock options, if any, to acquire Company stock
upon your compliance with all the terms and conditions required to exercise such
options (ii) all salary through the date of termination, (iii) any Bonus attributable
to our most recently completed fiscal year to the extent not previously paid
(determined in accordance with the Plan, including the exercise of discretion by the
committee administering such Plan which may reduce or eliminate such bonus) and (iv)
all other vested benefits; provided, however, that we will be entitled to all of our
rights and remedies by reason of such termination, including without limitation, the
right to enforce the covenants and agreements contained in Section 8 and our right to
recover damages.
	 
	 	10.5	 	Change in Control. In the event there is a Change in Control of
Company (which term is defined in Section 23), then:

	 	10.5.1	 	All of your unvested stock options and restricted stock shall become fully
vested and exercisable without regard to any deferral of vesting of restricted
stock arising out of your status as a senior executive.
	 
	 	10.5.2	 	If the Change of Control results from an exchange of outstanding common
stock as a result of which the common stock of MGM MIRAGE is no longer
publicly held, then all your options to purchase common stock of MGM MIRAGE
will be exercisable for the consideration (cash, stock or otherwise) which the
holders of MGM MIRAGE common stock received in such exchange. For example, if
immediately prior to the Effective Date, you had vested and exercisable
options to acquire 5,000 shares of MGM MIRAGE’s common stock and the exchange
of stock is one share of common stock of MGM MIRAGE for two shares of common
stock of the acquiring entity, then your options will be converted

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into options to acquire, upon payment of the exercise price, 10,000 shares
of the acquiring entity’s common stock. If, in addition, you had unvested
stock options, each option would become immediately vested and on exercise
and payment of the exercise price, entitle you to receive two shares of
the acquiring company’s common stock.

	 	10.5.3	 	If the Change of Control results from a sale of MGM MIRAGE’s outstanding
common stock for cash with the result that MGM MIRAGE’s common stock is no
longer publicly held, then upon the Change of Control, all of your options to
purchase common stock of MGM MIRAGE will become vested and immediately
exercisable for cash equal to the difference between the purchase price and the
exercise price for the options. For example, if immediately prior to the
Change in Control, you have options to acquire 2,000 shares of MGM MIRAGE’s
common stock at an exercise price of $35, and the purchase price for MGM MIRAGE
common stock was $40, then upon the exercise of such options you would be
entitled to receive $10,000 in full satisfaction of such options (2,000 shares
times $5 per share). If, in addition, you had unvested stock options, those
options would become vested and immediately exercisable and on exercise, you
would be entitled to receive $5, net of applicable taxes, for each option in
full satisfaction of that option.
	 
	 	10.5.4	 	You shall have the right to terminate your employment upon thirty (30) days
notice to us, provided that such notice must be given by you to us no later
than ninety (90) days following the Change of Control (and may be given to us
prior to the Change of Control conditional upon occurrence of the Change of
Control). Upon any such termination pursuant to this Section 10.5.4 (i) we
shall pay you in a lump sum an amount equal to the sum of (x) your unpaid
salary through the end of the Specified Term, and (y) an amount in lieu of
your Bonuses through the end of the Specified Term (such amount to be
determined by computing your actual Bonus, whether previously paid or accrued,
for the most recently completed fiscal year of the Company (and if accrued,
your Bonus shall not be subject to reduction through operation of the
parenthetical in the first sentence of Section 10.2.3), dividing such Bonus
(whether previously paid or accrued) by twelve, and multiplying such amount by
the number of months in the Specified Term for which you have not been paid
your Bonus, pro-rated for any partial month); (ii) we shall contribute, for
the benefit of your SERP II and DCP II accounts, amounts determined based on
your aggregate salary through the end of the Specified Term as referred to in
clause (i)(x) above; (iii) we shall maintain you as a participant in all
health and insurance programs in which you and your dependents, if applicable,
are then participating (as such programs may be changed by us from time to
time for its employees in positions comparable to yours and subject to
satisfying the eligibility requirements of such programs to the extent imposed
by third party providers) through the first to occur of (x) the end of the
Specified Term or (y) the date on which you become eligible to receive
equivalent health and/or insurance benefits, as applicable from a new
employer; and (iv) you shall be released from your

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obligations pursuant to Section 8.1. We will cooperate with you,
consistent with applicable law, to minimize excise tax, if any, pursuant
to Internal Revenue Code 4999 (or any successor provision) which may arise
as a consequence of the foregoing.

	 	10.6	 	Survival of Covenants. Notwithstanding anything contained in this
Agreement to the contrary, except as specifically provided in Section 10.3 with
respect to the undertaking contained in Section 8.1, the covenants and agreements
contained in Section 8 will survive a termination of this Agreement or of your
employment, regardless of the reason for such termination.
	 
	 	10.7	 	Acknowledgement Concerning Options. The parties acknowledge that the
provisions contained herein with respect to stock options are only applicable to stock
options, if any, which are granted to you contemporaneously with, or after the date of
this Agreement. With respect to any other stock options, if any, granted to you prior
to the date of this Agreement, such provisions herein shall not be applicable and the
provisions originally governing such stock options shall remain in full force and
effect and shall not be altered by this Agreement. Notwithstanding the foregoing, the
parties affirm that the provisions contained in this Agreement with respect to stock
options are substantially identical to those contained in the Prior Agreement.

	11.	 	Disputed Claim/Arbitration. In the event of any Disputed Claim (such term in defined
in Section 23), such Disputed Claim shall be resolved by arbitration administered by the
American Arbitration Association under its National Rules for the Resolution of Employment
Disputes (or its then equivalent). Any arbitration under this Section 11 shall take place in
Las Vegas, Nevada. Unless and until the arbitration process is finally resolved in your favor
and we thereafter fail to satisfy such award within thirty (30) days of its entry, no
Employee’s Good Cause exists for purposes of your termination rights pursuant to Section 10.3
with respect to such Disputed Claim. Nothing herein shall preclude or prohibit us from
invoking the provisions of Section 10.2, or of our seeking or obtaining injunctive or other
equitable relief. In the event of a purported termination by us pursuant to Section 10.1 or by
you under Section 10.3 which is disputed by the other, if you prevail in the arbitration, you
shall not be entitled to reinstatement, but shall be entitled to the Termination Benefits. To
the extent we shall not have paid Termination Benefits during the period of such dispute and
you are the prevailing party in such arbitration, in addition to any other award, you shall be
entitled to interest at a rate equal to our blended cost of funds during such period.
	 
	12.	 	Severability. If any provision hereof is unenforceable, illegal, or invalid for any
reason whatsoever, such fact shall not affect the remaining provisions of this Agreement,
except in the event a law or court decision, whether on application for declaration, or
preliminary injunction or upon final judgment, declares one or more of the provisions of this
Agreement that impose restrictions on you unenforceable or invalid because of the geographic
scope or time duration of such restriction. In such event, you and we agree that the
invalidated restrictions are retroactively modified to provide for the maximum geographic
scope and time duration which would make such provisions enforceable and valid. This Section
12 does not limit our rights to seek damages or such additional relief as may be allowed by
law and/or equity in respect to any breach by you of the enforceable provisions of this
Agreement.

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	13.	 	Travel and Related Matters. During the Specified Term, it is anticipated that you
will be required to travel extensively on behalf of us. Such travel, if by air, may be on
aircraft provided by us (if authorized by the Chief Executive Officer), or if commercial
airlines are used, on a first-class basis (or best available basis, if first class is not
available).
	 
	14.	 	Attorneys’ Fees. In the event suit is brought to enforce, or to recover damages
suffered as a result of breach of this Agreement the prevailing party shall be entitled to
recover its reasonable attorneys’ fees and costs of suit.
	 
	15.	 	No Waiver of Breach or Remedies. No failure or delay on the part of you or us in
exercising any right, power or remedy hereunder shall operate as a waiver thereof nor shall
any single or partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy hereunder. The
remedies herein provided are cumulative and not exclusive of any remedies provided by law.
	 
	16.	 	Amendment or Modification. No amendment, modification, termination or waiver of any
provision of this Agreement shall be effective unless the same shall be in writing and signed
by you and a duly authorized member of our senior management. No consent to any departure by
you from any of the terms of this Agreement shall be effective unless the same is signed by a
duly authorized member of our senior management. Any such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.
	 
	17.	 	Governing Law. The laws of the State of Nevada shall govern the validity,
construction and interpretation of this Agreement, and except for Disputed Claims, the courts
of the State of Nevada shall have exclusive jurisdiction over any claim with respect to this
Agreement.
	 
	18.	 	Number and Gender. Where the context of this Agreement requires the singular shall
mean the plural and vice versa and references to males shall apply equally to females and vice
versa.
	 
	19.	 	Headings. The headings in this Agreement have been included solely for convenience
of reference and shall not be considered in the interpretation or construction of this
Agreement.
	 
	20.	 	Assignment. This Agreement is personal to you and may not be assigned by you.
	 
	21.	 	Successors and Assigns. This Agreement shall be binding upon our successors and
assigns.
	 
	22.	 	Prior Agreements. This Agreement shall supersede and replace any and all other
employment agreements which may have been entered into by and between the parties. Any such
prior employment agreements shall be of no force and effect.
	 
	23.	 	Certain Definitions. As used in this Agreement:

“Change of Control” shall mean the first to occur of any of the following events:

	 	(1)	 	Any “person” or “group” of persons (as such terms are used in
§13 and 14(d)(2) of the Securities Exchange Act of 1934, as amended

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(the “Exchange Act”)), other than the Company’s principal stockholder as
reflected in the Company’s Proxy Statement dated March 29, 2002 (the
“Principal Stockholder”), the Principal Stockholder’s sole shareholder,
members of the immediate family, as well as the heirs and legatees, of the
Principal Stockholder’s sole shareholder and trusts or other entities for
the benefit of such persons or affiliates of such persons (as such term
“affiliates” is defined in the rules promulgated by the Securities and
Exchange Commission) (the “Principal Stockholder Group”), becomes the
beneficial owner (as that term is used in §13(d) of the Exchange Act),
directly or indirectly, of fifty percent (50%) or more of the Company’s
capital stock entitled to vote generally in the election of directors.
(For the avoidance of doubt, as of the date hereof, the Principal
Stockholder Group is the beneficial owner of fifty percent (50%) or more
of the Company’s capital stock);

	 	(2)	 	At any time, individuals who, at the date of this Agreement,
constitute the Board of Directors of the Company, and any new director whose
election by the Board or nomination for election by the Company’s stockholders
was approved by a vote of in excess of seventy five percent (75%) either (1)
the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so
approved, or (2) the members of the Company’s Executive Committee then still
in office who either were members at the beginning of the period or whose
election or nomination for election to the Executive Committee was previously
so approved by the directors or the Executive Committee, cease for any reason
to constitute at least a majority of the Board;
	 
	 	(3)	 	Any consolidation or merger of the Company, other than a
consolidation or merger of the Company in which the holders of the Stock
immediately prior to the consolidation or merger hold more than fifty percent
(50%) of the Stock of the surviving corporation immediately after the
consolidation or merger;
	 
	 	(4)	 	Any liquidation or dissolution of the Company; or
	 
	 	(5)	 	The sale or transfer of all or substantially all of the
assets of the Company to parties that are not within a “controlled group of
corporations” (as defined in Internal Revenue Code §1563) in which the Company
is a member.

“Company” means MGM MIRAGE.

“Competitor” means any person, corporation, partnership, limited liability company or other
entity which is either directly, indirectly or through an affiliated company, engaged in
gaming or proposes to engage in gaming in the State of

11

 

Nevada, or in or within a 150 mile radius of any other jurisdiction in which Employer is
engaged in gaming or proposes to engage in gaming.

“Confidential Information” means all knowledge, know-how, information, devices or
materials, whether of a technical or financial nature, or otherwise relating in any manner
to the business affairs of Employer, including without limitation, names and addresses of
Employer’s customers, any and all other information concerning customers who utilize the
goods, services or facilities of any hotel and/or casino owned, operated or managed by
Employer, Employer’s casino, hotel, retail, entertainment and marketing practices,
procedures, management policies, any trade secret, including but not limited to any
formula, pattern, compilation, program, device, method, technique or process, that derives
economic value, present or potential, from not being generally known to, and not being
readily ascertainable by proper means by, other persons who can obtain any economic value
from its disclosure or use, and any other information regarding the Employer which is not
already and generally known to the public, whether or not any of the foregoing is subject
to or protected by copyright, patent, trademark, registered or unregistered design, and
whether disclosed or communicated (in writing or orally) before, on or after the date of
this Agreement, by Employer to Employee. Confidential Information shall also specifically
include, without limitation, those documents and reports set forth on Exhibit A attached
hereto and incorporated herein by this reference.

“Disputed Claim” means that Employee maintains pursuant to Section 10.3 that Employer has
breached its duty to Employee and Employer has denied such breach.

“Employee’s Good Cause” shall mean (i) the failure of Employer to pay Employee any
compensation when due, save and except a Disputed Claim to compensation; or (ii) a material
reduction in the scope of duties or responsibilities of Employee or any reduction in
Employee’s salary save and except a Disputed Claim.

“Employee’s Physician” shall mean a licensed physician selected by Employee for purposes of
determining Employee’s disability pursuant to the terms of this Agreement.

“Employer’s Good Cause” shall mean:

	 	(1)	 	Employee’s death or disability; disability is hereby defined to include
incapacity for medical reasons certified to by Employer’s Physician which precludes
the Employee from performing the essential functions of Employee’s duties hereunder
for a substantially consecutive period of six (6) months or more. (In the event
Employee disagrees with the conclusions of Employer’s Physician, Employee (or
Employee’s representative) shall designate an Employee’s Physician, and Employer’s
Physician and Employee’s Physician shall jointly select a third physician, who shall
make the determination);
	 
	 	(2)	 	Employee’s failure to abide by Employer’s policies and procedures,
misconduct, insubordination, inattention to Employer’s business, failure to perform
the duties required of Employee up to the standards established by the Employer’s
senior management, or other material breach of this Agreement; or

12

 

	 	(3)	 	Employee’s failure or inability to satisfy the requirements stated in Section
6 above.

“Employer’s Physician” shall mean a licensed physician selected by Employer for purposes of
determining Employee’s disability pursuant to the terms of this Agreement.

“Restrictive Period” means the twelve (12) month period immediately following any
separation by Employee from active employment occurring during the Specified Term (or such
shorter period remaining in the Specified Term should Employee separate from active
employment with less than twelve (12) months remaining in the Specified Term).

	24.	 	The parties acknowledge that neither Tracinda Corporation nor Kirk Kerkorian, individually or
collectively, is a party to this Agreement or any exhibit or agreement provided for herein.
Accordingly, the parties hereby agree that in the event (i) there is any alleged breach or
default by any party under this Agreement or any exhibit or agreement provided for herein, or
(ii) any party has any claim arising from or relating to any such agreement, no party, nor any
party claiming through it (to the extent permitted by applicable law), shall commence any
proceedings or otherwise seek to impose any liability whatsoever against Tracinda Corporation
or Kirk Kerkorian by reason of such alleged breach, default or claim.

13

 

IN WITNESS WHEREOF, Employer and Employee have entered into this Agreement in Las Vegas,
Nevada, as of the date first written above.

	 	 	 
	 

	 	 
	EMPLOYEE — GARY N. JACOBS
	 	 
	 
	 	 
	     /s/ Gary N. Jacobs
	 	 
	 	 	 
	 
	 	 
	EMPLOYER — MGM MIRAGE
	 	 
	 
	 	 
	     /s/ J. Terrence Lanni
	 	 
	 	 	 

14Exhibit 10

  Exhibit 10.21

  PFF BANCORP, INC.

  as Issuer

   

  INDENTURE

  Dated as of September 16, 2005

   

  WILMINGTON TRUST COMPANY

  as Trustee

   

  FLOATING RATE JUNIOR SUBORDINATED DEBT SECURITIES DUE 2035

  TABLE OF CONTENTS

  ARTICLE I
  DEFINITIONS.............................................................................................................
  1

              Section
  1.01                
  Definitions.........................................................................................
  1

  ARTICLE II DEBT
  SECURITIES....................................................................................................
  9

             
  Section
  2.01                
  Authentication and
  Dating.................................................................. 9

             
  Section
  2.02                
  Form of Trustee's Certificate of
  Authentication................................. 10

             
  Section
  2.03                
  Form and Denomination of Debt Securities......................................
  10

             
  Section
  2.04                
  Execution of Debt
  Securities...........................................................  10

             
  Section
  2.05                
  Exchange and Registration of Transfer of Debt Securities................. 11

             
  Section
  2.06                
  Mutilated, Destroyed, Lost or Stolen Debt Securities....................... 14

             
  Section
  2.07                
  Temporary Debt
  Securities.............................................................. 15

             
  Section
  2.08                
  Payment of Interest...........................................................
  .............. 15

             
  Section
  2.09                
  Cancellation of Debt Securities Paid,
  etc.......................................... 17

             
  Section
  2.10                
  Computation of
  Interest................................................................... 17

             
  Section
  2.11                
  Extension of Interest Payment
  Period............................................... 18

             
  Section
  2.12                
  CUSIP
  Numbers.............................................................................
  19

             
  Section
  2.13                
  Global
  Debentures...........................................................................
  19

  ARTICLE III PARTICULAR COVENANTS OF THE
  COMPANY............................................. 22

             
  Section
  3.01                
  Payment of Principal, Premium and Interest; Agreed

                                                 
  Treatment of the Debt
  Securities....................................................... 22

             
  Section
  3.02                
  Offices for Notices and Payments,
  etc.............................................. 23

             
  Section
  3.03                
  Appointments to Fill Vacancies in Trustee's
  Office...........................  23

             
  Section
  3.04                
  Provision as to Paying
  Agent............................................................ 24

             
  Section
  3.05                
  Certificate to
  Trustee....................................................................... 
  25

             
  Section
  3.06                
  Additional
  Amounts.........................................................................
  25

             
  Section
  3.07                
  Compliance with Consolidation
  Provisions........................................ 25

             
  Section
  3.08                
  Limitation on
  Dividends....................................................................
  25

             
  Section
  3.09                
  Covenants as to the
  Trust................................................................. 26

  ARTICLE IV
  LISTS.......................................................................................................................
  26

             
  Section
  4.01                
  Securityholders'
  Lists.......................................................................
  26

             
  Section
  4.02                
  Preservation and Disclosure of
  Lists................................................. 27

             
  Section
  4.03                
  Financial and Other
  Information....................................................... 28

  ARTICLE V REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS................................
  29

             
  Section
  5.01                
  Events of
  Default.............................................................................
  29

             
  Section
  5.02                
  Payment of Debt Securities on Default; Suit Therefor........................
  31

             
  Section
  5.03                
  Application of Moneys Collected by Trustee....................................
  32

  i

  

             
  Section
  5.04                
  Proceedings by Securityholders........................................................
  33

             
  Section
  5.05                
  Proceedings by
  Trustee.................................................................... 33

             
  Section
  5.06                
  Remedies Cumulative and
  Continuing............................................... 34

             
  Section
  5.07                
  Direction of Proceedings and Waiver of Defaults by

                                                 
  Majority of Securityholders..............................................................
  34

             
  Section
  5.08                
  Notice of
  Defaults............................................................................
  35

             
  Section
  5.09                
  Undertaking to Pay
  Costs................................................................ 35

  ARTICLE VI CONCERNING THE
  TRUSTEE.............................................................................
  36

             
  Section
  6.01                
  Duties and Responsibilities of
  Trustee............................................... 36

             
  Section
  6.02                
  Reliance on Documents, Opinions,
  etc.............................................. 37

             
  Section
  6.03                
  No Responsibility for Recitals,
  etc.................................................... 38

             
  Section
  6.04                
  Trustee, Authenticating Agent, Paying Agents, Transfer

                                                 
  Agents or Registrar May Own Debt Securities..................................
  38

             
  Section
  6.05                
  Moneys to be Held in
  Trust.............................................................. 38

             
  Section
  6.06                
  Compensation and Expenses of
  Trustee...........................................  38

             
  Section
  6.07                
  Officers' Certificate as
  Evidence......................................................  39

             
  Section
  6.08                
  Eligibility of
  Trustee..........................................................................
  40

             
  Section
  6.09                
  Resignation or Removal of
  Trustee................................................... 40

             
  Section
  6.10                
  Acceptance by Successor
  Trustee.................................................... 41

             
  Section
  6.11                
  Succession by Merger,
  etc............................................................... 42

             
  Section
  6.12                
  Authenticating
  Agents......................................................................
  43

  ARTICLE VII CONCERNING THE SECURITYHOLDERS........................................................
  44

             
  Section
  7.01                
  Action by Securityholders................................................................
  44

             
  Section
  7.02                
  Proof of Execution by Securityholders..............................................
  44

             
  Section
  7.03                
  Who Are Deemed Absolute Owners................................................
  45

             
  Section
  7.04                
  Debt Securities Owned by Company Deemed Not Outstanding........ 45

             
  Section
  7.05                
  Revocation of Consents; Future Holders Bound...... .........................
  45

  ARTICLE VIII SECURITYHOLDERS'
  MEETINGS....................................................................
  46

             
  Section
  8.01                
  Purposes of
  Meetings......................................................................
  46

             
  Section
  8.02                
  Call of Meetings by
  Trustee............................................................. 46

             
  Section
  8.03                
  Call of Meetings by Company or Securityholders............................. 46

             
  Section
  8.04                
  Qualifications for
  Voting................................................................... 47

             
  Section
  8.05                
  Regulations......................................................................................
  47

             
  Section
  8.06                
  Voting.............................................................................................
  47

             
  Section
  8.07                
  Quorum;
  Actions.............................................................................
  48

  ARTICLE IX SUPPLEMENTAL
  INDENTURES..........................................................................
  49

             
  Section
  9.01                
  Supplemental Indentures without Consent of Securityholders............ 49

             
  Section
  9.02                
  Supplemental Indentures with Consent of Securityholders................. 50

   

  ii

  

             
  Section
  9.03                
  Effect of Supplemental
  Indentures.................................................... 51

             
  Section
  9.04                
  Notation on Debt
  Securities............................................................. 51

             
  Section
  9.05                
  Evidence of Compliance of Supplemental Indenture to be

                                                 
  Furnished to
  Trustee........................................................................
  52

  ARTICLE X REDEMPTION OF
  SECURITIES............................................................................
  52

             
  Section
  10.01              
  Optional
  Redemption.......................................................................
  52

             
  Section
  10.02              
  Special Event
  Redemption............................................................... 52

             
  Section
  10.03              
  Notice of Redemption; Selection of Debt Securities..........................
  52

             
  Section
  10.04              
  Payment of Debt Securities Called for Redemption........................... 53

  ARTICLE XI CONSOLIDATION, MERGER, SALE, CONVEYANCE AND
  LEASE................ 54

             
  Section
  11.01              
  Company May Consolidate, etc., on Certain Terms.......................... 54

             
  Section
  11.02              
  Successor Entity to be
  Substituted.................................................... 54

             
  Section
  11.03              
  Opinion of Counsel to be Given to
  Trustee....................................... 55

  ARTICLE XII SATISFACTION AND DISCHARGE OF
  INDENTURE...................................... 55

             
  Section
  12.01              
  Discharge of
  Indenture.....................................................................
  55

             
  Section
  12.02              
  Deposited Moneys to be Held in Trust by Trustee............................ 56

             
  Section
  12.03              
  Paying Agent to Repay Moneys
  Held............................................... 56

             
  Section
  12.04              
  Return of Unclaimed
  Moneys........................................................... 56

   

  ARTICLE XIII IMMUNITY OF
  INCORPORATORS, STOCKHOLDERS, OFFICERS

             
  AND DIRECTORS
  ............................................................................................................57

              Section
  13.01              
  Indenture and Debt Securities Solely Corporate Obligations............. 57

  ARTICLE XIV MISCELLANEOUS
  PROVISIONS.....................................................................
  57

             
  Section
  14.01              
  Successors......................................................................................
  57

             
  Section
  14.02              
  Official Acts by Successor
  Entity...................................................... 57

             
  Section
  14.03              
  Surrender of Company
  Powers........................................................ 57

             
  Section
  14.04              
  Addresses for Notices,
  etc............................................................... 57

             
  Section
  14.05              
  Governing
  Law................................................................................
  58

             
  Section
  14.06              
  Evidence of Compliance with Conditions Precedent.......................... 58

             
  Section
  14.07              
  Business Day
  Convention................................................................. 58

             
  Section
  14.08              
  Table of Contents, Headings,
  etc...................................................... 59

             
  Section
  14.09              
  Execution in
  Counterparts................................................................
  59

             
  Section
  14.10              
  Separability.....................................................................................
  59

             
  Section
  14.11              
  Assignment......................................................................................
  59

             
  Section
  14.12              
  Acknowledgment of
  Rights.............................................................. 59

  ARTICLE XV SUBORDINATION OF DEBT
  SECURITIES........................................................ 60

  iii

  

             
  Section
  15.01              
  Agreement to
  Subordinate............................................................... 60

             
  Section
  15.02              
  Default on Senior
  Indebtedness........................................................ 60

             
  Section
  15.03              
  Liquidation; Dissolution;
  Bankruptcy................................................. 60

             
  Section
  15.04              
  Subrogation.....................................................................................
  62

             
  Section
  15.05              
  Trustee to Effectuate
  Subordination.................................................. 63

             
  Section
  15.06              
  Notice by the
  Company................................................................... 63

             
  Section
  15.07              
  Rights of the Trustee; Holders of Senior Indebtedness...................... 63

             
  Section
  15.08              
  Subordination May Not Be
  Impaired............................................... 64

  EXHIBITS

  EXHIBIT A    
  Form of Debt Security

  EXHIBIT
  B      Form of Certificate of Officer of the Company

iv

          THIS INDENTURE, dated as of
  September 16, 2005, between PFF Bancorp, Inc., a savings and loan holding
  company incorporated in the State of Delaware (hereinafter sometimes called
  the "Company"), and Wilmington Trust Company, a Delaware banking
  corporation, as trustee (hereinafter sometimes called the
  "Trustee").

  W I T N E S S E T H :

          WHEREAS, for its lawful
  corporate purposes, the Company has duly authorized the issuance of its
  Floating Rate Junior Subordinated Debt Securities due 2035 (the "Debt
  Securities") under this Indenture and to provide, among other things, for
  the execution and authentication, delivery and administration thereof, the
  Company has duly authorized the execution of this Indenture.

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

  ARTICLE I

  DEFINITIONS

          SECTION
  1.01  Definitions.

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

          "Additional Amounts"
  has the meaning set forth in Section 3.06.

          "Additional
  Provisions" has the meaning set forth in Section 15.01.

          "Administrative
  Action" has the meaning specified within the definition of "Tax
  Event" in this Section 1.01.

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

  1

  

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

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

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

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

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

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

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

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

          "Capital Securities
  Guarantee" means the guarantee agreement that the Company will enter into
  with Wilmington Trust Company or other Persons that operates directly or
  indirectly for the benefit of holders of Capital Securities of the Trust.

          "Capital Treatment
  Event" means, if the Company is organized and existing under the laws of
  the United States or any state thereof or the District of Columbia, the
  receipt by the Company and the Trust of an Opinion of Counsel experienced in
  such matters to the effect that, as a result of (a) any amendment to, or
  change in, the laws, rules or regulations of the United States or any
  political subdivision thereof or therein, or any rules, guidelines or policies
  of an applicable regulatory authority for the Company or (b) of any
  official or administrative pronouncement or action or decision interpreting or
  applying such laws, rules or regulations, which amendment or change is
  effective or which pronouncement, action or decision is announced on or after
  the date of original issuance of the Debt Securities, there is more than an
  insubstantial risk that the Company will not, within 90 days of the date of
  such opinion, be entitled to treat Capital Securities as "Tier 1
  Capital" (or the then equivalent if the Company were subject to such
  capital requirement) applied as if the Company (or its successors) were a bank
  holding company for purposes of the capital adequacy guidelines of the Federal
  Reserve (or any successor regulatory authority with jurisdiction over bank
  holding companies), or any capital adequacy guidelines as then in effect and
  applicable to the Company; provided, however, that the inability
  of the Company to treat all or any portion of the aggregate Liquidation Amount
  of the Capital Securities as "Tier 1 Capital" shall not constitute
  the basis for a Capital Treatment Event if such inability results from the
  Company having preferred stock, minority interests in consolidated
  subsidiaries and any other class of security or interest which the Federal
  Reserve (or any successor regulatory authority with jurisdiction over bank
  holding companies) may now or hereafter accord "Tier 1 Capital"
  treatment that, in the aggregate, exceed the amount which may now or hereafter
  qualify for treatment as "Tier 1 Capital" under applicable capital
  adequacy guidelines of the Federal Reserve (or any successor regulatory
  authority with jurisdiction over bank holding companies), applied as if the
  Company (or its successor) were a

  2

  

  bank holding company for purposes of the capital adequacy guidelines of the
  Federal Reserve (or any successor regulatory authority with jurisdiction over
  bank holding companies); provided, further, however, that the
  distribution of the Debt Securities in connection with the liquidation of the
  Trust by the Company shall not in and of itself constitute a Capital Treatment
  Event unless such liquidation shall have occurred in connection with a Tax
  Event or an Investment Company Event.  For the avoidance of doubt, the
  inability of the Company to treat all or any portion of the aggregate
  Liquidation Amount of the Capital Securities as "Tier 1 Capital" as
  a result of the changes effected by the final rule adopted by the Federal
  Reserve on March 1, 2005 shall not constitute the basis for a Capital
  Treatment Event.

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

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

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

             
  "Company" means PFF Bancorp, Inc., a savings and loan holding
  company incorporated in the State of Delaware, and, subject to the provisions
  of Article XI, shall include its successors and assigns.

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

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

             
  "Declaration" means the Amended and Restated Declaration of Trust of
  the Trust, dated as of September 16, 2005, as amended or supplemented from
  time to time.

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

  3

  

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

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

             
  "Depositary" means an organization registered as a clearing agency
  under the Exchange Act that is designated as Depositary by the Company. 
  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 the
  Depositary effects book-entry transfers and pledges of securities deposited
  with or on behalf of the Depositary.

              "DTC"
  means The Depository Trust Company, a New York corporation.

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

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

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

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

             
  "Global Debenture" means a global certificate that evidences all or
  part of the Debt Securities the ownership and transfers of which shall be
  reflected and made, as applicable, through book entries by the Depositary and
  the Depositary Participants.

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

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

             
  "Interest Payment Date" means February 23, May 23, August 23 and
  November 23 of each year, commencing on November 23, 2005, subject to Section
  14.07.

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

             
  "Interest Rate" means, with respect to any Interest Period, a per
  annum rate of interest equal to LIBOR, as determined on the LIBOR
  Determination Date for such Interest Period (or, in the case of the first
  Interest Period, 3.874%) plus 1.52%; provided, however, that the
  Interest Rate for any Interest Period may not exceed the highest rate
  permitted by New York law, as the same may be modified by United States law of
  general application.

             
  "Investment Company Event" means the receipt by the Company and the
  Trust of an Opinion of Counsel experienced in such matters to the effect that,
  as a result of a change in law or regulation or written change in
  interpretation or application of law or regulation by any legislative body,
  court, governmental agency or regulatory authority, there is more than an

  4

  

  insubstantial risk that the Trust is or, within 90 days of the date of such
  opinion will be, considered an "investment company" that is required
  to be registered under the Investment Company Act of 1940, as amended, which
  change becomes effective on or after the date of the original issuance of the
  Debt Securities.

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

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

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

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

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

             
  "Major Depository Institution Subsidiary" means any subsidiary of
  the Company that (i) is a depository institution and (ii) meets the definition
  of "significant subsidiary" within the meaning of Rule 405 under the
  Securities Act.

             
  "Maturity Date" means November 23, 2035, subject to Section 14.07.

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

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

              "OTS"
  means the Office of Thrift Supervision.

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

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

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

  5

  

  such redemption shall have been given as provided in Articles X and XIV or
  provision satisfactory to the Trustee shall have been made for giving such
  notice; and

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

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

             
  "Optional Redemption Price" means an amount in cash equal to 100% of
  the principal amount of the Debt Securities being redeemed plus unpaid
  interest accrued on such Debt Securities to the related Optional Redemption
  Date.

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

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

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

             
  "Principal Office of the Trustee" means the office of the Trustee at
  which at any particular time its corporate trust business shall be principally
  administered, which at all times shall be located within the United States and
  at the time of the execution of this Indenture shall be Rodney Square North,
  1100 North Market Street, Wilmington, DE 19890-0001.

             
  "Purchase Agreement" means the Purchase Agreement relating to the
  offer and sale of Capital Securities.

             
  "Purchaser" has the meaning set forth in the Purchase Agreement.

             
  "Reference Banks" has the meaning set forth in Section 2.10(b)(ii).

             
  "Resale Restriction Termination Date" means, with respect to any
  Debt Security, the date which is the later of (i) two years (or such shorter
  period of time as permitted by Rule 144(k) under the Securities Act) after the
  later of (y) the date of original issuance of such Debt Security and (z) the
  last date on which the Company or any Affiliate (as defined in Rule 405 under
  the Securities Act) of the Company was the holder of such Debt Security (or
  any predecessor thereto) and (ii) such later date, if any, as may be required
  by any subsequent change in applicable law.

  6

  

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

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

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

             
  "Senior Indebtedness" means, with respect to the Company, (i) the
  principal, premium, if any, and interest in respect of (A) indebtedness of the
  Company for money borrowed, as well as similar obligations arising from
  off-balance sheet guarantees and direct credit substitutes and (B)
  indebtedness evidenced by securities, debentures, notes, bonds or other
  similar instruments issued by the Company, (ii) all capital lease obligations
  of the Company, (iii) all obligations of the Company issued or assumed as the
  deferred purchase price of property, all conditional sale obligations of the
  Company and all obligations of the Company under any title retention agreement
  (but excluding trade accounts payable and other accrued liabilities arising in
  the ordinary course of business), (iv) all obligations of the Company for the
  reimbursement of any letter of credit, any banker's acceptance, any security
  purchase facility, any repurchase agreement or similar arrangement, all
  obligations associated with derivative products such as interest rate and
  foreign exchange contracts and commodity contracts, any interest rate swap,
  any other hedging arrangement, any obligation under options or any similar
  credit or other transaction, (v) all obligations of the type referred to in
  clauses (i) through (iv) above of other Persons for the payment of which the
  Company is responsible or liable as obligor, guarantor or otherwise and (vi)
  all obligations of the type referred to in clauses (i) through (v) above of
  other Persons secured by any lien on any property or asset of the Company
  (whether or not such obligation is assumed by the Company), whether the
  obligations of the type referred to in clauses (i) through (vi) above were
  incurred on or prior to the date of this Indenture or thereafter incurred,
  unless, with the prior approval of the OTS if not otherwise generally
  approved, 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 or are pari passu in right of payment to the Debt Securities; provided,
  however, that Senior Indebtedness shall not include (A) any debt
  securities issued to any trust other than the Trust (or a trustee of such
  trust) that is a financing vehicle of the Company (a "financing
  entity"), in connection with the issuance by such financing entity of
  equity or other securities in transactions substantially similar in structure
  to the transactions contemplated hereunder and in the Declaration or (B) any
  guarantees of the Company in respect of the equity or other securities of any
  financing entity referred to in clause (A) above.

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

  7

  

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

          "Special Redemption
  Price" means, with respect to the redemption of any Debt Security
  following a Special Event, an amount in cash equal to 104.00% of the principal
  amount of Debt Securities to be redeemed prior to November 23, 2006 and
  thereafter equal to the percentage of the principal amount of the Debt
  Securities that is specified below for the Special Redemption Date plus, in
  each case, unpaid interest accrued thereon to the Special Redemption Date:

  	
        Special
        Redemption During the 12-Month

        Period
        Beginning November 23,

      	
        

        Percentage of Principal Amount

      
	
              2006

      	
        103.20%

      
	
              2007

      	
        102.40%

      
	
              2008

      	
        101.60%

      
	
              2009

      	
        100.80%

      
	
              2010 and thereafter

      	
        100.00%

      

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

          "Tax Event" means the
  receipt by the Company and the Trust of an Opinion of Counsel experienced in
  such matters to the effect that, as a result of any amendment to or change
  (including any announced prospective change) in the laws or any regulations
  thereunder of the United States or any political subdivision or taxing
  authority thereof or therein, or as a result of any official administrative
  pronouncement (including any private letter ruling, technical advice
  memorandum, regulatory procedure, notice or announcement (an
  "Administrative Action")) or judicial decision interpreting or
  applying such laws or regulations, regardless of whether such Administrative
  Action or judicial decision is issued to or in connection with a proceeding
  involving the Company or the Trust and whether or not subject to review or
  appeal, which amendment, clarification, change, Administrative Action or
  decision is enacted, promulgated or announced, in each case on or after the
  date of original issuance of the Debt Securities, there is more than an
  insubstantial risk that: (i) the Trust is, or will be within 90 days of the
  date of such 

  8

  

  opinion, subject to United States
  federal income tax with respect to income received or accrued on the Debt
  Securities; (ii) if the Company is organized and existing under the laws of
  the United States or any state thereof or the District of Columbia, interest
  payable by the Company on the Debt Securities is not, or within 90 days of the
  date of such opinion, will not be, deductible by the Company, in whole or in
  part, for United States federal income tax purposes; or (iii) the Trust is, or
  will be within 90 days of the date of such opinion, subject to or otherwise
  required to pay, or required to withhold from distributions to holders of
  Trust Securities, more than a de minimis amount of other taxes (including
  withholding taxes), duties, assessments or other governmental charges.

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

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

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

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

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

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

  ARTICLE II

  DEBT SECURITIES

          Section
  2.01  Authentication and
  Dating.

          Upon the execution and delivery
  of this Indenture, or from time to time thereafter, Debt Securities in an
  aggregate principal amount not in excess of $25,774,000 may be executed and
  delivered by the Company to the Trustee for authentication, and the Trustee
  shall thereupon authenticate and make available for delivery said Debt
  Securities to or upon the written order of the Company, signed by its Chairman
  of the Board of Directors, Vice Chairman, President or Chief Financial Officer
  or one of its Vice Presidents, without any further action by the Company
  hereunder.  In authenticating such Debt Securities, and accepting the
  additional responsibilities under this Indenture in relation to such Debt
  Securities, the Trustee shall be entitled to receive, and (subject to Section
  6.01) shall be fully protected in relying upon a copy of any Board Resolution
  or Board Resolutions relating thereto and, if applicable, an appropriate
  record of any action taken pursuant to such resolution, in each case certified
  by the Secretary or an Assistant Secretary or other officers with appropriate
  delegated authority of the Company as the case may be.

  9

  

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

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

          Section 2.02  Form
  of Trustee's Certificate of Authentication.

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

          This certificate represents Debt
  Securities referred to in the within-mentioned Indenture.

                                                             
  Wilmington Trust Company,

                                                                 
  not in its individual capacity

                                                                 
  but solely as trustee

                                                             
  By:                                                            

                                                                 
  Authorized Officer

          Section 2.03  Form
  and Denomination of Debt Securities.

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

          Section 2.04  Execution
  of Debt Securities.

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

  10

  

  authenticated has been duly
  authenticated and delivered hereunder and that the holder is entitled to the
  benefits of this Indenture.

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

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

          Section 2.05  Exchange
  and Registration of Transfer of Debt Securities.

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

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

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

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

  11

  

  charge that may be imposed in
  connection therewith other than exchanges pursuant to Section 2.07, Section
  9.04 or Section 10.04 not involving any transfer.

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

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

  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
  AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR
  ANY OTHER APPLICABLE SECURITIES LAWS.  NEITHER THIS SECURITY NOR ANY
  INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
  TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
  SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
  TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  THE HOLDER OF
  THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE
  HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES TO OFFER, SELL OR OTHERWISE
  TRANSFER SUCH SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN PRIOR TO THE
  DATE WHICH IS THE LATER OF (i) TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS
  PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT) AFTER THE LATER OF (Y) THE
  DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE LAST DATE ON WHICH THE COMPANY OR
  ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER THE SECURITIES ACT) OF THE COMPANY
  WAS THE HOLDER OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION (OR ANY
  PREDECESSOR THERETO) AND (ii) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY
  ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE COMPANY, (B) PURSUANT
  TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON THE
  HOLDER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER", AS
  DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
  A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
  BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE
  REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN "ACCREDITED
  INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3), (7) OR
  (8) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY OR
  SUCH INTEREST OR PARTICIPATION 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 IN VIOLATION OF THE
  SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO

  12

  

  NON-US PERSONS THAT OCCUR OUTSIDE THE UNITED STATES PURSUANT TO
  REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER
  AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
  SUBJECT TO THE COMPANY'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
  PURSUANT TO CLAUSE (C) OR (E) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF
  COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN
  ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE
  COMPANY.  THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION
  HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT
  IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

          THE HOLDER OF THIS SECURITY
  OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF,
  AS THE CASE MAY BE, 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 OR
  PARTICIPATION HEREIN, 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 SUCH
  INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION
  4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING.  ANY PURCHASER
  OR HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN WILL BE
  DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF OR THEREOF, AS
  THE CASE MAY BE, 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
  AND 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.

          IN CONNECTION WITH ANY
  TRANSFER, THE HOLDER OF THIS SECURITY WILL DELIVER TO THE REGISTRAR AND
  TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY
  THE INDENTURE TO CONFIRM

  13

  

  THAT THE TRANSFER COMPLIES WITH
  THE FOREGOING RESTRICTIONS.

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

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

          Section 2.06  Mutilated,
  Destroyed, Lost or Stolen Debt Securities.

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

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

  14

  

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

          Section
  2.07  Temporary Debt
  Securities.

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

          Section 2.08  Payment
  of Interest.

          Each Debt Security will bear
  interest at the then applicable Interest Rate (i) in the case of the initial
  Interest Period, for the period from, and including, the date of original
  issuance of such Debt Security to, but excluding, the initial Interest Payment
  Date and (ii) thereafter, for the period from, and including, the first day
  following the end of the preceding Interest Period to, but excluding, the
  applicable Interest Payment Date or, in the case of the last Interest Period,
  the related Optional Redemption Date, Special Redemption Date or Maturity
  Date, as applicable (each such period, an "Interest Period"), on the
  principal thereof, on any overdue principal and (to the extent that payment of
  such interest is enforceable under applicable law) on Deferred Interest and on
  any overdue installment of interest (including Defaulted Interest), payable
  (subject to the provisions of Article XV) on each Interest Payment Date and on
  the Maturity Date, any Optional Redemption Date or the Special

  15

  

  Redemption Date, as the case may
  be.  Interest and any Deferred Interest on any Debt Security that is
  payable, and is punctually paid or duly provided for by the Company, on any
  Interest Payment Date shall be paid to the Person in whose name such Debt
  Security (or one or more Predecessor Securities) is registered at the close of
  business on the regular record date for such interest installment, except that
  interest and any Deferred Interest payable on the Maturity Date, any Optional
  Redemption Date or the Special Redemption Date, as the case may be, other than
  any Interest Payment Date shall be paid to the Person to whom principal is
  paid.  In case (i) the Maturity Date of any Debt Security or
  (ii) any Debt Security or portion thereof is called for redemption and
  the related Optional Redemption Date or the Special Redemption Date, as the
  case may be, is subsequent to the regular record date with respect to any
  Interest Payment Date and prior to such Interest Payment Date, interest on
  such Debt Security will be paid upon presentation and surrender of such Debt
  Security.

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

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

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

  16

  

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

          Section 2.09  Cancellation
  of Debt Securities Paid, etc.

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

          Section 2.10  Computation
  of Interest.

         
  (a)    The amount of interest payable for any Interest Period
  will be computed on the basis of a 360-day year and the actual number of days
  elapsed in such Interest Period.

         
  (b)    LIBOR shall be determined by the Calculation Agent for
  each Interest Period (other than the first Interest Period, in which case
  LIBOR will be 3.874% per annum) in accordance with the following provisions:

                 
  (i)    On the second LIBOR Business Day (provided, that on such
  day commercial banks are open for business (including dealings in foreign
  currency deposits) in London (a "LIBOR Banking Day"), and otherwise
  the next preceding LIBOR Business Day that is also a LIBOR Banking Day) prior
  to the Interest Payment Date that commences such Interest Period (each such
  day, a "LIBOR Determination Date"), LIBOR shall equal the rate, as
  obtained by the Calculation Agent, for three-month U.S. Dollar deposits in
  Europe, which appears on Telerate (as defined in the International Swaps and
  Derivatives Association, Inc. 2000 Interest Rate and Currency Exchange
  Definitions) page 3750 or such other page as may replace such page 3750, as of
  11:00 a.m. (London time) on such LIBOR Determination Date, as reported by
  Bloomberg Financial Markets Commodities News or any successor service
  ("Telerate Page 3750").  "LIBOR Business Day" means
  any day that is not a Saturday, Sunday or other day on which commercial
  banking institutions in The City of New York or Wilmington, Delaware are
  authorized or obligated by law or executive order to be closed.  If such
  rate is superseded on Telerate Page 3750 by a corrected rate before 12:00 noon
  (London time) on such LIBOR Determination Date, the corrected rate as so
  substituted will be LIBOR for such LIBOR Determination Date.

  17

  

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

                 
  (iii)    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 for such Interest Period shall be LIBOR in effect for the
  immediately preceding Interest Period.

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

         
  (d)    On each LIBOR Determination Date, the Calculation Agent
  shall notify, in writing, the Company and the Paying Agent of the applicable
  Interest Rate that applies to the related Interest Period.  The
  Calculation Agent shall, upon the request of a holder of any Debt Securities,
  inform such holder of the Interest Rate that applies to the related Interest
  Period.  All calculations made by the Calculation Agent in the absence of
  manifest error shall be conclusive for all purposes and binding on the Company
  and the holders of the Debt Securities.  The Paying Agent shall be
  entitled to rely on information received from the Calculation Agent or the
  Company as to the applicable Interest Rate.  The Company shall, from time
  to time, provide any necessary information to the Paying Agent relating to any
  original issue discount and interest on the Debt Securities that is included
  in any payment and reportable for taxable income calculation purposes.

          Section
  2.11  Extension of Interest Payment Period.

          So long as no Event of Default
  pursuant to Sections 5.01(b), (e), (f), (g), (h) or (i) of this Indenture has
  occurred and is continuing, the Company shall have the right, from time to
  time and without causing an Event of Default, to defer payments of interest on
  the Debt Securities by extending the interest payment period on the Debt
  Securities at any time and from time to time during the term of the Debt
  Securities, for up to 20 consecutive quarterly periods (each such extended
  interest payment period, together with all previous and further consecutive
  extensions thereof, is referred to herein as an "Extension
  Period").  No Extension Period

  18

  

  may end on a date other than an
  Interest Payment Date or extend beyond the Maturity Date, any Optional
  Redemption Date or the Special Redemption Date, as the case may be. 
  During any Extension Period, interest will continue to accrue on the Debt
  Securities, and interest on such accrued interest (such accrued interest and
  interest thereon referred to herein as "Deferred Interest") will
  accrue at an annual rate equal to the Interest Rate applicable during such
  Extension Period, compounded quarterly from the date such Deferred Interest
  would have been payable were it not for the Extension Period, to the extent
  permitted by applicable law.  No interest or Deferred Interest (except
  any Additional Amounts that may be due and payable) shall be due and payable
  during an Extension Period, except at the end thereof.  At the end of any
  Extension Period, the Company shall pay all Deferred Interest then accrued and
  unpaid on the Debt Securities; provided, however, that during
  any Extension Period, the Company shall be subject to the restrictions set
  forth in Section 3.08.  Prior to the termination of any Extension Period,
  the Company may further extend such Extension Period, provided, that no
  Extension Period (including all previous and further consecutive extensions
  that are part of such Extension Period) shall exceed 20 consecutive quarterly
  periods.  Upon the termination of any Extension Period and upon the
  payment of all Deferred Interest, the Company may commence a new Extension
  Period, subject to the foregoing requirements.  The Company must give the
  Trustee notice of its election to begin or extend an Extension Period no later
  than the close of business on the fifteenth Business Day prior to the
  applicable Interest Payment Date.  The Trustee shall give notice of the
  Company's election to begin or extend an Extension Period to the
  Securityholders, promptly after receipt of notice from the Company of its
  election to begin or extend an Extension Period.

          Section 2.12  CUSIP
  Numbers.

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

          Section 2.13  Global
  Debentures.

          (a)    Upon the
  election of an owner of beneficial interests in outstanding Debt Securities,
  the Debt Securities owned by such beneficial owner shall be issued in the form
  of one or more Global Debentures.  Each Global Debenture issued under
  this Indenture shall be registered in the name of the Depositary designated by
  the Company for such Global Debenture or a nominee of such Depositary and
  delivered to such Depositary or a nominee thereof or custodian therefor, and
  each such Global Debenture shall constitute a single Debt Security for all
  purposes of this Indenture.

          (b)   
  Notwithstanding any other provision in this Indenture, no Global Debenture may
  be exchanged in whole or in part for Debt Securities in certificated form, and
  no transfer of a Global Debenture in whole or in part may be, registered in
  the name of any Person other than the Depositary for such Global Debenture or
  a

  19

  

  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 Debenture, 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 or (iii) an Event of
  Default shall have occurred and be continuing.  Upon obtaining knowledge
  of the occurrence of any event specified in clause (i), (ii) or (iii) above,
  the Trustee shall notify the Depositary and instruct the Depositary to notify
  all owners of beneficial interests in such Global Debenture of the occurrence
  of such event and of the availability of Debt Securities in certificated form
  to such beneficial owners requesting the same.  Upon the issuance of such
  Debt Securities in certificated form and the registration in the Debt Security
  Register of such Debt Securities in the names of the holders thereof, the
  Trustee shall recognize such holders as holders of Debt Securities for all
  purposes of this Indenture and the Debt Securities.

          (c)    If any
  Global Debenture is to be exchanged for Debt Securities in certificated form
  or canceled in part, or if a Debt Security in certificated form is to be
  exchanged in whole or in part for a beneficial interest in any Global
  Debenture, then either (i) such Global Debenture shall be so surrendered for
  exchange or cancellation as provided herein or (ii) the principal amount
  thereof shall be reduced or increased, subject to Section 2.03, by an amount
  equal to the portion thereof to be so exchanged or canceled, or equal to the
  principal amount of such Debt 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 Debt Security registrar, whereupon the 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 or adjustment of a Global
  Debenture by the Depositary, accompanied by registration instructions, the
  Company shall execute and the Trustee shall authenticate and deliver Debt
  Securities issuable in exchange for such Global Debenture (or any portion
  thereof) in accordance with the instructions of the Depositary.  The
  Trustee may conclusively rely on, and shall be fully protected in relying on,
  such instructions.

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

          (e)    Debt
  Securities distributed to holders of Book-Entry Capital Securities (as defined
  in the Declaration) upon the dissolution of the Trust shall be distributed in
  the form of one or more Global Debentures registered in the name of the
  Depositary or its nominee, and deposited with the Debt Securities registrar,
  as custodian for such Depositary, or with such Depositary, for credit by the
  Depositary to the owners of beneficial interests in such Book-Entry Capital
  Securities.  Debt Securities distributed to holders of Capital Securities
  in certificated form upon the dissolution of the Trust shall be issued in
  certificated form.

  20

  

          (f)    The
  Depositary or its nominee, as the registered owner of a Global Debenture,
  shall be the holder of such Global Debenture for all purposes under this
  Indenture and the Debt Securities, and owners of beneficial interests in a
  Global Debenture shall hold such interests pursuant to the Applicable
  Depositary Procedures.  Accordingly, any such owner's beneficial interest
  in a Global Debenture 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 Debt Securities
  registrar and the Trustee shall be entitled to deal with the Depositary for
  all purposes of this Indenture relating to a Global Debenture as the sole
  holder of the Debt Security and shall have no obligation to any beneficial
  owner of a Global Debenture.  Neither the Trustee nor the Debt Securities
  registrar shall have any liability in respect of any transfers affected by the
  Depositary or its Depositary Participants.

          (g)    The rights
  of owners of beneficial interests in a Global Debenture 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 owner
  of any beneficial interest in any Global Debenture shall have any rights under
  this Indenture with respect to such Global Debenture, and the Depositary may
  be treated by the Company, the Trustee and any agent of the Company or the
  Trustee as the owner and holder of such Global Debenture for all purposes
  under the Indenture.  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 in a Global Debenture 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 effect to any
  written certification, proxy or other authorization furnished by the
  Depositary or impair, as between the Depositary and such beneficial owners,
  the operation of customary practices governing the exercise of the rights of
  the Depositary or its nominee as holder of any Debt Security.

          (i)    Global
  Debentures shall bear the following legend on the face thereof:

  THIS SECURITY
  IS A GLOBAL DEBENTURE 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 COMPANY 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 IS REQUESTED BY AN

  21

  

  AUTHORIZED
  REPRESENTATIVE OF DTC (AND ANY PAYMENT 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.

   

  ARTICLE III

  PARTICULAR COVENANTS OF THE COMPANY

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

          (a)    The
  Company covenants and agrees that it will duly and punctually pay or cause to
  be paid all payments due in respect of the Debt Securities at the place, at
  the respective times and in the manner provided in this Indenture and the Debt
  Securities.  Payment of the principal of and premium, if any, and
  interest on the Debt Securities due on the Maturity Date, any Optional
  Redemption Date or the Special Redemption Date, as the case may be, will be
  made by the Company in immediately available funds against presentation and
  surrender of such Debt Securities.  At the option of the Company, each
  installment of interest on the Debt Securities due on an Interest Payment Date
  other than the Maturity Date, any Optional Redemption Date or the Special
  Redemption Date, as the case may be, may be paid (i) by mailing checks for
  such interest payable to the order of the holders of Debt Securities entitled
  thereto as they appear on the Debt Security Register or (ii) by wire transfer
  of immediately available funds to any account with a banking institution
  located in the United States designated by such holders to the Paying Agent no
  later than the related record date.  Notwithstanding anything to the
  contrary contained in this Indenture or any Debt Security, if the Trust or the
  trustee of the Trust is the holder of any Debt Security, then all payments in
  respect of such Debt Security shall be made by the Company in immediately
  available funds when due.

          (b)    The
  Company will treat the Debt Securities as indebtedness, and the interest
  payable in respect of such Debt Securities (including any Additional Amounts)
  as interest, for all U.S. federal income tax purposes.  All payments in
  respect of such Debt Securities will be made free and clear of U.S.
  withholding tax provided, that (i) any beneficial owner thereof that is a
  "United States person" within the meaning of Section 7701(a)(30) of
  the Code (A) has provided an Internal Revenue Service Form W-9 (or any
  substitute or successor form) in the manner required establishing its status
  as a "United States person" for U.S. federal income tax purposes,
  and (B) the Internal Revenue Service has neither notified the Issuer that the
  taxpayer identification number furnished by such beneficial owner is incorrect
  nor notified the Issuer that there is underreporting by such beneficial owner,
  and (ii) any beneficial owner thereof that is not a "United States
  person" within the meaning of Section 7701(a)(30) of the Code has
  provided an Internal Revenue Service Form W-8 BEN, Internal Revenue Service
  Form W-8ECI, or Internal Revenue Service Form W-8EXP, as applicable (or any
  substitute or successor form) in the manner required establishing its non-U.S.
  status for U.S. federal income tax purposes.

  22

  

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

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

          Section 3.02  Offices
  for Notices and Payments, etc.

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

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

          Section 3.03  Appointments
  to Fill Vacancies in Trustee's Office.

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

  23

  

          Section 3.04  Provision
  as to Paying Agent.

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

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

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

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

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

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

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

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

          (e)    The
  Company hereby initially appoints the Trustee to act as paying agent for the
  Debt Securities (the "Paying Agent").

  24

  

          Section 3.05  Certificate
  to Trustee.

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

          Section 3.06  Additional
  Amounts.

          If and for so long as the Trust
  is the holder of all Debt Securities and is subject to or otherwise required
  to pay (or is required to withhold from distributions to holders of Trust
  Securities) any additional taxes (including withholding taxes), duties,
  assessments or other governmental charges as a result of a Tax Event, the
  Company will pay such additional amounts (the "Additional Amounts")
  on the Debt Securities or the Trust Securities, as the case may be, as shall
  be required so that the net amounts received and retained by the holders of
  Debt Securities or Trust Securities, as the case may be, after payment of all
  taxes (including withholding taxes), duties, assessments or other governmental
  charges, will be equal to the amounts that such holders would have received
  and retained had no such taxes (including withholding taxes), duties,
  assessments or other governmental charges been imposed. 

          Whenever in this Indenture or
  the Debt Securities there is a reference in any context to the payment of
  principal of or premium, if any, or interest on the Debt Securities, such
  mention shall be deemed to include mention of payments of the Additional
  Amounts provided for in this Section to the extent that, in such context,
  Additional Amounts are, were or would be payable in respect thereof pursuant
  to the provisions of this Section and express mention of the payment of
  Additional Amounts (if applicable) in any provisions hereof shall not be
  construed as excluding Additional Amounts in those provisions hereof where
  such express mention is not made, provided, however, that,
  notwithstanding anything to the contrary contained in this Indenture or any
  Debt Security, the deferral of the payment of interest during an Extension
  Period pursuant to Section 2.11 shall not defer the payment of any Additional
  Amounts that may be due and payable.

          Section 3.07  Compliance
  with Consolidation Provisions.

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

          Section 3.08  Limitation
  on Dividends.

          If (i) there shall have occurred
  and be continuing a Default or an Event of Default, (ii) the Company shall be
  in default with respect to its payment of any obligations under the Capital
  Securities Guarantee or (iii) the Company shall have given notice of its
  election to defer payments of interest on the Debt Securities by extending the
  interest payment period as provided herein and such period, or any extension
  thereof, shall have

  25

  

  commenced and be continuing, then
  the Company may not (A) declare or pay any dividends or distributions on, or
  redeem, purchase, acquire, or make a liquidation payment with respect to, any
  of the Company's capital stock, (B) make any payment of principal of or
  premium, if any, or interest on or repay, repurchase or redeem any debt
  securities of the Company that rank pari passu in all respects with or
  junior in interest to the Debt Securities or (C) make any payment under any
  guarantees of the Company that rank pari passu in all respects with or
  junior in interest to the Capital Securities Guarantee (other than (a)
  repurchases, redemptions or other acquisitions of shares of capital stock of
  the Company (I) in connection with any employment contract, benefit plan or
  other similar arrangement with or for the benefit of one or more employees,
  officers, directors or consultants, (II) in connection with a dividend
  reinvestment or stockholder stock purchase plan or (III) in connection with
  the issuance of capital stock of the Company (or securities convertible into
  or exercisable for such capital stock) as consideration in an acquisition
  transaction entered into prior to the occurrence of (i), (ii) or (iii) above,
  (b) as a result of any exchange or conversion of any class or series of the
  Company's capital stock (or any capital stock of a subsidiary of the Company)
  for any class or series of the Company's capital stock or of any class or
  series of the Company's indebtedness for any class or series of the Company's
  capital stock, (c) the purchase of fractional interests in shares of the
  Company's capital stock pursuant to the conversion or exchange provisions of
  such capital stock or the security being converted or exchanged, (d) any
  declaration of a dividend in connection with any stockholder's rights plan, or
  the issuance of rights, stock or other property under any stockholder's rights
  plan, or the redemption or repurchase of rights pursuant thereto or (e) any
  dividend in the form of stock, warrants, options or other rights where the
  dividend stock or the stock issuable upon exercise of such warrants, options
  or other rights is the same stock as that on which the dividend is being paid
  or ranks pari passu with or junior in interest to such stock).

          Section 3.09  Covenants
  as to the Trust.

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

  ARTICLE IV

  LISTS

          Section 4.01  Securityholders'
  Lists.

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

  26

  

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

          (b)    at such
  other times as the Trustee may request in writing, within 30 days after the
  receipt by the Company of any such request, a list of similar form and content
  as of a date not more than 15 days prior to the time such list is furnished;
  except that no such lists need be furnished under this Section 4.01 so long as
  the Trustee is in possession thereof by reason of its acting as Debt Security
  registrar.

          Section 4.02  Preservation
  and Disclosure of Lists.

          (a)    The
  Trustee shall preserve, in as current a form as is reasonably practicable, all
  information as to the names and addresses of the holders of Debt Securities
  (1) contained in the most recent list furnished to it as provided in Section
  4.01 or (2) received by it in the capacity of Debt Securities registrar (if so
  acting) hereunder.  The Trustee may destroy any list furnished to it as
  provided in Section 4.01 upon receipt of a new list so furnished.

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

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

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

          If the Trustee shall elect not
  to afford such applicants access to such information, the Trustee shall, upon
  the written request of such applicants, mail to each Securityholder of Debt
  Securities whose name and address appear in the information preserved at the
  time by the Trustee in accordance with the provisions of subsection (a) of
  this Section 4.02 a copy of the form of proxy or other communication which is
  specified in such request with reasonable promptness after a tender to the
  Trustee of the material to be mailed and of payment, or provision for the
  payment, of the reasonable expenses of mailing, unless within five days after
  such tender, the Trustee shall mail to such applicants and file with the
  Securities and Exchange Commission, if permitted or required by applicable
  law, together with a copy of the material to be mailed, a written statement to
  the effect that, in the opinion of the Trustee, such mailing would be contrary
  to the best interests of the holders of all Debt

  27

  

  Securities, as the case may be, or
  would be in violation of applicable law.  Such written statement shall
  specify the basis of such opinion.  If said Commission, as permitted or
  required by applicable law, after opportunity for a hearing upon the
  objections specified in the written statement so filed, shall enter an order
  refusing to sustain any of such objections or if, after the entry of an order
  sustaining one or more of such objections, said Commission shall find, after
  notice and opportunity for hearing, that all the objections so sustained have
  been met and shall enter an order so declaring, the Trustee shall mail copies
  of such material to all such Securityholders with reasonable promptness after
  the entry of such order and the renewal of such tender; otherwise the Trustee
  shall be relieved of any obligation or duty to such applicants respecting
  their application.

          (c)    Each and
  every holder of Debt Securities, by receiving and holding the same, agrees
  with the Company and the Trustee that none of the Company, the Trustee or any
  Paying Agent shall be held accountable by reason of the disclosure of any such
  information as to the names and addresses of the holders of Debt Securities in
  accordance with the provisions of subsection (b) of this Section 4.02,
  regardless of the source from which such information was derived, and that the
  Trustee shall not be held accountable by reason of mailing any material
  pursuant to a request made under said subsection (b).

          Section 4.03  Financial
  and Other Information.

          (a)    The
  Company shall deliver, by hardcopy or electronic transmission, to (i) each
  Securityholder each Report on Form 10-K and Form 10-Q, if any, prepared by the
  Company and filed with the Securities and Exchange Commission in accordance
  with the Exchange Act within 10 Business Days after the filing thereof or (ii)
  if the Company is (a) not then subject to Section 13 or 15(d) of the Exchange
  Act (a "Private Entity") or (b) exempt from reporting pursuant to
  Rule 12g3-2(b) thereunder, the information required by Rule 144A(d)(4) under
  the Securities Act.  Notwithstanding the foregoing, so long as a Holder
  of the Debt Securities is the Purchaser or an entity that holds a pool of
  trust preferred securities and/or debt securities as collateral for its
  securities or a trustee thereof, and the Company is (i) a Private Entity that,
  on the date of original issuance of the Debt Securities, is required to
  provide audited consolidated financial statements to its primary regulatory
  authority, (ii) a Private Entity that, on the date of original issuance of the
  Debt Securities, is not required to provide audited consolidated financial
  statements to its primary regulatory authority but subsequently becomes
  subject to the audited consolidated financial statement reporting requirements
  of that regulatory authority or (iii) subject to Section 13 or 15(d) of the
  Exchange Act on the date of original issuance of the Debt Securities or
  becomes so subject after the date hereof but subsequently becomes a Private
  Entity, then, within 90 days after the end of each fiscal year, beginning with
  the fiscal year in which the Debt Securities were originally issued if the
  Company was then subject to (x) Section 13 or 15(d) of the Exchange Act or (y)
  audited consolidated financial statement reporting requirements of its primary
  regulatory authority or, otherwise, the earliest fiscal year in which the
  Company becomes subject to (1) Section 13 or 15(d) of the Exchange Act or (2)
  the audited consolidated financial statement reporting requirements of its
  primary regulatory authority, the Company shall deliver, by hardcopy or
  electronic transmission, to each Securityholder, unless otherwise provided
  pursuant to the preceding sentence, (A) a copy of the Company's audited
  consolidated financial statements (including balance sheet and income
  statement) covering the related annual period and (B) the report of the
  independent

  28

  

  accountants with respect to such
  financial statements.  In addition to the foregoing, the Company shall
  deliver to each Securityholder within 30 days after the end of the fiscal year
  of the Company, Form 1099 or such other annual U.S. federal income tax
  information statement required by the Code containing such information with
  regard to the Debt Securities held by such holder as is required by the Code
  and the income tax regulations of the U.S. Treasury thereunder; and

          (b)    If and so
  long as the Holder of the Debt Securities is the Purchaser or an entity that
  holds a pool of trust preferred securities and/or debt securities or a trustee
  thereof, the Company will cause copies of its reports on Form H-b(11) to be
  delivered, by hard copy or electronic transmission, to such Holder promptly
  following their filing with the OTS.

  ARTICLE V

  REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

          Section 5.01  Events
  of Default.

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

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

          (b)    the
  Company defaults in the payment of any interest upon any Debt Security,
  including any Additional Amounts in respect thereof, following the nonpayment
  of any such interest for twenty (20) or more consecutive Interest Periods; or

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

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

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

  29

  

  affairs and such decree,
  appointment or order shall remain unstayed and in effect for a period of 90
  consecutive days; or

          (f)    the
  Company shall commence a voluntary case under any applicable bankruptcy,
  insolvency or other similar law now or hereafter in effect, shall consent to
  the entry of an order for relief in an involuntary case under any such law, or
  shall consent to the appointment of or taking possession by a receiver,
  liquidator, assignee, trustee, custodian, sequestrator or other similar
  official of the Company or of any substantial part of its property, or shall
  make any general assignment for the benefit of creditors, or shall fail
  generally to pay its debts as they become due; or

          (g)    a court or
  administrative or governmental agency or body shall enter a decree or order
  for the appointment of a receiver of a Major Depository Institution Subsidiary
  or all or substantially all of its property in any liquidation, insolvency or
  similar proceeding with respect to such Major Depository Institution
  Subsidiary or all or substantially all of its property; or

          (h)    a Major
  Depository Institution Subsidiary shall consent to the appointment of a
  receiver for it or all or substantially all of its property in any
  liquidation, insolvency or similar proceeding with respect to it or all or
  substantially all of its property; or

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

          If an Event of Default specified
  under clause (b) of this Section 5.01 occurs and is continuing with respect to
  the Debt Securities, then, in each and every such case, either the Trustee or
  the holders of not less than 25% in aggregate principal amount of the Debt
  Securities then outstanding hereunder, by notice in writing to the Company
  (and to the Trustee if given by Securityholders), may declare the entire
  principal of the Debt Securities and any premium and interest accrued, but
  unpaid, thereon to be due and payable immediately, and upon any such
  declaration the same shall become immediately due and payable.  If an
  Event of Default specified under clause (e), (f), (g), (h) or (i) of this
  Section 5.01 occurs, then, in each and every such case, the entire principal
  amount of the Debt Securities and any premium and interest accrued, but
  unpaid, thereon shall ipso facto become immediately due and
  payable without further action.

          The foregoing provisions,
  however, are subject to the condition that if, at any time after the principal
  of the Debt Securities shall have become due by acceleration, and before any
  judgment or decree for the payment of the moneys due shall have been obtained
  or entered as hereinafter provided, (i) the Company shall pay or shall deposit
  with the Trustee a sum sufficient to pay all matured installments of interest
  upon all the Debt Securities and all payments on the Debt Securities which
  shall have become due otherwise than by acceleration (with interest upon all
  such payments and Deferred Interest, to the extent permitted by law) and such
  amount as shall be sufficient to cover reasonable compensation to the Trustee
  and each predecessor Trustee, their respective

  30

  

  agents, attorneys and counsel, and
  all other amounts due to the Trustee pursuant to Section 6.06, if any, and
  (ii) all Events of Default under this Indenture, other than the non-payment of
  the payments in respect of Debt Securities which shall have become due by
  acceleration, shall have been cured, waived or otherwise remedied as provided
  herein, then, in each and every such case, the holders of a majority in
  aggregate principal amount of the Debt Securities then outstanding, by written
  notice to the Company and to the Trustee, may waive all defaults and rescind
  and annul such acceleration and its consequences, but no such waiver or
  rescission and annulment shall extend to or shall affect any subsequent
  default or shall impair any right consequent thereon; provided, however,
  that if the Debt Securities are held by the Trust or a trustee of the Trust,
  such waiver or rescission and annulment shall not be effective until the
  holders of a majority in aggregate liquidation amount of the outstanding
  Capital Securities of the Trust shall have consented to such waiver or
  rescission and annulment.

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

          Section 5.02  Payment
  of Debt Securities on Default; Suit Therefor.

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

          In case there shall be pending
  proceedings for the bankruptcy or for the reorganization of the Company or any
  other obligor on the Debt Securities under Bankruptcy Law, or in case a
  receiver or trustee shall have been appointed for the property of the Company
  or such other obligor, or in the case of any other similar judicial
  proceedings relative to the Company or other obligor upon the Debt Securities,
  or to the creditors or property of the Company or such other obligor, the
  Trustee, irrespective of whether the principal of the Debt Securities shall
  then be due and payable as therein expressed or by acceleration or otherwise
  and irrespective of whether the Trustee shall have made any demand pursuant to
  the provisions of this Section 5.02, shall be entitled and empowered, by
  intervention in such proceedings or otherwise, to file and prove a claim or
  claims for the whole

  31

  

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

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

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

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

          Section 5.03  Application
  of Moneys Collected by Trustee.

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

  32

  

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

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

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

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

          Section 5.04  Proceedings
  by Securityholders.

          No holder of any Debt Security
  shall have any right to institute any suit, action or proceeding for any
  remedy hereunder, unless such holder previously shall have given to the
  Trustee written notice of an Event of Default with respect to the Debt
  Securities and unless the holders of not less than 25% in aggregate principal
  amount of the Debt Securities then outstanding shall have given the Trustee a
  written request to institute such action, suit or proceeding and shall have
  offered to the Trustee such reasonable indemnity as it may require against the
  costs, expenses and liabilities to be incurred thereby, and the Trustee for 60
  days after its receipt of such notice, request and offer of indemnity shall
  have failed to institute any such action, suit or proceeding; provided,
  that no holder of Debt Securities shall have any right to prejudice the rights
  of any other holder of Debt Securities, obtain priority or preference over any
  other such holder or enforce any right under this Indenture except in the
  manner herein provided and for the equal, ratable and common benefit of all
  holders of Debt Securities.

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

          Section 5.05  Proceedings
  by Trustee.

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

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          Section 5.06  Remedies
  Cumulative and Continuing.

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

          Section 5.07  Direction
  of Proceedings and Waiver of Defaults by Majority of Securityholders.

          The holders of a majority in
  aggregate principal amount of the Debt Securities affected at the time
  outstanding and, if the Debt Securities are held by the Trust or a trustee of
  the Trust, the holders of a majority in aggregate liquidation amount of the
  outstanding Capital Securities of the Trust shall have the right to direct the
  time, method and place of conducting any proceeding for any remedy available
  to the Trustee, or exercising any trust or power conferred on the Trustee with
  respect to such Debt Securities; provided, however, that if the
  Debt Securities are held by the Trust or a trustee of the Trust, such time,
  method and place or such exercise, as the case may be, may not be so directed
  until the holders of a majority in aggregate liquidation amount of the
  outstanding Capital Securities of the Trust shall have directed such time,
  method and place or such exercise, as the case may be; provided, further,
  that (subject to the provisions of Section 6.01) the Trustee shall have the
  right to decline to follow any such direction if the Trustee shall determine
  that the action so directed would be unjustly prejudicial to the holders not
  taking part in such direction or if the Trustee being advised by counsel
  determines that the action or proceeding so directed may not lawfully be taken
  or if a Responsible Officer of the Trustee shall determine that the action or
  proceedings so directed would involve the Trustee in personal liability. 
  Prior to any declaration of acceleration, or ipso facto
  acceleration, of the maturity of the Debt Securities, the holders of a
  majority in aggregate principal amount of the Debt Securities at the time
  outstanding may on behalf of the holders of all of the Debt Securities waive
  (or modify any previously granted waiver of) any past Default or Event of
  Default and its consequences, except a default (a) in the payment of principal
  of or premium, if any, or interest on any of the Debt Securities, (b) in
  respect of covenants or provisions hereof which cannot be modified or amended
  without the consent of the holder of each Debt Security affected, or (c) 
  in respect of the covenants contained in Section 3.09; provided, however,
  that if the Debt Securities are held by the Trust or a trustee of the Trust,
  such waiver or modification to such waiver shall not be effective until the
  holders of a majority in aggregate liquidation amount of the outstanding
  Capital Securities of the Trust shall have consented to such waiver or
  modification to such waiver; provided, further, that if the
  consent of the holder of each outstanding Debt Security is required, such
  waiver or modification to such waiver shall not be effective until each holder
  of the outstanding Capital Securities of the Trust shall have consented to
  such waiver or

  34

  

  modification to such waiver. 
  Upon any such waiver or modification to such waiver, the Default or Event of
  Default covered thereby shall be deemed to be cured for all purposes of this
  Indenture and the Company, the Trustee and the holders of the Debt Securities
  shall be restored to their former positions and rights hereunder,
  respectively; but no such waiver or modification to such waiver shall extend
  to any subsequent or other Default or Event of Default or impair any right
  consequent thereon.  Whenever any Default or Event of Default hereunder
  shall have been waived as permitted by this Section, said Default or Event of
  Default shall for all purposes of the Debt Securities and this Indenture be
  deemed to have been cured and to be not continuing.

          Section 5.08  Notice
  of Defaults.

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

          Section 5.09  Undertaking
  to Pay Costs.

          All parties to this Indenture
  agree, and each holder of any Debt Security by such holder's acceptance
  thereof shall be deemed to have agreed, that any court may in its discretion
  require, in any suit for the enforcement of any right or remedy under this
  Indenture, or in any suit against the Trustee for any action taken or omitted
  by it as Trustee, the filing by any party litigant in such suit of an
  undertaking to pay the costs of such suit, and that such court may in its
  discretion assess reasonable costs, including reasonable attorneys' fees and
  expenses, against any party litigant in such suit, having due regard to the
  merits and good faith of the claims or defenses made by such party litigant;
  but the provisions of this Section shall not apply to any suit instituted by
  the Trustee, to any suit instituted by any Securityholder, or group of
  Securityholders, holding in the aggregate more than 10% in principal amount of
  the outstanding Debt Securities (or, if such Debt Securities are held by the
  Trust or a trustee of the Trust, more than 10% in liquidation amount of the
  outstanding Capital Securities),to any suit instituted by any Securityholder
  for the enforcement of the payment of the principal of or premium, if any, or
  interest on any Debt Security against the Company on or after the same shall
  have become due and payable or to any suit instituted in accordance with
  Section 14.12.

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  ARTICLE VI

  CONCERNING THE TRUSTEE

          Section 6.01  Duties
  and Responsibilities of Trustee.

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

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

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

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

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

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

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

          (d)    the
  Trustee shall not be charged with knowledge of any Default or Event of Default
  with respect to the Debt Securities unless either (1) a Responsible Officer
  shall have actual knowledge of such Default or Event

  36

  

  of Default or (2) written notice of
  such Default or Event of Default shall have been given to the Trustee by the
  Company or any other obligor on the Debt Securities or by any holder of the
  Debt Securities, except that the Trustee shall be deemed to have knowledge of
  any Event of Default pursuant to Sections 5.01(a), 5.01(b) or 5.01(c) hereof
  (other than an Event of Default resulting from the default in the payment of
  Additional Amounts if the Trustee does not have actual knowledge or written
  notice that such payment is due and payable) .

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

          Section 6.02  Reliance
  on Documents, Opinions, etc.

          Except as otherwise provided in
  Section 6.01:

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

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

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

          (d)    the
  Trustee shall be under no obligation to exercise any of the rights or powers
  vested in it by this Indenture at the request, order or direction of any of
  the Securityholders, pursuant to the provisions of this Indenture, unless such
  Securityholders shall have offered to the Trustee reasonable security or
  indemnity against the costs, expenses and liabilities which may be incurred
  therein or thereby;

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

          (f)    the
  Trustee shall not be bound to make any investigation into the facts or matters
  stated in any resolution, certificate, statement, instrument, opinion, report,
  notice, request, consent, order, approval, bond,

  37

  

  debenture, coupon or other paper or
  document, unless requested in writing to do so by the holders of a majority in
  aggregate principal amount of the outstanding Debt Securities affected
  thereby; provided, however, that if the payment within a
  reasonable time to the Trustee of the costs, expenses or liabilities likely to
  be incurred by it in the making of such investigation is, in the opinion of
  the Trustee, not reasonably assured to the Trustee by the security afforded to
  it by the terms of this Indenture, the Trustee may require reasonable
  indemnity against such expense or liability as a condition to so proceeding;
  and

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

          Section 6.03  No
  Responsibility for Recitals, etc.

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

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

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

          Section 6.05  Moneys
  to be Held in Trust.

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

          Section 6.06  Compensation
  and Expenses of Trustee.

          The Company covenants and agrees
  to pay to the Trustee from time to time, and the Trustee shall be entitled to,
  such compensation as shall be agreed to in writing between the Company and the
  Trustee (which

  38

  

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

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

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

          Notwithstanding anything in this
  Indenture or any Debt Security to the contrary, the Trustee shall have no
  obligation whatsoever to advance funds to pay any principal of or interest on
  or other amounts with respect to the Debt Securities or otherwise advance
  funds to or on behalf of the Company.

          Section 6.07  Officers'
  Certificate as Evidence.

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

  39

  

          Section 6.08  Eligibility
  of Trustee.

          The Trustee hereunder shall at
  all times be a U.S. Person that is a banking corporation or national
  association organized and doing business under the laws of the United States
  of America or any state thereof or of the District of Columbia and authorized
  under such laws to exercise corporate trust powers, having a combined capital
  and surplus of at least fifty million U.S. dollars ($50,000,000) and subject
  to supervision or examination by federal, state, or District of Columbia
  authority.  If such corporation or national association publishes reports
  of condition at least annually, pursuant to law or to the requirements of the
  aforesaid supervising or examining authority, then for the purposes of this
  Section the combined capital and surplus of such corporation or national
  association shall be deemed to be its combined capital and surplus as set
  forth in its most recent records of condition so published.

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

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

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

          Section 6.09  Resignation
  or Removal of Trustee.

          (a)    The
  Trustee, or any trustee or trustees hereafter appointed, may at any time
  resign by giving written notice of such resignation to the Company and by
  mailing notice thereof, at the Company's expense, to the holders of the Debt
  Securities at their addresses as they shall appear on the Debt Security
  Register.  Upon receiving such notice of resignation, the Company shall
  promptly appoint a successor trustee or trustees by written instrument, in
  duplicate, executed by order of its Board of Directors, one copy of which
  instrument shall be delivered to the resigning Trustee and one copy to the
  successor Trustee.  If no successor Trustee shall have been so appointed
  and have accepted appointment within 30 days after the mailing of such notice
  of resignation to the affected Securityholders, the resigning Trustee may
  petition any court of competent jurisdiction for the appointment of a
  successor Trustee, or any Securityholder who has been a bona fide holder of a
  Debt Security or Debt Securities for at least six months may, subject to the
  provisions of Section 5.09, on behalf of himself or herself and all others
  similarly situated, petition any such court for the appointment of a successor
  Trustee.  Such court may thereupon, after such notice, if any, as it may
  deem proper and prescribe, appoint a successor Trustee.

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

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

  40

  

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

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

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

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

          (d)    Any
  resignation or removal of the Trustee and appointment of a successor Trustee
  pursuant to any of the provisions of this Section shall become effective upon
  acceptance of appointment by the successor Trustee as provided in Section
  6.10.

          Section 6.10  Acceptance
  by Successor Trustee.

          Any successor Trustee appointed
  as provided in Section 6.09 shall execute, acknowledge and deliver to the
  Company and to its predecessor Trustee an indenture supplemental hereto which
  shall contain such provisions as shall be deemed necessary or desirable to
  confirm that all of the rights, powers, trusts and duties of the retiring
  Trustee shall be vested in the successor Trustee, 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, duties and obligations with respect to the
  Debt Securities of its predecessor hereunder, with like effect as if
  originally named as Trustee herein; but, nevertheless, on the written request
  of the Company or of the successor Trustee, the Trustee ceasing to act

  41

  

  shall, upon payment of the amounts
  then due it pursuant to the provisions of Section 6.06, execute and deliver an
  instrument transferring to such successor Trustee all the rights and powers of
  the Trustee so ceasing to act and shall duly assign, transfer and deliver to
  such successor Trustee all property and money held by such retiring Trustee
  hereunder.  Upon request of any such successor Trustee, the Company shall
  execute any and all instruments in writing for more fully and certainly
  vesting in and confirming to such successor Trustee all such rights and
  powers.  Any Trustee ceasing to act shall, nevertheless, retain a lien
  upon all property or funds held or collected by such Trustee to secure any
  amounts then due it pursuant to the provisions of Section 6.06.

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

          In no event shall a retiring
  Trustee be liable for the acts or omissions of any successor Trustee
  hereunder.

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

          Section 6.11  Succession
  by Merger, etc.

          Any corporation into which the
  Trustee may be merged or converted or with which it may be consolidated, or
  any corporation resulting from any merger, conversion or consolidation to
  which the Trustee shall be a party, or any corporation succeeding to 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 corporation shall be otherwise eligible and qualified under this
  Article.

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

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          Section 6.12  Authenticating
  Agents.

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

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

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

          The Company agrees to pay to any
  Authenticating Agent from time to time reasonable compensation for its
  services.  Any Authenticating Agent shall have no responsibility or
  liability for any action taken by it as such in accordance with the directions
  of the Trustee.

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  ARTICLE VII

  CONCERNING THE SECURITYHOLDERS

          Section 7.01  Action
  by Securityholders.

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

          If the Company shall solicit
  from the Securityholders any request, demand, authorization, direction,
  notice, consent, waiver or other action or revocation of the same, the Company
  may, at its option, as evidenced by an Officers' Certificate, fix in advance a
  record date for such Debt Securities for the determination of Securityholders
  entitled to give such request, demand, authorization, direction, notice,
  consent, waiver or other action or revocation of the same, but the Company
  shall have no obligation to do so.  If such a record date is fixed, such
  request, demand, authorization, direction, notice, consent, waiver or other
  action or revocation of the same may be given before or after the record date,
  but only the Securityholders of record at the close of business on the record
  date shall be deemed to be Securityholders for the purposes of determining
  whether Securityholders of the requisite proportion of outstanding Debt
  Securities have authorized or agreed or consented to such request, demand,
  authorization, direction, notice, consent, waiver or other action or
  revocation of the same, and for that purpose the outstanding Debt Securities
  shall be computed as of the record date; provided, however, that
  no such authorization, agreement or consent by such Securityholders on the
  record date shall be deemed effective unless it shall become effective
  pursuant to the provisions of this Indenture not later than six months after
  the record date.

          Section 7.02  Proof
  of Execution by Securityholders.

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

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

          Section 7.03  Who
  Are Deemed Absolute Owners.

          Prior to due presentment for
  registration of transfer of any Debt Security, the Company, the Trustee, any
  Authenticating Agent, any Paying Agent, any transfer agent and any Debt
  Security registrar may deem the Person in whose name such Debt Security shall
  be registered upon the Debt Security Register to be, and may treat such Person
  as, the absolute owner of such Debt Security (whether or not such Debt
  Security shall be overdue) for the purpose of receiving payment of or on
  account of the principal of and premium, if any, and interest on such Debt
  Security and for all other purposes; and none of the Company, the Trustee, any
  Authenticating Agent, any Paying Agent, any transfer agent or any Debt
  Security registrar shall be affected by any notice to the contrary.  All
  such payments so made to any holder for the time being or upon such holder's
  order shall be valid, and, to the extent of the sum or sums so paid, effectual
  to satisfy and discharge the liability for moneys payable upon any such Debt
  Security.

          Section 7.04  Debt
  Securities Owned by Company Deemed Not Outstanding.

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

          Section 7.05  Revocation
  of Consents; Future Holders Bound.

          At any time prior to (but not
  after) the evidencing to the Trustee, as provided in Section 7.01, of the
  taking of any action by the holders of the percentage in aggregate principal
  amount of the Debt Securities specified in this Indenture in connection with
  such action, any holder (in cases where no record date has been set pursuant
  to Section 7.01) or any holder as of an applicable record date (in cases where
  a record date has been set pursuant to Section 7.01) of a Debt Security (or
  any Debt Security issued in whole or in part in exchange or substitution
  therefor) the serial number of which is shown by the evidence to be included
  in the Debt Securities the holders of which have consented to such action may,
  by filing written notice with the Trustee at the Principal

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  Office of the Trustee and upon
  proof of holding as provided in Section 7.02, revoke such action so far as
  concerns such Debt Security (or so far as concerns the principal amount
  represented by any exchanged or substituted Debt Security).  Except as
  aforesaid any such action taken by the holder of any Debt Security shall be
  conclusive and binding upon such holder and upon all future holders and owners
  of such Debt Security, and of any Debt Security issued in exchange or
  substitution therefor or on registration of transfer thereof, irrespective of
  whether or not any notation in regard thereto is made upon such Debt Security
  or any Debt Security issued in exchange or substitution therefor.

  ARTICLE VIII

  SECURITYHOLDERS' MEETINGS

          Section 8.01  Purposes
  of Meetings.

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

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

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

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

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

          Section 8.02  Call
  of Meetings by Trustee.

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

          Section 8.03  Call
  of Meetings by Company or Securityholders.

          In case at any time the Company
  pursuant to a Board Resolution, or the holders of at least 10% in aggregate
  principal amount of the Debt Securities, as the case may be, then outstanding,
  shall have requested the Trustee to call a meeting of Securityholders, by
  written request setting forth in reasonable detail the action proposed to be
  taken at the meeting, and the Trustee shall not have mailed the notice of such
  meeting within 20

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  days after receipt of such request,
  then the Company or such Securityholders may determine the time and the place
  in Los Angeles, California for such meeting and may call such meeting to take
  any action authorized in Section 8.01, by mailing notice thereof as provided
  in Section 8.02.

          Section 8.04  Qualifications
  for Voting.

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

          Section 8.05  Regulations.

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

          The Trustee shall, by an
  instrument in writing, appoint a temporary chairman of the meeting, unless the
  meeting shall have been called by the Company or by Securityholders as
  provided in Section 8.03, in which case the Company or the Securityholders
  calling the meeting, as the case may be, shall in like manner appoint a
  temporary chairman. A permanent chairman and a permanent secretary of the
  meeting shall be elected by majority vote at the meeting.

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

          Section 8.06  Voting.

          The vote upon any resolution
  submitted to any meeting of holders of Debt Securities with respect to which
  such meeting is being held shall be by written ballots on which shall be
  subscribed the signatures of such holders or of their representatives by proxy
  and the serial number or numbers of the Debt Securities held or represented by
  them.  The permanent chairman of the meeting shall appoint two inspectors
  of votes who shall

  47

  

  count all votes cast at the meeting
  for or against any resolution and who shall make and file with the secretary
  of the meeting their verified written reports in triplicate of all votes cast
  at the meeting. A record in duplicate of the proceedings of each meeting of
  Securityholders shall be prepared by the secretary of the meeting and there
  shall be attached to said record the original reports of the inspectors of
  votes on any vote by ballot taken thereat and affidavits by one or more
  Persons having knowledge of the facts setting forth a copy of the notice of
  the meeting and showing that said notice was mailed as provided in Section
  8.02.  The record shall show the serial numbers of the Debt Securities
  voting in favor of or against any resolution. The record shall be signed and
  verified by the affidavits of the permanent chairman and secretary of the
  meeting and one of the duplicates shall be delivered to the Company and the
  other to the Trustee to be preserved by the Trustee, the latter to have
  attached thereto the ballots voted at the meeting.

          Any record so signed and
  verified shall be conclusive evidence of the matters therein stated.

          Section 8.07  Quorum;
  Actions.

          The Persons entitled to vote a
  majority in aggregate principal amount of the Debt Securities then outstanding
  shall constitute a quorum for a meeting of Securityholders; provided, however,
  that if any action is to be taken at such meeting with respect to a consent,
  waiver, request, demand, notice, authorization, direction or other action
  which may be given by the holders of not less than a specified percentage in
  aggregate principal amount of the Debt Securities then outstanding, the
  Persons holding or representing such specified percentage in aggregate
  principal amount of the Debt Securities then outstanding will constitute a
  quorum.  In the absence of a quorum within 30 minutes of the time
  appointed for any such meeting, the meeting shall, if convened at the request
  of Securityholders, be dissolved.  In any other case, the meeting may be
  adjourned for a period of not less than 10 days as determined by the permanent
  chairman of the meeting prior to the adjournment of such meeting.  In the
  absence of a quorum at any such adjourned meeting, such adjourned meeting may
  be further adjourned for a period of not less than 10 days as determined by
  the permanent chairman of the meeting prior to the adjournment of such
  adjourned meeting.  Notice of the reconvening of any adjourned meeting
  shall be given as provided in Section 8.02, except that such notice need be
  given only once not less than five days prior to the date on which the meeting
  is scheduled to be reconvened.  Notice of the reconvening of an adjourned
  meeting shall state expressly the percentage, as provided above, of the
  aggregate principal amount of the Debt Securities then outstanding which shall
  constitute a quorum.

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

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  duly reconvened and at which a quorum is present as aforesaid only by the
  affirmative vote of the holders of not less than such specified percentage in
  aggregate principal amount of the Debt Securities then outstanding.

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

  ARTICLE IX

  SUPPLEMENTAL INDENTURES

          Section 9.01  Supplemental
  Indentures without Consent of Securityholders.

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

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

          (b)    to add to
  the covenants of the Company such further covenants, restrictions or
  conditions for the protection of the holders of Debt Securities as the Board
  of Directors shall consider to be for the protection of the holders of such
  Debt Securities, and to make the occurrence, or the occurrence and
  continuance, of a Default in any of such additional covenants, restrictions or
  conditions a Default or an Event of Default permitting the enforcement of all
  or any of the several remedies provided in this Indenture as herein set forth;
  provided, however, that in respect of any such additional
  covenant, restriction or condition such supplemental indenture may provide for
  a particular period of grace after Default (which period may be shorter or
  longer than that allowed in the case of other Defaults) or may provide for an
  immediate enforcement upon such Default or may limit the remedies available to
  the Trustee upon such default;

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

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

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

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

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

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

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

          Section 9.02  Supplemental
  Indentures with Consent of Securityholders.

          With the consent (evidenced as
  provided in Section 7.01) of the holders of a majority in aggregate principal
  amount of the Debt Securities at the time outstanding affected by such
  supplemental indenture, the Company, when authorized by a Board Resolution,
  and the Trustee may from time to time and at any time enter into an indenture
  or indentures supplemental hereto (which shall conform to the provisions of
  the Trust Indenture Act, then in effect, applicable to indentures qualified
  thereunder) for the purpose of adding any provisions to or changing in any
  manner or eliminating any of the provisions of this Indenture or of any
  supplemental indenture or of modifying in any manner the rights of the holders
  of the Debt Securities; provided, however, that no such
  supplemental indenture shall, without the consent of the holders of each Debt
  Security then outstanding and affected thereby, (i) change the Maturity Date
  of any Debt Security, or reduce the principal amount thereof or any premium
  thereon, or reduce the rate (or manner of calculation of the rate) or extend
  the time of payment of interest thereon, or reduce (other than as a result of
  the maturity or earlier redemption of any such Debt Security in accordance
  with the terms of this Indenture and such Debt Security) or increase the
  aggregate principal amount of Debt Securities then outstanding, or change any
  of the redemption provisions, or make the principal thereof or any interest or
  premium thereon payable in any coin or currency other than United States
  Dollars, or impair or affect the right of any Securityholder to institute suit
  for payment thereof, or (ii) reduce the aforesaid percentage of Debt
  Securities the holders of which are required to consent to any such
  supplemental indenture; and provided, further, that if the Debt
  Securities are held by the Trust or the trustee of the Trust, such
  supplemental indenture shall not be effective until the holders of a majority
  in

  50

  

  aggregate liquidation amount of the outstanding Capital Securities shall
  have consented to such supplemental indenture; provided, further,
  that if the consent of the Securityholder of each outstanding Debt Security is
  required, such supplemental indenture shall not be effective until each holder
  of the outstanding Capital Securities shall have consented to such
  supplemental indenture.

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

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

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

          Section 9.03  Effect
  of Supplemental Indentures.

          Upon the execution of any
  supplemental indenture pursuant to the provisions of this Article IX, this
  Indenture shall be and be deemed to be modified and amended in accordance
  therewith and the respective rights, limitations of rights, obligations,
  duties and immunities under this Indenture of the Trustee, the Company and the
  holders of Debt Securities shall thereafter be determined, exercised and
  enforced hereunder subject in all respects to such modifications and
  amendments and all the terms and conditions of any such supplemental indenture
  shall be and be deemed to be part of the terms and conditions of this
  Indenture for any and all purposes.

          Section 9.04  Notation
  on Debt Securities.

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

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          Section 9.05  Evidence
  of Compliance of Supplemental Indenture to be Furnished to Trustee.

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

  ARTICLE X

  REDEMPTION OF SECURITIES

          Section 10.01  Optional
  Redemption.

          The Company shall have the
  right, subject to the receipt by the Company of the prior approval from the
  OTS, if then required under applicable capital guidelines or policies of the
  OTS, to redeem the Debt Securities, in whole or (provided that all accrued and
  unpaid interest has been paid on all Debt Securities for all Interest Periods
  terminating on or prior to such date) from time to time in part, on any
  Interest Payment Date on or after November 23, 2010 (each, an "Optional
  Redemption Date"), at the Optional Redemption Price.

          Section 10.02  Special
  Event Redemption.

          If a Special Event shall occur
  and be continuing, the Company shall have the right, subject to the receipt by
  the Company of prior approval from the OTS, if then required under applicable
  capital guidelines or policies of the OTS, to redeem the Debt Securities, in
  whole but not in part, at any time within 90 days following the occurrence of
  such Special Event (the "Special Redemption Date"), at the Special
  Redemption Price. 

          Section 10.03  Notice
  of Redemption; Selection of Debt Securities.

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

          Each such notice of redemption
  shall specify the CUSIP number, if any, of the Debt Securities to be redeemed,
  the date fixed for redemption, the price or manner of calculation of the
  price) at which Debt Securities are to be redeemed, the place or places of
  payment, that payment will be made upon presentation and surrender of such
  Debt Securities, that interest accrued to the date fixed for redemption will
  be paid as

  52

  

  specified in said notice, and that on and after said date interest thereon
  or on the portions thereof to be redeemed will cease to accrue. If less than
  all the Debt Securities are to be redeemed, the notice of redemption shall
  specify the numbers of the Debt Securities to be redeemed.  In case the
  Debt Securities are to be redeemed in part only, the notice of redemption
  shall state the portion of the principal amount thereof to be redeemed and
  shall state that on and after the date fixed for redemption, upon surrender of
  such Debt Security, a new Debt Security or Debt Securities in principal amount
  equal to the unredeemed portion thereof will be issued.

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

          The Company will give the
  Trustee notice not less than 45 nor more than 75 days prior to the date fixed
  for redemption as to the price at which the Debt Securities are to be redeemed
  and the aggregate principal amount of Debt Securities to be redeemed and the
  Trustee shall select, in such manner as in its sole discretion it shall deem
  appropriate and fair, the Debt Securities or portions thereof (in integral
  multiples of $1,000) to be redeemed.

          Section 10.04  Payment
  of Debt Securities Called for Redemption.

          If notice of redemption has been
  given as provided in Section 10.03, the Debt Securities or portions of Debt
  Securities with respect to which such notice has been given shall become due
  and payable on the related Optional Redemption Date or Special Redemption Date
  (as the case may be) and at the place or places stated in such notice at the
  applicable price therefor, together with unpaid interest accrued thereon to
  said Optional Redemption Date or the Special Redemption Date (as the case may
  be), and on and after said Optional Redemption Date or the Special Redemption
  Date (as the case may be) (unless the Company shall default in the payment of
  such Debt Securities at the redemption price, together with unpaid interest
  accrued thereon to said date) interest on the Debt Securities or portions of
  Debt Securities so called for redemption shall cease to accrue.  On
  presentation and surrender of such Debt Securities at a place of payment
  specified in said notice, such Debt Securities or the specified portions
  thereof shall be paid and redeemed by the Company at the applicable price
  therefor, together with unpaid interest, if any, accrued thereon to said
  Optional Redemption Date or the Special Redemption Date (as the case may be); provided,
  however, that interest payable on any Interest Payment Date on or prior
  to said Optional Redemption Date or the Special Redemption Date will be paid
  to the holders on the relevant regular record date.

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

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  ARTICLE XI

  CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

          Section 11.01  Company
  May Consolidate, etc., on Certain Terms.

          Nothing contained in this
  Indenture or in the Debt Securities shall prevent any consolidation or merger
  of the Company with or into any other corporation or corporations (whether or
  not affiliated with the Company) or successive consolidations or mergers in
  which the Company or its successor or successors shall be a party or parties,
  or shall prevent any sale, conveyance, transfer or other disposition of all or
  substantially all of the property and assets of the Company or its successor
  or successors to any other corporation (whether or not affiliated with the
  Company or its successor or successors) authorized to acquire and operate the
  same; provided, however, that the Company hereby covenants and
  agrees that (i) upon any such consolidation, merger (where the Company is
  not the surviving corporation), sale, conveyance, transfer or other
  disposition, the successor entity shall be a corporation organized and
  existing under the laws of the United States or any state thereof or the
  District of Columbia (unless such corporation has (1) agreed to make all
  payments due in respect of the Debt Securities or, if outstanding, the Trust
  Securities and the Capital Securities Guarantee without withholding or
  deduction for, or on account of, any taxes, duties, assessments or other
  governmental charges under the laws or regulations of the jurisdiction of
  organization or residence (for tax purposes) of such corporation or any
  political subdivision or taxing authority thereof or therein unless required
  by applicable law, in which case such corporation shall have agreed to pay
  such additional amounts as shall be required so that the net amounts received
  and retained by the holders of such Debt Securities or Trust Securities, as
  the case may be, after payment of all taxes (including withholding taxes),
  duties, assessments or other governmental charges, will be equal to the
  amounts that such holders would have received and retained had no such taxes
  (including withholding taxes), duties, assessments or other governmental
  charges been imposed, (2) irrevocably and unconditionally consented and
  submitted to the jurisdiction of any United States federal court or New York
  state court, in each case located in the Borough of Manhattan, The City of New
  York, in respect of any action, suit or proceeding against it arising out of
  or in connection with this Indenture, the Debt Securities, the Capital
  Securities Guarantee or the Declaration and irrevocably and unconditionally
  waived, to the fullest extent permitted by law, any objection to the laying of
  venue in any such court or that any such action, suit or proceeding has been
  brought in an inconvenient forum and (3) irrevocably appointed an agent in The
  City of New York for service of process in any action, suit or proceeding
  referred to in clause (2) above) and such corporation expressly assumes all of
  the obligations of the Company under the Debt Securities, this Indenture, the
  Capital Securities Guarantee and the Declaration and (ii) after giving
  effect to any such consolidation, merger, sale, conveyance, transfer or other
  disposition, no Default or Event of Default shall have occurred and be
  continuing.

          Section 11.02  Successor
  Entity to be Substituted.

          In case of any such
  consolidation, merger, sale, conveyance, transfer or other disposition
  contemplated in Section 11.01 and upon the assumption by the successor
  corporation, by supplemental indenture, executed and delivered to the Trustee
  and reasonably satisfactory in form to the Trustee, of the due and punctual
  payment of the principal of and premium, if any, and interest on all of the
  Debt Securities and the due and punctual performance and observance of all of
  the covenants and conditions of this Indenture to be performed or

  54

  

  observed by the Company, such successor corporation shall succeed to and be
  substituted for the Company, with the same effect as if it had been named
  herein as the Company, and thereupon the predecessor entity shall be relieved
  of any further liability or obligation hereunder or upon the Debt
  Securities.  Such successor corporation thereupon may cause to be signed,
  and may issue either in its own name or in the name of the Company, any or all
  of the Debt Securities issuable hereunder which theretofore shall not have
  been signed by the Company and delivered to the Trustee or the Authenticating
  Agent; and, upon the order of such successor corporation instead of the
  Company and subject to all the terms, conditions and limitations in this
  Indenture prescribed, the Trustee or the Authenticating Agent shall
  authenticate and deliver any Debt Securities which previously shall have been
  signed and delivered by the officers of the Company to the Trustee or the
  Authenticating Agent for authentication, and any Debt Securities which such
  successor corporation thereafter shall cause to be signed and delivered to the
  Trustee or the Authenticating Agent for that purpose.  All the Debt
  Securities so issued shall in all respects have the same legal rank and
  benefit under this Indenture as the Debt Securities theretofore or thereafter
  issued in accordance with the terms of this Indenture as though all of such
  Debt Securities had been issued at the date of the execution hereof.

          Section 11.03  Opinion
  of Counsel to be Given to Trustee.

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

  ARTICLE XII

  SATISFACTION AND DISCHARGE OF INDENTURE

          Section 12.01  Discharge
  of Indenture.

          When (a) the Company shall
  deliver to the Trustee for cancellation all Debt Securities theretofore
  authenticated (other than any Debt Securities which shall have been destroyed,
  lost or stolen and which shall have been replaced or paid as provided in
  Section 2.06) and not theretofore canceled, or (b) all the Debt Securities not
  theretofore canceled or delivered to the Trustee for cancellation shall have
  become due and payable, or are by their terms to become due and payable within
  one year or are to be called for redemption within one year under arrangements
  satisfactory to the Trustee for the giving of notice of redemption, and the
  Company shall deposit with the Trustee, in trust, funds, which shall be
  immediately due and payable, sufficient to pay at maturity or upon redemption
  all of the Debt Securities (other than any Debt Securities which shall have
  been destroyed, lost or stolen and which shall have been replaced or paid as
  provided in Section 2.06) not theretofore canceled or delivered to the Trustee
  for cancellation, including principal and premium, if any, and interest due or
  to become due to the Maturity Date, any Optional Redemption Date or the
  Special Redemption Date, as the case may be, but excluding, however, the
  amount of any moneys for the payment of principal of and premium, if any, or
  interest on the Debt Securities (1) theretofore repaid to the Company in
  accordance with the provisions of Section 12.04, or (2) paid to any state or
  to the District of Columbia

  55

  

  pursuant to its unclaimed property or similar laws, and if in the case of
  either clause (a) or (b) above the Company shall also pay or cause to be paid
  all other sums payable hereunder by the Company, then this Indenture shall
  cease to be of further effect except for the provisions of Sections 2.05,
  2.06, 3.01, 3.02, 3.04, 6.06, 6.09 and 12.04 hereof, which shall survive until
  such Debt Securities shall mature or are redeemed, as the case may be, and are
  paid in full.  Thereafter, Sections 6.06, 6.09 and 12.04 shall survive,
  and the Trustee, on demand of the Company accompanied by an Officers'
  Certificate and an Opinion of Counsel, each stating that all conditions
  precedent herein provided for relating to the satisfaction and discharge of
  this Indenture have been complied with, and at the cost and expense of the
  Company, shall execute proper instruments acknowledging satisfaction of and
  discharging this Indenture, the Company, however, hereby agreeing to reimburse
  the Trustee for any costs or expenses thereafter reasonably and properly
  incurred by the Trustee in connection with this Indenture or the Debt
  Securities.

          Section 12.02  Deposited
  Moneys to be Held in Trust by Trustee.

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

          Section 12.03  Paying
  Agent to Repay Moneys Held.

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

          Section 12.04  Return
  of Unclaimed Moneys.

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

  56

  

  ARTICLE XIII

  IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

  OFFICERS AND DIRECTORS

          Section 13.01  Indenture
  and Debt Securities Solely Corporate Obligations.

          No recourse for the payment of
  the principal of or premium, if any, or interest on any Debt Security, or for
  any claim based thereon or otherwise in respect thereof, and no recourse under
  or upon any obligation, covenant or agreement of the Company in this Indenture
  or in any supplemental indenture, or in any such Debt Security, or because of
  the creation of any indebtedness represented thereby, shall be had against any
  incorporator, stockholder, officer, director, employee or agent, as such,
  past, present or future, of the Company or of any predecessor or successor
  corporation of the Company, either directly or through the Company or any
  successor corporation of the Company, whether by virtue of any constitution,
  statute or rule of law, or by the enforcement of any assessment or penalty or
  otherwise; it being expressly understood that all such liability is hereby
  expressly waived and released as a condition of, and as a consideration for,
  the execution of this Indenture and the issue of the Debt Securities.

  ARTICLE XIV

  MISCELLANEOUS PROVISIONS

          Section 14.01  Successors.

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

          Section 14.02  Official
  Acts by Successor Entity.

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

          Section 14.03  Surrender
  of Company Powers.

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

          Section 14.04  Addresses
  for Notices, etc.

          Any notice or demand which by
  any provision of this Indenture is required or permitted to be given or served
  by the Trustee or by the Securityholders on the Company may be given or served
  in writing by being deposited postage prepaid by registered or certified mail
  in a post office letter box addressed (until another address is filed by the
  Company with the Trustee for such purpose) to the Company at 350 South Garey
  Avenue, Pomona, California 91766, Attention: Gregory C. Talbott.  Any
  notice, direction, request or demand

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  by any Securityholder or the Company to or upon the Trustee shall be deemed
  to have been sufficiently given or made, for all purposes, if given or made in
  writing at the office of Wilmington Trust Company at Rodney Square North, 1100
  North Market Street, Wilmington, DE 19890-0001, Attention: Corporate Capital
  Markets.

          Section 14.05  Governing
  Law.

          This Indenture and the Debt
  Securities shall each be governed by, and construed in accordance with, the
  laws of the State of New York, without regard to conflict of laws principles
  of said State other than Section 5-1401 of the New York General Obligations
  Law.

          Section 14.06  Evidence
  of Compliance with Conditions Precedent.

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

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

          Section 14.07  Business
  Day Convention.

          Notwithstanding anything to the
  contrary contained herein, if any Interest Payment Date, other than the
  Maturity Date, any Optional Redemption Date or the Special Redemption Date,
  falls on a day that is not a Business Day, then any interest payable will be
  paid on, and such Interest Payment Date will be moved to, the next succeeding
  Business Day, and additional interest will accrue for each day that such
  payment is delayed as a result thereof.  If the Maturity Date, any
  Optional Redemption Date or the Special Redemption Date falls on a day that is
  not a Business Day, then the principal, premium, if any, and/or interest
  payable on such date will be paid on the next succeeding Business Day, and no
  additional interest will accrue in respect of such payment made on such next
  succeeding Business Day.

  58

  

          Section 14.08  Table
  of Contents, Headings, etc.

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

          Section 14.09  Execution
  in Counterparts.

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

          Section
  14.10     Separability.

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

          Section 14.11  Assignment.

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

          Section 14.12  Acknowledgment
  of Rights.

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

  59

  

  respective due date (or Optional Redemption Date or Special Redemption Date
  (as the case may be)) specified in the Debt Securities.

  ARTICLE XV

  SUBORDINATION OF DEBT SECURITIES

          Section 15.01  Agreement
  to Subordinate.

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

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

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

          Section 15.02  Default
  on Senior Indebtedness.

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

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

          Section 15.03  Liquidation;
  Dissolution; Bankruptcy.

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

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

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

          For purposes of this Article XV,
  the words "cash, property or securities" shall not be deemed to
  include shares of stock of the Company as reorganized or readjusted, or
  securities of the Company or any other corporation provided for by a plan of
  reorganization or readjustment, the payment of which is subordinated at least
  to the extent provided in this Article XV with respect to the Debt Securities
  to the payment of all Senior Indebtedness of the Company, that may at the time
  be outstanding, provided, that (a) such Senior Indebtedness is assumed
  by the new corporation, if any, resulting from any such reorganization or
  readjustment, and (b) the rights of the holders of such Senior Indebtedness
  are not, without the consent of such holders, altered by such reorganization
  or readjustment.  The consolidation of the Company with, or the merger of
  the Company into, another corporation or the liquidation or dissolution of the
  Company following the conveyance, transfer or other disposition of its
  property as an entirety, or substantially as an entirety, to another
  corporation upon the terms and conditions provided for in Article XI of this
  Indenture shall not be deemed a dissolution, winding-up, liquidation or
  reorganization for the purposes of this Section if such other corporation
  shall, as a part of such

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  consolidation, merger, conveyance or transfer, comply with the conditions
  stated in Article XI of this Indenture.  Nothing in Section 15.02 or in
  this Section shall apply to claims of, or payments to, the Trustee under or
  pursuant to Section 6.06 of this Indenture.

          Section 15.04  Subrogation.

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

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

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

  62

  

          Section 15.05  Trustee
  to Effectuate Subordination.

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

          Section 15.06  Notice
  by the Company.

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

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

          Section 15.07  Rights
  of the Trustee; Holders of Senior Indebtedness.

          The Trustee, in its individual
  capacity, shall be entitled to all the rights set forth in this Article XV in
  respect of any Senior Indebtedness at any time held by it, to the same extent
  as any other holder of Senior

  63

  

  Indebtedness, and nothing in this Indenture or any Additional Provisions
  shall deprive the Trustee of any of its rights as such holder.

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

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

          Section 15.08  Subordination
  May Not Be Impaired.

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

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

  64

  

  

          Wilmington Trust Company, in its
  capacity as Trustee, hereby accepts the trusts in this Indenture declared and
  provided, upon the terms and conditions herein above set forth.
          IN WITNESS WHEREOF, the parties
  hereto have caused this Indenture to be duly executed by their respective
  officers thereunto duly authorized, as of the day and year first above
  written.

                                                                         
  PFF Bancorp, Inc.

                                                                          By: /s/
  Gregory C. Talbott     

                                                                             
  Name:  Gregory C. Talbott

                                                                             
  Title:  Executive Vice President,

                                                                                       
  Chief Financial Officer and Treasurer

   

   

                                                                         
  WILMINGTON TRUST COMPANY,

                                                                                 
  as Trustee

   

                                                                         
  By: /s/ Geoffrey J. Lewis     

                                                                             
  Name: Geoffrey J. Lewis

                                                                             
  Title:  Financial Services Officer

 
 

65

 

Exhibit 4.1

  EXHIBIT A

  FORM OF DEBT SECURITY

  [FORM OF FACE OF SECURITY]

          [THIS SECURITY IS A GLOBAL
  DEBENTURE 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 COMPANY 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 IS REQUESTED
  BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT 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.]

          THIS SECURITY HAS NOT BEEN
  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
  ACT"), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES
  LAWS.   NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
  HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
  OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
  TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
  OF THE SECURITIES ACT.  THE HOLDER OF THIS SECURITY OR ANY INTEREST OR
  PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE,
  AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY INTEREST OR
  PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (i) TWO YEARS (OR
  SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES
  ACT) AFTER THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE
  LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER
  THE SECURITIES ACT) OF THE

  A-1

  

  COMPANY WAS THE HOLDER OF THIS SECURITY OR SUCH INTEREST OR
  PARTICIPATION (OR ANY PREDECESSOR THERETO) AND (ii) SUCH LATER DATE, IF ANY,
  AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE
  COMPANY, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE
  144A"), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A "QUALIFIED
  INSTITUTIONAL BUYER", AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN
  ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
  IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C)
  PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
  ACT TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH
  (a) (1), (2), (3), (7) OR (8) OF RULE 501 UNDER THE SECURITIES ACT THAT IS
  ACQUIRING THIS SECURITY OR SUCH INTEREST OR PARTICIPATION 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
  IN VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO NON-US
  PERSONS THAT OCCUR OUTSIDE THE UNITED STATES PURSUANT TO REGULATION S UNDER
  THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
  REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S
  RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C) OR (E)
  ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
  OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A COPY
  OF WHICH MAY BE OBTAINED FROM THE COMPANY.  THE HOLDER OF THIS SECURITY
  OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF,
  AS THE CASE MAY BE, AGREES THAT IT WILL COMPLY WITH THE FOREGOING
  RESTRICTIONS.

          THE HOLDER OF THIS SECURITY
  OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF,
  AS THE CASE MAY BE, 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 OR
  PARTICIPATION HEREIN, 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 SUCH
  INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION
  4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING.  ANY PURCHASER
  OR HOLDER OF THIS

  A-2

  

  SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN WILL BE DEEMED TO HAVE
  REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF OR THEREOF, AS THE CASE MAY BE,
  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 AND
  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.

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

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

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

  Floating Rate Junior
  Subordinated Debt Security due 2035

  of

  PFF Bancorp, Inc.

          PFF Bancorp, Inc., a savings and
  loan holding company incorporated in the State of Delaware (the
  "Company", which term includes any successor permitted under the
  Indenture (as defined herein)), for value received, promises to pay to
  Wilmington Trust Company, not in its individual capacity but solely as
  Institutional

  A-3

  

  Trustee for PFF Bancorp Capital Trust II, a Delaware statutory trust, or
  registered assigns, the principal amount of TWENTY-FIVE MILLION SEVEN HUNDRED
  SEVENTY-FOUR THOUSAND   Dollars ($25,774,000) on November 23, 2035
  (the "Maturity Date") (or any Optional Redemption Date or the
  Special Redemption Date, each as defined herein, or any earlier date of
  acceleration of the maturity of this Debt Security), and to pay interest on
  the outstanding principal amount of this Debt Security from September 16,
  2005, or from the most recent Interest Payment Date (as defined below) to
  which interest has been paid or duly provided for, quarterly (subject to
  deferral as set forth herein) in arrears on February 23, May 23, August 23 and
  November 23 of each year, commencing on November 23, 2005 (each, an
  "Interest Payment Date"), at a rate per annum, which, with respect
  to any Interest Period (as defined in the Indenture), will be equal to LIBOR
  (as defined in the Indenture), as determined on the LIBOR Determination Date
  (as defined in the Indenture) for such Interest Period (or, in the case of the
  first Interest Period, will be 3.874%), plus 1.52% (the "Interest
  Rate") (provided that the Interest Rate for any Interest Period may not
  exceed the highest rate permitted by New York law, as the same may be modified
  by United States law of general application) until the principal hereof shall
  have been paid or duly provided for, and on any overdue principal and (without
  duplication and to the extent that payment of such interest is enforceable
  under applicable law) on any overdue installment of interest at an annual rate
  equal to the then applicable Interest Rate, compounded quarterly.  The
  amount of interest payable for any Interest Period shall be computed on the
  basis of a 360-day year and the actual number of days elapsed in such Interest
  Period.

          The interest installment so
  payable, and punctually paid or duly provided for, on any Interest Payment
  Date will, as provided in the Indenture, be paid to the Person in whose name
  this Debt Security (or one or more Predecessor Securities, as defined in the
  Indenture) is registered at the close of business on the "regular record
  date" for such interest installment, which shall be the fifteenth day
  prior to such Interest Payment Date, whether or not such day is a Business Day
  (as defined herein).  Any such interest installment (other than Deferred
  Interest (as defined herein)) not punctually paid or duly provided for shall
  forthwith cease to be payable to the holders on such regular record date and
  may be paid to the Person in whose name this Debt Security (or one or more
  Predecessor Securities) is registered at the close of business on a special
  record date to be fixed by the Trustee for the payment of such defaulted
  interest, notice whereof shall be given to the holders of the Debt Securities
  not less than 10 days prior to such special record date, all as more fully
  provided in the Indenture.

          Payment of the principal of and
  premium, if any, and interest on this Debt Security due on the Maturity Date,
  any Optional Redemption Date or the Special Redemption Date, as the case may
  be, shall be made in immediately available funds against presentation and
  surrender of this Debt Security at the office or agency of the Trustee
  maintained for that purpose in Wilmington, Delaware, or at the office or
  agency of any other Paying Agent appointed by the Company maintained for that
  purpose in Wilmington, Delaware or Los Angeles, California.  Payment of
  interest on this Debt Security due on any Interest Payment Date other than the
  Maturity Date, any Optional Redemption Date or the Special Redemption Date, as
  the case may be, shall be made at the option of the Company by check mailed to
  the holder thereof at such address as shall appear in the Debt Security
  Register or by wire transfer of immediately available funds to an account
  appropriately designated by the holder hereof.  Notwithstanding the
  foregoing, so long as the holder of this Debt Security is the Institutional

  A-4

  

  Trustee, payment of the principal of and premium, if any, and interest on
  this Debt Security shall be made in immediately available funds when due at
  such place and to such account as may be designated by the Institutional
  Trustee.  All payments in respect of this Debt Security shall be payable
  in any coin or currency of the United States of America that at the time of
  payment is legal tender for payment of public and private debts.

          Notwithstanding anything to the
  contrary contained herein, if any Interest Payment Date, other than the
  Maturity Date, any Optional Redemption Date or the Special Redemption Date,
  falls on a day that is not a Business Day, then any interest payable will be
  paid on, and such Interest Payment Date will be moved to, the next succeeding
  Business Day, and additional interest will accrue for each day that such
  payment is delayed as a result thereof.  If the Maturity Date, any
  Optional Redemption Date or the Special Redemption Date falls on a day that is
  not a Business Day, then the principal, premium, if any, and/or interest
  payable on such date will be paid on the next succeeding Business Day, and no
  additional interest will accrue in respect of such payment made on such next
  succeeding Business Day.

          So long as no Event of Default
  pursuant to Sections 5.01(b), (e), (f), (g), (h) or (i) of the Indenture has
  occurred and is continuing, the Company shall have the right, from time to
  time and without causing an Event of Default, to defer payments of interest on
  the Debt Securities by extending the interest payment period on the Debt
  Securities at any time and from time to time during the term of the Debt
  Securities, for up to 20 consecutive quarterly periods (each such extended
  interest payment period, together with all previous and further consecutive
  extensions thereof, is referred to herein as an "Extension
  Period").  No Extension Period may end on a date other than an
  Interest Payment Date or extend beyond the Maturity Date, any Optional
  Redemption Date or the Special Redemption Date, as the case may be. 
  During any Extension Period, interest will continue to accrue on the Debt
  Securities, and interest on such accrued interest (such accrued interest and
  interest thereon referred to herein as "Deferred Interest") will
  accrue at an annual rate equal to the Interest Rate applicable during such
  Extension Period, compounded quarterly from the date such Deferred Interest
  would have been payable were it not for the Extension Period, to the extent
  permitted by applicable law.  No interest or Deferred Interest (except
  any Additional Amounts (as defined in the Indenture) that may be due and
  payable) shall be due and payable during an Extension Period, except at the
  end thereof.  At the end of any Extension Period, the Company shall pay
  all Deferred Interest then accrued and unpaid on the Debt Securities; provided,
  however, that during any Extension Period, the Company may not (i)
  declare or pay any dividends or distributions on, or redeem, purchase,
  acquire, or make a liquidation payment with respect to, any of the Company's
  capital stock, (ii) make any payment of principal of or premium, if any, or
  interest on or repay, repurchase or redeem any debt securities of the Company
  that rank pari passu in all respects with or junior in interest to the
  Debt Securities or (iii) make any payment under any guarantees of the Company
  that rank in all respects pari passu with or junior in respect to the
  Capital Securities Guarantee   (other than (a) repurchases,
  redemptions or other acquisitions of shares of capital stock of the Company
  (A) in connection with any employment contract, benefit plan or other similar
  arrangement with or for the benefit of one or more employees, officers,
  directors or consultants, (B) in connection with a dividend reinvestment or
  stockholder stock purchase plan or (C) in connection with the issuance of
  capital stock of the Company (or securities convertible into or exercisable
  for such capital stock), as consideration in an acquisition transaction
  entered into prior to such Extension Period, (b) as a result of any exchange
  or conversion of any class or series of the

  A-5

  

  Company's capital stock (or any capital stock of a subsidiary of the
  Company) for any class or series of the Company's capital stock or of any
  class or series of the Company's indebtedness for any class or series of the
  Company's capital stock, (c) the purchase of fractional interests in shares of
  the Company's capital stock pursuant to the conversion or exchange provisions
  of such capital stock or the security being converted or exchanged, (d) any
  declaration of a dividend in connection with any stockholder's rights plan, or
  the issuance of rights, stock or other property under any stockholder's rights
  plan, or the redemption or repurchase of rights pursuant thereto or (e) any
  dividend in the form of stock, warrants, options or other rights where the
  dividend stock or the stock issuable upon exercise of such warrants, options
  or other rights is the same stock as that on which the dividend is being paid
  or ranks pari passu with or junior to such stock).  Prior to the
  termination of any Extension Period, the Company may further extend such
  Extension Period, provided, that no Extension Period (including all
  previous and further consecutive extensions that are part of such Extension
  Period) shall exceed 20 consecutive quarterly periods.  Upon the
  termination of any Extension Period and upon the payment of all Deferred
  Interest, the Company may commence a new Extension Period, subject to the
  foregoing requirements.  The Company must give the Trustee notice of its
  election to begin or extend an Extension Period no later than the close of
  business on the fifteenth Business Day prior to the applicable Interest
  Payment Date.

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

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

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

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

          This Debt Security may contain
  more than one counterpart of the signature page and this Debt Security may be
  executed and authenticated by the affixing of the signature of a proper
  officer of the Company, and the signature of the Trustee providing
  authentication, to any of such counterpart signature pages.  All of such

     A-6

  

  counterpart signature pages shall be read as though one, and they shall
  have the same force and effect as though the Company had executed, and the
  Trustee had authenticated, a single signature page.

   
  

  A-7

  

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

                                                                     
  PFF Bancorp, Inc.

                                                                     
  By: ______________________________

                                                                           
  Name:

                                                                           
  Title:

  Dated:  ______________________, ____

   

   

  CERTIFICATE OF AUTHENTICATION

              This
  certificate represents Debt Securities referred to in the within-mentioned
  Indenture.

                                                                     
  WILMINGTON TRUST COMPANY,

                                                                         
  not in its individual capacity but solely as

                                                                         
  the Trustee

   

                                                                     
  By:   ______________________________

                                                                             
  Authorized Officer

  Dated:  ______________________, ____

  

  A-8

  

  [FORM OF REVERSE OF SECURITY]

          This Debt Security is one of a
  duly authorized series of debt securities of the Company (collectively, the
  "Debt Securities"), all issued or to be issued pursuant to an
  Indenture (the "Indenture"), dated as of September 16, 2005, duly
  executed and delivered between the Company and Wilmington Trust Company, as
  Trustee (the "Trustee"), to which Indenture and all indentures
  supplemental thereto reference is hereby made for a description of the rights,
  limitations of rights, obligations, duties and immunities thereunder of the
  Trustee, the Company and the holders of the Debt Securities of which this Debt
  Security is a part.

          Upon the occurrence and
  continuation of a Tax Event, an Investment Company Event or a Capital
  Treatment Event (each, a "Special Event"), the Company shall have
  the right to redeem this Debt Security, at its option, in whole with all other
  Debt Securities but not in part, at any time, within 90 days following the
  occurrence of such Special Event (the "Special Redemption Date"), at
  the Special Redemption Price (as defined herein).

          The Company shall also have the
  right to redeem this Debt Security at its option, in whole or (provided that
  all accrued and unpaid interest has been paid on all Debt Securities for all
  Interest Periods terminating on or prior to such date) from time to time in
  part, on any Interest Payment Date on or after November 23, 2010 (each, an
  "Optional Redemption Date"), at the Optional Redemption Price (as
  defined herein).

          Any redemption pursuant to the
  preceding two paragraphs will be made, subject to receipt by the Company of
  prior approval from the Office of Thrift Supervision (the "OTS") if
  then required under applicable capital guidelines or policies of the OTS, upon
  not less than 30 days' nor more than 60 days' prior written notice.  If
  the Debt Securities are only partially redeemed by the Company, the Debt
  Securities will be redeemed pro rata or by any other method utilized by the
  Trustee.  In the event of redemption of this Debt Security in part only,
  a new Debt Security or Debt Securities for the unredeemed portion hereof will
  be issued in the name of the holder hereof upon the cancellation hereof.

          "Optional Redemption
  Price" means an amount in cash equal to 100% of the principal amount of
  this Debt Security being redeemed plus unpaid interest accrued thereon to the
  related Optional Redemption Date.

          "Special Redemption
  Price" means, with respect to the redemption of this Debt Security
  following a Special Event, an amount in cash equal to 104.00% of the principal
  amount of this Debt Security to be redeemed prior to November 23, 2006 and
  thereafter equal to the percentage of the principal amount of this Debt
  Security that is specified below for the Special Redemption Date plus, in each
  case, unpaid interest accrued thereon to the Special Redemption Date:

  A-9

  

  

  	
        Special
        Redemption During the 12-Month

        Period
        Beginning November 23,

      	
        

        Percentage of Principal Amount

      
	
                2006

      	
        103.20%

      
	
                2007

      	
        102.40%

      
	
                2008

      	
        101.60%

      
	
                2009

      	
        100.80%

      
	
                2010 and thereafter

      	
        100.00%

      

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

          The Indenture contains
  provisions permitting the Company and the Trustee, with the consent of the
  holders of a majority in aggregate principal amount of the Debt Securities at
  the time outstanding affected thereby, as specified in the Indenture, to
  execute supplemental indentures for the purpose of adding any provisions to or
  changing in any manner or eliminating any of the provisions of the Indenture
  or of any supplemental indenture or of modifying in any manner the rights of
  the holders of the Debt Securities; provided, however, that no
  such supplemental indenture shall, among other things, without the consent of
  the holders of each Debt Security then outstanding and affected thereby (i) change
  the Maturity Date of any Debt Security, or reduce the principal amount thereof
  or any premium thereon, or reduce the rate (or manner of calculation of the
  rate) or extend the time of payment of interest thereon, or reduce (other than
  as a result of the maturity or earlier redemption of any such Debt Security in
  accordance with the terms of the Indenture and such Debt Security) or increase
  the aggregate principal amount of Debt Securities then outstanding, or change
  any of the redemption provisions, or make the principal thereof or any
  interest or premium thereon payable in any coin or currency other than United
  States Dollars, or impair or affect the right of any holder to institute suit
  for payment thereof, or (ii) reduce the aforesaid percentage of Debt
  Securities the holders of which are required to consent to any such
  supplemental indenture.  The Indenture also contains provisions
  permitting the holders of a majority in aggregate principal amount of the Debt
  Securities at the time outstanding, on behalf of the holders of all the Debt
  Securities, to waive any past default in the performance of any of the
  covenants contained in the Indenture, or established pursuant to the
  Indenture, and its consequences, except (a) a default in payments due in
  respect of any of the Debt Securities, (b) in respect of covenants or
  provisions of the Indenture which cannot be modified or amended without the
  consent of the holder of each Debt Security affected, or (c) in respect
  of the covenants of the Company relating to its ownership of Common Securities
  of the Trust.  Any such consent or waiver by the holder of this Debt
  Security (unless revoked as provided in the Indenture) shall be conclusive

  A-10

  

  and binding upon such holder and upon all future holders and owners of this
  Debt Security and of any Debt Security issued in exchange herefor or in place
  hereof (whether by registration of transfer or otherwise), irrespective of
  whether or not any notation of such consent or waiver is made upon this Debt
  Security.

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

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

          Prior to due presentment for
  registration of transfer of this Debt Security, the Company, the Trustee, any
  Authenticating Agent, any Paying Agent, any transfer agent and the Debt
  Security registrar may deem and treat the holder hereof as the absolute owner
  hereof (whether or not this Debt Security shall be overdue and notwithstanding
  any notice of ownership or writing hereon) for the purpose of receiving
  payment of the principal of and premium, if any, and interest on this Debt
  Security and for all other purposes, and none of the Company, the Trustee, any
  Authenticating Agent, any Paying Agent, any transfer agent or any Debt
  Security registrar shall be affected by any notice to the contrary.

          As provided in the Indenture and
  subject to certain limitations herein and therein set forth, Debt Securities
  are exchangeable for a like aggregate principal amount of Debt Securities of
  different authorized denominations, as requested by the holder surrendering
  the same. 

          The Debt Securities are issuable
  only in registered certificated form without coupons. 

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

  A-11

  

          All terms used but not defined
  in this Debt Security shall have the meanings assigned to them in the
  Indenture.

          THIS DEBT SECURITY SHALL BE
  GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
  YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES OF SAID STATE OTHER THAN
  SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

A-12

  EXHIBIT B
  
FORM OF CERTIFICATE OF OFFICER OF THE COMPANY

          Pursuant to Section 3.05 of the
  Indenture, dated as of September 16, 2005 (as amended or supplemented from
  time to time, the "Indenture"), between PFF Bancorp, Inc., as issuer
  (the "Company"), and Wilmington Trust Company, as trustee, the
  undersigned certifies that he/she is a [principal executive officer, principal
  financial officer or principal accounting officer] of the Company and in the
  course of the performance by the undersigned of his/her duties as an officer
  of the Company, the undersigned would normally have knowledge of any default
  by the Company in the performance of any covenants contained in the Indenture,
  and the undersigned hereby further certifies that he/she has no knowledge of
  any default for the fiscal year ending on __________, 20___ [, except as
  follows: specify each such default and the nature thereof].

          Capitalized terms used herein,
  and not otherwise defined herein, have the respective meanings assigned
  thereto in the Indenture.

          IN WITNESS WHEREOF, the
  undersigned has executed this Certificate as of

  ____________, 20____.

                                                                             
  _________________________________

                                                                             
  Name:

                                                                             
  Title:

B-1

  
     Only applicable if this Debt Security is a Global Debt Security.

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