Document:

EXHIBIT 4.3
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                               GUARANTEE AGREEMENT

                                 BY AND BETWEEN

                            MCB FINANCIAL CORPORATION

                                       AND

                       STATE STREET BANK AND TRUST COMPANY
                      OF CONNECTICUT, NATIONAL ASSOCIATION

                          DATED AS OF SEPTEMBER 7, 2000

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                               GUARANTEE AGREEMENT

         This GUARANTEE  AGREEMENT (the  "Guarantee"),  dated as of September 7,
2000,  is executed and  delivered  by MCB  Financial  Corporation,  a California
corporation  (the  "Guarantor"),  and State  Street  Bank and Trust  Company  of
Connecticut,  National  Association,  a national banking association,  organized
under the laws of the  United  States of  America,  as trustee  (the  "Guarantee
Trustee"),  for the benefit of the Holders (as defined herein) from time to time
of the  Capital  Securities  (as  defined  herein) of MCB  Statutory  Trust I, a
Connecticut statutory trust (the "Issuer").

         WHEREAS,  pursuant to an Amended and Restated Declaration of Trust (the
"Declaration"),  dated as of September 7, 2000, among the trustees named therein
of the Issuer, MCB Financial Corporation,  as sponsor, and the holders from time
to time of  undivided  beneficial  interests  in the assets of the  Issuer,  the
Issuer is issuing  on the date  hereof  those  undivided  beneficial  interests,
having an aggregate  liquidation  amount of up to  $3,000,000.00,  (the "Capital
Securities"); and

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

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

                                   ARTICLE I

                         DEFINITIONS AND INTERPRETATION

         SECTION 1.1.  DEFINITIONS AND INTERPRETATION. In this Guarantee, unless
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the context otherwise requires:

         (a)   capitalized  terms used in this  Guarantee  but not  defined  in
the  preamble  above have the  respective meanings assigned to them in this
Section 1. 1;

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

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

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

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

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

         "AFFILIATE"  has the same  meaning as given to that term in Rule 405 of
the Securities Act of 1933, as amended, or any successor rule thereunder.

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

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         "CAPITAL  SECURITIES" has the meaning set forth in the recitals to this
Guarantee.

         "COMMON SECURITIES" means the common securities issued by the Issuer to
the Guarantor pursuant to the Declaration.

         "CORPORATE  TRUST OFFICE" means the office of the Guarantee  Trustee at
which the  corporate  trust  business of the  Guarantee  Trustee  shall,  at any
particular  time,  be  principally  administered,  which  office  at the date of
execution of this Guarantee  Agreement is located at 225 Asylum Street,  Goodwin
Square, Hartford, Connecticut 06103.

         "COVERED PERSON" means any Holder of Capital Securities.

         "DEBT SECURITIES" means the debt securities of the Guarantor designated
the 10.60% Junior  Subordinated  Deferrable Interest Debentures due 2030 held by
the Institutional Trustee (as defined in the Declaration) of the Issuer.

         "DECLARATION  EVENT OF DEFAULT"  means an "Event of Default" as defined
in the Declaration.

         "EVENT OF DEFAULT" has the meaning set forth in Section 2.4(a).

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

         "GUARANTEE  TRUSTEE"  means  State  Street  Bank and Trust  Company  of
Connecticut,  National Association, until a Successor Guarantee Trustee has been
appointed  and has  accepted  such  appointment  pursuant  to the  terms of this
Guarantee and thereafter means each such Successor Guarantee Trustee.

         "GUARANTOR" means MCB Financial  Corporation and each of its successors
and assigns.

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

         "INDEMNIFIED  PERSON" means the Guarantee Trustee, any Affiliate of the
Guarantee Trustee, or any officers, directors, shareholders,  members, partners,
employees,  representatives,  nominees,  custodians  or agents of the  Guarantee
Trustee.

         "INDENTURE" means the Indenture dated as of September 7, 2000,  between
the Guarantor and State Street Bank and Trust Company of  Connecticut,  National
Association,  not in its  individual  capacity  but

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solely as trustee, and any indenture  supplemental thereto pursuant to which the
Debt Securities are to be issued to the Institutional Trustee of the Issuer.

         "ISSUER"  has the meaning set forth in the  opening  paragraph  to this
Guarantee.

         "LIQUIDATION  DISTRIBUTION" has the meaning set forth in the definition
of "Guarantee Payments" herein.

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

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

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

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

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

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

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

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

         "REDEMPTION PRICE" has the meaning set forth in the Indenture.

         "RESPONSIBLE OFFICER" means, with respect to the Guarantee Trustee, any
officer within the Corporate Trust Office of the Guarantee Trustee including any
Vice President, Assistant Vice President,  Secretary, Assistant Secretary or any
other officer of the Guarantee Trustee customarily  performing functions similar
to those  performed  by any of the above  designated  officers  and  also,  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.

         "SPECIAL EVENT" has the meaning set forth in the Indenture.

         "SPECIAL REDEMPTION PRICE" has the meaning set forth in the Indenture.

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

         "TRUST SECURITIES" means the Common Securities and the Capital
Securities.

                                   ARTICLE II

                          POWERS, DUTIES AND RIGHTS OF
                                GUARANTEE TRUSTEE

         SECTION 2.1.  POWERS AND DUTIES OF THE GUARANTEE TRUSTEE.

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

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

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

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

               (i)     prior to the occurrence of any Event of Default and after
         the curing or waiving of all such Events of Default that may have
         occurred:

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

                       (B)   in the  absence  of bad  faith  on the  part of the
               Guarantee Trustee,  the Guarantee  Trustee may conclusively rely,
               as to the  truth  of  the  statements  and  the  correctness  of
               the opinions expressed therein, upon any certificates or opinions
               furnished  to the  Guarantee  Trustee  and  conforming  to the
               requirements  of this  Guarantee;  but in the

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               case of any such certificates  or  opinions that by any provision
               hereof are specifically   required  to  be  furnished  to  the
               Guarantee Trustee,  the  Guarantee  Trustee  shall  be  under  a
               duty to examine the same to determine whether or not they conform
               to the requirements of this Guarantee;

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

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

               (iv)   no provision of this Guarantee shall require the Guarantee
         Trustee to expend  or risk its own funds or  otherwise  incur  personal
         financial liability in the performance of any of its duties or in the
         exercise of any of its  rights or  powers,  if the  Guarantee  Trustee
         shall  have reasonable  grounds for  believing  that the repayment of
         such funds is not  reasonably  assured  to it under  the terms of this
         Guarantee  or security  and  indemnity,  reasonably  satisfactory  to
         the Guarantee Trustee, against such risk or liability is not reasonably
         assured to it.

         SECTION 2.2.  CERTAIN RIGHTS OF GUARANTEE TRUSTEE.

         (a)   Subject to the provisions of Section 2.1:

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

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

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

               (iv)    The  Guarantee  Trustee  shall  have no  duty to see to
         any  recording, filing or registration of any instrument (or any re-
         recording, refiling or re-registration thereof).

               (v)     The Guarantee  Trustee may consult with counsel of its
         selection,  and the advice or opinion of such  counsel  with  respect
         to legal  matters shall be full and complete  authorization  and
         protection in respect of any action taken, suffered or omitted by it
         hereunder in good faith and in accordance with such advice or opinion.
         Such counsel may be counsel to the  Guarantor or any of its  Affiliates
         and may include any of its employees.  The  Guarantee  Trustee shall
         have the right

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         at any time to seek instructions  concerning the administration of this
         Guarantee from any court of competent jurisdiction.

               (vi)    The  Guarantee  Trustee  shall be under no obligation to
         exercise any of the rights or powers vested in it by this  Guarantee at
         the request or direction  of any Holder,  unless such Holder shall have
         provided to the Guarantee  Trustee such security and  indemnity,
         reasonably  satisfactory  to the Guarantee  Trustee, against the costs,
         expenses  (including  attorneys'  fees and expenses and the expenses of
         the Guarantee Trustee's agents, nominees or custodians) and liabilities
         that might be incurred by it in complying with such request or direc-
         tion,  including  such  reasonable  advances as may be  requested  by
         the  Guarantee Trustee;  PROVIDED,  HOWEVER,  that  nothing  contained
         in this  Section  2.2(a)(vi)  shall  relieve  the Guarantee  Trustee,
         upon the occurrence of an Event of Default,  of its obligation to
         exercise the rights and powers vested in it by this Guarantee.

               (vii)  The  Guarantee  Trustee  shall  not be  bound  to make any
         investigation  into the  facts or  matters  stated  in any  resolution,
         certificate,  statement,  instrument, opinion, report, notice, request,
         direction,  consent,  order, bond,  debenture,  note, other evidence of
         indebtedness or other paper or document,  but the Guarantee Trustee, in
         its  discretion,  may make such further inquiry or  investigation  into
         such facts or matters as it may see fit.

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

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

               (x)  Whenever  in  the   administration  of  this  Guarantee  the
         Guarantee Trustee shall deem it desirable to receive  instructions with
         respect to  enforcing  any  remedy or right or taking any other  action
         hereunder,  the Guarantee Trustee (i) may request instructions from the
         Holders of a Majority in liquidation amount of the Capital  Securities,
         (ii) may  refrain  from  enforcing  such remedy or right or taking such
         other action until such  instructions are received,  and (iii) shall be
         protected in conclusively  relying on or acting in accordance with such
         instructions.

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

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

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         SECTION 2.3. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF GUARANTEE. The
recitals  contained in this  Guarantee  shall be taken as the  statements of the
Guarantor,  and the  Guarantee  Trustee does not assume any  responsibility  for
their  correctness.  The  Guarantee  Trustee makes no  representation  as to the
validity or sufficiency of this Guarantee.

         SECTION 2.4. EVENTS OF DEFAULT; WAIVER.

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

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

         SECTION 2.5. EVENTS OF DEFAULT; NOTICE.

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

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

                                  ARTICLE III

                                GUARANTEE TRUSTEE

         SECTION 3.1. GUARANTEE TRUSTEE; ELIGIBILITY.

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

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

               (ii) be a corporation organized and doing business under the laws
         of the United States of America or any State or Territory thereof or of
         the  District  of  Columbia,  or Person  authorized  under such laws to
         exercise corporate trust powers,  having a combined capital and surplus
         of at least 50  million  U.S.  dollars  ($50,000,000),  and  subject to
         supervision or examination by Federal,  State,  Territorial or District
         of  Columbia  authority.  If  such  corporation  publishes  reports  of
         condition at least annually,  pursuant to law or to the requirements of
         the supervising or examining authority referred to above, then, for the
         purposes of this Section  3.1(a)(ii),  the combined capital and surplus
         of such  corporation  shall be deemed to be its  combined  capital  and
         surplus  as set  forth  in its  most  recent  report  of  condition  so
         published.

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         (b) If at any time the Guarantee  Trustee shall cease to be eligible to
so act under Section 3.1(a),  the Guarantee Trustee shall immediately  resign in
the manner and with the effect set out in Section 3.2(c).

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

         SECTION 3.2. APPOINTMENT, REMOVAL AND RESIGNATION OF GUARANTEE TRUSTEE.

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

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

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

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

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

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

                                   ARTICLE IV

                                    GUARANTEE

         SECTION 4.1. GUARANTEE.

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

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<PAGE>

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

         SECTION 4.2. WAIVER OF NOTICE AND DEMAND.  The Guarantor  hereby waives
notice of acceptance of this  Guarantee and of any liability to which it applies
or may apply, presentment, demand for payment, any right to require a proceeding
first  against  the Issuer or any other  Person  before  proceeding  against the
Guarantor,  protest,  notice  of  nonpayment,  notice  of  dishonor,  notice  of
redemption and all other notices and demands.

         SECTION 4.3.  OBLIGATIONS  NOT AFFECTED.  The  obligations,  covenants,
agreements and duties of the Guarantor  under this Guarantee  shall in no way be
affected or impaired by reason of the happening  from time to time of any of the
following:

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

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

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

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

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

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

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

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

         SECTION 4.4. RIGHTS OF HOLDERS.

                                       9

<PAGE>

         (a) The  Holders of a Majority  in  liquidation  amount of the  Capital
Securities have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Guarantee  Trustee in respect of this
Guarantee  or to direct the  exercise of any trust or power  conferred  upon the
Guarantee  Trustee under this  Guarantee;  PROVIDED,  HOWEVER,  that (subject to
Section 2.1) the Guarantee Trustee shall have the right to decline to follow any
such direction if the Guarantee Trustee being advised by counsel determines that
the  action  or  proceeding  so  directed  may not  lawfully  be taken or if the
Guarantee Trustee in good faith by its board of directors or trustees, executive
committees  or a trust  committee of directors  or trustees  and/or  Responsible
Officers  shall  determine  that the action or  proceedings  so  directed  would
involve the Guarantee Trustee in personal liability.

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

         SECTION 4.5.  GUARANTEE OF PAYMENT.  This Guarantee creates a guarantee
of payment and not of collection.

         SECTION 4.6. SUBROGATION.  The Guarantor shall be subrogated to all (if
any) rights of the Holders of Capital  Securities  against the Issuer in respect
of any  amounts  paid to such  Holders by the  Guarantor  under this  Guarantee;
PROVIDED,  HOWEVER,  that the Guarantor shall not (except to the extent required
by  mandatory  provisions  of law) be entitled to enforce or exercise  any right
that it may acquire by way of  subrogation or any  indemnity,  reimbursement  or
other agreement,  in all cases as a result of payment under this Guarantee,  if,
after giving  effect to any such  payment,  any amounts are due and unpaid under
this Guarantee. If any amount shall be paid to the Guarantor in violation of the
preceding  sentence,  the Guarantor  agrees to hold such amount in trust for the
Holders and to pay over such amount to the Holders.

         SECTION 4.7. INDEPENDENT  OBLIGATIONS.  The Guarantor acknowledges that
its obligations  hereunder are independent of the obligations of the Issuer with
respect to the  Capital  Securities  and that the  Guarantor  shall be liable as
principal and as debtor  hereunder to make  Guarantee  Payments  pursuant to the
terms of this Guarantee  notwithstanding the occurrence of any event referred to
in subsections (a) through (g), inclusive, of Section 4.3 hereof.

         SECTION 4.8.  ENFORCEMENT BY A BENEFICIARY.  A Beneficiary  may enforce
the obligations of the Guarantor  contained in Section 4.1(b)  directly  against
the Guarantor  and the Guarantor  waives any right or remedy to require that any
action be  brought  against  the  Issuer or any  other  person or entity  before
proceeding  against the  Guarantor.  The  Guarantor  shall be  subrogated to all
rights (if any) of any Beneficiary  against the Issuer in respect of any amounts
paid to the  Beneficiaries  by the  Guarantor  under this  Agreement;  PROVIDED,
HOWEVER,  that the  Guarantor  shall  not  (except  to the  extent  required  by
mandatory  provisions of law) be entitled to enforce or exercise any rights that
it may acquire by way of subrogation or any  indemnity,  reimbursement  or other
agreement,  in all cases as a result of payment under this Agreement,  if at the
time of any such payment,  and after giving effect to such payment,  any amounts
are due and unpaid under this Agreement.

                                   ARTICLE V

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

                                       10

<PAGE>

         SECTION  5.1.  LIMITATION  OF  TRANSACTIONS.  So  long  as any  Capital
Securities  remain  outstanding,  if  (a)  there  shall  have  occurred  and  be
continuing  an Event of  Default  or a  Declaration  Event of Default or (b) the
Guarantor shall have selected an Extension Period as provided in the Declaration
and  such  period,  or any  extension  thereof,  shall be  continuing,  then the
Guarantor shall not and shall not permit any Affiliate to (x) declare or pay any
dividends  or  distributions  on,  or  redeem,  purchase,  acquire,  or  make  a
liquidation  payment with respect to, any of the Guarantor's or such Affiliate's
capital  stock  (other  than  payments  of  dividends  or  distributions  to the
Guarantor) or make any guarantee payments with respect to the foregoing,  or (y)
make any payment of  principal  of or interest or premium,  if any, on or repay,
repurchase or redeem any debt  securities of the Guarantor or any Affiliate that
rank  PARI  PASSU  in all  respects  with or  junior  in  interest  to the  Debt
Securities  (other  than,  with  respect  to  clauses  (x)  and (y)  above,  (i)
repurchases, redemptions or other acquisitions of shares of capital stock of the
Guarantor 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,  in  connection  with  a  dividend  reinvestment  or
stockholder  stock  purchase plan or in connection  with the issuance of capital
stock of the Guarantor (or securities  convertible  into or exercisable for such
capital stock) as consideration in an acquisition transaction entered into prior
to the  occurrence  of the Event of  Default,  Declaration  Event of  Default or
Extension Period, as applicable,  (ii) as a result of any exchange or conversion
of any class or series of the Guarantor's capital stock (or any capital stock of
a  subsidiary  of the  Guarantor)  for any class or  series  of the  Guarantor's
capital stock or of any class or series of the Guarantor's  indebtedness for any
class or  series  of the  Guarantor's  capital  stock,  (iii)  the  purchase  of
fractional  interests in shares of the Guarantor's capital stock pursuant to the
conversion or exchange  provisions  of such capital stock or the security  being
converted or exchanged,  (iv) 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,  (v) 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 and any cash  payments in lieu of  fractional  shares issued in connection
therewith, or (vi) payments under this Guarantee).

         SECTION 5.2.  RANKING.  This  Guarantee  will  constitute  an unsecured
obligation of
the  Guarantor and will rank  subordinate  and junior in right of payment to all
present and future  Senior  Indebtedness  (as defined in the  Indenture)  of the
Guarantor. By their acceptance thereof, each Holder of Capital Securities agrees
to the  foregoing  provisions  of this  Guarantee  and the other terms set forth
herein.

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

                                   ARTICLE VI

                                   TERMINATION

         SECTION 6.1.  TERMINATION.  This  Guarantee  shall  terminate as to the
Capital  Securities  (i) upon full  payment of the  Redemption  Price or Special
Redemption  Price of all Capital  Securities,

                                       11

<PAGE>

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

                                  ARTICLE VII

                                 INDEMNIFICATION

         SECTION 7.1. EXCULPATION.

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

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

         SECTION 7.2. INDEMNIFICATION.

         (a) The Guarantor agrees to indemnify each Indemnified  Person for, and
to hold each Indemnified Person harmless against,  any and all loss,  liability,
damage,  claim or expense incurred without  negligence or willful  misconduct on
the part of the  Indemnified  Person,  arising out of or in connection  with the
acceptance or  administration  of the trust or trusts  hereunder,  including the
costs  and  expenses  (including  reasonable  legal  fees and  expenses)  of the
Indemnified  Person defending  itself against,  or  investigating,  any claim or
liability  in  connection  with  the  exercise  or  performance  of  any  of the
Indemnified Person's powers or duties hereunder.  The obligation to indemnify as
set forth in this Section 7.2 shall  survive the  resignation  or removal of the
Guarantee Trustee and the termination of this Guarantee.

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

                                       12

<PAGE>

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

         SECTION 7.3.  COMPENSATION;  REIMBURSEMENT  OF EXPENSES.  The Guarantor
agrees:

         (a) to pay to the Guarantee Trustee from time to time such compensation
for all services  rendered by it  hereunder  as the parties  shall agree to from
time to time (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust); and

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

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

                                  ARTICLE VIII

                                  MISCELLANEOUS

         SECTION 8.1.  SUCCESSORS  AND ASSIGNS.  All  guarantees  and agreements
contained  in this  Guarantee  shall bind the  successors,  assigns,  receivers,
trustees and  representatives of the Guarantor and shall inure to the benefit of
the Holders of the Capital  Securities  then  outstanding.  Except in connection
with any merger or consolidation of the Guarantor with or into another entity or
any sale, transfer or lease of the Guarantor's assets to another entity, in each
case, to the extent permitted under the Indenture,  the Guarantor may not assign
its rights or delegate its  obligations  under this Guarantee  without the prior
approval  of the  Holders of at least a Majority  in  liquidation  amount of the
Capital Securities.

         SECTION 8.2. AMENDMENTS. Except with respect to any changes that do not
adversely affect the rights of Holders of the Capital Securities in any material
respect (in which case no consent of Holders

                                       13

<PAGE>

will be required), this Guarantee may be amended only with the prior approval of
the  Holders of not less than a Majority  in  liquidation  amount of the Capital
Securities. The provisions of the Declaration with respect to amendments thereof
apply to the giving of such approval.

         SECTION 8.3. NOTICES.  All notices provided for in this Guarantee shall
be in  writing,  duly  signed  by the party  giving  such  notice,  and shall be
delivered, telecopied or mailed by first class mail, as follows:

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

        State Street Bank and Trust Company of Connecticut, National Association
        225 Asylum Street, Goodwin Square
        Hartford, Connecticut 06103
        Attention:  Corporate Trust Department
        Telecopy:  (860) 244-1889

        With a copy to:

        State Street Bank and Trust Company
        P.O.Box 778
        Boston, Massachusetts  02102-0778
        Attention:  Paul D. Allen, Corporate Trust Department
        Telecopy:  (617) 662-1462

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

         MCB Financial Corporation
         1248 Fifth Avenue
         San Rafael, CA  94901
         Attention:  Pat Phelan
         Telecopy:  (415)721-4808

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

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

         SECTION 8.4.  BENEFIT.  This Guarantee is solely for the benefit of the
Holders  of the  Capital  Securities  and,  subject to  Section  2.1(a),  is not
separately transferable from the Capital Securities.

         SECTION 8.5.  GOVERNING LAW. THIS  GUARANTEE  SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE  WITH, THE LAW OF THE STATE OF

                                       14

<PAGE>

NEW YORK,  WITHOUT  REGARD TO CONFLICT OF LAWS  PRINCIPLES  THEREOF  (OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

         SECTION 8.6.  COUNTERPARTS.  This  Guarantee  may be executed in one or
more  counterparts,  each of which shall be an original,  but all of which taken
together shall constitute one and the same instrument.

                    [SIGNATURES APPEAR ON THE FOLLOWING PAGE]

                                       15

<PAGE>

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

                       MCB FINANCIAL CORPORATION,
                       as Guarantor

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

                       STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
                       NATIONAL ASSOCIATION, as Guarantee Trustee

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

                                       16EXHIBIT 4.4

                            MCB FINANCIAL CORPORATION

                            3,000 CAPITAL SECURITIES

                            10.60% CAPITAL SECURITIES
               (LIQUIDATION AMOUNT $1,000.00 PER CAPITAL SECURITY)

                               PLACEMENT AGREEMENT

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

                                                                 August 31, 2000

First Tennessee Capital Markets
845 Crossover Lane, Suite 150
Memphis, Tennessee  38117

Keefe, Bruyette & Woods, Inc.
7020 S. County Line Road
Burr Ridge, Illinois  60521

Ladies and Gentlemen:

         MCB Financial  Corporation,  a California  corporation (the "Company"),
and its financing  subsidiary,  MCB Statutory  Trust I, a Connecticut  statutory
trust (the "Trust," and hereinafter  together with the Company, the "Offerors"),
hereby  confirm their  agreement  with you as placement  agents (the  "Placement
Agents"), as follows:

SECTION 1.        ISSUANCE AND SALE OF SECURITIES.

     1.1.  INTRODUCTION.  The Offerors  propose to issue and sell at the Closing
(as  defined  in Section  2.3.1  hereof)  3,000 of the  Trust's  10.60%  Capital
Securities,  with a liquidation  amount of $1,000.00  per capital  security (the
"Capital  Securities"),  to  Preferred  Term  Securities,  Ltd.,  a company with
limited  liability  established  under  the  laws  of the  Cayman  Islands  (the
"Purchaser") pursuant to the terms of a Subscription  Agreement entered into, or
to be entered into on or prior to the Closing Date, between the Offerors and the
Purchaser (the "Subscription  Agreement"),  the form of which is attached hereto
as EXHIBIT A and incorporated herein by this reference.

     1.2.  OPERATIVE  AGREEMENTS.  The  Capital  Securities  shall be fully  and
unconditionally  guaranteed on a subordinated  basis by the Company with respect
to distributions and amounts payable upon  liquidation,  redemption or repayment
(the  "Guarantee")   pursuant  and  subject  to  the  Guarantee  Agreement  (the
"Guarantee  Agreement"),  to be dated as of the Closing  Date and  executed  and
delivered by the Company and State Street Bank and Trust Company of Connecticut,
National Association, as trustee (the "Guarantee Trustee"), for the benefit from
time to time of the holders of the Capital Securities.  The entire proceeds from
the sale by the Trust to the holders of the Capital Securities shall be combined
with the

<PAGE>

entire  proceeds  from  the  sale by the  Trust  to the  Company  of its  common
securities (the "Common Securities"), and shall be used by the Trust to purchase
$3,093,000  in principal  amount of the 10.60%  Junior  Subordinated  Deferrable
Interest  Debentures  (the  "Debt  Securities")  of  the  Company.  The  Capital
Securities and the Common  Securities for the Trust shall be issued  pursuant to
an Amended and Restated  Declaration  of Trust among State Street Bank and Trust
Company of Connecticut,  National  Association,  as institutional  trustee,  the
Administrators  named  therein,  and the Company,  to be dated as of the Closing
Date and in substantially the form heretofore  delivered to the Placement Agents
(the "Trust  Agreement").  The Debt  Securities  shall be issued  pursuant to an
Indenture,  to be dated as of the  Closing  Date,  between the Company and State
Street Bank and Trust Company of Connecticut,  National Association,  as trustee
(the "Indenture").  The documents identified in this Section 1.2 are referred to
herein as the "Operative Documents."

     1.3. RIGHTS OF PURCHASER.  The Capital Securities shall be offered and sold
by the  Trust  directly  to the  Purchaser  without  registration  of any of the
Capital  Securities,  the Debt  Securities or the Guarantee under the Securities
Act of  1933,  as  amended  (the  "Securities  Act"),  or any  other  applicable
securities laws in reliance upon exemptions from the  registration  requirements
of the Securities Act and other  applicable  securities laws. The Company agrees
that the  Purchaser  shall be and hereby is  entitled  to the benefit of, and to
rely upon, the provisions of this Agreement which are  incorporated by reference
into the  Subscription  Agreement.  The Offerors and the  Placement  Agents have
entered  into  this  Agreement  to set  forth  their  understanding  as to their
relationship and their respective rights, duties and obligations.

     1.4. LEGENDS.  Upon original  issuance thereof,  and until such time as the
same is no longer  required under the applicable  requirements of the Securities
Act, the Capital Securities and Debt Securities  certificates shall each contain
a legend as required pursuant to any of the Operative Documents.

SECTION 2.        PURCHASE OF CAPITAL SECURITIES.

     2.1.  EXCLUSIVE  RIGHTS;  PURCHASE  PRICE.  From the date hereof  until the
Closing Date (which date may be extended by mutual agreement of the Offerors and
the Placement  Agents),  the Offerors  hereby grant to the Placement  Agents the
exclusive  right  to  arrange  for the  sale of the  Capital  Securities  to the
Purchaser at a purchase price of $1,000.00 per Capital Security.

     2.2.  SUBSCRIPTION  AGREEMENT.  The Offerors hereby agree to evidence their
acceptance of the  subscription  by  countersigning  a copy of the  Subscription
Agreement and returning the same to the Placement Agents.

     2.3. CLOSING AND DELIVERY OF PAYMENT.

          2.3.1. CLOSING; CLOSING DATE. The sale and purchase of the Capital
Securities by the Offerors to the  Purchaser  shall take place at a closing (the
"Closing")  at the  offices  of Lewis,  Rice &  Fingersh,  L.C.,  at 10:00  a.m.
(Eastern Time) on September 7, 2000, or such other business day as may be agreed
upon by the Offerors and the Placement  Agents (the "Closing  Date");  PROVIDED,
HOWEVER,  that in no event shall the Closing Date occur later than  September 7,
2000 unless  consented to by the  Purchaser.  Payment by the Purchaser  shall be
payable in the manner set forth in the Subscription  Agreement and shall be made
prior to or on the Closing Date.

          2.3.2.  DELIVERY.  The  certificates  for the  Capital  Securities
shall be in definitive form,  registered in the name of the Purchaser and in the
aggregate amount of the Capital Securities purchased by the Purchaser.

          2.3.3.  TRANSFER AGENT. The Offerors shall deposit the certificate
representing  the Capital  Securities  with the  institutional  trustee or other
appropriate party prior to the Closing Date.

                                       2

<PAGE>

     2.4. PLACEMENT AGENTS' FEES AND EXPENSES.

          2.4.1. PLACEMENT AGENTS' COMPENSATION. Because the proceeds from the
sale of the Capital  Securities  shall be used to purchase  the Debt  Securities
from the Company,  the Company  shall pay an aggregate of $30.00 for each $1,000
of principal  amount of Debt  Securities  sold to the Trust  (excluding the Debt
Securities related to the Common Securities  purchased by the Company).  Fifteen
and No/100 Dollars ($15.00) for each One Thousand and No/100 Dollars ($1,000.00)
of  principal  amount of Debt  Securities  shall be payable  to First  Tennessee
Capital  Markets and Fifteen and No/100  Dollars  ($15.00) for each One Thousand
and No/100 Dollars  ($1,000.00) of principal  amount of Debt Securities shall be
payable to Keefe,  Bruyette & Woods,  Inc. Such amount shall be delivered to the
Trustee or such other person  designated by the Placement  Agents on the Closing
Date and shall be allocated between and paid to the respective  Placement Agents
as directed by the Placement Agents.

          2.4.2.  COSTS AND EXPENSES.  Whether or not this  Agreement is termi-
nated or the sale of the Capital  Securities is consummated,  the Company hereby
covenants  and  agrees  that it shall  pay or cause to be paid  (directly  or by
reimbursement)  all reasonable costs and expenses incident to the performance of
the  obligations  of the  Offerors  under this  Agreement,  including  all fees,
expenses and disbursements of the counsel and accountants for the Offerors;  the
reasonable costs and charges of any trustee, transfer agent or registrar and the
fees and  disbursements  of counsel to any trustee,  transfer agent or registrar
attributable to the Debt Securities and the Capital  Securities;  all reasonable
expenses  incident to the  execution  and delivery of the Trust  Agreement,  the
Indenture,  and the  Guarantee;  and all other  reasonable  costs  and  expenses
incident to the  performance  of the  obligations  of the Company  hereunder and
under the Trust Agreement.

     2.5. FAILURE TO CLOSE. If any of the conditions to the Closing specified in
this  Agreement  shall  not  have  been  fulfilled  to the  satisfaction  of the
Placement  Agents or if the Closing  shall not have  occurred on or before 10:00
a.m.   (Eastern   Time)  on   September  7,  2000,   then  each  party   hereto,
notwithstanding anything to the contrary in this Agreement, shall be relieved of
all further  obligations under this Agreement without thereby waiving any rights
it may have by reason of such nonfulfillment or failure; provided, HOWEVER, that
the obligations of the parties under Sections 2.4.2 and 9 hereof shall not be so
relieved and shall continue in full force and effect.

SECTION 3. CLOSING CONDITIONS.The obligations of the Purchaser and the Placement
Agents on the Closing  Date shall be subject to the  accuracy,  at and as of the
Closing Date, of the representations and warranties of the Offerors contained in
this  Agreement,  to  the  accuracy,  at  and as of  the  Closing  Date,  of the
statements of the Offerors made in any certificates  pursuant to this Agreement,
to the performance by the Offerors of their  respective  obligations  under this
Agreement,  to  compliance,  at and as of the Closing Date, by the Offerors with
their  respective  agreements  herein  contained,  and to the following  further
conditions:

     3.1.  OPINIONS OF COUNSEL.  On the Closing Date, the Placement Agents shall
have received the  following  favorable  opinions,  each dated as of the Closing
Date: (a) from McCutcheon, Doyle, Brown & Enerson, LLP, counsel for the Offerors
and addressed to the  Purchaser  and the Placement  Agents as to the matters set
forth on EXHIBIT B-1 attached hereto and incorporated  herein by this reference,
(b) from  Bingham  Dana LLP,  special  Connecticut  counsel to the  Offerors and
addressed to the  Purchaser,  the Placement  Agents and the Offerors,  as to the
matters set forth on EXHIBIT B-2 attached hereto and incorporated herein by this
reference and (c) from Lewis, Rice & Fingersh,  L.C., special tax counsel to the
Offerors,  and addressed to the Offerors, as to the matters set forth on EXHIBIT
B-3 attached hereto and incorporated herein by this reference (collectively, the
"Offerors'  Counsel  Opinions").  In rendering the Offerors'  Counsel  Opinions,
counsel to the Offerors  may rely as to factual  matters  upon  certificates  or
other  documents  furnished by officers,  directors and trustees of the Offerors
(copies of which shall be

                                       3

<PAGE>

delivered  to  the  Placement  Agents  and  the  Purchaser)  and  by  government
officials,  and upon such other  documents  as counsel to the  Offerors  may, in
their reasonable opinion,  deem appropriate as a basis for the Offerors' Counsel
Opinions.  Counsel to the Offerors may specify the  jurisdictions  in which they
are admitted to practice and that they are not admitted to practice in any other
jurisdiction  and are not experts in the law of any other  jurisdiction.  If the
Offerors'  counsel is not  admitted to  practice  in the State of New York,  the
opinion of Offerors' counsel may assume,  for purposes of the opinion,  that the
laws of the State of New York are  identical,  in all  respects  material to the
opinion,  to the internal  laws of the state in which such  several  counsel are
admitted to practice, as the same relates to the opinions to be rendered by such
general counsel as set forth on EXHIBIT B-1.

     3.2.  OFFICERS'  CERTIFICATE.  At the Closing  Date,  the Purchaser and the
Placement  Agents  shall have  received  certificates  from the Chief  Executive
Officer and the Chief Financial Officer of the Company,  dated as of the Closing
Date,  stating that (i) the  representations  and warranties of the Offerors set
forth in Section 5 hereof are true and correct as of the  Closing  Date and that
the Offerors have complied with all  agreements  and satisfied all conditions on
their part to be performed or  satisfied at or prior to the Closing  Date,  (ii)
since the date of this Agreement the Offerors have not incurred any liability or
obligation,  direct or  contingent,  or entered into any material  transactions,
other  than in the  ordinary  course  of  business,  which  is  material  to the
Offerors,  and (iii)  covering such other  matters as the  Placement  Agents may
reasonably request.

     3.3.  TRUSTEES  CERTIFICATE.  At the Closing  Date,  the  Purchaser and the
Placement Agents shall have received a certificate of one or more Administrators
of the Trust, dated as of the Closing Date, stating that the representations and
warranties of the Trust set forth in Section 5 hereof are true and correct as of
the  Closing  Date and that the  Trust  has  complied  with all  agreements  and
satisfied all conditions on its part to be performed or satisfied at or prior to
the Closing Date.

     3.4. PURCHASE PERMITTED BY APPLICABLE LAWS; LEGAL INVESTMENT.  The purchase
of and payment for the Capital  Securities  (a) shall not be  prohibited  by any
applicable law or governmental  regulation,  (b) shall not subject the Purchaser
or the  Placement  Agents to any penalty or, in the  reasonable  judgment of the
Purchaser and the Placement Agents, other onerous condition under or pursuant to
any applicable law or governmental regulation, and (c) shall be permitted by the
laws and regulations of the jurisdictions to which the Purchaser is subject.

     3.5.  CONSENTS AND PERMITS.  The Company and the Trust shall have  received
all consents,  permits and other  authorizations,  and made all such filings and
declarations,  as may be required from any person or entity pursuant to any law,
statute,  regulation or rule (federal, state, local and foreign), or pursuant to
any  agreement,  order or decree to which the Company or the Trust is a party or
to which it is subject, in connection with the transactions contemplated by this
Agreement.

     3.6. SALE OF THE NOTES. The Purchaser shall have sold securities  issued by
the Purchaser in such an amount such that the net proceeds of such sale shall be
available on the Closing Date and shall be in an amount  sufficient  to purchase
the Capital Securities.

     3.7. INFORMATION.  Prior to or on the Closing Date, the Offerors shall have
furnished  to the  Placement  Agents  such  further  information,  certificates,
opinions and documents  addressed to the  Purchaser  and the  Placement  Agents,
which  the  Placement  Agents  may  reasonably   request,   including,   without
limitation,  a complete set of the Operative Documents or any other documents or
certificates  required  by this  Section  3;  and all  proceedings  taken by the
Offerors  in  connection  with  the  issuance,  offer  and  sale of the  Capital
Securities as herein contemplated shall be satisfactory in form and substance to
the Placement Agents.

                                       4

<PAGE>

         If any  condition  specified  in this  Section  3 shall  not have  been
fulfilled when and as required in this  Agreement,  or if any of the opinions or
certificates  mentioned  above  or  elsewhere  in this  Agreement  shall  not be
satisfactory in form and substance to the Placement  Agents,  this Agreement may
be terminated  by the Placement  Agents by notice to the Offerors at any time at
or prior to the Closing Date.  Notice of such termination  shall be given to the
Offerors in writing or by telephone or facsimile confirmed in writing.

SECTION 4.        CONDITIONS TO THE OFFERORS' OBLIGATIONS.

         The  obligations of the Offerors to sell the Capital  Securities to the
Purchaser and consummate the  transactions  contemplated by this Agreement shall
be subject to the following conditions:

     4.1.  EXECUTED  AGREEMENT.  The  Offerors  shall  have  received  from  the
Placement Agents an executed copy of this Agreement.

     4.2.  FULFILLMENT  OF OTHER  OBLIGATIONS.  The Placement  Agents shall have
fulfilled  all of their other  obligations  and duties  required to be fulfilled
under this Agreement prior to or at the Closing.

SECTION 5.        REPRESENTATIONS AND WARRANTIES OF THE OFFERORS.

         The  Offerors  jointly  and  severally  represent  and  warrant  to the
Placement Agents and the Purchaser as follows:

     5.1. SECURITIES LAW MATTERS.

               (a)  Neither the Company nor the Trust, nor any of their
"Affiliates" (as defined in Rule 501(b) of Regulation D under the Securities Act
("Regulation D")), nor any person acting on its or their behalf has, directly or
indirectly, made offers or sales of any security, or solicited offers to buy any
security,  under circumstances that would require the registration of any of the
Capital  Securities,  the  Guarantee  and  the  Debt  Securities  or  any  other
securities to be issued or which may be issued by the  Purchaser  (collectively,
the "Securities") under the Securities Act.

               (b)  Neither the Company  nor the Trust,  nor any of their
Affiliates,  nor any  person  acting  on its or  their  behalf  (other  than the
Placement  Agents) has (i) offered for sale or solicited  offers to purchase the
Securities,  (ii)  engaged or will engage,  in any  "directed  selling  efforts"
within the meaning of Regulation S under the  Securities Act with respect to the
Securities,  or  (iii)  engaged  in  any  form  of  offering,   solicitation  or
advertising (within the meaning of Regulation D) in connection with any offer or
sale of any of the Securities or any other  securities to be issued or which may
be issued by the Purchaser.

               (c)  The Securities satisfy the eligibility requirements of Rule
144A(d)(3) under the Securities Act.

               (d)  Neither the Company nor the Trust is an "investment company"
or an entity  "controlled"  by an "investment  company," in each case within the
meaning of Section 3(a) of the  Investment  Company Act of 1940, as amended (the
"Investment  Company  Act")  without  regard to Section  3(c) of the  Investment
Company Act.

               (e)  Neither the Company nor the Trust has paid or agreed to pay
to any person or entity (other than the Placement  Agents) any  compensation for
soliciting another to purchase any of the Securities.

                                       5

<PAGE>

     5.2.  ORGANIZATION,  STANDING AND QUALIFICATION OF THE TRUST. The Trust has
been duly created and is validly  existing in good standing as a statutory trust
under the Connecticut  Statutory Trust Act (the "Statutory  Trust Act") with the
power and authority to own property and to conduct the business it transacts and
proposes to transact  and to enter into and  perform its  obligations  under the
Operative  Documents.  The Trust is duly  qualified  to  transact  business as a
foreign  entity  and is in good  standing  in each  jurisdiction  in which  such
qualification is necessary, except where the failure to so qualify or be in good
standing would not have a material adverse effect on the Trust. The Trust is not
a party  to or  otherwise  bound  by any  agreement  other  than  the  Operative
Documents.  The Trust is and will,  under current law, be classified for federal
income tax purposes as a grantor  trust and not as an  association  taxable as a
corporation.

     5.3. THE TRUST  AGREEMENT.  The Trust Agreement has been duly authorized by
the Company and, on the Closing Date, will have been duly executed and delivered
by  the  Company  and  the  Administrators  of  the  Trust,  and,  assuming  due
authorization,  execution and delivery by State Street Bank and Trust Company of
Connecticut, National Association, as institutional trustee, will be a valid and
binding obligation of the Company and such  Administrators,  enforceable against
them in  accordance  with  its  terms,  subject  to (a)  applicable  bankruptcy,
insolvency, moratorium, receivership, reorganization, liquidation and other laws
relating  to or  affecting  creditors'  rights  generally,  and  (b) to  general
principles  of  equity  (regardless  of  whether  considered  and  applied  in a
proceeding  in  equity  or at  law)  ("Bankruptcy  and  Equity").  Each  of  the
Administrators  of the  Trust  is an  employee  of the  Company  or a  financial
institution  subsidiary  of the  Company  and has been  duly  authorized  by the
Company to execute and deliver the Trust Agreement.

     5.4. THE GUARANTEE  AGREEMENT AND THE INDENTURE.  Each of the Guarantee and
the Indenture  has been duly  authorized by the Company and, on the Closing Date
will have been duly  executed and  delivered by the Company,  and,  assuming due
authorization,  execution and delivery by the Guarantee Trustee,  in the case of
the Guarantee, and by the Indenture Trustee, in the case of the Indenture,  will
be a valid and  binding  obligation  of the  Company  enforceable  against it in
accordance with its terms, subject to Bankruptcy and Equity.

     5.5. THE CAPITAL SECURITIES AND COMMON  SECURITIES.  The Capital Securities
and the Common  Securities have been duly authorized by the Trust Agreement and,
when issued and delivered  against  payment  therefor on the Closing Date to the
Purchaser,  in the case of the Capital  Securities,  and to the Company,  in the
case of the Common  Securities,  will be validly issued and represent  undivided
beneficial  interests in the assets of the Trust. None of the Capital Securities
or the Common  Securities is subject to preemptive or other similar  rights.  On
the Closing Date, all of the issued and  outstanding  Common  Securities will be
directly owned by the Company free and clear of any pledge,  security  interest,
claim, lien or other encumbrance.

     5.6. THE DEBT SECURITIES.  The Debt Securities have been duly authorized by
the Company and, at the Closing Date, will have been duly executed and delivered
to the Indenture  Trustee for  authentication  in accordance with the Indenture,
and,  when  authenticated  in the  manner  provided  for in  the  Indenture  and
delivered  against  payment  therefor by the Trust,  will  constitute  valid and
binding  obligations  of the Company  entitled to the benefits of the  Indenture
enforceable  against  the Company in  accordance  with their  terms,  subject to
Bankruptcy and Equity.

     5.7. POWER AND AUTHORITY. This Agreement has been duly authorized, executed
and delivered by the Company and the Trust and constitutes the valid and binding
obligation of the Company and the Trust, enforceable against the Company and the
Trust in accordance with its terms, subject to Bankruptcy and Equity.

                                       6

<PAGE>

     5.8. NO DEFAULTS.  The Trust is not in violation of the Trust Agreement or,
to its  knowledge,  any  provision of the  Statutory  Trust Act. The  execution,
delivery and performance by the Company or the Trust of the Operative  Documents
to which it is a party, and the  consummation of the  transactions  contemplated
herein or  therein,  will not  conflict  with or  constitute  a breach  of, or a
default  under,  or result in the creation or imposition of any lien,  charge or
other  encumbrance  upon any property or assets of the Trust, the Company or any
of the Company's  subsidiaries  pursuant to any contract,  indenture,  mortgage,
loan agreement,  note lease or other  instrument to which the Trust, the Company
or any of its  subsidiaries  is a party  or by  which  it or any of them  may be
bound,  or to which any of the  property  or  assets of any of them is  subject,
except for a conflict,  breach, default, lien, charge or encumbrance which could
not reasonably be expected to have an adverse effect on the  consummation of the
transactions  contemplated herein or therein, nor will such action result in any
violation  of the Trust  Agreement  or the  Statutory  Trust Act or require  the
consent, approval, authorization or order of any court or governmental agency or
body.

     5.9.  ORGANIZATION,  STANDING AND  QUALIFICATION OF THE COMPANY The Company
has been duly  incorporated  and is validly  existing as a  corporation  in good
standing under the laws of California,  with all requisite  corporate  power and
authority  to own its  properties  and conduct the  business  it  transacts  and
proposes to transact,  and is duly qualified to transact business and is in good
standing as a foreign  corporation in each jurisdiction  where the nature of its
activities  requires such qualification  except where the failure of the Company
to be so  qualified  would not,  singly or in the  aggregate,  have a materially
adverse effect on the condition  (financial or otherwise),  earnings or business
of the Company and its subsidiaries  taken as a whole,  whether or not occurring
in the ordinary course of business (a "Material Adverse Effect").

     5.10.  SUBSIDIARIES OF THE COMPANY. Each of the Company's subsidiaries that
are material to its business (the "Significant  Subsidiaries") listed in EXHIBIT
C  attached  hereto  and  incorporated  herein by this  reference  has been duly
incorporated and is validly existing as a corporation in good standing under the
laws of the  jurisdiction  in  which  it is  chartered  or  organized,  with all
requisite  corporate  power and authority to own its  properties and conduct the
business  it  transacts  and  proposes to  transact,  and is duly  qualified  to
transact  business  and is in good  standing  as a foreign  corporation  in each
jurisdiction  where the nature of its  activities  requires  such  qualification
except  where the failure of such  Significant  Subsidiaries  to be so qualified
would not, singly or in the aggregate, have a Material Adverse Effect.

     5.11.  PERMITS.  The Company and each of its Significant  Subsidiaries have
all requisite power and authority,  and all necessary  material  authorizations,
approvals, orders, licenses,  certificates and permits of and from regulatory or
governmental  officials,  bodies and tribunals, to own or lease their respective
properties and to conduct their  respective  businesses as now being  conducted,
except  such  authorizations,  approvals,  orders,  licenses,  certificates  and
permits which, if not obtained and maintained, would not have a Material Adverse
Effect,  and neither the Company  nor any of the  Significant  Subsidiaries  has
received any notice of proceedings relating to the revocation or modification of
any such authorizations,  approvals,  orders, licenses,  certificates or permits
which, singly or in the aggregate,  if the failure to be so licensed or approved
is the  subject of an  unfavorable  decision,  ruling or  finding,  would have a
Material Adverse Effect; and the Company and its Significant Subsidiaries are in
compliance with all applicable laws, rules, regulations and orders and consents,
the violation of which would have a Material Adverse Effect.

     5.12.  CONFLICTS,   AUTHORIZATIONS  AND  APPROVALS.  Except  as  previously
disclosed to the Placement Agents in writing, neither the Company nor any of the
Significant Subsidiaries is in violation of its respective charter or by-laws or
similar organizational  documents or in default in the performance or observance
of any obligation,  agreement,  covenant or condition contained in any contract,
indenture,   mortgage,  loan  agreement,  note,  lease  or  other  agreement  or
instrument to which either the Company or any of the Significant Subsidiaries is
a party,  or by  which  it or any of them  may be  bound or to which  any

                                       7

<PAGE>

of the property or assets of the Company or any of the Significant  Subsidiaries
is  subject,  the  effect  of which  violation  or  default  in  performance  or
observance would have a Material Adverse Effect.

     5.13.  BANK  HOLDING  COMPANY  ACT,  FEDERAL  RESERVE AND  FEDERAL  DEPOSIT
INSURANCE CORPORATION.  The Company is duly registered as a bank holding company
under the Bank  Holding  Company  Act of 1956,  as  amended,  or as a  financial
holding  company under the  Gramm-Leach-Bliley  Act and the  regulations  of the
Board of Governors of the Federal  Reserve System (the "Federal  Reserve"),  and
the  deposit  accounts  of the  Company's  subsidiary  banks are  insured by the
Federal Deposit Insurance  Corporation  ("FDIC") to the fullest extent permitted
by law and the rules and  regulations of the FDIC,  and no  proceedings  for the
termination of such insurance are pending or threatened.

     5.14. FINANCIAL STATEMENTS.

               (a)  Financial Statements. The consolidated balance sheets of the
Company and all of its subsidiaries as of December 31, 1999 and 1998 and related
consolidated income statements and statements of changes in shareholders' equity
for the three (3) years ended December 31, 1999 together with the notes thereto,
and the  consolidated  balance sheets of the Company and all of its subsidiaries
as of March 31,  2000 and June 30,  2000,  and the related  consolidated  income
statements and statements of changes in  shareholders'  equity for the three (3)
months and six (6) months,  respectively,  then  ended,  copies of each of which
have  been  provided  to  the  Placement   Agents   (together,   the  "Financial
Statements"),   have  been  prepared  in  accordance  with  generally   accepted
accounting  principles applied on a consistent basis (except as may be disclosed
therein) and fairly present in all material respects the financial  position and
the results of operations and changes in shareholders' equity of the Company and
all of its subsidiaries as of the dates and for the periods indicated  (subject,
in the case of  interim  financial  statements,  to  normal  recurring  year-end
adjustments,  none of which  shall be  material).  The books and  records of the
Company and all of its subsidiaries have been, and are being,  maintained in all
material respect in accordance with generally accepted accounting principles and
any other applicable  legal and accounting  requirements and reflect only actual
transactions.

               (b)  FRY-9C.  The Company's  report on FRY-9C dated June 30, 2000
(the "FRY-9C")  provided to you is the most recent available such report and the
information  therein  fairly  presents in all material  respects  the  financial
position of the Company and all of its subsidiaries.

               (c)  No Material  Adverse  Change.  Since the  respective  dates
of the Financial  Statements and the FRY-9C,  there has been no material adverse
change or development with respect to the financial condition or earnings of the
Company and all of its subsidiaries, taken as a whole.

     5.15. REGULATORY ENFORCEMENT MATTERS. Except as previously disclosed to the
Placement Agents in writing,  neither the Company nor any of its subsidiaries is
subject or is party to, or has  received  any notice or advice  that any of them
may  become  subject  or party  to,  any  investigation  with  respect  to,  any
cease-and-desist   order,   agreement,   consent   agreement,    memorandum   of
understanding or other regulatory  enforcement action,  proceeding or order with
or by, or is a party to any commitment  letter or similar  undertaking to, or is
subject to any  directive  by, or has been since January 1, 1997, a recipient of
any  supervisory  letter from, or since  January 1, 1997,  has adopted any board
resolutions  at the request of, any  Regulatory  Agency (as defined  below) that
currently  restricts in any material respect the conduct of its business or that
in any material manner relates to their capital adequacy, their credit policies,
its  management or its business  (each, a "Regulatory  Agreement"),  nor has the
Company or any of its  subsidiaries  been advised  since January 1, 1997, by any
Regulatory  Agency  that  it is  considering  issuing  or  requesting  any  such
Regulatory Agreement.  There is no material unresolved  violation,  criticism or
exception  by any  Regulatory  Agency  with  respect to any report or  statement
relating to any examinations of the Company or any of its subsidiaries.  As used
herein,  the term "Regulatory  Agency" means any

                                       8

<PAGE>

federal or state agency  charged with the  supervision or regulation of banks or
bank holding  companies,  or engaged in the insurance of bank  deposits,  or any
court,  administrative  agency  or  commission  or  other  governmental  agency,
authority or  instrumentality  having  supervisory or regulatory  authority with
respect to the Company or any of its Significant Subsidiaries.

     5.16. NO MATERIAL CHANGE.  Except as previously  disclosed to the Placement
Agents in writing,  since December 31, 1999,  there has been no material adverse
change or  development  with respect to the condition  (financial or otherwise),
earnings, affairs, business,  prospects or results of operations of the Offerors
on a consolidated basis.

     5.17.  NO  UNDISCLOSED  LIABILITIES.  Neither  the  Company  nor any of its
subsidiaries  has any  material  liability,  whether  known or unknown,  whether
asserted or  unasserted,  whether  absolute or  contingent,  whether  accrued or
unaccrued, whether liquidated or unliquidated, and whether due or to become due,
including  any  liability  for  taxes  (and  there is no past or  present  fact,
situation,  circumstance,  condition  or other  basis for any  present or future
action, suit or proceeding hearing, charge,  complaint,  claim or demand against
the Company or its subsidiaries  giving rise to any such liability),  except (i)
for liabilities set forth in the Financial  Statements,  (ii) normal fluctuation
in the amount of the  liabilities  referred to in clause (i) above  occurring in
the ordinary course of business of the Company and all of its subsidiaries since
the date of the most recent balance sheet included in the Financial  Statements,
and (iii) as may be specifically disclosed in writing to the Placement Agents.

     5.18. LITIGATION. Except as previously disclosed to the Placement Agents in
writing, no charge, investigation,  action, suit or proceeding is pending or, to
the knowledge of the Offerors,  threatened, against or affecting the Offerors or
any of their  respective  properties  before or by any courts or any regulatory,
administrative  or governmental  official,  commission,  board,  agency or other
authority or body, or any arbitrator, wherein an unfavorable decision, ruling or
finding  could  have a  material  adverse  effect  on the  consummation  of this
Agreement or the transactions contemplated herein or the condition (financial or
otherwise),  earnings, affairs, business,  prospects or results of operations of
the Offerors on a consolidated basis.

     5.19. DEFERRAL OF INTEREST PAYMENTS ON DEBT SECURITIES.  The Company has no
present  intention to exercise  its option to defer  payments of interest on the
Debt  Securities  as provided in the  Indenture.  The Company  believes that the
likelihood that it would exercise its right to defer payments of interest on the
Debt  Securities  as provided in the Indenture 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,  acquire or make a liquidation payment with respect
to, any of the Company's  capital stock and on the Company's ability to make any
payments of principal,  interest or premium on, or repay,  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 6.        REPRESENTATIONS AND WARRANTIES OF THE PLACEMENT AGENTS.

         Each  Placement  Agent  represents  and  warrants to the Offerors as to
itself (but not as to the other Placement Agent) as follows:

     6.1. ORGANIZATION, STANDING AND QUALIFICATION.

               (a)  First  Tennessee  Capital  Markets is a division  of First
Tennessee Bank,  N.A., a national banking  association  duly organized,  validly
existing and in good  standing  under the laws of the United  States,  with full
power and  authority to own,  lease and operate its  properties  and conduct its
business as currently being conducted.  First Tennessee  Capital Markets is duly
qualified to transact business as a foreign  corporation and is in good standing
in each other  jurisdiction  in which it owns or

                                       9

<PAGE>

leases property or conducts its business so as to require such qualification and
in which the failure to so qualify would, individually or in the aggregate, have
a material adverse effect on the condition  (financial or otherwise),  earnings,
business, prospects or results of operations of First Tennessee Capital Markets.

               (b)  Keefe,  Bruyette & Woods,  Inc. is a corporation,  validly
existing and in good standing under the laws of the State of New York, with full
power and  authority to own,  lease and operate its  properties  and conduct its
business as currently being  conducted.  Keefe,  Bruyette & Woods,  Inc. is duly
qualified to transact business as a foreign  corporation and is in good standing
in each other  jurisdiction  in which it owns or leases property or conducts its
business  so as to require  such  qualification  and in which the  failure to so
qualify would,  individually or in the aggregate, have a material adverse effect
on the condition  (financial or  otherwise),  earnings,  business,  prospects or
results of operations of Keefe, Bruyette & Woods, Inc.

     6.2. POWER AND AUTHORITY.  The Placement  Agent has all requisite power and
authority to enter into this  Agreement,  and this  Agreement  has been duly and
validly   authorized,   executed  and  delivered  by  the  Placement  Agent  and
constitutes  the legal,  valid and binding  agreement  of the  Placement  Agent,
enforceable  against the Placement Agent in accordance with its terms, except as
the  enforcement  thereof may be limited by general  principles of equity and by
bankruptcy or other laws relating to or affecting  creditors'  rights  generally
and except as any  indemnification  or  contribution  provisions  thereof may be
limited under applicable securities laws.

     6.3. GENERAL SOLICITATION. In the case of the offer and sale of the Capital
Securities,  no form of general  solicitation or general advertising was used by
the  Placement  Agent or its  representatives  including,  but not  limited  to,
advertisements,  articles,  notices  or other  communications  published  in any
newspaper,  magazine or similar medium or broadcast over  television or radio or
any  seminar  or  meeting  whose  attendees  have been  invited  by any  general
solicitation  or  general  advertising.  Neither  the  Placement  Agent  nor its
representatives  have engaged or will engage in any "directed  selling  efforts"
within the meaning of Regulation S under the  Securities Act with respect to the
Capital Securities.

     6.4. PURCHASER.  The Placement Agent has made such reasonable inquiry as is
necessary  to a  determination  that the  Purchaser  is  acquiring  the  Capital
Securities  for its own  account  and that the  Purchaser  does  not  intend  to
distribute the Capital  Securities in contravention of the Securities Act or any
other applicable  securities laws and that the Purchaser is not a "U.S.  person"
as that term is defined under Rule 902 of the Securities Act.

     6.5. QUALIFIED INSTITUTIONAL BUYERS AND QUALIFIED PURCHASERS. The Placement
Agent has not  offered or sold and will not arrange for the offer or sale of the
Capital Securities except (i) in an offshore transaction complying with Rule 903
of Regulation S under the  Securities  Act or (ii) to those the Placement  Agent
reasonably  believes  are  "accredited  investors"  (as  defined  in Rule 501 of
Regulation  D under the  Securities  Act) or (iii) in any other manner that does
not require  registration of the Capital Securities under the Securities Act and
that in connection  with each such sale,  the Placement  Agent has taken or will
take reasonable steps to ensure that the purchaser of any Capital  Securities is
aware that such sale is being made in reliance on Rule 144A.

SECTION 7. COVENANTS OF THE  OFFERORS.The  Offerors  covenant and agree with the
Placement Agents and the Purchasers as follows:

     7.1. COMPLIANCE WITH REPRESENTATIONS AND WARRANTIES. During the period from
the date of this  Agreement to the Closing  Date,  the Offerors  shall use their
best  efforts  and take all  action  necessary  or  appropriate  to cause  their
representations  and  warranties  contained in Section 5 hereof to be true as of
Closing  Date,  after giving  effect to the  transactions  contemplated  by this
Agreement, as if made on and as of the Closing Date.

                                       10

<PAGE>

     7.2. SALE OF OTHER SECURITIES.  The Offerors and their affiliates shall not
sell, offer for sale or solicit offers to buy or otherwise  negotiate in respect
of any  security  (as  defined  in the  Securities  Act) that  would or could be
integrated  with the sale of the  Capital  Securities  in a  manner  that  would
require the registration under the Securities Act of the Capital Securities, the
Debt Securities or the Guarantee.

     7.3. USE OF PROCEEDS. The Trust shall use the proceeds from the sale of the
Capital Securities to purchase the Debt Securities from the Company.

     7.4.  INVESTMENT  COMPANY.  The  Offerors  shall not engage,  or permit any
subsidiary to engage,  in any activity which would cause it or any subsidiary to
be an "investment company" under the provisions of the Investment Company Act.

     7.5.  REIMBURSEMENT  OF  EXPENSES.  If the sale of the  Capital  Securities
provided  for  herein is not  consummated  because  any  condition  set forth in
Section 3 hereof is not  satisfied,  or because  of any  refusal,  inability  or
failure on the part of the Company or the Trust to perform any agreement  herein
or comply  with any  provision  hereof  other  than by reason of a breach by the
Placement  Agents,  the Company shall reimburse the Placement Agents upon demand
for all of their pro rata share of out-of-pocket  expenses (including reasonable
fees and  disbursements  of counsel) in an amount not to exceed  $50,000.00 that
shall have been  incurred by them in connection  with the proposed  purchase and
sale of the Capital Securities. Notwithstanding the foregoing, the Company shall
have no obligation to reimburse  the  Placement  Agents for their  out-of-pocket
expenses  if the sale of the  Capital  Securities  fails to  occur  because  the
condition  set forth in Section 3.6 is not  satisfied  or because  either of the
Placement Agents fails to fulfill a condition set forth in Section 4.

     7.6.  DIRECTED SELLING  EFFORTS.  The Offerors will not, nor will either of
them  permit  any of their  Affiliates  to, nor will  either of them  permit any
person  acting  on its or their  behalf to (other  than the  Placement  Agents),
engage in any  "directed  selling  efforts"  within the meaning of  Regulation S
under the Securities Act with respect to the Securities.

     7.7.  REGISTRATION OF THE SECURITIES UNDER THE SECURITIES ACT. The Offerors
will not,  nor will  either of them  permit  any of their  Affiliates,  nor will
either of them permit any person  acting on its or their behalf  (other than the
Placement  Agents),  to,  directly  or  indirectly,  make offers or sales of any
security, or solicit offers to buy any security,  under circumstances that would
require the registration of any of the Securities under the Securities Act.

     7.8. GENERAL  SOLICITATION OR GENERAL  ADVERTISING.  The Offerors will not,
nor will either of them permit any of their Affiliates,  nor will either of them
permit  any  person  acting on its or their  behalf  (other  than the  Placement
Agent),  to,  engage in any form of  solicitation  or  advertising  (within  the
meaning  of  Regulation  D) in  connection  with any offer or sale of any of the
Securities.

     7.9.  COMPLIANCE WITH RULE 144A(D)(4)  UNDER THE SECURITIES ACT. So long as
any of the Securities are outstanding and are "restricted securities" within the
meaning of Rule 144(a)(3)  under the Securities  Act, the Offerors will,  during
any period in which they are not subject to and in compliance with Section 13 or
15(d) of the Securities  Exchange Act of 1934, as amended (the "Exchange  Act"),
or the Offerors are not exempt from such reporting  requirements pursuant to and
in compliance with Rule 12g3-2(b) under the Exchange Act, provide to each holder
of such restricted  securities and to each prospective  purchaser (as designated
by such holder) of such restricted  securities,  upon the request of such holder
or  prospective  purchaser,  any  information  required  to be  provided by Rule
144A(d)(4)  under the  Securities  Act.  This covenant is intended to be for the
benefit  of the  holders,  and the  prospective  purchasers  designated  by such
holders,  from  time  to time of such  restricted  securities.  The  information
provided by the  Offerors  pursuant to this  Section 7.9 hereof will not, at the
date thereof,  contain any

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<PAGE>

untrue statement of a material fact or omit to state any material fact necessary
to make the statements  therein,  in light of the circumstances under which they
were made, not misleading.

     7.10.  QUARTERLY REPORTS. The Offerors within fifty (50) days of the end of
each  calendar year quarter and within one hundred (100) days of the end of each
calendar year shall submit to the Placement Agents the following financial data:

               (a)  ratio of "Tier 1 Capital" to risk weighted assets, and the
ratio of double leverage;

               (b)  ratio of non-performing  assets to loans and other real
estate owned, ratio of reserves to non-performing  loans, and ratio of net
charge-offs to loans;

               (c)  return on assets, net interest margin, and efficiency ratio;
and

               (d)  ratio of loans to assets, ratio of loans to deposits, total
assets, and net income.

SECTION 8.        COVENANTS OF THE PLACEMENT AGENTS.

         The Placement Agents covenant and agree with the Offerors that,  during
the period from the date of this  Agreement to the Closing  Date,  the Placement
Agents shall use their best efforts and take all action necessary or appropriate
to cause their  representations and warranties  contained in Section 6 hereof to
be true as of Closing Date, after giving effect to the transactions contemplated
by this Agreement, as if made on and as of the Closing Date.

SECTION 9.        INDEMNIFICATION.

     9.1. INDEMNIFICATION  OBLIGATION.  The Offerors shall jointly and severally
indemnify  and hold  harmless the  Placement  Agents and the  Purchaser and each
person that controls either of the Placement  Agents or the Purchaser within the
meaning  of  Section 15 of the  Securities  Act or Section 20 of the  Securities
Exchange Act of 1934, as amended (the "Exchange  Act"),  and agents,  employees,
officers and directors or any such controlling person of either of the Placement
Agents or the Purchaser (each such  indemnified  party, an "Indemnified  Party")
from and against any and all losses, claims, damages, judgments,  liabilities or
expenses,  joint or several,  to which such Indemnified Party may become subject
under the Securities  Act, the Exchange Act or other federal or state  statutory
law or regulation, or at common law or otherwise (including in settlement of any
litigation,  if such  settlement  is effected  with the  written  consent of the
Offerors),  insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect  thereof)  arise out of, or are based upon,  or relate to, in
whole or in part,  (a) any untrue  statement  or alleged  untrue  statement of a
material  fact  contained  in any  information  (whether  written  or  oral)  or
documents  furnished or made available to the Placement  Agents or the Purchaser
by the  Offerors,  or (b) any  omission  or  alleged  omission  to  state in any
information  (whether written or oral) or documents  furnished or made available
to the  Placement  Agents or the  Purchaser  by the  Offerors  a  material  fact
required to be stated  therein or necessary to make the  statements  therein not
misleading,  and shall reimburse each Indemnified  Party for any legal and other
expenses as such expenses are reasonably  incurred by such Indemnified  Party in
connection with investigating,  defending, settling,  compromising or paying any
such loss, claim, damage, liability, expense or action described in this Section
9.1. In addition to their other  obligations  under this Section 9, the Offerors
hereby  agree  that,  as an interim  measure  during the  pendency of any claim,
action,  investigation,  inquiry or other  proceeding  arising  out of, or based
upon, or related to the matters  described above in this Section 9.1, they shall
reimburse each  Indemnified  Party on a quarterly basis for all reasonable legal
or other expenses  incurred in connection  with  investigating  or defending any
such claim, action, investigation, inquiry or other proceeding,  notwithstanding
the absence of a judicial  determination as to the propriety and  enforceability
of the possibility  that such payments might later be held to have been improper
by a court of  competent

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<PAGE>

jurisdiction.  To the extent that any such interim  reimbursement  payment is so
held to have been improper,  each  Indemnified  Party shall promptly return such
amounts to the Offerors  together with interest,  determined on the basis of the
prime rate (or other commercial lending rate for borrowers of the highest credit
standing)  announced from time to time by First Tennessee Bank, N.A. (the "Prime
Rate").  Any  such  interim  reimbursement  payments  which  are not  made to an
Indemnified  Party  within 30 days of a request  for  reimbursement,  shall bear
interest at the Prime Rate from the date of such request.

     9.2. CONDUCT OF INDEMNIFICATION  PROCEEDINGS.  Promptly after receipt by an
Indemnified  Party  under this  Section 9 of notice of the  commencement  of any
action,  such  Indemnified  Party shall,  if a claim in respect thereof is to be
made against the  Offerors  under this Section 9, notify the Offerors in writing
of the  commencement  thereof;  but the omission to so notify the Offerors shall
not  relieve  them  from  any  liability  which  the  Offerors  may  have to any
Indemnified  Party.  In case any such action is brought  against any Indemnified
Party and such  Indemnified  Party seeks or intends to seek  indemnity  from the
Offerors,  the Offerors shall be entitled to participate  in, and, to the extent
that they may wish,  to assume  the  defense  thereof  with  counsel  reasonably
satisfactory to such Indemnified Party; PROVIDED,  HOWEVER, if the defendants in
any such action  include  both the  Indemnified  Party and the  Offerors and the
Indemnified  Party shall have reasonably  concluded that there may be a conflict
between the  positions of the Offerors and the  Indemnified  Party in conducting
the defense of any such action or that there may be legal defenses  available to
it and/or other  Indemnified  Parties which are different  from or additional to
those available to the Offerors,  the Indemnified  Party shall have the right to
select  separate  counsel  to  assume  such  legal  defenses  and  to  otherwise
participate in the defense of such action on behalf of such  Indemnified  Party.
Upon  receipt of notice  from the  Offerors to such  Indemnified  Party of their
election to so assume the defense of such action and approval by the Indemnified
Party of counsel,  the Offerors  shall not be liable to such  Indemnified  Party
under this Section 9 for any legal or other  expenses  subsequently  incurred by
such  Indemnified  Party in connection  with the defense  thereof unless (i) the
Indemnified  Party  shall have  employed  such  counsel in  connection  with the
assumption  of legal  defenses in  accordance  with the proviso in the preceding
sentence (it being  understood,  however,  that the Offerors shall not be liable
for the expenses of more than one separate counsel  representing the Indemnified
Parties who are parties to such  action),  or (ii) the  Offerors  shall not have
employed counsel  reasonably  satisfactory to the Indemnified Party to represent
the  Indemnified  Party within a reasonable time after notice of commencement of
the action,  in each of which cases the fees and expenses of counsel shall be at
the expense of the Offerors.

     9.3. CONTRIBUTION. If the indemnification provided for in this Section 9 is
required  by its  terms,  but is for any  reason  held to be  unavailable  to or
otherwise  insufficient to hold harmless an Indemnified  Party under Section 9.1
in respect of any losses, claims,  damages,  liabilities or expenses referred to
herein or therein,  then the  Offerors  shall  contribute  to the amount paid or
payable by such Indemnified  Party as a result of any losses,  claims,  damages,
liabilities  or  expenses  referred  to  herein  (i) in  such  proportion  as is
appropriate  to reflect the relative  benefits  received by the Offerors and the
Placement  Agents from the offering of such Capital  Securities,  or (ii) if the
allocation  provided by clause (i) above is not permitted by applicable  law, in
such  proportion  as is  appropriate  to reflect not only the relative  benefits
referred to in clause (i) above but also the relative  fault of the Offerors and
the  Placement  Agents  in  connection  with  the  statements  or  omissions  or
inaccuracies  in the  representations  and  warranties  herein or other breaches
which resulted in such losses, claims, damages, liabilities or expenses, as well
as any other relevant equitable considerations. The respective relative benefits
received by the Offerors and the  Placement  Agents shall be deemed to be in the
same  proportion,  in the case of the  Offerors,  as the total price paid to the
Offerors for the Capital  Securities  sold by the Offerors to the Purchaser (net
of the compensation paid to the Placement Agents hereunder, but before deducting
expenses), and in the case of the Placement Agents, as the compensation received
by them, bears to the total of such amounts paid to the Offerors and received by
the Placement Agents as compensation. The relative fault of the Offerors and the
Placement  Agents  shall be  determined  by reference  to,  among other  things,
whether the untrue  statement or alleged

                                       13

<PAGE>

untrue  statement of a material  fact or the  omission or alleged  omission of a
material fact or the inaccurate or the alleged inaccurate  representation and/or
warranty relates to information supplied by the Offerors or the Placement Agents
and  the  parties'  relative  intent,  knowledge,   access  to  information  and
opportunity to correct or prevent such statement or omission. The amount paid or
payable by a party as a result of the losses claims,  damages,  liabilities  and
expenses referred to above shall be deemed to include any legal or other fees or
expenses  reasonably  incurred by such party in connection with investigating or
defending  any action or claim.  The  provisions  set forth in Section  9.2 with
respect  to notice of  commencement  of any  action  shall  apply if a claim for
contribution  is  made  under  this  Section  9.3;  PROVIDED,  HOWEVER,  that no
additional  notice shall be required with respect to any action for which notice
has been given under Section 9.2 for purposes of  indemnification.  The Offerors
and the  Placement  Agents  agree  that it would  not be just and  equitable  if
contribution pursuant to this Section 9.3 were determined by pro rata allocation
or by any other method of allocation that does not take account of the equitable
considerations referred to in this Section 9.3. The amount paid or payable by an
Indemnified Party, as a result of the losses,  claims,  damages,  liabilities or
expenses referred to in this Section 9.3 shall be deemed to include,  subject to
the limitations set forth above, any legal or other expenses reasonably incurred
by such  Indemnified  Party, in connection with  investigating  or defending any
such action or claim.  In no event shall the liability of the  Placement  Agents
hereunder be greater in amount than the dollar amount of the  compensation  (net
of payment of all expenses)  received by the  Placement  Agents upon the sale of
the Capital Securities giving rise to such obligation. No person found guilty of
fraudulent  misrepresentation  (within  the  meaning  of  Section  11(f)  of the
Securities  Act) shall be entitled to  contribution  from any person who was not
found guilty of such fraudulent misrepresentation.

     9.4.  ADDITIONAL  REMEDIES.  The  indemnity  and  contribution   agreements
contained in this Section 9 are in addition to any  liability  that the Offerors
may otherwise have to any Indemnified Party.

     9.5.  ADDITIONAL  INDEMNIFICATION.  The Company  shall  indemnify  and hold
harmless  the Trust  against  all loss,  liability,  claim,  damage and  expense
whatsoever, as due from the Trust under Section 9.1 hereof.

SECTION 10.       RIGHTS AND RESPONSIBILITIES OF PLACEMENT AGENTS.

     10.1.  RELIANCE.  In  performing  their  duties under this  Agreement,  the
Placement Agents shall be entitled to rely upon any notice, signature or writing
which  they  shall in good  faith  believe  to be  genuine  and to be  signed or
presented by a proper party or parties.  The Placement  Agents may rely upon any
opinions or certificates  or other documents  delivered by the Offerors or their
counsel or designees to either the Placement Agents or the Purchaser.

     10.2.  RIGHTS OF PLACEMENT  AGENTS.  In connection  with the performance of
their duties under this Agreement,  the Placement Agents shall not be liable for
any error of  judgment  or any action  taken or  omitted to be taken  unless the
Placement  Agents were  grossly  negligent or engaged in willful  misconduct  in
connection  with such  performance  or  non-performance.  No  provision  of this
Agreement  shall require the Placement  Agents to expend or risk their own funds
or  otherwise  incur any  financial  liability  on behalf  of the  Purchaser  in
connection with the performance of any of their duties hereunder.  The Placement
Agents  shall be under no  obligation  to  exercise  any of the rights or powers
vested in them by this Agreement.

SECTION 11.       MISCELLANEOUS.

     11.1. NOTICES. Prior to the Closing, and thereafter with respect to matters
pertaining to this Agreement only, all notices and other communications provided
for  or  permitted   hereunder  shall  be  made  in  writing  by  hand-delivery,
first-class mail, telex,  telecopier or overnight air courier  guaranteeing next
day delivery:

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<PAGE>

         if to the Placement Agents, to:

                                    First Tennessee Capital Markets
                                    845 Crossover Lane, Suite 150
                                    Memphis, Tennessee  38117
                                    Telecopier:  (901) 435-4706
                                    Telephone:  (800) 456-5460
                                    Attention:  James D. Wingett

                                            and

                                    Keefe, Bruyette & Woods, Inc.
                                    Two World Trade Center
                                    New York, New York  10048
                                    Telecopier:  (212) 323-8404
                                    Telephone:  (800) 966-1559
                                    Attention:  Mitch Kleinman, Esq.

         with a copy to:

                                    Lewis, Rice & Fingersh, L.C.
                                    500 North Broadway, Suite 2000
                                    St. Louis, Missouri  63102
                                    Telecopier:  (314) 241-6056
                                    Telephone:  (314) 444-7600
                                    Attn:  Thomas C. Erb, Esq.

                                            and

                                    Brown & Wood LLP
                                    One World Trade Center
                                    New York, New York  10048
                                    Telecopier:  (212) 839-5599
                                    Telephone:  (212) 839-5300
                                    Attention:  Renwick Martin, Esq.

         if to the Offerors, to:

                                    MCB Financial Corporation
                                    1248 Fifth Avenue
                                    San Rafael, California  94901
                                    Telecopier: (415) 721-4808
                                    Telephone: (415) 459-2265
                                    Attn: Pat Phelan

                                       15

<PAGE>

         with a copy to:

                                    McCutcheon, Doyle, Brown & Enerson, LLP
                                    3 Embarcadero Center
                                    San Francisco, California  94111
                                    Telecopier: (415) 393-2286
                                    Telephone: (415) 393-2180
                                    Attn: Keith Ungles, Esq.

         All such notices and  communications  shall be deemed to have been duly
given (i) at the time  delivered by hand,  if  personally  delivered,  (ii) five
business days after being  deposited in the mail,  postage  prepaid,  if mailed,
(iii) when  answered  back,  if telexed,  (iv) the next business day after being
telecopied,  or (v) the next business day after timely delivery to a courier, if
sent by overnight air courier guaranteeing next day delivery. From and after the
Closing,  the  foregoing  notice  provisions  shall be  superseded by any notice
provisions of the Operative Documents under which notice is given. The Placement
Agents, the Company,  and their respective counsel,  may change their respective
notice  addresses  from time to time by written  notice to all of the  foregoing
persons.

     11.2. PARTIES IN INTEREST,  SUCCESSORS AND ASSIGNS.  This Agreement is made
solely for the benefit of the Placement  Agents,  the Purchaser and the Offerors
and any person  controlling the Placement Agents,  the Purchaser or the Offerors
and their respective  successors and assigns;  and no other person shall acquire
or have any right under or by virtue of this  Agreement.  This  Agreement  shall
inure to the benefit of and be binding upon the  successors  and assigns of each
of the parties.

     11.3. COUNTERPARTS. This Agreement may be executed by the parties hereto in
separate  counterparts,  each of which when so executed shall be deemed to be an
original  and all of which  taken  together  shall  constitute  one and the same
agreement.

     11.4.  HEADINGS.  The headings in this  Agreement  are for  convenience  of
reference only and shall not limit or otherwise affect the meaning hereof.

     11.5.  GOVERNING LAW. THIS AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH THE INTERNAL LAWS (AND NOT THE LAWS  PERTAINING TO CONFLICTS OF
LAWS) OF THE STATE OF NEW YORK.

     11.6. ENTIRE AGREEMENT.  This Agreement,  together with the other Operative
Documents,  is intended by the parties as a final  expression of their agreement
and  intended to be a complete and  exclusive  statement  of the  agreement  and
understanding  of the parties hereto in respect of the subject matter  contained
herein  and  therein.  There  are  no  restrictions,   promises,  warranties  or
undertakings, other than those set forth or referred to herein and therein. This
Agreement,  together with the other  Operative  Documents,  supersedes all prior
agreements and  understandings  between the parties with respect to such subject
matter.

     11.7.  SEVERABILITY.  In the event  that any one or more of the  provisions
contained  herein,  or the  application  thereof in any  circumstances,  is held
invalid,  illegal or unenforceable in any respect for any reason,  the validity,
legality and  enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired or affected, it
being intended that all of the Placement Agents' and the Purchaser's  rights and
privileges shall be enforceable to the fullest extent permitted by law.

     11.8. SURVIVAL. The Placement Agents and the Offerors,  respectively, agree
that the representations, warranties and agreements made by each of them in this
Agreement and in any certificate

                                       16

<PAGE>

or other  instrument  delivered  pursuant  hereto shall remain in full force and
effect  and shall  survive  the  delivery  of,  and  payment  for,  the  Capital
Securities.

                      [SIGNATURES APPEAR ON THE NEXT PAGE]

                                       17

<PAGE>

         If this Agreement is satisfactory to you, please so indicate by signing
the  acceptance of this  Agreement and deliver such  counterpart to the Offerors
whereupon this Agreement will become binding  between us in accordance  with its
terms.

                                                     Very truly yours,

                            MCB FINANCIAL CORPORATION

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

                            MCB STATUTORY TRUST I

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

FIRST TENNESSEE CAPITAL MARKETS,
A DIVISION OF FIRST TENNESSEE BANK, N.A.,
AS A PLACEMENT AGENT

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

KEEFE, BRUYETTE & WOODS, INC.
A NEW YORK CORPORATION, AS A PLACEMENT AGENT

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

                                       18

<PAGE>

                                    EXHIBIT A

                         FORM OF SUBSCRIPTION AGREEMENT

                                  See attached

                                      A-1

<PAGE>

                                   EXHIBIT B-1

                     OPINION MATTERS OF COUNSEL TO OFFERORS

     1. The Company has been duly  incorporated  and is validly  existing and in
good standing under the laws of the State of California,  and is duly registered
as a bank holding  company under the BHC Act. Each of the  Subsidiaries  is duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of its
jurisdiction of organization.  Each of the Company and the Subsidiaries has full
corporate  power and authority to own or lease its properties and to conduct its
business as such business is currently  conducted in all material  respects.  To
the best of such counsel's knowledge, all outstanding shares of capital stock of
the Subsidiaries have been duly authorized and validly issued and are fully paid
and  nonassessable  except to the extent  such  shares may be deemed  assessable
under 12 U.S.C. Section 1831o.

     2. The  issuance,  sale and  delivery  of the Capital  Securities  and Debt
Securities in accordance  with the terms and  conditions of the  Agreement,  the
Subscription  Agreement and the Operative Documents have been duly authorized by
all necessary actions of the Offerors.  All of the Capital  Securities have been
duly and validly authorized and, when delivered in accordance with the Agreement
and the Subscription Agreement,  will be duly and validly issued, fully paid and
nonassessable,  and  will  conform  to the  description  thereof  in  the  Trust
Agreement.  There  are no  preemptive  or other  rights to  subscribe  for or to
purchase any shares of capital stock or equity securities of the Offerors or the
Subsidiaries  pursuant to the corporate  articles of  incorporation  or charter,
by-laws or other governing documents  (including without  limitation,  the Trust
Agreement)  of the  Offerors  or the  Subsidiaries,  or,  to the  best  of  such
counsel's  knowledge,  any agreement or other instrument to which either Offeror
or any of the  Subsidiaries  is a party or by which either Offeror or any of the
Subsidiaries may be bound.

     3. The Offerors have all requisite  corporate and trust power to enter into
and  perform  their   obligations  under  the  Agreement  and  the  Subscription
Agreement,  and the Agreement and the Subscription  Agreement have been duly and
validly  authorized,  executed and delivered by the Offerors and  constitute the
legal, valid and binding  obligations of the Offerors  enforceable in accordance
with their terms,  except as the  enforcement  thereof may be limited by general
principles  of equity and by  bankruptcy  or other laws relating to or affecting
creditors' rights generally,  and except as the indemnification and contribution
provisions thereof may be limited under applicable laws and certain remedies may
not be available in the case of a non-material breach.

     4. Each of the Indenture,  the Trust Agreement and the Guarantee  Agreement
has been duly authorized,  executed and delivered by the Company, and is a valid
and legally binding obligation of the Company enforceable in accordance with its
terms,  subject  to  the  effect  of  bankruptcy,  insolvency,   reorganization,
receivership,  moratorium  and other laws  affecting  the rights and remedies of
creditors generally and of general principles of equity.

     5. The Debt Securities have been duly authorized, executed and delivered by
the Company,  are entitled to the benefits of the Indenture and are legal, valid
and  binding  obligations  of the  Company  enforceable  against  the Company in
accordance  with their terms,  subject to the effect of bankruptcy,  insolvency,
reorganization, receivership, moratorium and other laws affecting the rights and
remedies of creditors generally and of general principles of equity.

     6. To the  best of such  counsel's  knowledge,  neither  the  Offerors  nor
Subsidiaries  is in breach or violation  of, or default  under,  with or without
notice  or  lapse of time or  both,  its  corporate  charter,  by-laws  or other
governing  documents  (including without limitation,  the Trust Agreement).  The
execution,  delivery  and  performance  of the  Agreement  and the  Subscription
Agreement  and  the  consummation  of  the  transactions   contemplated  by  the
Agreement,  the  Subscription  Agreement and the

                                     B-1-1

<PAGE>

Trust  Agreement  do not and will not conflict  with,  result in the creation or
imposition of any material lien, claim, charge,  encumbrance or restriction upon
any  property  or assets of the  Offerors  or the  Subsidiaries  or the  Capital
Securities  pursuant  to, or  constitute a material  breach or violation  of, or
constitute a material default under,  with or without notice or lapse of time or
both,   any  of  the  terms,   provisions  or  conditions  of  the  articles  of
incorporation  or  charter,  by-laws  or other  governing  documents  (including
without limitation, the Trust Agreement) of the Offerors or the Subsidiaries, or
to the best of such  counsel's  knowledge,  any  material  contract,  indenture,
mortgage,  deed of trust,  loan or credit  agreement,  note,  lease,  franchise,
license  or any other  agreement  or  instrument  to which the  Offerors  or the
Subsidiaries  is a party  or by  which  any of them or any of  their  respective
properties  may be bound or any order,  decree,  judgment,  franchise,  license,
permit, rule or regulation of any court, arbitrator, government, or governmental
agency or  instrumentality,  domestic or foreign,  known to such counsel  having
jurisdiction  over the Offerors or the  Subsidiaries or any of their  respective
properties which, in each case, is material to the Offerors and the Subsidiaries
on a consolidated basis.

     7. Except for filings, registrations or qualifications that may be required
by securities laws, no authorization,  approval, consent or order of, or filing,
registration or qualification  with, any person (including,  without limitation,
any court,  governmental body or authority) is required under [state of domicile
and  incorporation of Company] in connection with the transactions  contemplated
by the Agreement in connection with the offer and sale of the Capital Securities
as contemplated by the Agreement.

     8.  To the  best  of  such  counsel's  knowledge  (i) no  action,  suit  or
proceeding at law or in equity is pending or threatened to which the Offerors or
the Subsidiaries is or may be a party, and (ii) no action, suit or proceeding is
pending or threatened  against or affecting the Offerors or the  Subsidiaries or
any of  their  properties,  before  or by any  court or  governmental  official,
commission,  board or other  administrative  agency,  authority or body,  or any
arbitrator,  wherein an unfavorable decision, ruling or finding could reasonably
be  expected  to have a  material  adverse  effect  on the  consummation  of the
Agreement  or the issuance and sale of the Capital  Securities  as  contemplated
therein or the condition (financial or otherwise),  earnings, affairs, business,
or results of operations of the Offerors and the  Subsidiaries on a consolidated
basis.

     9. It is not necessary in connection  with the offering,  sale and delivery
of the Capital  Securities,  the Debt Securities and the Guarantee Agreement (or
the  Guarantee)  to  register  the same  under  the  Securities  Act  under  the
circumstances contemplated in the Agreement and the Subscription Agreement.

     10.  Neither  the Company  nor the Trust is an  "investment  company" or an
entity "controlled" by an "investment  company", in each case within the meaning
of the Investment Company Act of 1940, as amended.

                                     B-1-2

<PAGE>

                                   EXHIBIT B-2

                       CONNECTICUT COUNSEL OPINION MATTERS

     1. The Trust has been duly  formed and is validly  existing  as a statutory
trust under the  Connecticut  Statutory Trust Act and, under the Trust Agreement
and the  Connecticut  Statutory  Trust Act,  has the  requisite  trust power and
authority  to execute  and deliver and to perform  its  obligations  under,  the
Operative Documents.

     2. Assuming that the Trust will not be taxable as a corporation for federal
income tax  purposes,  but,  rather will be  classified  for such  purposes as a
grantor trust, the Trust will not be subject to any tax, fee or other government
charge under the laws of the State of Connecticut  or any political  subdivision
thereof.

     3. The Trust Agreement is a valid and binding agreement of the Company, the
Institutional Trustee and the Administrators, and is enforceable against each of
the parties, in accordance with its terms.

     4. Under the Trust Agreement and the  Connecticut  Statutory Trust Act, the
execution and delivery of the  Placement  Agreement by an  Administrator  of the
Trust and the performance by the Trust of its obligations thereunder,  have been
authorized by all requisite trust action on the part of the Trust.

     5. The Trust  Securities have been duly  authorized by the Trust,  and when
issued and sold in accordance  with the Trust  Agreement,  the Trust  Securities
will be, subject to the  qualifications  set forth in paragraph (5) below, fully
paid and  nonassessable  beneficial  interests  in the  assets  of the Trust and
entitled to the benefits of the Trust Agreement.

     6. Holders of Capital  Securities,  as beneficial owners of the Trust, will
be  entitled  to  the  same  limitation  on  personal   liability   extended  to
shareholders of private, for-profit corporations organized under the laws of the
State of  Connecticut.  Such  opinion  may  note  that the  holders  of  Capital
Securities  may be  obligated  to  make  payments  as  set  forth  in the  Trust
Agreement.

     7.  The  issuance  and  sale by the  Trust  of the  Trust  Securities,  the
execution,  delivery and  performance  by the Trust of this  Agreement,  and the
consummation of the transactions  contemplated by this Agreement, do not violate
(a) the Trust Agreement,  (b) any applicable Connecticut law, rule or regulation
governing the Trust or (c) to such counsel's knowledge, any judgment or order of
any court or other tribunal applicable or binding on the Trust.

        Such  opinion  may state  that it is limited to the laws of the State of
Connecticut  and that the opinion  expressed  in paragraph 3 above is subject to
the effect upon the Trust Agreement of (i) bankruptcy,  insolvency,  moratorium,
receivership,  reorganization,  liquidation,  fraudulent  conveyance  and  other
similar  laws  relating to or  affecting  the rights and  remedies of  creditors
generally,  (ii)  principles  of equity,  including  applicable  law relating to
fiduciary duties  (regardless of whether  considered and applied in a proceeding
in  equity or at law),  (iii) the  effect  of  applicable  public  policy on the
enforceability of provisions  relating to indemnification  or contribution,  and
(iv) such other exceptions,  qualifications  and assumptions as deemed necessary
by Bingham Dana in their sole discretion.

                                     B-2-1

<PAGE>

                                   EXHIBIT B-3

                       SPECIAL TAX COUNSEL OPINION MATTERS

     1. The Trust will be  characterized  for United States  federal  income tax
purposes as a grantor trust and not as an association taxable as a corporation.

     2. The Debt  Securities  will  constitute  indebtedness  of the Company for
United States federal income tax purposes.

                                     B-3-1

<PAGE>

                                    EXHIBIT C

                              COMPANY SUBSIDIARIES

Metro Commerce Bank

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