Document:

Exhibit 10.1

                        AMENDED AND RESTATED DECLARATION

                                    OF TRUST

                         Monroe Bancorp Capital Trust I

                            Dated as of July 24, 2006

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                                Table of Contents

                                                                           Page

                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

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

                                   ARTICLE II
                                  ORGANIZATION

SECTION 2.01.  Name...........................................................9

SECTION 2.02.  Office.........................................................9

SECTION 2.03.  Purpose........................................................9

SECTION 2.04.  Authority......................................................9

SECTION 2.05.  Title to Property of the Trust................................10

SECTION 2.06.  Powers and Duties of the Trustees and the Administrators......10

SECTION 2.07.  Prohibition of Actions by the Trust and the Trustees..........15

SECTION 2.08.  Powers and Duties of the Institutional Trustee................15

SECTION 2.09.  Certain Duties and Responsibilities of the Trustees and the
               Administrators................................................17

SECTION 2.10.  Certain Rights of Institutional Trustee.......................19

SECTION 2.11.  Delaware Trustee..............................................21

SECTION 2.12.  Execution of Documents........................................21

SECTION 2.13.  Not Responsible for Recitals or Issuance of Securities........21

SECTION 2.14.  Duration of Trust.............................................22

SECTION 2.15.  Mergers.......................................................22

                                   ARTICLE III
                                     SPONSOR

SECTION 3.01.  Sponsor's Purchase of Common Securities.......................24

SECTION 3.02.  Responsibilities of the Sponsor...............................24

                                   ARTICLE IV
                           TRUSTEES AND ADMINISTRATORS

SECTION 4.01.  Number of Trustees............................................25

SECTION 4.02.  Delaware Trustee..............................................25

SECTION 4.03.  Institutional Trustee; Eligibility............................25

SECTION 4.04.  Certain Qualifications of the Delaware Trustee Generally......26

SECTION 4.05.  Administrators................................................26

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                                Table of Contents
                                   (continued)

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SECTION 4.06.  Initial Delaware Trustee......................................26

SECTION 4.07.  Appointment, Removal and Resignation of the Trustees and the
               Administrators................................................26

SECTION 4.08.  Vacancies Among Trustees......................................29

SECTION 4.09.  Effect of Vacancies...........................................29

SECTION 4.10.  Meetings of the Trustees and the Administrators...............29

SECTION 4.11.  Delegation of Power...........................................29

SECTION 4.12.  Merger, Conversion, Consolidation or Succession to Business...31

                                    ARTICLE V
                                  DISTRIBUTIONS

SECTION 5.01.  Distributions.................................................31

                                   ARTICLE VI
                             ISSUANCE OF SECURITIES

SECTION 6.01.  General Provisions Regarding Securities.......................31

SECTION 6.02.  Paying Agent, Transfer Agent, Calculation Agent and Registrar.33

SECTION 6.03.  Form and Dating...............................................33

SECTION 6.04.  Book-Entry Capital Securities.................................34

SECTION 6.05.  Mutilated, Destroyed, Lost or Stolen Certificates.............36

SECTION 6.06.  Temporary Securities..........................................36

SECTION 6.07.  Cancellation..................................................36

SECTION 6.08.  Rights of Holders; Waivers of Past Defaults...................37

                                   ARTICLE VII
                      DISSOLUTION AND TERMINATION OF TRUST

SECTION 7.01.  Dissolution and Termination of Trust..........................39

                                  ARTICLE VIII
                              TRANSFER OF INTERESTS

SECTION 8.01.  General.......................................................40

SECTION 8.02.  Transfer Procedures and Restrictions..........................41

SECTION 8.03.  Deemed Security Holders.......................................45

                                   ARTICLE IX
      LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

SECTION 9.01.  Liability.....................................................45

SECTION 9.02.  Exculpation...................................................45

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                                Table of Contents
                                   (continued)

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SECTION 9.03.  Fiduciary Duty................................................46

SECTION 9.04.  Indemnification...............................................46

SECTION 9.05.  Outside Businesses............................................49

SECTION 9.06.  Compensation; Fee.............................................50

                                    ARTICLE X
                                   ACCOUNTING

SECTION 10.01. Fiscal Year...................................................51

SECTION 10.02. Certain Accounting Matters....................................51

SECTION 10.03. Banking.......................................................52

SECTION 10.04. Withholding...................................................52

                                   ARTICLE XI
                             AMENDMENTS AND MEETINGS

SECTION 11.01. Amendments....................................................52

SECTION 11.02. Meetings of the Holders of the Securities; Action by Written
               Consent.......................................................54

                                   ARTICLE XII
          REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

SECTION 12.01. Representations and Warranties of Institutional Trustee.......56

SECTION 12.02. Representations and Warranties of Delaware Trustee............57

                                  ARTICLE XIII
                                  MISCELLANEOUS

SECTION 13.01. Notices.......................................................57

SECTION 13.02. Governing Law.................................................59

SECTION 13.03. Submission to Jurisdiction....................................59

SECTION 13.04. Intention of the Parties......................................60

SECTION 13.05. Headings......................................................60

SECTION 13.06. Successors and Assigns........................................60

SECTION 13.07. Partial Enforceability........................................60

SECTION 13.08. Counterparts..................................................60

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                                Table of Contents
                                   (continued)

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ANNEXES AND EXHIBITS

               ANNEX I Terms of Capital Securities and Common Securities   A-I-1

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                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                         Monroe Bancorp Capital Trust I

                                  July 24, 2006

         AMENDED AND RESTATED DECLARATION OF TRUST (this "Declaration"), dated
and effective as of July 24, 2006, by the Trustees (as defined herein), the
Administrators (as defined herein), the Sponsor (as defined herein) and the
holders from time to time of undivided beneficial interests in the assets of the
Trust (as defined herein) to be issued pursuant to this Declaration.

         WHEREAS, certain of the Trustees, the Administrators and the Sponsor
established Monroe Bancorp Capital Trust I (the "Trust"), a statutory trust
under the Statutory Trust Act (as defined herein), pursuant to a Declaration of
Trust, dated as of July 20, 2006 (the "Original Declaration"), and a Certificate
of Trust filed with the Secretary of State of the State of Delaware on July 20,
2006, for the sole purpose of issuing and selling certain securities
representing undivided beneficial interests in the assets of the Trust and
investing the proceeds thereof in the Debentures (as defined herein) of the
Debenture Issuer (as defined herein) in connection with the issuance of the
Capital Securities (as defined herein);

         WHEREAS, as of the date hereof, no interests in the assets of the Trust
have been issued; and

         WHEREAS, all of the Trustees, the Administrators and the Sponsor, by
this Declaration, amend and restate each and every term and provision of the
Original Declaration.

         NOW, THEREFORE, it being the intention of the parties hereto to
continue the Trust as a statutory trust under the Statutory Trust Act and that
this Declaration constitutes the governing instrument of such statutory trust,
and that all assets contributed to the Trust will be held in trust for the
benefit of the holders, from time to time, of the securities representing
undivided beneficial interests in the assets of the Trust issued hereunder,
subject to the provisions of this Declaration, and, in consideration of the
mutual covenants contained herein and other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties, intending to be legally
bound hereby, amend and restate in its entirety the Original Declaration and
agree as follows:

                                   ARTICLE I
                         INTERPRETATION AND DEFINITIONS

SECTION 1.01. Definitions.  Unless the context otherwise requires:
         capitalized terms used in this Declaration but not defined in the
         preamble above or elsewhere herein have the respective meanings
         assigned to them in this Section 1.1 or, if not defined in this Section
         1.1 or elsewhere herein, in the Indenture;

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         a term defined anywhere in this Declaration has the same meaning
         throughout;

         all references to "the Declaration" or "this Declaration" are to this
         Declaration as modified, supplemented or amended from time to time;

         all references in this Declaration to Articles and Sections and Annexes
         and Exhibits are to Articles and Sections of and Annexes and Exhibits
         to this Declaration unless otherwise specified;

         a term defined in the Trust Indenture Act (as defined herein) has the
         same meaning when used in this Declaration unless otherwise defined in
         this Declaration or unless the context otherwise requires; and

         a reference to the singular includes the plural and vice versa.

         "Additional Interest" has the meaning set forth in Section 3.06 of the
Indenture.

         "Administrative Action" has the meaning set forth in paragraph 4(a) of
Annex I.

         "Administrators" means each of Mark D. Bradford and Gordon M. Dyott,
solely in such Person's capacity as Administrator of the Trust continued
hereunder and not in such Person's individual capacity, or such Administrator's
successor in interest in such capacity, or any successor appointed as herein
provided.

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

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

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

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

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

         such Person commences a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, consents to the
entry of an order for relief in an involuntary case under any such law, or
consents to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of such
Person of any substantial

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part of its property, or makes any general assignment for the benefit of
creditors, or fails generally to pay its debts as they become due.

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

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

         "Calculation Agent" has the meaning set forth in Section 1.01 of the
Indenture.

         "Capital Securities" has the meaning set forth in Section 6.1(a).

         "Capital Security Certificate" means a definitive Certificate
registered in the name of the Holder representing Capital Securities, which
shall be substantially in the form attached hereto as Exhibit A 1.

         "Capital Treatment Event" has the meaning set forth in paragraph 4(a)
of Annex I.

         "Certificate" means any certificate evidencing Securities.

         "Certificate of Trust" means the certificate of trust filed with the
Secretary of State of the State of Delaware with respect to the Trust, as
amended and restated from time to time.

         "Closing Date" has the meaning set forth in the Purchase Agreement .

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time, or any successor legislation.

         "Commission" means the United States Securities and Exchange
Commission.

         "Common Securities" has the meaning set forth in Section 6.1(a).

         "Common Security Certificate" means a definitive Certificate registered
in the name of the Holder representing a Common Security substantially in the
form of Exhibit A-2.

         "Company Indemnified Person" means (a) any Administrator; (b) any
Affiliate of any Administrator; (c) any officers, directors, shareholders,
members, partners, employees, representatives or agents of any Administrator; or
(d) any officer, employee or agent of the Trust or its Affiliates.

         "Corporate Trust Office" means the office of the Institutional Trustee
at which the corporate trust business of the Institutional Trustee shall, at any
particular time, be principally administered, which office shall at all times be
located in the United States and at the date of execution of this Declaration is
located at 919 Market Street Suite 700 Wilmington, DE 19801, Attention:
Corporate Trust Division.

         "Coupon Rate" has the meaning set forth in paragraph 2(a) of Annex I.

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         "Covered Person" means: (a) any Administrator, officer, director,
shareholder, partner, member, representative, employee or agent of (i) the Trust
or (ii) the Trust's Affiliates; and (b) any Holder of Securities.

         "Debenture Issuer" means Monroe Bancorp, a bank holding company
incorporated in Indiana, in its capacity as issuer of the Debentures under the
Indenture.

         "Debenture Trustee" means Wells Fargo Bank, National Association, a
national banking association with its principal place of business in the State
of Delaware, not in its individual capacity but solely as trustee under the
Indenture until a successor is appointed thereunder, and thereafter means such
successor trustee.

         "Debentures" means the Junior Subordinated Debt Securities due October
7, 2036 to be issued by the Debenture Issuer under the Indenture.

         "Deferred Interest" means any interest on the Debentures that would
have been overdue and unpaid for more than one Distribution Payment Date but for
the imposition of an Extension Period, and the interest that shall accrue (to
the extent that the payment of such interest is legally enforceable) on such
interest at the Coupon Rate applicable during such Extension Period, compounded
quarterly from the date on which such Deferred Interest would otherwise have
been due and payable until paid or made available for payment.

         "Definitive Capital Securities" means any Capital Securities in
definitive form issued by the Trust.

         "Delaware Trustee" has the meaning set forth in Section 4.2.

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

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

         "Direct Action" has the meaning set forth in Section 2.8(e).

         "Distribution" means a distribution payable to Holders of Securities in
accordance with Section 5.1.

         "Distribution Payment Date" has the meaning set forth in paragraph 2(e)
of Annex I.

         "Distribution Payment Period" means the period from and including a
Distribution Payment Date, or in the case of the first Distribution Payment
Period, the original date of issuance of the Securities, to, but excluding, the
next succeeding Distribution Payment Date or, in the case of the last
Distribution Payment Period, the Redemption Date, Special Redemption Date or
Maturity Date (each as defined in the Indenture), as the case may be, for the
related Debentures.

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

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         "Event of Default" means the occurrence of an Indenture Event of
Default.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, or any successor legislation.

         "Extension Period" has the meaning set forth in paragraph 2(e) of Annex
I.

         "Fiduciary Indemnified Person" shall mean each of the Institutional
Trustee (including in its individual capacity), the Delaware Trustee (including
in its individual capacity), any Affiliate of the Institutional Trustee or the
Delaware Trustee, and any officers, directors, shareholders, members, partners,
employees, representatives, custodians, nominees or agents of the Institutional
Trustee or the Delaware Trustee.

         "Fiscal Year" has the meaning set forth in Section 10.1.

         "Fixed Rate" has the meaning set forth in paragraph 2(a) of Annex I.

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

         "Guarantee" means the Guarantee Agreement, dated as of July 24, 2006,
of the Sponsor in respect of the Capital Securities.

         "Holder" means a Person in whose name a Certificate representing a
Security is registered on the register maintained by or on behalf of the
Registrar, such Person being a beneficial owner within the meaning of the
Statutory Trust Act.

         "Indemnified Person" means a Company Indemnified Person or a Fiduciary
Indemnified Person.

         "Indenture" means the Indenture, dated as of July 24, 2006, among the
Debenture Issuer and the Debenture Trustee, and any indenture supplemental
thereto pursuant to which the Debentures are to be issued.

         "Indenture Event of Default" means an "Event of Default" as defined in
the Indenture.

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

         "Institutional Trustee" means the Trustee meeting the eligibility
requirements set forth in Section 4.3.

         "Investment Company" means an investment company as defined in the
Investment Company Act.

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

         "Investment Company Event" has the meaning set forth in paragraph 4(a)
of Annex I.

         "Legal Action" has the meaning set forth in Section 2.8(e).

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         "LIBOR" means the London Interbank Offered Rate for U.S. Dollar
deposits in Europe as determined by the Calculation Agent according to paragraph
2(b) of Annex I.

         "LIBOR Banking Day" has the meaning set forth in paragraph 2(b)(1) of
Annex I.

         "LIBOR Business Day" has the meaning set forth in paragraph 2(b)(1) of
Annex I.

         "LIBOR Determination Date" has the meaning set forth in paragraph
2(b)(1) of Annex I.

         "Liquidation" has the meaning set forth in paragraph 3 of Annex I.

         "Liquidation Distribution" has the meaning set forth in paragraph 3 of
Annex I.

         "Majority in liquidation amount of the Securities" means Holders of
outstanding Securities voting together as a single class or, as the context may
require, Holders of outstanding Capital Securities or Holders of outstanding
Common Securities voting separately as a class, who are the record owners of
more than 50% of the aggregate liquidation amount (including the stated amount
that would be paid on redemption, liquidation or otherwise, plus accrued and
unpaid Distributions to the date upon which the voting percentages are
determined) of all outstanding Securities of the relevant class.

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

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

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

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

         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

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

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

         "Paying Agent" has the meaning set forth in Section 6.2.

         "Payment Amount" has the meaning set forth in Section 5.1.

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         "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.

         "PORTAL" has the meaning set forth in Section 2.6(a)(i).

         "Property Account" has the meaning set forth in Section 2.8(c).

         "Pro Rata" has the meaning set forth in paragraph 8 of Annex I.

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

         "QIB" means a "qualified institutional buyer" as defined under Rule
144A.

         "Quorum" means a majority of the Administrators or, if there are only
two Administrators, both of them.

         "Redemption Date" has the meaning set forth in paragraph 4(a) of Annex
I.

         "Redemption/Distribution Notice" has the meaning set forth in paragraph
4(e) of Annex I.

         "Redemption Price" has the meaning set forth in paragraph 4(a) of Annex
I.

         "Registrar" has the meaning set forth in Section 6.2.

         "Relevant Trustee" has the meaning set forth in Section 4.7(a).

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

         "Restricted Securities Legend" has the meaning set forth in Section
8.2(c).

         "Rule 144A" means Rule 144A under the Securities Act.

         "Rule 3a-5" means Rule 3a-5 under the Investment Company Act.

         "Rule 3a-7" means Rule 3a-7 under the Investment Company Act.

         "Securities" means the Common Securities and the Capital Securities, as
applicable.

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         "Securities Act" means the Securities Act of 1933, as amended from time
to time, or any successor legislation.

         "Special Event" has the meaning set forth in paragraph 4(a) of Annex I.

         "Special Redemption Price" has the meaning set forth in paragraph 4(a)
of Annex I.

         "Sponsor" means Monroe Bancorp, a bank holding company that is a U.S.
Person incorporated in Indiana, or any successor entity in a merger,
consolidation or amalgamation that is a U.S. Person, in its capacity as sponsor
of the Trust.

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

         "Successor Delaware Trustee" has the meaning set forth in Section
4.7(e).

         "Successor Entity" has the meaning set forth in Section 2.15(b).

         "Successor Institutional Trustee" has the meaning set forth in Section
4.7(b).

         "Successor Securities" has the meaning set forth in Section 2.15(b).

         "Super Majority" has the meaning set forth in paragraph 5(b) of Annex
I.

         "Tax Event" has the meaning set forth in paragraph 4(a) of Annex I.

         "10% in liquidation amount of the Securities" means Holders of
outstanding Securities voting together as a single class or, as the context may
require, Holders of outstanding Capital Securities or Holders of outstanding
Common Securities voting separately as a class, who are the record owners of 10%
or more of the aggregate liquidation amount (including the stated amount that
would be paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined) of
all outstanding Securities of the relevant class.

         "Transfer Agent" has the meaning set forth in Section 6.2.

         "Transfer Notice" has the meaning set forth in Section 8.2(e).

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

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

         "Trust Property" means (a) the Debentures, (b) any cash on deposit in,
or owing to, the Property Account and (c) all proceeds and rights in respect of
the foregoing and any other

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property and assets for the time being held or deemed to be held by the
Institutional Trustee pursuant to the trusts of this Declaration.

         "U.S. Person" means a United States Person as defined in Section
7701(a)(30) of the Code.

                                   ARTICLE II
                                  ORGANIZATION

SECTION 2.01.     Name. The Trust is named "Monroe Bancorp Capital Trust I," as
                  such name may be modified from time to time by the
                  Administrators following written notice to the Institutional
                  Trustee and the Holders of the Securities. The Trust's
                  activities may be conducted under the name of the Trust or any
                  other name deemed advisable by the Administrators.

SECTION 2.02.     Office. The address of the principal office of the Trust,
                  which shall be in a state of the United States or the District
                  of Columbia, is 210 E. Kirkwood Avenue, Bloomington, Indiana
                  47408. On ten Business Days' written notice to the
                  Institutional Trustee and the Holders of the Securities, the
                  Administrators may designate another principal office, which
                  shall be in a state of the United States or the District of
                  Columbia.

SECTION 2.03.     Purpose. The exclusive purposes and functions of the Trust are
                  (a) to issue and sell the Securities representing undivided
                  beneficial interests in the assets of the Trust, (b) to invest
                  the gross proceeds from such sale to acquire the Debentures,
                  (c) to facilitate direct investment in the assets of the Trust
                  through issuance of the Common Securities and the Capital
                  Securities and (d) except as otherwise limited herein, to
                  engage in only those other activities incidental thereto that
                  are deemed necessary or advisable by the Institutional
                  Trustee, including, without limitation, those activities
                  specified in this Declaration. The Trust shall not borrow
                  money, issue debt or reinvest proceeds derived from
                  investments, pledge any of its assets, or otherwise undertake
                  (or permit to be undertaken) any activity that would cause the
                  Trust not to be classified for United States federal income
                  tax purposes as a grantor trust.

SECTION 2.04.     Authority. Except as specifically provided in this
                  Declaration, the Institutional Trustee shall have exclusive
                  and complete authority to carry out the purposes of the Trust.
                  An action taken by a Trustee on behalf of the Trust and in
                  accordance with such Trustee's powers shall constitute the act
                  of and serve to bind the Trust. In dealing with the Trustees
                  acting on behalf of the Trust, no Person shall be required to
                  inquire into the authority of the Trustees to bind the Trust.
                  Persons dealing with the Trust are entitled to rely
                  conclusively on the power and authority of the Trustees as set
                  forth in this Declaration. The Administrators shall have only
                  those ministerial duties set forth herein with respect to
                  accomplishing the purposes of the Trust and are not intended
                  to be trustees or fiduciaries with

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                  respect to the Trust or the Holders. The Institutional Trustee
                  shall have the right, but shall not be obligated except as
                  provided in Section 2.6, to perform those duties assigned to
                  the Administrators.

SECTION 2.05.     Title to Property of the Trust. Except as provided in Section
                  2.6(g) and Section 2.8 with respect to the Debentures and the
                  Property Account or as otherwise provided in this Declaration,
                  legal title to all assets of the Trust shall be vested in the
                  Trust. The Holders shall not have legal title to any part of
                  the assets of the Trust, but shall have an undivided
                  beneficial interest in the assets of the Trust.

SECTION 2.06.     Powers and Duties of the Trustees and the Administrators.

The Trustees and the Administrators shall conduct the affairs of the Trust in
accordance with the terms of this Declaration. Subject to the limitations set
forth in paragraph (b) of this Section, and in accordance with the following
provisions (i) and (ii), the Administrators and, at the direction of the
Administrators, the Trustees, shall have the authority to enter into all
transactions and agreements determined by the Administrators to be appropriate
in exercising the authority, express or implied, otherwise granted to the
Trustees or the Administrators, as the case may be, under this Declaration, and
to perform all acts in furtherance thereof, including without limitation, the
following:

(a)      Each Administrator shall have the power, duty and authority, and is
         hereby authorized, to act on behalf of the Trust with respect to the
         following matters:

(1)      the issuance and sale of the Securities;

(2)      to acquire the Debentures with the proceeds of the sale of the
         Securities; provided, however, that the Administrators shall cause
         legal title to the Debentures to be held of record in the name of the
         Institutional Trustee for the benefit of the Holders;

(3)      to cause the Trust to enter into, and to execute, deliver and perform
         on behalf of the Trust, such agreements as may be necessary or
         desirable in connection with the purposes and function of the Trust,
         including agreements with the Paying Agent, a Debenture subscription
         agreement between the Trust and the Sponsor and a Common Securities
         subscription agreement between the Trust and the Sponsor;

(4)      ensuring compliance with the Securities Act and applicable state
         securities or blue sky laws;

(5)      if and at such time determined solely by the Sponsor at the request of
         the Holders, assisting in the designation of the Capital Securities for
         trading in the Private Offering, Resales and Trading through the
         Automatic Linkages ("PORTAL") system if available;

                                      -10-
<PAGE>

(6)      the sending of notices (other than notices of default) and other
         information regarding the Securities and the Debentures to the Holders
         in accordance with this Declaration, including notice of any notice
         received from the Debenture Issuer of its election to defer payments of
         interest on the Debentures by extending the interest payment period
         under the Indenture;

(7)      the appointment of a Paying Agent, Transfer Agent and Registrar in
         accordance with this Declaration;

(8)      execution and delivery of the Securities in accordance with this
         Declaration;

(9)      execution and delivery of closing certificates pursuant to the Purchase
         Agreement and the application for a taxpayer identification number;

(10)     unless otherwise determined by the Holders of a Majority in liquidation
         amount of the Securities or as otherwise required by the Statutory
         Trust Act, to execute on behalf of the Trust (either acting alone or
         together with any or all of the Administrators) any documents that the
         Administrators have the power to execute pursuant to this Declaration;

(11)     the taking of any action incidental to the foregoing as the Sponsor or
         an Administrator may from time to time determine is necessary or
         advisable to give effect to the terms of this Declaration for the
         benefit of the Holders (without consideration of the effect of any such
         action on any particular Holder);

(12)     to establish a record date with respect to all actions to be taken
         hereunder that require a record date be established, including
         Distributions, voting rights, redemptions and exchanges, and to issue
         relevant notices to the Holders of Capital Securities and Holders of
         Common Securities as to such actions and applicable record dates;

(13)     to duly prepare and file on behalf of the Trust all applicable tax
         returns and tax information reports that are required to be filed with
         respect to the Trust;

(14)     to negotiate the terms of, and the execution and delivery of, the
         Purchase Agreement providing for the sale of the Capital Securities;

(15)     to employ or otherwise engage employees, agents (who may be designated
         as officers with titles), managers, contractors, advisors, attorneys
         and consultants and pay reasonable compensation for such services;

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

(17)     to give the certificate required by Section 314(a)(4) of the Trust
         Indenture Act to the Institutional Trustee, which certificate may be
         executed by an Administrator; and

                                      -11-
<PAGE>

(18)     to take all action that may be necessary or appropriate for the
         preservation and the continuation of the Trust's valid existence,
         rights, franchises and privileges as a statutory trust under the laws
         of each jurisdiction (other than the State of Delaware) in which such
         existence is necessary to protect the limited liability of the Holders
         of the Capital Securities or to enable the Trust to effect the purposes
         for which the Trust was created.

(b)      As among the Trustees and the Administrators, the Institutional Trustee
         shall have the power, duty and authority, and is hereby authorized, to
         act on behalf of the Trust with respect to the following matters:

(1)      the establishment of the Property Account;

(2)      the receipt of the Debentures;

(3)      the collection of interest, principal and any other payments made in
         respect of the Debentures in the Property Account;

(4)      the distribution through the Paying Agent of amounts owed to the
         Holders in respect of the Securities;

(5)      the exercise of all of the rights, powers and privileges of a holder of
         the Debentures;

(6)      the sending of notices of default and other information regarding the
         Securities and the Debentures to the Holders in accordance with this
         Declaration;

(7)      the distribution of the Trust Property in accordance with the terms of
         this Declaration;

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

(9)      after any Event of Default (of which the Institutional Trustee has
         knowledge (as provided in Section 2.10(m) hereof)) (provided, that such
         Event of Default is not by or with respect to the Institutional
         Trustee), the taking of any action incidental to the foregoing as the
         Institutional Trustee may from time to time determine is necessary or
         advisable to give effect to the terms of this Declaration and protect
         and conserve the Trust Property for the benefit of the Holders (without
         consideration of the effect of any such action on any particular
         Holder);

(10)     to take all action that may be necessary or appropriate for the
         preservation and the continuation of the Trust's valid existence,
         rights, franchises and privileges as a statutory trust under the laws
         of the State of Delaware to protect the limited liability of the
         Holders of the Capital Securities or to enable the Trust to effect the
         purposes for which the Trust was created; and

                                      -12-
<PAGE>

(11)     to undertake any actions set forth in Section 317(a) of the Trust
         Indenture Act.

(c)      The Institutional Trustee shall have the power and authority, and is
         hereby authorized, to act on behalf of the Trust with respect to any of
         the duties, liabilities, powers or the authority of the Administrators
         set forth in Section 2.6(a)(i)(F) and (G) herein but shall not have a
         duty to do any such act unless specifically requested to do so in
         writing by the Sponsor, and shall then be fully protected in acting
         pursuant to such written request; and in the event of a conflict
         between the action of the Administrators and the action of the
         Institutional Trustee, the action of the Institutional Trustee shall
         prevail.

         So long as this Declaration remains in effect, the Trust (or the
         Trustees or Administrators acting on behalf of the Trust) shall not
         undertake any business, activities or transaction except as expressly
         provided herein or contemplated hereby. In particular, neither the
         Trustees nor the Administrators may cause the Trust to (i) acquire any
         investments or engage in any activities not authorized by this
         Declaration, (ii) sell, assign, transfer, exchange, mortgage, pledge,
         set-off or otherwise dispose of any of the Trust Property or interests
         therein, including to Holders, except as expressly provided herein,
         (iii) take any action that would cause (or in the case of the
         Institutional Trustee, to the actual knowledge of a Responsible Officer
         would cause) the Trust to fail or cease to qualify as a "grantor trust"
         for United States federal income tax purposes, (iv) incur any
         indebtedness for borrowed money or issue any other debt or (v) take or
         consent to any action that would result in the placement of a lien on
         any of the Trust Property. The Institutional Trustee shall, at the sole
         cost and expense of the Trust, defend all claims and demands of all
         Persons at any time claiming any lien on any of the Trust Property
         adverse to the interest of the Trust or the Holders in their capacity
         as Holders.

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

(a)      the taking of any action necessary to obtain an exemption from the
         Securities Act;

(b)      the determination of the States in which to take appropriate action to
         qualify or register for sale all or part of the Capital Securities and
         the determination of any and all such acts, other than actions which
         must be taken by or on behalf of the Trust, and the advisement of and
         direction to the Trustees of actions they must take on behalf of the
         Trust, and the preparation for execution and filing of any documents to
         be executed and filed by the Trust or on behalf of the Trust, as the
         Sponsor deems necessary or advisable in order to comply with the
         applicable laws of any such States in connection with the sale of the
         Capital Securities; and

                                      -13-
<PAGE>

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

         Notwithstanding anything herein to the contrary, the Administrators,
         the Institutional Trustee and the Holders of a Majority in liquidation
         amount of the Common Securities are authorized and directed to conduct
         the affairs of the Trust and to operate the Trust so that (i) the Trust
         will not be deemed to be an Investment Company (in the case of the
         Institutional Trustee, to the actual knowledge of a Responsible
         Officer), (ii) the Trust will not fail to be classified as a grantor
         trust for United States federal income tax purposes (in the case of the
         Institutional Trustee, to the actual knowledge of a Responsible
         Officer) and (iii) the Trust will not take any action inconsistent with
         the treatment of the Debentures as indebtedness of the Debenture Issuer
         for United States federal income tax purposes (in the case of the
         Institutional Trustee, to the actual knowledge of a Responsible
         Officer). In this connection, the Institutional Trustee, the
         Administrators and the Holders of a Majority in liquidation amount of
         the Common Securities are authorized to take any action, not
         inconsistent with applicable laws or this Declaration, as amended from
         time to time, that each of the Institutional Trustee, the
         Administrators and such Holders determine in their discretion to be
         necessary or desirable for such purposes, even if such action adversely
         affects the interests of the Holders of the Capital Securities.

         All expenses incurred by the Administrators or the Trustees pursuant to
         this Section 2.6 shall be reimbursed by the Sponsor, and the Trustees
         shall have no obligations with respect to such expenses.

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

         Legal title to all Trust Property shall be vested at all times in the
         Institutional Trustee (in its capacity as such) and shall be held and
         administered by the Institutional Trustee for the benefit of the Trust
         in accordance with this Declaration.

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

                                      -14-
<PAGE>

SECTION 2.07.     Prohibition of Actions by the Trust and the Trustees. The
                  Trust shall not, and the Institutional Trustee and the
                  Administrators shall not, and the Administrators shall cause
                  the Trust not to, engage in any activity other than as
                  required or authorized by this Declaration. In particular, the
                  Trust shall not, and the Institutional Trustee and the
                  Administrators shall not cause the Trust to:

                  invest any proceeds received by the Trust from holding the
                  Debentures, but shall distribute all such proceeds to Holders
                  of the Securities pursuant to the terms of this Declaration
                  and of the Securities;

                  acquire any assets other than as expressly provided herein;

                  possess Trust Property for other than a Trust purpose;

                  make any loans or incur any indebtedness other than loans
                  represented by the Debentures;

                  possess any power or otherwise act in such a way as to vary
                  the Trust Property or the terms of the Securities;

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

                  other than as provided in this Declaration (including Annex
                  I), (i) direct the time, method and place of exercising any
                  trust or power conferred upon the Debenture Trustee with
                  respect to the Debentures, (ii) waive any past default that is
                  waivable under the Indenture, (iii) exercise any right to
                  rescind or annul any declaration that the principal of all the
                  Debentures shall be due and payable, or (iv) consent to any
                  amendment, modification or termination of the Indenture or the
                  Debentures where such consent shall be required unless the
                  Trust shall have received a written opinion of counsel
                  experienced in such matters to the effect that such amendment,
                  modification or termination will not cause the Trust to cease
                  to be classified as a grantor trust for United States federal
                  income tax purposes.

SECTION 2.08.     Powers and Duties of the Institutional Trustee.

                  The legal title to the Debentures shall be owned by and held
                  of record in the name of the Institutional Trustee in trust
                  for the benefit of the Trust. The right, title and interest of
                  the Institutional Trustee to the Debentures shall vest
                  automatically in each Person who may hereafter be appointed as
                  Institutional Trustee in accordance with Section 4.7. Such
                  vesting and cessation of title shall be effective whether or
                  not conveyancing documents with regard to the Debentures have
                  been executed and delivered.

                  The Institutional Trustee shall not transfer its right, title
                  and interest in the Debentures to the Administrators or to the
                  Delaware Trustee.

                  The Institutional Trustee shall:

                                      -15-
<PAGE>

(a)      establish and maintain a segregated non-interest bearing trust account
         (the "Property Account") in the United States (as defined in Treasury
         Regulations Section 301.7701-7), in the name of and under the exclusive
         control of the Institutional Trustee, and maintained in the
         Institutional Trustee's trust department, on behalf of the Holders of
         the Securities and, upon the receipt of payments of funds made in
         respect of the Debentures held by the Institutional Trustee, deposit
         such funds into the Property Account and make payments to the Holders
         of the Capital Securities and Holders of the Common Securities from the
         Property Account in accordance with Section 5.1. Funds in the Property
         Account shall be held uninvested until disbursed in accordance with
         this Declaration;

(b)      engage in such ministerial activities as shall be necessary or
         appropriate to effect the redemption of the Capital Securities and the
         Common Securities to the extent the Debentures are redeemed or mature;
         and

(c)      upon written notice of distribution issued by the Administrators in
         accordance with the terms of the Securities, engage in such ministerial
         activities as shall be necessary or appropriate to effect the
         distribution of the Debentures to Holders of Securities upon the
         occurrence of certain circumstances pursuant to the terms of the
         Securities.

         The Institutional Trustee shall take all actions and perform such
         duties as may be specifically required of the Institutional Trustee
         pursuant to the terms of the Securities.

         The Institutional Trustee may bring or defend, pay, collect,
         compromise, arbitrate, resort to legal action with respect to, or
         otherwise adjust claims or demands of or against, the Trust (a "Legal
         Action") which arise out of or in connection with an Event of Default
         of which a Responsible Officer of the Institutional Trustee has actual
         knowledge or the Institutional Trustee's duties and obligations under
         this Declaration or the Trust Indenture Act; provided, however, that if
         an Event of Default has occurred and is continuing and such event is
         attributable to the failure of the Debenture Issuer to pay interest or
         premium, if any, on or principal of the Debentures on the date such
         interest, premium, if any, or principal is otherwise payable (or in the
         case of redemption, on the redemption date), then a Holder of the
         Capital Securities may directly institute a proceeding for enforcement
         of payment to such Holder of the principal of or premium, if any, or
         interest on the Debentures having a principal amount equal to the
         aggregate liquidation amount of the Capital Securities of such Holder
         (a "Direct Action") on or after the respective due date specified in
         the Debentures. In connection with such Direct Action, the rights of
         the Holders of the Common Securities will be subrogated to the rights
         of such Holder of the Capital Securities to the extent of any payment
         made by the Debenture Issuer to such Holder of the Capital Securities
         in such Direct Action; provided, however, that a Holder of the Common
         Securities may exercise such right of subrogation only if no Event of
         Default with respect to the Capital Securities has occurred and is
         continuing.

                                      -16-
<PAGE>

         The Institutional Trustee shall continue to serve as a Trustee until
         either:

(a)      the Trust has been completely liquidated and the proceeds of the
         liquidation distributed to the Holders of the Securities pursuant to
         the terms of the Securities and this Declaration (including Annex I)
         and the certificate of cancellation referenced in Section 7.1(b) has
         been filed; or

(b)      a Successor Institutional Trustee has been appointed and has accepted
         that appointment in accordance with Section 4.7.

         The Institutional Trustee shall have the legal power to exercise all of
         the rights, powers and privileges of a holder of the Debentures under
         the Indenture and, if an Event of Default occurs and is continuing, the
         Institutional Trustee may, for the benefit of Holders of the
         Securities, enforce its rights as holder of the Debentures subject to
         the rights of the Holders pursuant to this Declaration (including Annex
         I) and the terms of the Securities.

         The Institutional Trustee must exercise the powers set forth in this
         Section 2.8 in a manner that is consistent with the purposes and
         functions of the Trust set out in Section 2.3, and the Institutional
         Trustee shall not take any action that is inconsistent with the
         purposes and functions of the Trust set out in Section 2.3.

SECTION 2.09.     Certain Duties and Responsibilities of the Trustees and the
                  Administrators.

                  The Institutional Trustee, before the occurrence of any Event
                  of Default (of which the Institutional Trustee has knowledge
                  (as provided in Section 2.10(m) hereof)) and after the curing
                  of all Events of Default that may have occurred, shall
                  undertake to perform only such duties as are specifically set
                  forth in this Declaration and no implied covenants shall be
                  read into this Declaration against the Institutional Trustee.
                  In case an Event of Default (of which the Institutional
                  Trustee has knowledge (as provided in Section 2.10(m)
                  hereof)), has occurred (that has not been cured or waived
                  pursuant to Section 6.8), the Institutional Trustee shall
                  exercise such of the rights and powers vested in it by this
                  Declaration, and use the same degree of care and skill in
                  their exercise, as a prudent person would exercise or use
                  under the circumstances in the conduct of his or her own
                  affairs.

                  The duties and responsibilities of the Trustees and the
                  Administrators shall be as provided by this Declaration and,
                  in the case of the Institutional Trustee, by the Trust
                  Indenture Act. Notwithstanding the foregoing, no provision of
                  this Declaration shall require any Trustee or Administrator to
                  expend or risk its own funds or otherwise incur any financial
                  liability in the performance of any of its duties hereunder,
                  or in the exercise of any of its rights or powers, if it shall
                  have reasonable grounds for believing that repayment of such
                  funds or adequate indemnity satisfactory to it against such
                  risk or liability is not reasonably assured to it. Whether or
                  not therein expressly so provided, every provision of this
                  Declaration relating to the conduct or affecting the liability
                  of or affording

                                      -17-
<PAGE>

                  protection to the Trustees or the Administrators shall be
                  subject to the provisions of this Article. Nothing in this
                  Declaration shall be construed to release a Trustee from
                  liability for its own negligent action, its own negligent
                  failure to act, or its own willful misconduct or bad faith.
                  Nothing in this Declaration shall be construed to release an
                  Administrator from liability for its own gross negligent
                  action, its own gross negligent failure to act, or its own
                  willful misconduct or bad faith. To the extent that, at law or
                  in equity, a Trustee or an Administrator has duties and
                  liabilities relating to the Trust or to the Holders, such
                  Trustee or Administrator shall not be liable to the Trust or
                  to any Holder for such Trustee's or Administrator's good faith
                  reliance on the provisions of this Declaration. The provisions
                  of this Declaration, to the extent that they restrict the
                  duties and liabilities of the Administrators or the Trustees
                  otherwise existing at law or in equity, are agreed by the
                  Sponsor and the Holders to replace such other duties and
                  liabilities of the Administrators or the Trustees.

                  All payments made by the Institutional Trustee or a Paying
                  Agent in respect of the Securities shall be made only from the
                  revenue and proceeds from the Trust Property and only to the
                  extent that there shall be sufficient revenue or proceeds from
                  the Trust Property to enable the Institutional Trustee or a
                  Paying Agent to make payments in accordance with the terms
                  hereof. Each Holder, by its acceptance of a Security, agrees
                  that it will look solely to the revenue and proceeds from the
                  Trust Property to the extent legally available for
                  distribution to it as herein provided and that the Trustees
                  and the Administrators are not personally liable to it for any
                  amount distributable in respect of any Security or for any
                  other liability in respect of any Security. This Section
                  2.9(c) does not limit the liability of the Trustees expressly
                  set forth elsewhere in this Declaration or, in the case of the
                  Institutional Trustee, in the Trust Indenture Act.

                  No provision of this Declaration shall be construed to relieve
                  the Institutional Trustee from liability for its own negligent
                  action, its own negligent failure to act, or its own willful
                  misconduct or bad faith with respect to matters that are
                  within the authority of the Institutional Trustee under this
                  Declaration, except that:

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

         (b)      the Institutional 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 or
                  the Common Securities, as applicable, relating to the time,
                  method and place of conducting any proceeding for any remedy
                  available to the Institutional Trustee, or exercising any
                  trust or power conferred upon the Institutional Trustee under
                  this Declaration;

                                      -18-
<PAGE>

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

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

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

SECTION 2.10.     Certain Rights of Institutional Trustee.  Subject to the
                  provisions of Section 2.9.

                  the Institutional Trustee may conclusively rely and shall
                  fully be protected in acting or refraining from acting in good
                  faith upon any resolution, written opinion of counsel,
                  certificate, written representation of a Holder or transferee,
                  certificate of auditors or any other certificate, statement,
                  instrument, opinion, report, notice, request, direction,
                  consent, order, appraisal, bond, debenture, note, other
                  evidence of indebtedness or other paper or document believed
                  by it to be genuine and to have been signed, sent or presented
                  by the proper party or parties;

                  if (i) in performing its duties under this Declaration, the
                  Institutional Trustee is required to decide between
                  alternative courses of action, (ii) in construing any of the
                  provisions of this Declaration, the Institutional Trustee
                  finds the same ambiguous or inconsistent with any other
                  provisions contained herein, or (iii) the Institutional
                  Trustee is unsure of the application of any provision of this
                  Declaration, then, except as to any matter as to which the
                  Holders of Capital Securities are entitled to vote under the
                  terms of this Declaration, the Institutional Trustee may
                  deliver a notice to the Sponsor requesting the Sponsor's
                  opinion as to the course of action to be taken and the
                  Institutional Trustee shall take such action, or refrain from
                  taking such action, as the Institutional Trustee in its sole
                  discretion shall deem advisable and in the best interests of
                  the Holders, in which event the Institutional Trustee shall
                  have no liability except for its own negligence, willful
                  misconduct or bad faith;

                  any direction or act of the Sponsor or the Administrators
                  contemplated by this Declaration shall be sufficiently
                  evidenced by an Officers' Certificate;

                                      -19-
<PAGE>

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

                  the Institutional Trustee shall have no duty to see to any
                  recording, filing or registration of any instrument (including
                  any financing or continuation statement or any filing under
                  tax or securities laws) or any rerecording, refiling or
                  reregistration thereof;

                  the Institutional Trustee may consult with counsel of its
                  selection (which counsel may be counsel to the Sponsor or any
                  of its Affiliates) and the advice of such counsel shall be
                  full and complete authorization and protection in respect of
                  any action taken, suffered or omitted by it hereunder in good
                  faith and in reliance thereon and in accordance with such
                  advice; the Institutional Trustee shall have the right at any
                  time to seek instructions concerning the administration of
                  this Declaration from any court of competent jurisdiction;

                  the Institutional Trustee shall be under no obligation to
                  exercise any of the rights or powers vested in it by this
                  Declaration at the request or direction of any of the Holders
                  pursuant to this Declaration, unless such Holders shall have
                  offered to the Institutional Trustee security or indemnity
                  reasonably satisfactory to it against the costs, expenses and
                  liabilities which might be incurred by it in compliance with
                  such request or direction; provided, that nothing contained in
                  this Section 2.10(g) shall be taken to relieve the
                  Institutional Trustee, upon the occurrence of an Event of
                  Default (of which the Institutional Trustee has knowledge (as
                  provided in Section 2.10(m) hereof)) that has not been cured
                  or waived, of its obligation to exercise the rights and powers
                  vested in it by this Declaration;

                  the Institutional Trustee shall not be bound to make any
                  investigation into the facts or matters stated in any
                  resolution, certificate, statement, instrument, opinion,
                  report, notice, request, consent, order, approval, bond,
                  debenture, note or other evidence of indebtedness or other
                  paper or document, unless requested in writing to do so by one
                  or more Holders, but the Institutional Trustee may make such
                  further inquiry or investigation into such facts or matters as
                  it may see fit;

                  the Institutional Trustee may execute any of the trusts or
                  powers hereunder or perform any duties hereunder either
                  directly or by or through its agents or attorneys and the
                  Institutional Trustee shall not be responsible for any
                  misconduct or negligence on the part of, or for the
                  supervision of, any such agent or attorney appointed with due
                  care by it hereunder;

                  whenever in the administration of this Declaration the
                  Institutional Trustee shall deem it desirable to receive
                  instructions with respect to enforcing any remedy or right or

                                      -20-
<PAGE>

                  taking any other action hereunder, the Institutional Trustee
                  (i) may request instructions from the Holders of the Common
                  Securities and the Capital Securities, which instructions may
                  be given only by the Holders of the same proportion in
                  liquidation amount of the Common Securities and the Capital
                  Securities as would be entitled to direct the Institutional
                  Trustee under the terms of the Common Securities and the
                  Capital Securities in respect of such remedy, right or action,
                  (ii) may refrain from enforcing such remedy or right or taking
                  such other action until such instructions are received, and
                  (iii) shall be fully protected in acting in accordance with
                  such instructions;

                  except as otherwise expressly provided in this Declaration,
                  the Institutional Trustee shall not be under any obligation to
                  take any action that is discretionary under the provisions of
                  this Declaration;

                  when the Institutional Trustee incurs expenses or renders
                  services in connection with a Bankruptcy Event, such expenses
                  (including the fees and expenses of its counsel) and the
                  compensation for such services are intended to constitute
                  expenses of administration under any bankruptcy law or law
                  relating to creditors rights generally;

                  the Institutional Trustee shall not be charged with knowledge
                  of an Event of Default unless a Responsible Officer of the
                  Institutional Trustee has actual knowledge of such event or
                  the Institutional Trustee receives written notice of such
                  event from any Holder, except with respect to an Event of
                  Default pursuant to Sections 5.01 (a) or 5.01 (b) of the
                  Indenture (other than an Event of Default resulting from the
                  default in the payment of Additional Interest or premium, if
                  any, if the Institutional Trustee does not have actual
                  knowledge or written notice that such payment is due and
                  payable), of which the Institutional Trustee shall be deemed
                  to have knowledge;

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

                  no provision of this Declaration shall be deemed to impose any
                  duty or obligation on the Institutional 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 Institutional 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 Institutional Trustee shall be
                  construed to be a duty.

                                      -21-
<PAGE>

SECTION 2.11.     Delaware Trustee. Notwithstanding any other provision of
                  this Declaration other than Section 4.2, the Delaware Trustee
                  shall not be entitled to exercise any powers, nor shall the
                  Delaware Trustee have any of the duties and responsibilities
                  of any of the Trustees or the Administrators described in this
                  Declaration (except as may be required under the Statutory
                  Trust Act). Except as set forth in Section 4.2, the Delaware
                  Trustee shall be a Trustee for the sole and limited purpose of
                  fulfilling the requirements of Section 3807 of the Statutory
                  Trust Act.

SECTION 2.12.     Execution of Documents. Unless otherwise determined in
                  writing by the Institutional Trustee, and except as otherwise
                  required by the Statutory Trust Act, the Institutional
                  Trustee, or any one or more of the Administrators, as the case
                  may be, is authorized to execute and deliver on behalf of the
                  Trust any documents, agreements, instruments or certificates
                  that the Trustees or the Administrators, as the case may be,
                  have the power and authority to execute pursuant to Section
                  2.6.

SECTION 2.13.     Not Responsible for Recitals or Issuance of Securities.
                  The recitals contained in this Declaration and the Securities
                  shall be taken as the statements of the Sponsor, and the
                  Trustees do not assume any responsibility for their
                  correctness. The Trustees make no representations as to the
                  value or condition of the property of the Trust or any part
                  thereof. The Trustees make no representations as to the
                  validity or sufficiency of this Declaration, the Debentures or
                  the Securities.

SECTION 2.14.     Duration of Trust. The Trust, unless dissolved pursuant
                  to the provisions of Article VII hereof, shall have existence
                  for thirty-five (35) years from the Closing Date.

SECTION 2.15.     Mergers.

                  The Trust may not consolidate, amalgamate, merge with or into,
                  or be replaced by, or convey, transfer or lease its properties
                  and assets substantially as an entirety to any corporation or
                  other Person, except as described in this Section 2.15 and
                  except with respect to the distribution of Debentures to
                  Holders of Securities pursuant to Section 7.1(a)(iv) of the
                  Declaration or Section 3 of Annex I.

                  The Trust may, with the consent of the Administrators (which
                  consent will not be unreasonably withheld) and without the
                  consent of the Institutional Trustee, the Delaware Trustee or
                  the Holders of the Capital Securities, consolidate,
                  amalgamate, merge with or into, or be replaced by, or convey,
                  transfer or lease its properties and assets as an entirety or
                  substantially as an entirety to a trust organized as such
                  under the laws of any state; provided, that:

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

         (1)      expressly assumes all of the obligations of the Trust under
                  the Securities; or

                                      -22-
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         (2)      substitutes for the Securities other securities having
                  substantially the same terms as the Securities (the "Successor
                  Securities") so that the Successor Securities rank the same as
                  the Securities rank with respect to Distributions and payments
                  upon Liquidation, redemption and otherwise;

         (b)      the Sponsor expressly appoints, as the holder of the Common
                  Securities, a trustee of the Successor Entity that possesses
                  the same powers and duties as the Institutional Trustee;

         (c)      the Capital Securities or any Successor Securities (excluding
                  any securities substituted for the Common Securities) are
                  listed or quoted, or any Successor Securities will be listed
                  or quoted upon notification of issuance, on any national
                  securities exchange or with another organization on which the
                  Capital Securities are then listed or quoted, if any;

         (d)      such merger, consolidation, amalgamation, replacement,
                  conveyance, transfer or lease does not cause the rating, if
                  any, on the Capital Securities (including any Successor
                  Securities) to be downgraded or withdrawn by any nationally
                  recognized statistical rating organization, if the Capital
                  Securities are then rated;

         (e)      such merger, consolidation, amalgamation, replacement,
                  conveyance, transfer or lease does not adversely affect the
                  rights, preferences and privileges of the Holders of the
                  Securities (including any Successor Securities) in any
                  material respect (other than with respect to any dilution of
                  such Holders' interests in the Successor Entity as a result of
                  such merger, consolidation, amalgamation or replacement);

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

         (g)      prior to such merger, consolidation, amalgamation,
                  replacement, conveyance, transfer or lease, the Trust has
                  received a written opinion of a nationally recognized
                  independent counsel to the Trust experienced in such matters
                  to the effect that:

         (1)      such merger, consolidation, amalgamation, replacement,
                  conveyance, transfer or lease does not adversely affect the
                  rights, preferences and privileges of the Holders of the
                  Securities (including any Successor Securities) in any
                  material respect (other than with respect to any dilution of
                  the Holders' interests in the Successor Entity);

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

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

                                      -23-
<PAGE>

         (h)      the Sponsor guarantees the obligations of such Successor
                  Entity under the Successor Securities to the same extent
                  provided by the Guarantee, the Debentures and this
                  Declaration; and

         (i)      prior to such merger, consolidation, amalgamation,
                  replacement, conveyance, transfer or lease, the Institutional
                  Trustee shall have received an Officers' Certificate of the
                  Administrators and an opinion of counsel, each to the effect
                  that all conditions precedent of this paragraph (b) to such
                  transaction have been satisfied.

                  Notwithstanding Section 2.15(b), the Trust shall not, except
                  with the consent of Holders of 100% in liquidation amount of
                  the Securities, consolidate, amalgamate, merge with or into,
                  or be replaced by, or convey, transfer or lease its properties
                  and assets as an entirety or substantially as an entirety to,
                  any other Person or permit any other Person to consolidate,
                  amalgamate, merge with or into, or replace it if such
                  consolidation, amalgamation, merger, replacement, conveyance,
                  transfer or lease would cause the Trust or Successor Entity to
                  be classified as other than a grantor trust for United States
                  federal income tax purposes.

                                  ARTICLE III
                                     SPONSOR

SECTION 3.01.     Sponsor's Purchase of Common Securities. On the Closing
                  Date, the Sponsor will purchase all of the Common Securities
                  issued by the Trust, in an amount at least equal to 3% of the
                  capital of the Trust, at the same time as the Capital
                  Securities are sold.

SECTION 3.02.     Responsibilities of the Sponsor. In connection with the
                  issue and sale of the Capital Securities, the Sponsor shall
                  have the exclusive right and responsibility and sole decision
                  to engage in, or direct the Administrators to engage in, the
                  following activities:

                  to determine the States in which to take appropriate action to
                  qualify or register for sale of all or part of the Capital
                  Securities and to do any and all such acts, other than actions
                  which must be taken by the Trust, and advise the Trust of
                  actions it must take, and prepare for execution and filing any
                  documents to be executed and filed by the Trust, as the
                  Sponsor deems necessary or advisable in order to comply with
                  the applicable laws of any such States;

                  to prepare for filing and request the Administrators to cause
                  the filing by the Trust, as may be appropriate, of an
                  application to the PORTAL system, for listing or quotation
                  upon notice of issuance of any Capital Securities, as
                  requested by the Holders of not less than a Majority in
                  liquidation amount of the Capital Securities; and

                                      -24-
<PAGE>

                  to negotiate the terms of and/or execute and deliver on behalf
                  of the Trust, the Purchase Agreement and other related
                  agreements providing for the sale of the Capital Securities.

                                   ARTICLE IV
                           TRUSTEES AND ADMINISTRATORS

SECTION 4.01.     Number of Trustees.  The number of Trustees initially shall
                  be two, and:

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

                  after the issuance of any Securities, the number of Trustees
                  may be increased or decreased by vote of the Holder of a
                  Majority in liquidation amount of the Common Securities voting
                  as a class at a meeting of the Holder of the Common
                  Securities; provided, however, that there shall be a Delaware
                  Trustee if required by Section 4.2; and there shall always be
                  one Trustee who shall be the Institutional Trustee, and such
                  Trustee may also serve as Delaware Trustee if it meets the
                  applicable requirements, in which case Section 2.11 shall have
                  no application to such entity in its capacity as Institutional
                  Trustee.

SECTION 4.02.     Delaware Trustee.  If required by the Statutory Trust Act,
                  one Trustee (the "Delaware Trustee") shall be:

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

                  if not a natural person, an entity which is organized under
                  the laws of the United States or any state thereof or the
                  District of Columbia, has its principal place of business in
                  the State of Delaware, and otherwise meets the requirements of
                  applicable law, including Section 3807 of the Statutory Trust
                  Act.

SECTION 4.03.     Institutional Trustee; Eligibility.
                  -------------------------------------

                  There shall at all times be one Trustee which shall act as
                  Institutional Trustee which shall:

         (a)      not be an Affiliate of the Sponsor;

         (b)      not offer or provide credit or credit enhancement to the
                  Trust; and

         (c)      be a banking corporation or national association organized and
                  doing business under the laws of the United States of America
                  or any state thereof or of the District of Columbia and
                  authorized under such laws to exercise corporate trust powers,
                  having a combined capital and surplus of at least fifty
                  million U.S. dollars ($50,000,000), and subject to supervision
                  or examination by federal, state or District of Columbia
                  authority. If such corporation or national association
                  publishes reports of condition at least annually, pursuant to
                  law or to the

                                      -25-
<PAGE>

                  requirements of the supervising or examining authority
                  referred to above, then for the purposes of this Section
                  4.3(a)(iii), the combined capital and surplus of such
                  corporation or national association shall be deemed to be its
                  combined capital and surplus as set forth in its most recent
                  report of condition so published.

                  If at any time the Institutional Trustee shall cease to be
                  eligible to so act under Section 4.3(a), the Institutional
                  Trustee shall immediately resign in the manner and with the
                  effect set forth in Section 4.7.

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

                  The initial Institutional Trustee shall be Wells Fargo Bank,
                  National Association.

SECTION 4.04.     Certain Qualifications of the Delaware Trustee Generally. The
                  Delaware Trustee shall be a U.S. Person and either a natural
                  person who is at least 21 years of age or a legal entity that
                  shall act through one or more Authorized Officers.

SECTION 4.05.     Administrators.  Each Administrator shall be a U.S. Person.

         There shall at all times be at least one Administrator. Except where a
requirement for action by a specific number of Administrators is expressly set
forth in this Declaration and except with respect to any action the taking of
which is the subject of a meeting of the Administrators, any action required or
permitted to be taken by the Administrators may be taken by, and any power of
the Administrators may be exercised by, or with the consent of, any one such
Administrator acting alone.

SECTION 4.06.     Initial Delaware Trustee.  The initial Delaware Trustee shall
                  be Wells Fargo Delaware Trust Company.

SECTION 4.07.     Appointment, Removal and Resignation of the Trustees and the
                  Administrators.

                  No resignation or removal of any Trustee (the "Relevant
                  Trustee") and no appointment of a successor Trustee pursuant
                  to this Article shall become effective until the acceptance of
                  appointment by the successor Trustee in accordance with the
                  applicable requirements of this Section 4.7.

                  Subject to Section 4.7(a), a Relevant Trustee may resign at
                  any time by giving written notice thereof to the Holders of
                  the Securities and by appointing a successor Relevant Trustee,
                  except that Delaware Trustee's successor shall be appointed by
                  Holders of a Majority in liquidation amount of the Common
                  Securities. Upon the resignation of the Institutional Trustee,
                  the Institutional Trustee shall appoint a successor by
                  requesting from at least three Persons meeting the eligibility
                  requirements their expenses and charges to serve as the
                  successor Institutional

                                      -26-
<PAGE>

                  Trustee on a form provided by the Administrators, and
                  selecting the Person who agrees to the lowest expense and
                  charges (the "Successor Institutional Trustee"). If the
                  instrument of acceptance by the successor Relevant Trustee
                  required by this Section 4.7 shall not have been delivered to
                  the Relevant Trustee within 60 days after the giving of such
                  notice of resignation or delivery of the instrument of
                  removal, the Relevant Trustee may petition, at the expense of
                  the Trust, any federal, state or District of Columbia court of
                  competent jurisdiction for the appointment of a successor
                  Relevant Trustee. Such court may thereupon, after prescribing
                  such notice, if any, as it may deem proper, appoint a Relevant
                  Trustee. The Institutional Trustee shall have no liability for
                  the selection of such successor pursuant to this Section 4.7.

                  Unless an Event of Default shall have occurred and be
                  continuing, any Trustee may be removed at any time by an act
                  of the Holders of a Majority in liquidation amount of the
                  Common Securities. If any Trustee shall be so removed, the
                  Holders of the Common Securities, by act of the Holders of a
                  Majority in liquidation amount of the Common Securities
                  delivered to the Relevant Trustee, shall promptly appoint a
                  successor Relevant Trustee, and such successor Trustee shall
                  comply with the applicable requirements of this Section 4.7.
                  If an Event of Default shall have occurred and be continuing,
                  the Institutional Trustee or the Delaware Trustee, or both of
                  them, may be removed by the act of the Holders of a Majority
                  in liquidation amount of the Capital Securities, delivered to
                  the Relevant Trustee (in its individual capacity and on behalf
                  of the Trust). If any Trustee shall be so removed, the Holders
                  of Capital Securities, by act of the Holders of a Majority in
                  liquidation amount of the Capital Securities then outstanding
                  delivered to the Relevant Trustee, shall promptly appoint a
                  successor Relevant Trustee or Trustees, and such successor
                  Trustee shall comply with the applicable requirements of this
                  Section 4.7. If no successor Relevant Trustee shall have been
                  so appointed by the Holders of a Majority in liquidation
                  amount of the Capital Securities and accepted appointment in
                  the manner required by this Section 4.7 within 30 days after
                  delivery of an instrument of removal, the Relevant Trustee or
                  any Holder who has been a Holder of the Securities for at
                  least six months may, on behalf of himself and all others
                  similarly situated, petition any federal, state or District of
                  Columbia court of competent jurisdiction for the appointment
                  of a successor Relevant Trustee. Such court may thereupon,
                  after prescribing such notice, if any, as it may deem proper,
                  appoint a successor Relevant Trustee or Trustees.

                  The Institutional Trustee shall give notice of each
                  resignation and each removal of a Trustee and each appointment
                  of a successor Trustee to all Holders and to the Sponsor. Each
                  notice shall include the name of the successor Relevant
                  Trustee and the address of its Corporate Trust Office if it is
                  the Institutional Trustee.

                  Notwithstanding the foregoing or any other provision of this
                  Declaration, in the event a Delaware Trustee who is a natural
                  person dies or is adjudged by a court to have become
                  incompetent or incapacitated, the vacancy created by such
                  death, incompetence or incapacity may be filled by the
                  Institutional Trustee (provided

                                      -27-
<PAGE>

                  the Institutional Trustee satisfies the requirements of a
                  Delaware Trustee as set forth in Section 4.2) following the
                  procedures in this Section 4.7 (with the successor being a
                  Person who satisfies the eligibility requirement for a
                  Delaware Trustee set forth in this Declaration) (the
                  "Successor Delaware Trustee").

                  In case of the appointment hereunder of a successor Relevant
                  Trustee, the retiring Relevant Trustee and each successor
                  Relevant Trustee with respect to the Securities shall execute
                  and deliver an amendment hereto wherein each successor
                  Relevant Trustee shall accept such appointment and which (a)
                  shall contain such provisions as shall be necessary or
                  desirable to transfer and confirm to, and to vest in, each
                  successor Relevant Trustee all the rights, powers, trusts and
                  duties of the retiring Relevant Trustee with respect to the
                  Securities and the Trust and (b) shall add to or change any of
                  the provisions of this Declaration as shall be necessary to
                  provide for or facilitate the administration of the Trust by
                  more than one Relevant Trustee, it being understood that
                  nothing herein or in such amendment shall constitute such
                  Relevant Trustees co-trustees and upon the execution and
                  delivery of such amendment the resignation or removal of the
                  retiring Relevant Trustee shall become effective to the extent
                  provided therein and each such successor Relevant Trustee,
                  without any further act, deed or conveyance, shall become
                  vested with all the rights, powers, trusts and duties of the
                  retiring Relevant Trustee; but, on request of the Trust or any
                  successor Relevant Trustee, such retiring Relevant Trustee
                  shall duly assign, transfer and deliver to such successor
                  Relevant Trustee all Trust Property, all proceeds thereof and
                  money held by such retiring Relevant Trustee hereunder with
                  respect to the Securities and the Trust subject to the payment
                  of all unpaid fees, expenses and indemnities of such retiring
                  Relevant Trustee.

                  No Institutional Trustee or Delaware Trustee shall be liable
                  for the acts or omissions of any Successor Institutional
                  Trustee or Successor Delaware Trustee, as the case may be.

                  The Holders of the Capital Securities will have no right to
                  vote to appoint, remove or replace the Administrators, which
                  voting rights are vested exclusively in the Holders of the
                  Common Securities.

                  Any successor Delaware Trustee shall file an amendment to the
                  Certificate of Trust with the Secretary of State of the State
                  of Delaware identifying the name and principal place of
                  business of such Delaware Trustee in the State of Delaware.

                                      -28-
<PAGE>

SECTION 4.08.     Vacancies Among Trustees. If a Trustee ceases to hold office
                  for any reason and the number of Trustees is not reduced
                  pursuant to Section 4.1, or if the number of Trustees is
                  increased pursuant to Section 4.1, a vacancy shall occur. A
                  resolution certifying the existence of such vacancy by the
                  Trustees or, if there are more than two, a majority of the
                  Trustees shall be conclusive evidence of the existence of such
                  vacancy. The vacancy shall be filled with a Trustee appointed
                  in accordance with Section 4.7.

SECTION 4.09.     Effect of Vacancies. The death, resignation, retirement,
                  removal, bankruptcy, dissolution, liquidation, incompetence or
                  incapacity to perform the duties of a Trustee shall not
                  operate to dissolve, terminate or annul the Trust or terminate
                  this Declaration. Whenever a vacancy in the number of Trustees
                  shall occur, until such vacancy is filled by the appointment
                  of a Trustee in accordance with Section 4.7, the Institutional
                  Trustee shall have all the powers granted to the Trustees and
                  shall discharge all the duties imposed upon the Trustees by
                  this Declaration.

SECTION 4.10.     Meetings of the Trustees and the Administrators. Meetings of
                  the Trustees or the Administrators shall be held from time to
                  time upon the call of any Trustee or Administrator, as
                  applicable. Regular meetings of the Trustees and the
                  Administrators, respectively, may be in person in the United
                  States or by telephone, at a place (if applicable) and time
                  fixed by resolution of the Trustees or the Administrators, as
                  applicable. Notice of any in-person meetings of the Trustees
                  or the Administrators shall be hand delivered or otherwise
                  delivered in writing (including by facsimile, with a hard copy
                  by overnight courier) not less than 48 hours before such
                  meeting. Notice of any telephonic meetings of the Trustees or
                  the Administrators or any committee thereof shall be hand
                  delivered or otherwise delivered in writing (including by
                  facsimile, with a hard copy by overnight courier) not less
                  than 24 hours before a meeting. Notices shall contain a brief
                  statement of the time, place and anticipated purposes of the
                  meeting. The presence (whether in person or by telephone) of a
                  Trustee or an Administrator, as the case may be, at a meeting
                  shall constitute a waiver of notice of such meeting except
                  where a Trustee or an Administrator, as the case may be,
                  attends a meeting for the express purpose of objecting to the
                  transaction of any activity on the ground that the meeting has
                  not been lawfully called or convened. Unless provided
                  otherwise in this Declaration, any action of the Trustees or
                  the Administrators, as the case may be, may be taken at a
                  meeting by vote of a majority of the Trustees or the
                  Administrators present (whether in person or by telephone) and
                  eligible to vote with respect to such matter; provided, that,
                  in the case of the Administrators, a Quorum is present, or
                  without a meeting by the unanimous written consent of the
                  Trustees or the Administrators, as the case may be. Meetings
                  of the Trustees and the Administrators together shall be held
                  from time to time upon the call of any Trustee or
                  Administrator.

SECTION 4.11.     Delegation of Power.

                                      -29-
<PAGE>

                  Any Trustee or any Administrator, as the case may be, may, by
                  power of attorney consistent with applicable law, delegate to
                  any other natural person over the age of 21 that is a U.S.
                  Person his or her power for the purpose of executing any
                  documents, instruments or other writings contemplated in
                  Section 2.6.

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

                                      -30-
<PAGE>

SECTION 4.12.     Merger, Conversion, Consolidation or Succession to Business.
                  Any Person into which the Institutional Trustee or the
                  Delaware Trustee, as the case may be, may be merged or
                  converted or with which either may be consolidated, or any
                  Person resulting from any merger, conversion or consolidation
                  to which the Institutional Trustee or the Delaware Trustee, as
                  the case may be, shall be a party, or any Person succeeding to
                  all or substantially all the corporate trust business of the
                  Institutional Trustee or the Delaware Trustee, as the case may
                  be, shall be the successor of the Institutional Trustee or the
                  Delaware Trustee, as the case may be, hereunder, without the
                  execution or filing of any paper or any further act on the
                  part of any of the parties hereto, provided such Person shall
                  be otherwise qualified and eligible under this Article and,
                  provided, further, that such Person shall file an amendment to
                  the Certificate of Trust with the Secretary of State of the
                  State of Delaware as contemplated in Section 4.7(i).

                                   ARTICLE V
                                  DISTRIBUTIONS

SECTION 5.01.     Distributions. Holders shall receive Distributions in
                  accordance with the applicable terms of the relevant Holder's
                  Securities. Distributions shall be made on the Capital
                  Securities and the Common Securities in accordance with the
                  preferences set forth in their respective terms. If and to the
                  extent that the Debenture Issuer makes a payment of interest
                  (including any Additional Interest or Deferred Interest) or
                  premium, if any, on and/or principal on the Debentures held by
                  the Institutional Trustee (the amount of any such payment
                  being a "Payment Amount"), the Institutional Trustee shall and
                  is directed, to the extent funds are available in the Property
                  Account for that purpose, to make a distribution (a
                  "Distribution") of the Payment Amount to Holders. For the
                  avoidance of doubt, funds in the Property Account shall not be
                  distributed to Holders to the extent of any taxes payable by
                  the Trust, in the case of withholding taxes, as determined by
                  the Institutional Trustee or any Paying Agent and, in the case
                  of taxes other than withholding tax taxes, as determined by
                  the Administrators in a written notice to the Institutional
                  Trustee.

                                   ARTICLE VI
                             ISSUANCE OF SECURITIES

SECTION 6.01.     General Provisions Regarding Securities.

                  The Administrators shall on behalf of the Trust issue one
                  series of capital securities, evidenced by a certificate
                  substantially in the form of Exhibit A-1, representing
                  undivided beneficial interests in the assets of the Trust and
                  having such terms as are set forth in Annex I (the "Capital
                  Securities"), and one series of common securities, evidenced
                  by a certificate substantially in the form of Exhibit A-2,
                  representing undivided beneficial interests in the assets of
                  the Trust and having such terms as are set forth in Annex I
                  (the "Common Securities"). The Trust shall issue no securities
                  or other interests in the assets of the Trust other than the
                  Capital Securities and the Common Securities. The Capital
                  Securities rank pari

                                      -31-
<PAGE>

                  passu and payment thereon shall be made Pro Rata with the
                  Common Securities except that, where an Event of Default has
                  occurred and is continuing, the rights of Holders of the
                  Common Securities to payment in respect of Distributions and
                  payments upon liquidation, redemption and otherwise are
                  subordinated to the rights to payment of the Holders of the
                  Capital Securities.

                  The Certificates shall be signed on behalf of the Trust by one
                  or more Administrators. Such signature shall be the facsimile
                  or manual signature of any Administrator. In case any
                  Administrator of the Trust who shall have signed any of the
                  Securities shall cease to be such Administrator before the
                  Certificates so signed shall be delivered by the Trust, such
                  Certificates nevertheless may be delivered as though the
                  person who signed such Certificates had not ceased to be such
                  Administrator. Any Certificate may be signed on behalf of the
                  Trust by such person who, at the actual date of execution of
                  such Security, shall be an Administrator of the Trust,
                  although at the date of the execution and delivery of the
                  Declaration any such person was not such an Administrator. A
                  Capital Security shall not be valid until authenticated by the
                  manual signature of an Authorized Officer of the Institutional
                  Trustee. Such signature shall be conclusive evidence that the
                  Capital Security has been authenticated under this
                  Declaration. Upon written order of the Trust signed by one
                  Administrator, the Institutional Trustee shall authenticate
                  the Capital Securities for original issue. The Institutional
                  Trustee may appoint an authenticating agent that is a U.S.
                  Person acceptable to the Trust to authenticate the Capital
                  Securities. A Common Security need not be so authenticated and
                  shall be valid upon execution by one or more Administrators.

                  The Capital Securities shall be, except as provided in Section
                  6.4, Book-Entry Capital Securities issued in the form of one
                  or more Global Capital Securities registered in the name of
                  the Depositary, or its nominee and deposited with the
                  Depositary or a custodian for the Depositary for credit by the
                  Depositary to the respective accounts of the Depositary
                  Participants thereof (or such other accounts as they may
                  direct).

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

                  Upon issuance of the Securities as provided in this
                  Declaration, the Securities so issued shall be deemed to be
                  validly issued, fully paid and non-assessable, and each Holder
                  thereof shall be entitled to the benefits provided by this
                  Declaration.

                  Every Person, by virtue of having become a Holder in
                  accordance with the terms of this Declaration, shall be deemed
                  to have expressly assented and agreed to the terms of, and
                  shall be bound by, this Declaration and the Guarantee.

                                      -32-
<PAGE>

SECTION 6.02.     Paying Agent, Transfer Agent, Calculation Agent and Registrar.

                  The Trust shall maintain in Wilmington, Delaware, an office or
                  agency where the Securities may be presented for payment (the
                  "Paying Agent"), and an office or agency where Securities may
                  be presented for registration of transfer or exchange (the
                  "Transfer Agent"). The Trust shall keep or cause to be kept at
                  such office or agency a register for the purpose of
                  registering Securities and transfers and exchanges of
                  Securities, such register to be held by a registrar (the
                  "Registrar"). The Administrators may appoint the Paying Agent,
                  the Registrar and the Transfer Agent, and may appoint one or
                  more additional Paying Agents, one or more co-Registrars, or
                  one or more co-Transfer Agents in such other locations as it
                  shall determine. The term "Paying Agent" includes any
                  additional Paying Agent, the term "Registrar" includes any
                  additional Registrar or co-Registrar and the term "Transfer
                  Agent" includes any additional Transfer Agent or co-Transfer
                  Agent. The Administrators may change any Paying Agent,
                  Transfer Agent or Registrar at any time without prior notice
                  to any Holder. The Administrators shall notify the
                  Institutional Trustee of the name and address of any Paying
                  Agent, Transfer Agent and Registrar not a party to this
                  Declaration. The Administrators hereby initially appoint the
                  Institutional Trustee to act as Paying Agent, Transfer Agent
                  and Registrar for the Capital Securities and the Common
                  Securities at its Corporate Trust Office. The Institutional
                  Trustee or any of its Affiliates in the United States may act
                  as Paying Agent, Transfer Agent or Registrar.

                  The Trust shall also appoint a Calculation Agent, which shall
                  determine the Coupon Rate in accordance with the terms of the
                  Securities. The Trust initially appoints the Institutional
                  Trustee as Calculation Agent.

SECTION 6.03.     Form and Dating.

                  The Capital Securities and the Institutional Trustee's
                  certificate of authentication thereon shall be substantially
                  in the form of Exhibit A-1, and the Common Securities shall be
                  substantially in the form of Exhibit A-2, each of which is
                  hereby incorporated in and expressly made a part of this
                  Declaration. Certificates may be typed, printed, lithographed
                  or engraved or may be produced in any other manner as is
                  reasonably acceptable to the Administrators, as conclusively
                  evidenced by their execution thereof. The Certificates may
                  have letters, numbers, notations or other marks of
                  identification or designation and such legends or endorsements
                  required by law, stock exchange rule, agreements to which the
                  Trust is subject, if any, or usage (provided, that any such
                  notation, legend or endorsement is in a form acceptable to the
                  Sponsor). The Trust at the direction of the Sponsor shall
                  furnish any such legend not contained in Exhibit A-1 to the
                  Institutional Trustee in writing. Each Capital Security shall
                  be dated the date of its authentication. The terms and
                  provisions of the Securities set forth in Annex I and the
                  forms of Securities set forth in Exhibits A-1 and A-2 are part
                  of the terms of this Declaration and to the extent applicable,
                  the Institutional Trustee, the Delaware Trustee, the
                  Administrators and the Sponsor, by their execution and
                  delivery of this Declaration, expressly agree to such terms
                  and provisions and to

                                      -33-
<PAGE>

                  be bound thereby. Capital Securities will be issued only in
                  blocks having a stated liquidation amount of not less than
                  $100,000 and multiples of $1,000 in excess thereof.

                  The Capital Securities sold by the Trust to the Initial
                  Purchasers pursuant to the Purchase Agreement shall be issued
                  in the form of a Global Capital Security, registered in the
                  name of the Depositary, without coupons and with the
                  Restricted Securities Legend.

SECTION 6.04.     Book-Entry Capital Securities.

                  A Global Capital Security may be exchanged, in whole or in
                  part, for Definitive Capital Securities Certificates
                  registered in the names of Owners only if such exchange
                  complies with Article VIII and (i) the Depositary advises the
                  Administrators and the Institutional Trustee in writing that
                  the Depositary is no longer willing or able to properly
                  discharge its responsibilities with respect to the Global
                  Capital Security, and no qualified successor is appointed by
                  the Administrators within ninety (90) days of receipt of such
                  notice, (ii) the Depositary ceases to be a clearing agency
                  registered under the Exchange Act and the Administrators fail
                  to appoint a qualified successor within ninety (90) days of
                  obtaining knowledge of such event, (iii) the Administrators at
                  their option advise the Institutional Trustee in writing that
                  the Trust elects to terminate the book-entry system through
                  the Depositary or (iv) an Indenture Event of Default has
                  occurred and is continuing. Upon the occurrence of any event
                  specified in clause (i), (ii), (iii) or (iv) above, the
                  Administrators shall notify the Depositary and instruct the
                  Depositary to notify all Owners and the Institutional Trustee
                  of the occurrence of such event and of the availability of
                  Definitive Capital Securities Certificates to Owners
                  requesting the same. Upon the issuance of Definitive Capital
                  Securities Certificates, the Administrators and the
                  Institutional Trustee shall recognize the Holders of the
                  Definitive Capital Securities Certificates as Holders.
                  Notwithstanding the foregoing, if an Owner wishes at any time
                  to transfer an interest in such Global Capital Security to a
                  Person other than a QIB, such transfer shall be effected,
                  subject to the Applicable Depository Procedures, in accordance
                  with the provisions of this Section 6.4 and Article VIII, and
                  the transferee shall receive a Definitive Capital Securities
                  Certificate in connection with such transfer. A holder of a
                  Definitive Capital Securities Certificate that is a QIB may
                  upon request, and in accordance with the provisions of this
                  Section 6.4 and Article VIII, exchange such Definitive Capital
                  Securities Certificate for a beneficial interest in a Global
                  Capital Security.

                  If any Global Capital Security is to be exchanged for
                  Definitive Capital Securities Certificates or canceled in
                  part, or if any Definitive Capital Securities Certificate is
                  to be exchanged in whole or in part for any Global Capital
                  Security, then either (i) such Global Capital Security shall
                  be so surrendered for exchange or cancellation as provided in
                  this Section 6.4 and Article VIII or (ii) the aggregate
                  liquidation amount represented by such Global Capital Security
                  shall be reduced, subject to Section 6.3, or increased by an
                  amount equal to the liquidation amount

                                      -34-
<PAGE>

                  represented by that portion of the Global Capital Security to
                  be so exchanged or canceled, or equal to the liquidation
                  amount represented by such Definitive Capital Securities
                  Certificates to be so exchanged for any Global Capital
                  Security, as the case may be, by means of an appropriate
                  adjustment made on the records of the Securities Registrar,
                  whereupon the Institutional Trustee, in accordance with the
                  Applicable Depositary Procedures, shall instruct the
                  Depositary or its authorized representative to make a
                  corresponding adjustment to its records. Upon any such
                  surrender to the Administrators or the Registrar of any Global
                  Capital Security or Securities by the Depositary, accompanied
                  by registration instructions, the Administrators, or any one
                  of them, shall execute the Definitive Capital Securities
                  Certificates in accordance with the instructions of the
                  Depositary. None of the Registrar, Administrators, or the
                  Institutional Trustee shall be liable for any delay in
                  delivery of such instructions and may conclusively rely on,
                  and shall be fully protected in relying on, such instructions.

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

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

                  The rights of the Owners of the Book-Entry Capital Securities
                  shall be exercised only through the Depositary and shall be
                  limited to those established by law, the Applicable Depositary
                  Procedures and agreements between such Owners and the
                  Depositary and/or the Depositary Participants; provided,
                  solely for the purpose of determining whether the Holders of
                  the requisite amount of Capital Securities have voted on any
                  matter provided for in this Declaration, to the extent that
                  Capital Securities are represented by a Global Capital
                  Security, the Administrators and the Institutional Trustee may
                  conclusively rely on, and shall be fully protected in relying
                  on, any written instrument (including a proxy) delivered to
                  the Institutional Trustee by the Depositary setting forth the
                  Owners' votes or assigning the right to vote on any matter to
                  any other Persons either in

                                      -35-
<PAGE>

                  whole or in part. To the extent that Capital Securities are
                  represented by a Global Capital Security, the initial
                  Depositary will make book-entry transfers among the Depositary
                  Participants and receive and transmit payments on the Capital
                  Securities that are represented by a Global Capital Security
                  to such Depositary Participants, and none of the Sponsor, the
                  Administrators or the Institutional Trustee shall have any
                  responsibility or obligation with respect thereto.

                  To the extent that a notice or other communication to the
                  Holders is required under this Declaration, for so long as
                  Capital Securities are represented by a Global Capital
                  Security, the Administrator and the Institutional Trustee
                  shall give all such notices and communications to the
                  Depositary, and shall have no obligations to the Owners.

SECTION 6.05.     Mutilated, Destroyed, Lost or Stolen Certificates.  If:

                  any mutilated Certificates should be surrendered to the
                  Registrar, or if the Registrar shall receive evidence to its
                  satisfaction of the destruction, loss or theft of any
                  Certificate; and there shall be delivered to the Registrar,
                  the Administrators and the Institutional Trustee such security
                  or indemnity as may be required by them to hold each of them
                  harmless; then, in the absence of notice that such Certificate
                  shall have been acquired by a bona fide purchaser, an
                  Administrator on behalf of the Trust shall execute (and in the
                  case of a Capital Security Certificate, the Institutional
                  Trustee shall authenticate) and deliver, in exchange for or in
                  lieu of any such mutilated, destroyed, lost or stolen
                  Certificate, a new Certificate of like denomination. In
                  connection with the issuance of any new Certificate under this
                  Section 6.5, the Registrar or the Administrators may require
                  the payment of a sum sufficient to cover any tax or other
                  governmental charge that may be imposed in connection
                  therewith. Any duplicate Certificate issued pursuant to this
                  Section shall constitute conclusive evidence of an ownership
                  interest in the relevant Securities, as if originally issued,
                  whether or not the lost, stolen or destroyed Certificate shall
                  be found at any time.

SECTION 6.06.     Temporary Securities. Until definitive Securities are ready
                  for delivery, the Administrators may prepare and, in the case
                  of the Capital Securities, the Institutional Trustee shall
                  authenticate, temporary Securities. Temporary Securities shall
                  be substantially in form of definitive Securities but may have
                  variations that the Administrators consider appropriate for
                  temporary Securities. Without unreasonable delay, the
                  Administrators shall prepare and, in the case of the Capital
                  Securities, the Institutional Trustee shall authenticate
                  definitive Securities in exchange for temporary Securities.

SECTION 6.07.     Cancellation. The Administrators at any time may deliver
                  Securities to the Institutional Trustee for cancellation. The
                  Registrar shall forward to the Institutional Trustee any
                  Securities surrendered to it for registration of transfer,
                  redemption or payment. The Institutional Trustee shall
                  promptly cancel all Securities surrendered for registration of
                  transfer, payment, replacement or cancellation and shall
                  dispose of such canceled Securities in accordance with its

                                      -36-
<PAGE>

                  standard procedures or otherwise as the Administrators direct.
                  The Administrators may not issue new Securities to replace
                  Securities that have been paid or that have been delivered to
                  the Institutional Trustee for cancellation.

SECTION 6.08.     Rights of Holders; Waivers of Past Defaults.

                  The legal title to the Trust Property is vested exclusively in
                  the Institutional Trustee (in its capacity as such) in
                  accordance with Section 2.6(g), and the Holders shall not have
                  any right or title therein other than the undivided beneficial
                  interest in the assets of the Trust conferred by their
                  Securities and they shall have no right to call for any
                  partition or division of property, profits or rights of the
                  Trust except as described below. The Securities shall be
                  personal property giving only the rights specifically set
                  forth therein and in this Declaration. The Securities shall
                  have no, and the issuance of the Securities shall not be
                  subject to, preemptive or other similar rights and when issued
                  and delivered to Holders against payment of the purchase price
                  therefor, the Securities will be fully paid and nonassessable
                  by the Trust.

                  For so long as any Capital Securities remain outstanding, if,
                  upon an Indenture Event of Default for which acceleration is
                  permitted under Section 5.01, the Debenture Trustee fails or
                  the holders of not less than 25% in principal amount of the
                  outstanding Debentures fail to declare the principal of all of
                  the Debentures to be immediately due and payable, the Holders
                  of not less than a Majority in liquidation amount of the
                  Capital Securities then outstanding shall have the right to
                  make such declaration by a notice in writing to the
                  Institutional Trustee, the Sponsor and the Debenture Trustee.

                  At any time after a declaration of acceleration of maturity of
                  the Debentures has been made and before a judgment or decree
                  for payment of the money due has been obtained by the
                  Debenture Trustee as provided in the Indenture, if the
                  Institutional Trustee, subject to the provisions hereof, fails
                  to annul any such declaration and waive such default, the
                  Holders of not less than a Majority in liquidation amount of
                  the Capital Securities, by written notice to the Institutional
                  Trustee, the Sponsor and the Debenture Trustee, may rescind
                  and annul such declaration and its consequences if:

         (a)      the Sponsor has paid or deposited with the Debenture Trustee a
                  sum sufficient to pay

         (1)      all overdue installments of interest on all of the Debentures;

         (2)      any accrued Deferred Interest on all of the Debentures;

         (3)      all payments on any Debentures that have become due otherwise
                  than by such declaration of acceleration and interest and
                  Deferred Interest thereon at the rate borne by the Debentures;
                  and

                                      -37-
<PAGE>

         (4)      all sums paid or advanced by the Debenture Trustee under the
                  Indenture and the reasonable compensation, documented
                  expenses, disbursements and advances of the Debenture Trustee
                  and the Institutional Trustee, their agents and counsel; and

         (b)      all Events of Default with respect to the Debentures, other
                  than the non-payment of the principal of or premium, if any,
                  on the Debentures that has become due solely by such
                  acceleration, have been cured or waived as provided in Section
                  5.07 of the Indenture.

                  The Holders of not less than a Majority in liquidation amount
                  of the Capital Securities may, on behalf of the Holders of all
                  the Capital Securities, waive any past default or Event of
                  Default, except a default or Event of Default in the payment
                  of principal of or premium, if any, or interest (unless such
                  default or Event of Default has been cured and a sum
                  sufficient to pay all matured installments of interest and
                  principal due otherwise than by acceleration has been
                  deposited with the Debenture Trustee) or a default or Event of
                  Default in respect of a covenant or provision that under the
                  Indenture cannot be modified or amended without the consent of
                  the holder of each outstanding Debenture. No such rescission
                  shall affect any subsequent default or impair any right
                  consequent thereon.

                  Upon receipt by the Institutional Trustee of written notice
                  declaring such an acceleration, or rescission and annulment
                  thereof, by Holders of any part of the Capital Securities, a
                  record date shall be established for determining Holders of
                  outstanding Capital Securities entitled to join in such
                  notice, which record date shall be at the close of business on
                  the day the Institutional Trustee receives such notice. The
                  Holders on such record date, or their duly designated proxies,
                  and only such Persons, shall be entitled to join in such
                  notice, whether or not such Holders remain Holders after such
                  record date; provided, that, unless such declaration of
                  acceleration, or rescission and annulment, as the case may be,
                  shall have become effective by virtue of the requisite
                  percentage having joined in such notice prior to the day that
                  is 90 days after such record date, such notice of declaration
                  of acceleration, or rescission and annulment, as the case may
                  be, shall automatically and without further action by any
                  Holder be canceled and of no further effect. Nothing in this
                  paragraph shall prevent a Holder, or a proxy of a Holder, from
                  giving, after expiration of such 90-day period, a new written
                  notice of declaration of acceleration, or rescission and
                  annulment thereof, as the case may be, that is identical to a
                  written notice that has been canceled pursuant to the proviso
                  to the preceding sentence, in which event a new record date
                  shall be established pursuant to the provisions of this
                  Section 6.8.

                  Except as otherwise provided in this Section 6.8, the Holders
                  of not less than a Majority in liquidation amount of the
                  Capital Securities may, on behalf of the Holders of all the
                  Capital Securities, waive any past default or Event of Default
                  and its consequences. Upon such waiver, any such default or
                  Event of Default shall cease to exist, and any default or
                  Event of Default arising therefrom shall be deemed to have
                  been cured, for every purpose of this Declaration, but no such

                                      -38-
<PAGE>

                  waiver shall extend to any subsequent or other default or
                  Event of Default or impair any right consequent thereon.

                                  ARTICLE VII
                      DISSOLUTION AND TERMINATION OF TRUST

SECTION 7.01.     Dissolution and Termination of Trust.

                  The Trust shall dissolve on the first to occur of

         (a)      unless earlier dissolved, on October 7, 2041, the expiration
                  of the term of the Trust;

         (b)      a Bankruptcy Event with respect to the Sponsor, the Trust or
                  the Debenture Issuer;

         (c)      (other than in connection with a merger, consolidation or
                  similar transaction not prohibited by the Indenture, this
                  Declaration or the Guarantee, as the case may be) the filing
                  of a certificate of dissolution or its equivalent with respect
                  to the Sponsor or upon the revocation of the charter of the
                  Sponsor and the expiration of 90 days after the date of
                  revocation without a reinstatement thereof;

         (d)      the distribution of the Debentures to the Holders of the
                  Securities, upon exercise of the right of the Holders of all
                  of the outstanding Common Securities to dissolve the Trust as
                  provided in Annex I hereto;

         (e)      the entry of a decree of judicial dissolution of any Holder of
                  the Common Securities, the Sponsor, the Trust or the Debenture
                  Issuer;

         (f)      when all of the Securities shall have been called for
                  redemption and the amounts necessary for redemption thereof
                  shall have been paid to the Holders in accordance with the
                  terms of the Securities; or

         (g)      before the issuance of any Securities, with the consent of all
                  of the Trustees and the Sponsor.

                  As soon as is practicable after the occurrence of an event
                  referred to in Section 7.1(a), and after satisfaction of
                  liabilities to creditors of the Trust as required by
                  applicable law, including Section 3808 of the Statutory Trust
                  Act, and subject to the terms set forth in Annex I, the
                  Institutional Trustee, when notified in writing of the
                  completion of the winding up of the Trust in accordance with
                  the Statutory Trust Act, shall terminate the Trust by filing,
                  at the expense of the Sponsor, a certificate of cancellation
                  with the Secretary of State of the State of Delaware.

                  The provisions of Section 2.9 and Article IX shall survive the
                  termination of the Trust.

                                      -39-
<PAGE>

                                  ARTICLE VIII
                              TRANSFER OF INTERESTS

SECTION 8.01.     General.

                  Subject to Section 6.4 and Section 8.1(c), when Capital
                  Securities are presented to the Registrar with a request to
                  register a transfer or to exchange them for an equal number of
                  Capital Securities represented by different Certificates, the
                  Registrar shall register the transfer or make the exchange if
                  the requirements provided for herein for such transactions are
                  met. To permit registrations of transfers and exchanges, the
                  Trust shall issue and the Institutional Trustee shall
                  authenticate Capital Securities at the Registrar's request.

                  Upon issuance of the Common Securities, the Sponsor shall
                  acquire and retain beneficial and record ownership of the
                  Common Securities and, for so long as the Securities remain
                  outstanding, the Sponsor shall maintain 100% ownership of the
                  Common Securities; provided, however, that any permitted
                  successor of the Sponsor under the Indenture that is a U.S.
                  Person may succeed to the Sponsor's ownership of the Common
                  Securities.

                  Capital Securities may only be transferred, in whole or in
                  part, in accordance with the terms and conditions set forth in
                  this Declaration and in the terms of the Capital Securities.
                  To the fullest extent permitted by applicable law, any
                  transfer or purported transfer of any Security not made in
                  accordance with this Declaration shall be null and void and
                  will be deemed to be of no legal effect whatsoever and any
                  such transferee shall be deemed not to be the holder of such
                  Capital Securities for any purpose, including but not limited
                  to the receipt of Distributions on such Capital Securities,
                  and such transferee shall be deemed to have no interest
                  whatsoever in such Capital Securities.

                  The Registrar shall provide for the registration of Securities
                  and of transfers of Securities, which will be effected without
                  charge but only upon payment (with such indemnity as the
                  Registrar may require) in respect of any tax or other
                  governmental charges that may be imposed in relation to it.
                  Upon surrender for registration of transfer of any Securities,
                  the Registrar shall cause one or more new Securities to be
                  issued in the name of the designated transferee or
                  transferees. Any Security issued upon any registration of
                  transfer or exchange pursuant to the terms of this Declaration
                  shall evidence the same Security and shall be entitled to the
                  same benefits under this Declaration as the Security
                  surrendered upon such registration of transfer or exchange.
                  Every Security surrendered for registration of transfer shall
                  be accompanied by a written instrument of transfer in form
                  satisfactory to the Registrar duly executed by the Holder or
                  such Holder's attorney duly authorized in writing. Each
                  Security surrendered for registration of transfer shall be
                  canceled by the Institutional Trustee pursuant to Section 6. A
                  transferee of a Security shall be entitled to the rights and
                  subject to the obligations of a Holder hereunder upon the
                  receipt by such transferee of a Security. By acceptance

                                      -40-
<PAGE>

                  of a Security, each transferee shall be deemed to have agreed
                  to be bound by this Declaration.

                  Neither the Trust nor the Registrar shall be required (i) to
                  issue, register the transfer of, or exchange any Securities
                  during a period beginning at the opening of business 15 days
                  before the day of any selection of Securities for redemption
                  and ending at the close of business on the earliest date on
                  which the relevant notice of redemption is deemed to have been
                  given to all Holders of the Securities to be redeemed, or (ii)
                  to register the transfer or exchange of any Security so
                  selected for redemption in whole or in part, except the
                  unredeemed portion of any Security being redeemed in part.

SECTION 8.02.     Transfer Procedures and Restrictions.

                  The Capital Securities shall bear the Restricted Securities
                  Legend (as defined below), which shall not be removed unless
                  there is delivered to the Trust such satisfactory evidence,
                  which may include an opinion of counsel reasonably acceptable
                  to the Institutional Trustee, as may be reasonably required by
                  the Trust, that neither the legend nor the restrictions on
                  transfer set forth therein are required to ensure that
                  transfers thereof comply with the provisions of the Securities
                  Act or that such Securities are not "restricted" within the
                  meaning of Rule 144 under the Securities Act. Upon provision
                  of such satisfactory evidence, the Institutional Trustee, at
                  the written direction of the Trust, shall authenticate and
                  deliver Capital Securities that do not bear the Restricted
                  Securities Legend (other than the legend contemplated by
                  Section 8.2(c)).

                  When Capital Securities are presented to the Registrar (x) to
                  register the transfer of such Capital Securities, or (y) to
                  exchange such Capital Securities for an equal number of
                  Capital Securities represented by different Certificates, the
                  Registrar shall register the transfer or make the exchange as
                  requested if its reasonable requirements for such transaction
                  are met; provided, however, that the Capital Securities
                  surrendered for registration of transfer or exchange shall be
                  duly endorsed or accompanied by a written instrument of
                  transfer in form reasonably satisfactory to the Trust and the
                  Registrar, duly executed by the Holder thereof or his attorney
                  duly authorized in writing.

                  Except as permitted by Section 8.2(a), each Capital Security
                  shall bear a legend (the "Restricted Securities Legend") in
                  substantially the following form:

THIS CAPITAL SECURITY IS A GLOBAL CAPITAL SECURITY WITHIN THE MEANING OF THE
DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY ("DTC") OR A NOMINEE OF DTC. THIS CAPITAL SECURITY IS
EXCHANGEABLE FOR CAPITAL SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
DECLARATION, AND NO TRANSFER OF THIS CAPITAL SECURITY (OTHER THAN A TRANSFER OF
THIS CAPITAL SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF
DTC TO DTC OR

                                      -41-
<PAGE>

ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.
UNLESS THIS CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
TO Monroe Bancorp Capital Trust I OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

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

         THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS
AND WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING

                                      -42-
<PAGE>

TRANSACTIONS INVOLVING THIS SECURITY UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE
WITH THE SECURITIES ACT OR AN APPLICABLE EXEMPTION THEREFROM.

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

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

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

                                      -43-
<PAGE>

                  Capital Securities may only be transferred in minimum blocks
                  of $100,000 aggregate liquidation amount (100 Capital
                  Securities) and multiples of $1,000 in excess thereof. Any
                  attempted transfer of Capital Securities in a block having an
                  aggregate liquidation amount of less than $100,000 shall be
                  deemed to be void and of no legal effect whatsoever. Any such
                  purported transferee shall be deemed not to be a Holder of
                  such Capital Securities for any purpose, including, but not
                  limited to, the receipt of Distributions on such Capital
                  Securities, and such purported transferee shall be deemed to
                  have no interest whatsoever in such Capital Securities.

                  Each party hereto understands and hereby agrees that the
                  Initial Purchaser is intended solely to be an interim holder
                  of the Capital Securities and is purchasing such securities to
                  facilitate consummation of the transactions contemplated
                  herein and in the documents ancillary hereto. Notwithstanding
                  any provision in this Declaration to the contrary, the Initial
                  Purchaser shall have the right upon notice (a "Transfer
                  Notice") (such Transfer Notice shall be required if, and only
                  if, the Capital Securities are not listed with the Depository
                  Trust Company) to the Institutional Trustee and the Sponsor to
                  transfer title in and to the Capital Securities, provided the
                  Initial Purchaser shall take reasonable steps to ensure that
                  such transfer is exempt from registration under the Securities
                  Act of 1933, as amended, and rules promulgated thereunder. Any
                  Transfer Notice delivered to the Institutional Trustee and
                  Sponsor pursuant to the preceding sentence shall indicate the
                  aggregate liquidation amount of Capital Securities being
                  transferred, the name and address of the transferee thereof
                  (the "Transferee") and the date of such transfer.
                  Notwithstanding any provision in this Declaration to the
                  contrary, the transfer by the Initial Purchaser of title in
                  and to the Capital Securities pursuant to a Transfer Notice
                  shall not be subject to any requirement relating to Opinions
                  of Counsel, Certificates of Transfer or any other Opinion or
                  Certificate applicable to transfers hereunder and relating to
                  Capital Securities.

                                      -44-
<PAGE>

SECTION 8.03.     Deemed Security Holders. The Trust, the Administrators, the
                  Trustees, the Paying Agent, the Transfer Agent or the
                  Registrar may treat the Person in whose name any Certificate
                  shall be registered on the books and records of the Trust as
                  the sole holder of such Certificate and of the Securities
                  represented by such Certificate for purposes of receiving
                  Distributions and for all other purposes whatsoever and,
                  accordingly, shall not be bound to recognize any equitable or
                  other claim to or interest in such Certificate or in the
                  Securities represented by such Certificate on the part of any
                  Person, whether or not the Trust, the Administrators, the
                  Trustees, the Paying Agent, the Transfer Agent or the
                  Registrar shall have actual or other notice thereof.

                                   ARTICLE IX
                       LIMITATION OF LIABILITY OF HOLDERS
                        OF SECURITIES, TRUSTEES OR OTHERS

SECTION 9.01.     Liability.

                  Except as expressly set forth in this Declaration, the
                  Guarantee and the terms of the Securities, the Sponsor shall
                  not be:

         (a)      personally liable for the return of any portion of the capital
                  contributions (or any return thereon) of the Holders of the
                  Securities which shall be made solely from assets of the
                  Trust; and

         (b)      required to pay to the Trust or to any Holder of the
                  Securities any deficit upon dissolution of the Trust or
                  otherwise.

                  The Holder of the Common Securities shall be liable for all of
                  the debts and obligations of the Trust (other than with
                  respect to the Securities) to the extent not satisfied out of
                  the Trust's assets.

                  Except to the extent provided in Section 9.1(b), and pursuant
                  to Section 3803(a) of the Statutory Trust Act, the Holders of
                  the Securities shall be entitled to the same limitation of
                  personal liability extended to stockholders of private
                  corporations for profit organized under the General
                  Corporation Law of the State of Delaware, except as otherwise
                  specifically set forth herein.

SECTION 9.02.     Exculpation.

                  No Indemnified Person shall be liable, responsible or
                  accountable in damages or otherwise to the Trust 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 on behalf of the Trust and in
                  a manner such Indemnified Person reasonably believed to be
                  within the scope of the authority conferred on such
                  Indemnified Person by this Declaration or by law, except that
                  an Indemnified Person (other than an Administrator) shall be
                  liable for any such loss, damage or claim incurred by reason
                  of such Indemnified Person's negligence or willful misconduct
                  or bad faith with respect to such acts or omissions and

                                      -45-
<PAGE>

                  except that an Administrator shall be liable for any such
                  loss, damage or claim incurred by reason of such
                  Administrator's gross negligence or willful misconduct or bad
                  faith with respect to such acts or omissions.

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

SECTION 9.03.     Fiduciary Duty.

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

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

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

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

SECTION 9.04.     Indemnification.
                  ----------------

         (a)      The Sponsor shall indemnify, to the fullest extent permitted
                  by law, any Indemnified Person who was or is a party or is
                  threatened to be made a party to any threatened, pending or
                  completed action, suit or proceeding, whether civil, criminal,
                  administrative or investigative (other than an action by or in
                  the right of the Trust) by reason of the fact that such Person
                  is or was an Indemnified Person against expenses (including
                  attorneys' fees and expenses), judgments, fines and amounts
                  paid in settlement actually and reasonably incurred by such
                  Person in connection with such

                                      -46-
<PAGE>

                  action, suit or proceeding if such Person acted in good faith
                  and in a manner such Person reasonably believed to be in or
                  not opposed to the best interests of the Trust, and, with
                  respect to any criminal action or proceeding, had no
                  reasonable cause to believe such conduct was unlawful. The
                  termination of any action, suit or proceeding by judgment,
                  order, settlement, conviction, or upon a plea of nolo
                  contendere or its equivalent, shall not, of itself, create a
                  presumption that the Indemnified Person did not act in good
                  faith and in a manner which such Person reasonably believed to
                  be in or not opposed to the best interests of the Trust, and,
                  with respect to any criminal action or proceeding, had
                  reasonable cause to believe that such conduct was unlawful.

         (b)      The Sponsor shall indemnify, to the fullest extent permitted
                  by law, any Indemnified Person who was or is a party or is
                  threatened to be made a party to any threatened, pending or
                  completed action or suit by or in the right of the Trust to
                  procure a judgment in its favor by reason of the fact that
                  such Person is or was an Indemnified Person against expenses
                  (including attorneys' fees and expenses) actually and
                  reasonably incurred by such Person in connection with the
                  defense or settlement of such action or suit if such Person
                  acted in good faith and in a manner such Person reasonably
                  believed to be in or not opposed to the best interests of the
                  Trust and except that no such indemnification shall be made in
                  respect of any claim, issue or matter as to which such
                  Indemnified Person shall have been adjudged to be liable to
                  the Trust unless and only to the extent that the Court of
                  Chancery of Delaware or the court in which such action or suit
                  was brought shall determine upon application that, despite the
                  adjudication of liability but in view of all the circumstances
                  of the case, such Person is fairly and reasonably entitled to
                  indemnity for such expenses which such Court of Chancery or
                  such other court shall deem proper.

         (c)      To the extent that an Indemnified Person shall be successful
                  on the merits or otherwise (including dismissal of an action
                  without prejudice or the settlement of an action without
                  admission of liability) in defense of any action, suit or
                  proceeding referred to in paragraphs (i) and (ii) of this
                  Section 9.4(a), or in defense of any claim, issue or matter
                  therein, such Person shall be indemnified, to the fullest
                  extent permitted by law, against expenses (including
                  attorneys' fees and expenses) actually and reasonably incurred
                  by such Person in connection therewith.

         (d)      Any indemnification of an Administrator under paragraphs (i)
                  and (ii) of this Section 9.4(a) (unless ordered by a court)
                  shall be made by the Sponsor only as authorized in the
                  specific case upon a determination that indemnification of the
                  Indemnified Person is proper in the circumstances because such
                  Person has met the applicable standard of conduct set forth in
                  paragraphs (i) and (ii). Such determination shall be made (A)
                  by the Administrators by a majority vote of a Quorum
                  consisting of such Administrators who were not parties to such
                  action, suit or proceeding, (B) if such a Quorum is not
                  obtainable, or, even if obtainable, if a Quorum of
                  disinterested Administrators so directs, by independent legal
                  counsel in a written opinion, or (C) by the Common Security
                  Holder of the Trust.

                                      -47-
<PAGE>

         (e)      To the fullest extent permitted by law, expenses (including
                  attorneys' fees and expenses) incurred by an Indemnified
                  Person in defending a civil, criminal, administrative or
                  investigative action, suit or proceeding referred to in
                  paragraphs (i) and (ii) of this Section 9.4(a) shall be paid
                  by the Sponsor in advance of the final disposition of such
                  action, suit or proceeding upon receipt of an undertaking by
                  or on behalf of such Indemnified Person to repay such amount
                  if it shall ultimately be determined that such Person is not
                  entitled to be indemnified by the Sponsor as authorized in
                  this Section 9.4(a). Notwithstanding the foregoing, no advance
                  shall be made by the Sponsor if a determination is reasonably
                  and promptly made (1) in the case of a Company Indemnified
                  Person (A) by the Administrators by a majority vote of a
                  Quorum of disinterested Administrators, (B) if such a Quorum
                  is not obtainable, or, even if obtainable, if a Quorum of
                  disinterested Administrators so directs, by independent legal
                  counsel in a written opinion or (C) by the Common Security
                  Holder of the Trust, that, based upon the facts known to the
                  Administrators, counsel or the Common Security Holder at the
                  time such determination is made, such Indemnified Person acted
                  in bad faith or in a manner that such Person either believed
                  to be opposed to or did not believe to be in the best
                  interests of the Trust, or, with respect to any criminal
                  proceeding, that such Indemnified Person believed or had
                  reasonable cause to believe such conduct was unlawful, or (2)
                  in the case of a Fiduciary Indemnified Person, by independent
                  legal counsel in a written opinion that, based upon the facts
                  known to the counsel at the time such determination is made,
                  such Indemnified Person acted in bad faith or in a manner that
                  such Indemnified Person either believed to be opposed to or
                  did not believe to be in the best interests of the Trust, or,
                  with respect to any criminal proceeding, that such Indemnified
                  Person believed or had reasonable cause to believe such
                  conduct was unlawful. In no event shall any advance be made
                  (i) to a Company Indemnified Person in instances where the
                  Administrators, independent legal counsel or the Common
                  Security Holder reasonably determine that such Person
                  deliberately breached such Person's duty to the Trust or its
                  Common or Capital Security Holders or (ii) to a Fiduciary
                  Indemnified Person in instances where independent legal
                  counsel promptly and reasonably determines in a written
                  opinion that such Person deliberately breached such Person's
                  duty to the Trust or its Common or Capital Security Holders.

                  The Sponsor shall indemnify, to the fullest extent permitted
                  by applicable law, each Indemnified Person from and against
                  any and all loss, damage, liability, tax (other than taxes
                  based on the income of such Indemnified Person), penalty,
                  expense or claim of any kind or nature whatsoever incurred by
                  such Indemnified Person arising out of or in connection with
                  or by reason of the creation, administration or termination of
                  the Trust, or any act or omission of such Indemnified Person
                  in good faith on behalf of the Trust and in a manner such
                  Indemnified Person reasonably believed to be within the scope
                  of authority conferred on such Indemnified Person by this
                  Declaration, except that no Indemnified Person shall be
                  entitled to be indemnified in respect of any loss, damage,
                  liability, tax, penalty, expense or claim incurred by such
                  Indemnified Person by reason of negligence, willful misconduct
                  or bad faith with respect to such acts or omissions.

                                      -48-
<PAGE>

                  The indemnification and advancement of expenses provided by,
                  or granted pursuant to, the other paragraphs of this Section
                  9.4 shall not be deemed exclusive of any other rights to which
                  those seeking indemnification and advancement of expenses may
                  be entitled under any agreement, vote of stockholders or
                  disinterested directors of the Sponsor or Capital Security
                  Holders of the Trust or otherwise, both as to action in such
                  Person's official capacity and as to action in another
                  capacity while holding such office. All rights to
                  indemnification under this Section 9.4 shall be deemed to be
                  provided by a contract between the Sponsor and each
                  Indemnified Person who serves in such capacity at any time
                  while this Section 9.4 is in effect. Any repeal or
                  modification of this Section 9.4 shall not affect any rights
                  or obligations then existing.

                  The Sponsor or the Trust may purchase and maintain insurance
                  on behalf of any Person who is or was an Indemnified Person
                  against any liability asserted against such Person and
                  incurred by such Person in any such capacity, or arising out
                  of such Person's status as such, whether or not the Sponsor
                  would have the power to indemnify such Person against such
                  liability under the provisions of this Section 9.4.

                  For purposes of this Section 9.4, references to "the Trust"
                  shall include, in addition to the resulting or surviving
                  entity, any constituent entity (including any constituent of a
                  constituent) absorbed in a consolidation or merger, so that
                  any Person who is or was a director, trustee, officer or
                  employee of such constituent entity, or is or was serving at
                  the request of such constituent entity as a director, trustee,
                  officer, employee or agent of another entity, shall stand in
                  the same position under the provisions of this Section 9.4
                  with respect to the resulting or surviving entity as such
                  Person would have with respect to such constituent entity if
                  its separate existence had continued.

                  The indemnification and advancement of expenses provided by,
                  or granted pursuant to, this Section 9.4 shall, unless
                  otherwise provided when authorized or ratified, continue as to
                  a Person who has ceased to be an Indemnified Person and shall
                  inure to the benefit of the heirs, executors and
                  administrators of such a Person.

                  The provisions of this Section 9.4 shall survive the
                  termination of this Declaration or the earlier resignation or
                  removal of the Institutional Trustee. The obligations of the
                  Sponsor under this Section 9.4 to compensate and indemnify the
                  Trustees and to pay or reimburse the Trustees for expenses,
                  disbursements and advances shall constitute additional
                  indebtedness hereunder. Such additional indebtedness shall be
                  secured by a lien prior to that of the Securities upon all
                  property and funds held or collected by the Trustees as such,
                  except funds held in trust for the benefit of the holders of
                  particular Capital Securities, provided, that the Sponsor is
                  the holder of the Common Securities.

SECTION 9.05.     Outside Businesses.  Any Covered Person, the Sponsor, the
                  Delaware Trustee and the Institutional  Trustee (subject to
                  Section 4.3(c)) may engage in or possess an interest in other
                  business ventures of any nature or

                                      -49-
<PAGE>

                  description, independently or with others, similar or
                  dissimilar to the business of the Trust, and the Trust and the
                  Holders of Securities shall have no rights by virtue of this
                  Declaration in and to such independent ventures or the income
                  or profits derived therefrom, and the pursuit of any such
                  venture, even if competitive with the business of the Trust,
                  shall not be deemed wrongful or improper. None of any Covered
                  Person, the Sponsor, the Delaware Trustee or the Institutional
                  Trustee shall be obligated to present any particular
                  investment or other opportunity to the Trust even if such
                  opportunity is of a character that, if presented to the Trust,
                  could be taken by the Trust, and any Covered Person, the
                  Sponsor, the Delaware Trustee and the Institutional Trustee
                  shall have the right to take for its own account (individually
                  or as a partner or fiduciary) or to recommend to others any
                  such particular investment or other opportunity. Any Covered
                  Person, the Delaware Trustee and the Institutional Trustee may
                  engage or be interested in any financial or other transaction
                  with the Sponsor or any Affiliate of the Sponsor, or may act
                  as depositary for, trustee or agent for, or act on any
                  committee or body of holders of, securities or other
                  obligations of the Sponsor or its Affiliates.

SECTION 9.06.     Compensation; Fee.

                  Subject to the provisions set forth in the Fee Agreement of
                  even date herewith, by and among the Institutional Trustee,
                  the Trust and the Initial Purchaser (the "Fee Agreement"), the
                  Sponsor agrees:

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

         (b)      except as otherwise expressly provided herein or in the Fee
                  Agreement, to reimburse the Trustees upon request for all
                  reasonable, documented expenses, disbursements and advances
                  incurred or made by the Trustees in accordance with any
                  provision of this Declaration (including the reasonable
                  compensation and the expenses and disbursements of their
                  respective agents and counsel), except any such expense,
                  disbursement or advance attributable to their negligence or
                  willful misconduct.

                  The provisions of this Section 9.6 shall survive the
                  dissolution of the Trust and the termination of this
                  Declaration and the removal or resignation of any Trustee.

                                      -50-
<PAGE>

                                   ARTICLE X
                                   ACCOUNTING

SECTION 10.01.    Fiscal Year.  The fiscal year (the "Fiscal  Year") of the
                  Trust shall be the calendar year, or such other year as is
                  required by the Code.

SECTION 10.02.    Certain Accounting Matters.

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

                  The Administrators shall either (i) cause each Form 10-K and
                  Form 10-Q prepared by the Sponsor and filed with the
                  Commission in accordance with the Exchange Act to be delivered
                  directly to each Holder of Securities, within 90 days after
                  the filing of each Form 10-K and within 30 days after the
                  filing of each Form 10-Q or (ii) cause to be prepared at the
                  principal office of the Trust in the United States, as defined
                  for purposes of Treasury Regulations Section 301.7701-7, and
                  delivered directly to each of the Holders of Securities,
                  within 90 days after the end of each Fiscal Year of the Trust,
                  annual financial statements of the Trust, including a balance
                  sheet of the Trust as of the end of such Fiscal Year, and the
                  related statements of income or loss.

                  The Administrators shall cause to be duly prepared and
                  delivered to each of the Holders of Securities Form 1099 or
                  such other annual United States federal income tax information
                  statement required by the Code, containing such information
                  with regard to the Securities held by each Holder as is
                  required by the Code and the Treasury Regulations.
                  Notwithstanding any right under the Code to deliver any such
                  statement at a later date, the Administrators shall endeavor
                  to deliver all such statements within 30 days after the end of
                  each Fiscal Year of the Trust.

                  The Administrators shall cause to be duly prepared in the
                  United States, as defined for purposes of Treasury Regulations
                  Section 301.7701-7, and filed an annual United States federal
                  income tax return on a Form 1041 or such other form required
                  by United States federal income tax law, and any other annual
                  income tax returns required to be filed by the Administrators
                  on behalf of the Trust with any state or local taxing
                  authority.

                  The Administrators will cause the Sponsor's reports on Form FR
                  Y-9C and FR Y-9LP to be delivered to the Holders promptly
                  following their filing with the Federal Reserve.

                                      -51-
<PAGE>

SECTION 10.03.    Banking. The Trust shall maintain one or more bank accounts in
                  the United States, as defined for purposes of Treasury
                  Regulations Section 301.7701-7, in the name and for the sole
                  benefit of the Trust; provided, however, that all payments of
                  funds in respect of the Debentures held by the Institutional
                  Trustee shall be made directly to the Property Account and no
                  other funds of the Trust shall be deposited in the Property
                  Account. The sole signatories for such accounts (including the
                  Property Account) shall be designated by the Institutional
                  Trustee.

SECTION 10.04.    Withholding. The Institutional Trustee or any Paying Agent and
                  the Administrators shall comply with all withholding
                  requirements under United States federal, state and local law.
                  The Institutional Trustee or any Paying Agent shall request,
                  and each Holder shall provide to the Institutional Trustee or
                  any Paying Agent, such forms or certificates as are necessary
                  to establish an exemption from withholding with respect to the
                  Holder, and any representations and forms as shall reasonably
                  be requested by the Institutional Trustee or any Paying Agent
                  to assist it in determining the extent of, and in fulfilling,
                  its withholding obligations. The Administrators shall file
                  required forms with applicable jurisdictions and, unless an
                  exemption from withholding is properly established by a
                  Holder, shall remit amounts withheld with respect to the
                  Holder to applicable jurisdictions. To the extent that the
                  Institutional Trustee or any Paying Agent is required to
                  withhold and pay over any amounts to any authority with
                  respect to distributions or allocations to any Holder, the
                  amount withheld shall be deemed to be a Distribution to the
                  Holder in the amount of the withholding. In the event of any
                  claimed overwithholding, Holders shall be limited to an action
                  against the applicable jurisdiction. If the amount required to
                  be withheld was not withheld from actual Distributions made,
                  the Institutional Trustee or any Paying Agent may reduce
                  subsequent Distributions by the amount of such withholding.

                                   ARTICLE XI
                             AMENDMENTS AND MEETINGS

SECTION 11.01.    Amendments.

                  Except as otherwise provided in this Declaration or by any
                  applicable terms of the Securities, this Declaration may only
                  be amended by a written instrument approved and executed by:

         (a)      the Institutional Trustee,

         (b)      if the amendment affects the rights, powers, duties,
                  obligations or immunities of the Delaware Trustee, the
                  Delaware Trustee,

         (c)      if the amendment affects the rights, powers, duties,
                  obligations or immunities of the Administrators, the
                  Administrators, and

         (d)      the Holders of a Majority in liquidation amount of the Common
                  Securities.

                                      -52-
<PAGE>

                  Notwithstanding any other provision of this Article XI, no
                  amendment shall be made, and any such purported amendment
                  shall be void and ineffective:

         (a)      unless the Institutional Trustee shall have first received

         (1)      an Officers' Certificate from each of the Trust and the
                  Sponsor that such amendment is permitted by, and conforms to,
                  the terms of this Declaration (including the terms of the
                  Securities); and

         (2)      an opinion of counsel (who may be counsel to the Sponsor or
                  the Trust) that such amendment is permitted by, and conforms
                  to, the terms of this Declaration (including the terms of the
                  Securities) and that all conditions precedent to the execution
                  and delivery of such amendment have been satisfied; or

         (b)      if the result of such amendment would be to

         (1)      cause the Trust to cease to be classified for purposes of
                  United States federal income taxation as a grantor trust;

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

         (3)      cause the Trust to be deemed to be an Investment Company
                  required to be registered under the Investment Company Act; or

         (4)      cause the Debenture Issuer to be unable to treat an amount
                  equal to the Liquidation Amount of the Capital Securities as
                  "Tier 1 Capital" for purposes of the capital adequacy
                  guidelines of (x) the Federal Reserve (or, if the Debenture
                  Issuer is not a bank holding company, such guidelines or
                  policies applied to the Debenture Issuer as if the Debenture
                  Issuer were subject to such guidelines of policies) or of (y)
                  any other regulatory authority having jurisdiction over the
                  Debenture Issuer.

                  Except as provided in Section 11.1(d), (e) or (g), no
                  amendment shall be made, and any such purported amendment
                  shall be void and ineffective, unless the Holders of a
                  Majority in liquidation amount of the Capital Securities shall
                  have consented to such amendment.

                  In addition to and notwithstanding any other provision in this
                  Declaration, without the consent of each affected Holder, this
                  Declaration may not be amended to (i) change the amount or
                  timing of any Distribution on the Securities or any redemption
                  or liquidation provisions applicable to the Securities or
                  otherwise adversely affect the amount of any Distribution
                  required to be made in respect of the Securities as of a
                  specified date or (ii) restrict the right of a Holder to
                  institute suit for the enforcement of any such payment on or
                  after such date.

                  Sections 9.1 (b) and 9.1 (c) and this Section 11.1 shall not
                  be amended without the consent of all of the Holders of the
                  Securities.

                                      -53-
<PAGE>

                  The rights of the Holders of the Capital Securities and Common
                  Securities, as applicable, under Article IV to increase or
                  decrease the number of, and appoint and remove, Trustees shall
                  not be amended without the consent of the Holders of a
                  Majority in liquidation amount of the Capital Securities or
                  Common Securities, as applicable.

                  Subject to Section 11.1(a)(ii), this Declaration may be
                  amended by the Institutional Trustee and the Holder of a
                  Majority in liquidation amount of the Common Securities
                  without the consent of the Holders of the Capital Securities
                  to:

         (a)      cure any ambiguity;

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

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

         (d)      modify, eliminate or add to any provision of this Declaration
                  to such extent as may be necessary or desirable, including,
                  without limitation, to ensure that the Trust will be
                  classified for United States federal income tax purposes at
                  all times as a grantor trust and will not be required to
                  register as an Investment Company under the Investment Company
                  Act (including without limitation to conform to any change in
                  Rule 3a-5, Rule 3a-7 or any other applicable rule under the
                  Investment Company Act or written change in interpretation or
                  application thereof by any legislative body, court, government
                  agency or regulatory authority) which amendment does not have
                  a material adverse effect on the right, preferences or
                  privileges of the Holders of Securities;

                  provided, however, that no such modification, elimination or
                  addition referred to in clauses (i), (ii), (iii) or (iv) shall
                  adversely affect the powers, preferences or rights of Holders
                  of Capital Securities.

SECTION 11.02.    Meetings of the Holders of the Securities; Action by Written
                  Consent.

                  Meetings of the Holders of any class of Securities may be
                  called at any time by the Administrators (or as provided in
                  the terms of the Securities) to consider and act on any matter
                  on which Holders of such class of Securities are entitled to
                  act under the terms of this Declaration, the terms of the
                  Securities or the rules of any stock exchange on which the
                  Capital Securities are listed or admitted for trading, if any.
                  The Administrators shall call a meeting of the Holders of such
                  class if directed to do so by the Holders of not less than 10%
                  in liquidation amount of such class of Securities. Such
                  direction shall be given by delivering to the Administrators
                  one or more notices in a writing stating that the signing
                  Holders of the Securities wish to call a meeting and
                  indicating the general or specific purpose for which the
                  meeting is to be called. Any Holders of the Securities calling
                  a meeting shall specify in writing the Certificates held by
                  the Holders of the Securities exercising the right to call a
                  meeting and only those Securities

                                      -54-
<PAGE>

                  represented by such Certificates shall be counted for purposes
                  of determining whether the required percentage set forth in
                  the second sentence of this paragraph has been met.

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

         (a)      notice of any such meeting shall be given to all the Holders
                  of the Securities having a right to vote thereat at least 15
                  days and not more than 60 days before the date of such
                  meeting. Whenever a vote, consent or approval of the Holders
                  of the Securities is permitted or required under this
                  Declaration or the rules of any stock exchange on which the
                  Capital Securities are listed or admitted for trading, if any,
                  such vote, consent or approval may be given at a meeting of
                  the Holders of the Securities. Any action that may be taken at
                  a meeting of the Holders of the Securities may be taken
                  without a meeting if a consent in writing setting forth the
                  action so taken is signed by the Holders of the Securities
                  owning not less than the minimum amount of Securities that
                  would be necessary to authorize or take such action at a
                  meeting at which all Holders of the Securities having a right
                  to vote thereon were present and voting. Prompt notice of the
                  taking of action without a meeting shall be given to the
                  Holders of the Securities entitled to vote who have not
                  consented in writing. The Administrators may specify that any
                  written ballot submitted to the Holders of the Securities for
                  the purpose of taking any action without a meeting shall be
                  returned to the Trust within the time specified by the
                  Administrators;

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

         (c)      unless the Statutory Trust Act, this Declaration, the terms of
                  the Securities, the Trust Indenture Act or the listing rules
                  of any stock exchange on which the Capital Securities are then
                  listed for trading, if any, otherwise provides, the
                  Administrators, in their sole discretion, shall establish all
                  other provisions relating to meetings of Holders of
                  Securities, including notice of the time, place or purpose of
                  any meeting at which any matter is to be voted on by any
                  Holders of the Securities, waiver of any such notice, action
                  by consent without a meeting, the establishment of a record
                  date, quorum requirements, voting in person or by proxy

                                      -55-
<PAGE>

                  or any other matter with respect to the exercise of any such
                  right to vote; provided, however, that each meeting shall be
                  conducted in the United States (as that term -------- -------
                  is defined in Treasury Regulations Section 301.7701-7).

                                  ARTICLE XII
                    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
                              AND DELAWARE TRUSTEE

SECTION 12.01.    Representations and Warranties of Institutional Trustee. The
                  Trustee that acts as initial Institutional Trustee represents
                  and warrants to the Trust and to the Sponsor at the date of
                  this Declaration, and each Successor Institutional Trustee
                  represents and warrants to the Trust and the Sponsor at the
                  time of the Successor Institutional Trustee's acceptance of
                  its appointment as Institutional Trustee, that:

                  the Institutional Trustee is a banking corporation or national
                  association with trust powers, duly organized, validly
                  existing and in good standing under the laws of the State of
                  Delaware or the United States of America, respectively, with
                  trust power and authority to execute and deliver, and to carry
                  out and perform its obligations under the terms of, this
                  Declaration;

                  the Institutional Trustee has a combined capital and surplus
                  of at least fifty million U.S. dollars ($50,000,000);

                  the Institutional Trustee is not an affiliate of the Sponsor,
                  nor does the Institutional Trustee offer or provide credit or
                  credit enhancement to the Trust;

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

                  the execution, delivery and performance of this Declaration by
                  the Institutional Trustee does not conflict with or constitute
                  a breach of the charter or by-laws of the Institutional
                  Trustee; and

                  no consent, approval or authorization of, or registration with
                  or notice to, any state or federal banking authority governing
                  the trust powers of the Institutional Trustee is required for
                  the execution, delivery or performance by the Institutional
                  Trustee of this Declaration.

                                      -56-
<PAGE>

SECTION 12.02.    Representations and Warranties of Delaware Trustee. The
                  Trustee that acts as initial Delaware Trustee represents and
                  warrants to the Trust and to the Sponsor at the date of this
                  Declaration, and each Successor Delaware Trustee represents
                  and warrants to the Trust and the Sponsor at the time of the
                  Successor Delaware Trustee's acceptance of its appointment as
                  Delaware Trustee that:

                  if it is not a natural person, the Delaware Trustee has its
                  principal place of business in the State of Delaware;

                  if it is not a natural person, the execution, delivery and
                  performance by the Delaware Trustee of this Declaration has
                  been duly authorized by all necessary corporate action on the
                  part of the Delaware Trustee. This Declaration has been duly
                  executed and delivered by the Delaware Trustee, and under
                  Delaware law (excluding any securities laws) constitutes a
                  legal, valid and binding obligation of the Delaware Trustee,
                  enforceable against it in accordance with its terms, subject
                  to applicable bankruptcy, reorganization, moratorium,
                  insolvency and other similar laws affecting creditors' rights
                  generally and to general principles of equity and the
                  discretion of the court (regardless of whether considered in a
                  proceeding in equity or at law);

                  if it is not a natural person, the execution, delivery and
                  performance of this Declaration by the Delaware Trustee does
                  not conflict with or constitute a breach of the articles of
                  association or by-laws of the Delaware Trustee;

                  it has trust power and authority to execute and deliver, and
                  to carry out and perform its obligations under the terms of,
                  this Declaration;

                  no consent, approval or authorization of, or registration with
                  or notice to, any state or federal banking authority governing
                  the trust powers of the Delaware Trustee is required for the
                  execution, delivery or performance by the Delaware Trustee of
                  this Declaration; and

                  if the Delaware Trustee is a natural person, it is a resident
                  of the State of Delaware.

                                  ARTICLE XIII
                                  MISCELLANEOUS

SECTION 13.01.    Notices. All notices provided for in this Declaration shall be
                  in writing, duly signed by the party giving such notice, and
                  shall be delivered, telecopied (which telecopy shall be
                  followed by notice delivered or mailed by first class mail) or
                  mailed by first class mail, as follows:

                  if given to the Trust, in care of the Administrators at the
                  Trust's mailing address set forth below (or such other address
                  as the Trust may give notice of to the Holders of the
                  Securities):

                                      -57-
<PAGE>

                           Monroe Bancorp Capital Trust I
                           c/o Monroe Bancorp
                           210 E. Kirkwood Avenue
                           Bloomington, Indiana 47408
                           Attention: Gordon M. Dyott
                           Telecopy: (812) 331-3419
                           Telephone: (812) 331-3433

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

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

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

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

                  if given to the Holder of the Common Securities, at the
                  mailing address of the Sponsor set forth below (or such other
                  address as the Holder of the Common Securities may give notice
                  of to the Trust):

                           Monroe Bancorp
                           210 E. Kirkwood Avenue
                           Bloomington, Indiana 47408
                           Attention: Gordon M. Dyott
                           Telecopy: (812) 331-3419
                           Telephone: (812) 331-3433

                  if given to any other Holder, at the address set forth on the
                  books and records of the Trust.

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

                                      -58-
<PAGE>

notice was given, such notice or other document shall be deemed to have been
delivered on the date of such refusal or inability to deliver.

SECTION 13.02.    Governing Law. This Declaration and the rights and obligations
                  of the parties hereunder shall be governed by and interpreted
                  in accordance with the law of the State of Delaware and all
                  rights, obligations and remedies shall be governed by such
                  laws without regard to the principles of conflict of laws of
                  the State of Delaware or any other jurisdiction that would
                  call for the application of the law of any jurisdiction other
                  than the State of Delaware.

SECTION 13.03.    Submission to Jurisdiction.

                  Each of the parties hereto agrees that any suit, action or
                  proceeding arising out of or based upon this Declaration, or
                  the transactions contemplated hereby, may be instituted in any
                  of the state or federal courts of the State of New York
                  located in the Borough of Manhattan, City and State of New
                  York, and further agrees to submit to the jurisdiction of
                  Delaware, and to any actions that are instituted in state or
                  Federal court in Wilmington, Delaware and any competent court
                  in the place of its corporate domicile in respect of actions
                  brought against it as a defendant. In addition, each such
                  party irrevocably waives, to the fullest extent permitted by
                  law, any objection which it may now or hereafter have to the
                  laying of the venue of such suit, action or proceeding brought
                  in any such court and irrevocably waives any claim that any
                  such suit, action or proceeding brought in any such court has
                  been brought in an inconvenient forum and irrevocably waives
                  any right to which it may be entitled on account of its place
                  of corporate domicile. Each such party hereby irrevocably
                  waives any and all right to trial by jury in any legal
                  proceeding arising out of or relating to this Declaration or
                  the transactions contemplated hereby. Each such party agrees
                  that final judgment in any proceedings brought in such a court
                  shall be conclusive and binding upon it and may be enforced in
                  any court to the jurisdiction of which it is subject by a suit
                  upon such judgment.

                  Each of the Sponsor, the Trustees, the Administrators and the
                  Holder of the Common Securities irrevocably consents to the
                  service of process on it in any such suit, action or
                  proceeding by the mailing thereof by registered or certified
                  mail, postage prepaid, to it at its address given in or
                  pursuant to Section 13.1 hereof.

                  To the extent permitted by law, nothing herein contained shall
                  preclude any party from effecting service of process in any
                  lawful manner or from bringing any suit, action or proceeding
                  in respect of this Declaration in any other state, country or
                  place.

                                      -59-
<PAGE>

SECTION 13.04.    Intention of the Parties. It is the intention of the parties
                  hereto that the Trust be classified for United States federal
                  income tax purposes as a grantor trust. The provisions of this
                  Declaration shall be interpreted to further this intention of
                  the parties.

SECTION 13.05.    Headings. Headings contained in this Declaration are inserted
                  for convenience of reference only and do not affect the
                  interpretation of this Declaration or any provision hereof.

SECTION 13.06.    Successors and Assigns. Whenever in this Declaration any of
                  the parties hereto is named or referred to, the successors and
                  assigns of such party shall be deemed to be included, and all
                  covenants and agreements in this Declaration by the Sponsor
                  and the Trustees shall bind and inure to the benefit of their
                  respective successors and assigns, whether or not so
                  expressed.

SECTION 13.07.    Partial Enforceability. If any provision of this Declaration,
                  or the application of such provision to any Person or
                  circumstance, shall be held invalid, the remainder of this
                  Declaration, or the application of such provision to persons
                  or circumstances other than those to which it is held invalid,
                  shall not be affected thereby.

SECTION 13.08.    Counterparts. This Declaration may contain more than one
                  counterpart of the signature page and this Declaration may be
                  executed by the affixing of the signature of each of the
                  Trustees and Administrators to any of such counterpart
                  signature pages. All of such counterpart signature pages shall
                  be read as though one, and they shall have the same force and
                  effect as though all of the signers had signed a single
                  signature page.

                                      -60-
<PAGE>

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

                                              WELLS FARGO DELAWARE TRUST
                                              COMPANY,
                                              as Delaware Trustee

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

                                              WELLS FARGO BANK, NATIONAL
                                              ASSOCIATION,
                                              as Institutional Trustee

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

                                              Monroe Bancorp
                                              as Sponsor

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

                                              By:
                                                  -----------------------------
                                                          Administrator

                                              By:
                                                  -----------------------------
                                                          Administrator

<PAGE>

                                     ANNEX I

                                    TERMS OF
                             CAPITAL SECURITIES AND
                                COMMON SECURITIES

         Pursuant to Section 6.1 of the Amended and Restated Declaration of
Trust, dated as of July 24, 2006 (as amended from time to time, the
"Declaration"), the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Capital Securities and the Common
Securities are set out below (each capitalized term used but not defined herein
has the meaning set forth in the Declaration):

         (1)      Designation and Number.

         a.       Capital Securities. 3,000 Capital Securities of Monroe Bancorp
                  Capital Trust I (the "Trust"), with an aggregate stated
                  liquidation amount with respect to the assets of the Trust of
                  Three Million Dollars ($3,000,000) and a stated liquidation
                  amount with respect to the assets of the Trust of $1,000 per
                  Capital Security, are hereby designated for the purposes of
                  identification only as the "Capital Securities" (the "Capital
                  Securities"). The Capital Security Certificates evidencing the
                  Capital Securities shall be substantially in the form of
                  Exhibit A-1 to the Declaration, with such changes and
                  additions thereto or deletions therefrom as may be required by
                  ordinary usage, custom or practice or to conform to the rules
                  of any stock exchange on which the Capital Securities are
                  listed, if any.

         b.       Common Securities. 93 Common Securities of the Trust (the
                  "Common Securities") will be evidenced by Common Security
                  Certificates substantially in the form of Exhibit A-2 to the
                  Declaration, with such changes and additions thereto or
                  deletions therefrom as may be required by ordinary usage,
                  custom or practice. In the absence of an Event of Default, the
                  Common Securities will have an aggregate stated liquidation
                  amount with respect to the assets of the Trust of Ninety Three
                  Thousand Dollars ($93,000) and a stated liquidation amount
                  with respect to the assets of the Trust of $1,000 per Common
                  Security.

         (2)      Distributions.

         a.       Distributions payable on each Security will be payable at a
                  fixed rate of 7.1475% (the "Fixed Rate") per annum from July
                  24, 2006 until October 7, 2011 (the "Fixed Rate Period") and
                  thereafter at a variable per annum rate of interest, reset
                  quarterly, equal to LIBOR, as determined on the LIBOR
                  Determination Date for such Distribution Payment Period, plus
                  1.60% (the "Variable Rate") ("Coupon Rate" is defined to
                  include the Fixed Rate and Variable Rate, as applicable) of
                  the stated liquidation amount of $1,000 per Security,
                  (provided, however, that the Coupon Rate for any Distribution
                  Payment Period may not exceed the highest rate permitted by
                  New York law, as the same may be modified by United States law
                  of general applicability), such Coupon Rate being the rate of
                  interest payable on the Debentures to be held by the
                  Institutional Trustee. Except as set forth below in

                                     A-I-1
<PAGE>

                  respect of an Extension Period, Distributions in arrears for
                  more than one quarterly period will bear interest thereon
                  compounded quarterly at the applicable Coupon Rate for each
                  such quarterly period (to the extent permitted by applicable
                  law). The term "Distributions" as used herein includes cash
                  distributions, any such compounded distributions and any
                  Additional Interest payable on the Debentures unless otherwise
                  stated. A Distribution is payable only to the extent that
                  payments are made in respect of the Debentures held by the
                  Institutional Trustee and to the extent the Institutional
                  Trustee has funds legally available in the Property Account
                  therefor. During the Fixed Rate Period, the amount of
                  Distributions payable for any Distribution Payment Period will
                  be computed for any full quarterly Distribution Payment Period
                  on the basis of a 360-day year of twelve 30-day months and the
                  amount payable for any partial period shall be computed on the
                  basis of the number of days elapsed in a 360-day year of
                  twelve 30-day months. Upon expiration of the Fixed Rate
                  Period, distributions will be computed on the basis of a
                  360-day year and the actual number of days elapsed in the
                  relevant Distribution period; provided, however, that upon the
                  occurrence of a Special Event redemption pursuant to paragraph
                  4(a) below the amounts payable pursuant to this Declaration
                  shall be calculated as set forth in the definition of Special
                  Redemption Price.

         b.       Upon expiration of the Fixed Rate Period, LIBOR shall be
                  determined by the Calculation Agent in accordance with the
                  following provisions:

         i.       On the second LIBOR Business Day (provided, that on such day
                  commercial banks are open for business (including dealings in
                  foreign currency deposits) in London (a "LIBOR Banking Day"),
                  and otherwise the next preceding LIBOR Business Day that is
                  also a LIBOR Banking Day) prior to January 15, April 15, July
                  15 and October 15 immediately succeeding the commencement of
                  such Distribution Payment Period (or, with respect to the
                  first Distribution Payment Period subsequent to the Fixed Rate
                  Period, on October 7, 2011), (each such day, a "LIBOR
                  Determination Date") for such Distribution Payment Period),
                  the Calculation Agent shall obtain the rate for three-month
                  U.S. Dollar deposits in Europe, which appears on Telerate Page
                  3750 (as defined in the International Swaps and Derivatives
                  Association, Inc. 2000 Interest Rate and Currency Exchange
                  Definitions) or such other page as may replace such Telerate
                  Page 3750 on the Moneyline Telerate, Inc. service (or such
                  other service or services as may be nominated by the British
                  Banker's Association as the information vendor for the purpose
                  of displaying London interbank offered rates for U.S. dollar
                  deposits), as of 11:00 a.m. (London time) on such LIBOR
                  Determination Date, and the rate so obtained shall be LIBOR
                  for such Distribution Payment Period. "LIBOR Business Day"
                  means any day that is not a Saturday, Sunday or other day on
                  which commercial banking institutions in The City of New York
                  or Wilmington, Delaware are authorized or obligated by law or
                  executive order to be closed. If such rate is superseded on
                  Telerate Page 3750 by a corrected rate before 12:00 noon
                  (London time) on the same LIBOR Determination Date, the
                  corrected rate as so substituted will be the applicable LIBOR
                  for that Distribution Payment Period.

                                     A-I-2
<PAGE>

         ii.      If, on any LIBOR Determination Date, such rate does not appear
                  on Telerate Page 3750 or such other page as may replace such
                  Telerate Page 3750 on the Moneyline Telerate, Inc. service (or
                  such other service or services as may be nominated by the
                  British Banker's Association as the information vendor for the
                  purpose of displaying London interbank offered rates for U.S.
                  dollar deposits), the Calculation Agent shall determine the
                  arithmetic mean of the offered quotations of the Reference
                  Banks (as defined below) to leading banks in the London
                  Interbank market for three-month U.S. Dollar deposits in
                  Europe (in an amount determined by the Calculation Agent) by
                  reference to requests for quotations as of approximately 11:00
                  a.m. (London time) on the LIBOR Determination Date made by the
                  Calculation Agent to the Reference Banks. If, on any LIBOR
                  Determination Date, at least two of the Reference Banks
                  provide such quotations, LIBOR shall equal the arithmetic mean
                  of such quotations. If, on any LIBOR Determination Date, only
                  one or none of the Reference Banks provide such a quotation,
                  LIBOR shall be deemed to be the arithmetic mean of the offered
                  quotations that at least two leading banks in the City of New
                  York (as selected by the Calculation Agent) are quoting on the
                  relevant LIBOR Determination Date for three-month U.S. Dollar
                  deposits in Europe at approximately 11:00 a.m. (London time)
                  (in an amount determined by the Calculation Agent). As used
                  herein, "Reference Banks" means four major banks in the London
                  Interbank market selected by the Calculation Agent.

         iii.     If the Calculation Agent is required but is unable to
                  determine a rate in accordance with at least one of the
                  procedures provided above, LIBOR for the applicable
                  Distribution Payment Period shall be LIBOR in effect for the
                  immediately preceding Distribution Payment Period.

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

         d.       On each LIBOR Determination Date, the Calculation Agent shall
                  notify, in writing, the Sponsor and the Paying Agent of the
                  applicable Coupon Rate in effect for the related Distribution
                  Payment Period. The Calculation Agent shall, upon the request
                  of the Holder of any Securities, provide the Coupon Rate then
                  in effect. All calculations made by the Calculation Agent in
                  the absence of manifest error shall be conclusive for all
                  purposes and binding on the Sponsor and the Holders of the
                  Securities. The Paying Agent shall be entitled to rely on
                  information received from the Calculation Agent or the Sponsor
                  as to the Coupon Rate. The Sponsor shall, from time to time,
                  provide any necessary information to the Paying Agent relating
                  to any original issue discount and interest on the Securities
                  that is included in any payment and reportable for taxable
                  income calculation purposes.

                                     A-I-3
<PAGE>

         e.       Distributions on the Securities will be cumulative, will
                  accrue from the date of original issuance, and will be
                  payable, subject to extension of Distribution payment periods
                  as described herein, quarterly in arrears on January 7, April
                  7, July 7 and October 7 of each year, commencing October 7,
                  2006 (each, a "Distribution Payment Date"). Subject to prior
                  submission of Notice (as defined in the Indenture), and so
                  long as no Event of Default pursuant to paragraphs (c), (e),
                  (f) or (g) of Section 5.01 of the Indenture has occurred and
                  is continuing, the Debenture Issuer has the right under the
                  Indenture to defer payments of interest on the Debentures by
                  extending the interest distribution period for up to 20
                  consecutive quarterly periods (each, an "Extension Period") at
                  any time and from time to time on the Debentures, subject to
                  the conditions described below, during which Extension Period
                  no interest shall be due and payable (except any Additional
                  Interest that may be due and payable). During any Extension
                  Period, interest will continue to accrue on the Debentures,
                  and interest on such accrued interest (such accrued interest
                  and interest thereon referred to herein as "Deferred
                  Interest") will accrue at an annual rate equal to the Coupon
                  Rate in effect for each such Extension Period, compounded
                  quarterly from the date such Deferred Interest would have been
                  payable were it not for the Extension Period, to the extent
                  permitted by law. No Extension Period may end on a date other
                  than a Distribution Payment Date. At the end of any such
                  Extension Period, the Debenture Issuer shall pay all Deferred
                  Interest then accrued and unpaid on the Debentures; provided,
                  however, that no Extension Period may extend beyond the
                  Maturity Date, Redemption Date (to the extent redeemed) or
                  Special Redemption Date and provided, further, that, during
                  any such Extension Period, the Debenture Issuer may not (i)
                  declare or pay any dividends or distributions on, or redeem,
                  purchase, acquire, or make a liquidation payment with respect
                  to, any of the Debenture Issuer's capital stock or (ii) make
                  any payment of principal or premium or interest on or repay,
                  repurchase or redeem any debt securities of the Debenture
                  Issuer that rank pari passu in all respects with or junior in
                  interest to the Debentures or (iii) make any payment under any
                  guarantees of the Debenture Issuer that rank in all respects
                  pari passu with or junior in interest to the Guarantee (other
                  than (a) repurchases, redemptions or other acquisitions of
                  shares of capital stock of the Debenture Issuer (A) in
                  connection with any employment contract, benefit plan or other
                  similar arrangement with or for the benefit of one or more
                  employees, officers, directors or consultants, (B) in
                  connection with a dividend reinvestment or stockholder stock
                  purchase plan or (C) in connection with the issuance of
                  capital stock of the Debenture Issuer (or securities
                  convertible into or exercisable for such capital stock), as
                  consideration in an acquisition transaction entered into prior
                  to the applicable Extension Period, (b) as a result of any
                  exchange, reclassification, combination or conversion of any
                  class or series of the Debenture Issuer's capital stock (or
                  any capital stock of a subsidiary of the Debenture Issuer) for
                  any class or series of the Debenture Issuer's capital stock or
                  of any class or series of the Debenture Issuer's indebtedness
                  for any class or series of the Debenture Issuer's capital
                  stock, (c) the purchase of fractional interests in shares of
                  the Debenture Issuer's capital stock pursuant to the
                  conversion or exchange provisions of such capital stock or the

                                     A-I-4
<PAGE>

                  security being converted or exchanged, (d) any declaration of
                  a dividend in connection with any stockholder's rights plan,
                  or the issuance of rights, stock or other property under any
                  stockholder's rights plan, or the redemption or repurchase of
                  rights pursuant thereto, or (e) any dividend in the form of
                  stock, warrants, options or other rights where the dividend
                  stock or the stock issuable upon exercise of such warrants,
                  options or other rights is the same stock as that on which the
                  dividend is being paid or ranks pari passu with or junior to
                  such stock). Prior to the termination of any Extension Period,
                  the Debenture Issuer may further extend such period; provided,
                  that such period together with all such previous and further
                  consecutive extensions thereof shall not exceed 20 consecutive
                  quarterly periods, or extend beyond the Maturity Date,
                  Redemption Date (to the extent redeemed) or Special Redemption
                  Date. Upon the termination of any Extension Period and upon
                  the payment of all Deferred Interest, the Debenture Issuer may
                  commence a new Extension Period, subject to the foregoing
                  requirements. No interest or Deferred Interest shall be due
                  and payable during an Extension Period, except at the end
                  thereof, but Deferred Interest shall accrue upon each
                  installment of interest that would otherwise have been due and
                  payable during such Extension Period until such installment is
                  paid. If Distributions are deferred, the Distributions due
                  shall be paid on the date that the related Extension Period
                  terminates, or, if such date is not a Distribution Payment
                  Date, on the immediately following Distribution Payment Date,
                  to Holders of the Securities as they appear on the books and
                  records of the Trust on the record date immediately preceding
                  such date. Distributions on the Securities must be paid on the
                  dates payable (after giving effect to any Extension Period) to
                  the extent that the Trust has funds legally available for the
                  payment of such distributions in the Property Account of the
                  Trust. The Trust's funds available for Distribution to the
                  Holders of the Securities will be limited to payments received
                  from the Debenture Issuer. The payment of Distributions out of
                  moneys held by the Trust is guaranteed by the Guarantor
                  pursuant to the Guarantee.

         f.       Distributions on the Securities will be payable to the Holders
                  thereof as they appear on the books and records of the
                  Registrar on the relevant record dates. The relevant record
                  dates shall be selected by the Administrators, which dates
                  shall be 15 days before the relevant Distribution Payment
                  Date. Distributions payable on any Securities that are not
                  punctually paid on any Distribution Payment Date, as a result
                  of the Debenture Issuer having failed to make a payment under
                  the Debentures, as the case may be, when due (taking into
                  account any Extension Period), will cease to be payable to the
                  Person in whose name such Securities are registered on the
                  relevant record date, and such defaulted Distribution will
                  instead be payable to the Person in whose name such Securities
                  are registered on the special record date or other specified
                  date determined in accordance with the Indenture.
                  Notwithstanding anything to the contrary contained herein, if
                  any Distribution Payment Date, other than on the Maturity
                  Date, Redemption Date (to the extent redeemed) or Special
                  Redemption Date, falls on a day that is not a Business Day,
                  then any Distributions payable will be paid on, and such
                  Distribution Payment Date will be moved to, the next
                  succeeding Business Day, and additional Distributions will
                  accrue for each day that such payment is delayed

                                     A-I-5
<PAGE>

                  as a result thereof. If the Maturity Date, Redemption Date or
                  Special Redemption Date falls on a day that is not a Business
                  Day, then the principal, premium, if any, and/or Distributions
                  payable on such date will be paid on the next succeeding
                  Business Day, and no additional interest will accrue (except
                  that, if such Business Day falls in the next calendar year,
                  such payment will be made on the immediately preceding
                  Business Day).

         g.       In the event that there is any money or other property held by
                  or for the Trust that is not accounted for hereunder, such
                  property shall be distributed pro rata (as defined herein)
                  among the Holders of the Securities.

         (3)      Liquidation Distribution Upon Dissolution. In the event of the
                  voluntary or involuntary liquidation, dissolution, winding-up
                  or termination of the Trust (each, a "Liquidation") other than
                  in connection with a redemption of the Debentures, the Holders
                  of the Securities will be entitled to receive out of the
                  assets of the Trust available for distribution to Holders of
                  the Securities, after satisfaction of liabilities to creditors
                  of the Trust (to the extent not satisfied by the Debenture
                  Issuer), distributions equal to the aggregate of the stated
                  liquidation amount of $1,000 per Security plus accrued and
                  unpaid Distributions thereon to the date of payment (such
                  amount being the "Liquidation Distribution"), unless in
                  connection with such Liquidation, the Debentures in an
                  aggregate stated principal amount equal to the aggregate
                  stated liquidation amount of such Securities, with an interest
                  rate equal to the Coupon Rate of, and bearing accrued and
                  unpaid interest in an amount equal to the accrued and unpaid
                  Distributions on, and having the same record date as, such
                  Securities, after paying or making reasonable provision to pay
                  all claims and obligations of the Trust in accordance with
                  Section 3808(e) of the Statutory Trust Act, shall be
                  distributed on a Pro Rata basis to the Holders of the
                  Securities in exchange for such Securities.

         The Sponsor, as the Holder of all of the Common Securities, has the
right at any time to dissolve the Trust (including without limitation upon the
occurrence of a Tax Event, an Investment Company Event or a Capital Treatment
Event), subject to the receipt by the Debenture Issuer of prior approval from
any regulatory authority having jurisdiction over the Sponsor that is primarily
responsible for regulating the activities of the Sponsor if such approval is
then required under applicable capital guidelines or policies of such regulatory
authority, an opinion of nationally recognized tax counsel that Holders will not
recognize any gain or loss for United States federal income tax purposes as a
result of the distribution of Debentures and, after satisfaction of liabilities
to creditors of the Trust, cause the Debentures to be distributed to the Holders
of the Securities on a Pro Rata basis in accordance with the aggregate stated
liquidation amount thereof.

         The Trust shall dissolve on the first to occur of (i) October 7, 2041,
the expiration of the term of the Trust, (ii) a Bankruptcy Event with respect to
the Sponsor, the Trust or the Debenture Issuer, (iii) (other than in connection
with a merger, consolidation or similar transaction not prohibited by the
Indenture, this Declaration or the Guarantee, as the case may be) the filing of
a certificate of dissolution or its equivalent with respect to the Sponsor or
upon the revocation of the charter of the Sponsor and the expiration of 90 days
after the date of revocation without a

                                     A-I-6
<PAGE>

reinstatement thereof, (iv) the distribution to the Holders of the Securities of
the Debentures, upon exercise of the right of the Holder of all of the
outstanding Common Securities to dissolve the Trust as described above, (v) the
entry of a decree of a judicial dissolution of the Sponsor or the Trust, or (vi)
when all of the Securities shall have been called for redemption and the amounts
necessary for redemption thereof shall have been paid to the Holders in
accordance with the terms of the Securities. As soon as practicable after the
dissolution of the Trust and upon completion of the winding up of the Trust, the
Trust shall terminate upon the filing of a certificate of cancellation with the
Secretary of State of the State of Delaware.

         If a Liquidation of the Trust occurs as described in clause (i), (ii),
(iii) or (v) in the immediately preceding paragraph, the Trust shall be
liquidated by the Institutional Trustee of the Trust as expeditiously as such
Trustee determines to be possible by distributing, after satisfaction of
liabilities to creditors of the Trust as provided by applicable law, to the
Holders of the Securities, the Debentures on a Pro Rata basis to the extent not
satisfied by the Debenture Issuer, unless such distribution is determined by the
Institutional Trustee not to be practical, in which event such Holders will be
entitled to receive out of the assets of the Trust available for distribution to
the Holders, after satisfaction of liabilities to creditors of the Trust to the
extent not satisfied by the Debenture Issuer, an amount equal to the Liquidation
Distribution. An early Liquidation of the Trust pursuant to clause (iv) of the
immediately preceding paragraph shall occur if the Institutional Trustee
determines that such Liquidation is possible by distributing, after satisfaction
of liabilities to creditors of Trust, to the Holders of the Securities on a Pro
Rata basis, the Debentures, and such distribution occurs.

         If, upon any such Liquidation, the Liquidation Distribution can be paid
only in part because the Trust has insufficient assets available to pay in full
the aggregate Liquidation Distribution, then the amounts payable directly by the
Trust on such Capital Securities shall be paid to the Holders of the Securities
on a Pro Rata basis, except that if an Event of Default has occurred and is
continuing, the Capital Securities shall have a preference over the Common
Securities with regard to such distributions.

         Upon any such Liquidation of the Trust involving a distribution of the
Debentures, if at the time of such Liquidation, the Capital Securities were
rated by at least one nationally-recognized statistical rating organization, the
Debenture Issuer will use its reasonable best efforts to obtain from at least
one such or other rating organization a rating for the Debentures.

         After the date for any distribution of the Debentures upon dissolution
of the Trust, (i) the Securities of the Trust will be deemed to be no longer
outstanding, (ii) any certificates representing the Capital Securities will be
deemed to represent undivided beneficial interests in such of the Debentures as
have an aggregate principal amount equal to the aggregate stated liquidation
amount of, with an interest rate identical to the distribution rate of, and
bearing accrued and unpaid interest equal to accrued and unpaid distributions
on, the Securities until such certificates are presented to the Debenture Issuer
or its agent for transfer or reissuance (and until such certificates are so
surrendered, no payments of interest or principal shall be made to Holders of
Securities in respect of any payments due and payable under the Debentures) and
(iii) all rights of Holders of Securities under the Capital Securities or the
Common Securities, as applicable, shall cease, except the right of such Holders
to receive Debentures upon surrender of certificates representing such
Securities.

                                     A-I-7
<PAGE>

         (4)      Redemption and Distribution.

         a.       The Debentures will mature on October 7, 2036. The Debentures
                  may be redeemed by the Debenture Issuer, in whole or in part,
                  on any January 7, April 7, July 7 or October 7 on or after
                  October 7, 2011 at the Redemption Price, upon not less than 30
                  nor more than 60 days' notice to Holders of such Debentures.
                  In addition, upon the occurrence and continuation of a Tax
                  Event, an Investment Company Event or a Capital Treatment
                  Event, the Debentures may be redeemed by the Debenture Issuer
                  in whole or in part, at any time within 90 days following the
                  occurrence of such Tax Event, Investment Company Event or
                  Capital Treatment Event, as the case may be (the "Special
                  Redemption Date"), at the Special Redemption Price, upon not
                  less than 30 nor more than 60 days' notice to Holders of the
                  Debentures so long as such Tax Event, Investment Company Event
                  or Capital Treatment Event, as the case may be, is continuing.
                  In each case, the right of the Debenture Issuer to redeem the
                  Debentures is subject to the Debenture Issuer having received
                  prior approval from any regulatory authority having
                  jurisdiction over the Debenture Issuer, if such approval is
                  then required under applicable capital guidelines or policies
                  of such regulatory authority.

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

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

                                     A-I-8
<PAGE>

         "Capital Treatment Event" means the receipt by the Debenture Issuer and
the Trust of an Opinion of Counsel experienced in such matters to the effect
that, as a result of any amendment to, or change in, the laws, rules or
regulations of the United States or any political subdivision thereof or
therein, or as the result of any official or administrative pronouncement or
action or decision interpreting or applying such laws, rules or regulations,
which amendment or change is effective or which pronouncement, action or
decision is announced on or after the date of original issuance of the Capital
Securities, there is more than an insubstantial risk that within 90 days of the
receipt of such opinion, the aggregate Liquidation Amount of the Capital
Securities will not be eligible to be treated by the Debenture Issuer as "Tier 1
Capital" (or the then equivalent thereof) for purposes of the capital adequacy
guidelines of the Federal Reserve (or any successor regulatory authority with
jurisdiction over bank holding companies), as then in effect and applicable to
the Debenture Issuer; provided, however, that the inability of the Debenture
Issuer to treat all or any portion of the Liquidation Amount of the Capital
Securities as Tier 1 Capital shall not constitute the basis for a Capital
Treatment Event, if such inability results from the Debenture Issuer having
cumulative preferred stock, minority interests in consolidated subsidiaries, or
any other class of security or interest which the Federal Reserve, may now or
hereafter accord Tier 1 Capital treatment in excess of the amount which may now
or hereafter qualify for treatment as Tier 1 Capital under applicable capital
adequacy guidelines; provided further, however, that the distribution of the
Debt Securities in connection with the liquidation of the Trust by the Debenture
Issuer shall not in and of itself constitute a Capital Treatment Event unless
such liquidation shall have occurred in connection with a Tax Event or an
Investment Company Event.

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

         "Redemption Price" means 100% of the principal amount of the Debentures
being redeemed plus accrued and unpaid interest on such Debentures to the
Redemption Date or, in the case of a redemption due to the occurrence of a
Special Event, to the Special Redemption Date if such Special Redemption Date is
on or after October 7, 2011.

         "Special Redemption Price" means (1) if the Special Redemption Date is
before October 7, 2011, One Hundred Five Percent (105%) of the principal amount
to be redeemed plus any accrued and unpaid interest thereon to the date of such
redemption and (2) if the Special Redemption Date is on or after October 7,
2011, the Redemption Price for such Special Redemption Date.

         "Redemption Date" means the date fixed for the redemption of Capital
Securities, which shall be any January 7, April 7, July 7 or October 7 on or
after October 7, 2011.

         b.       Upon the repayment in full at maturity or redemption in whole
                  or in part of the Debentures (other than following the
                  distribution of the Debentures to the Holders of the
                  Securities), the proceeds from such repayment or payment shall
                  concurrently be applied to redeem Pro Rata at the applicable
                  redemption price, Securities having an aggregate liquidation
                  amount equal to the aggregate principal amount of the
                  Debentures so repaid or redeemed; provided, however, that
                  holders

                                     A-I-9
<PAGE>

                  of such Securities shall be given not less than 30 nor more
                  than 60 days' notice of such redemption (other than at the
                  scheduled maturity of the Debentures).

         c.       If fewer than all the outstanding Securities are to be so
                  redeemed, the Common Securities and the Capital Securities
                  will be redeemed Pro Rata and the Capital Securities to be
                  redeemed will be as described in Section 4(e)(ii) below.

         d.       The Trust may not redeem fewer than all the outstanding
                  Capital Securities unless all accrued and unpaid Distributions
                  have been paid on all Capital Securities for all quarterly
                  Distribution periods terminating on or before the date of
                  redemption.

         e.       Redemption or Distribution Procedures.

         1.       Notice of any redemption of, or notice of distribution of the
                  Debentures in exchange for, the Securities (a
                  "Redemption/Distribution Notice") will be given by the Trust
                  by mail to each Holder of Securities to be redeemed or
                  exchanged not fewer than 30 nor more than 60 days before the
                  date fixed for redemption or exchange thereof which, in the
                  case of a redemption, will be the date fixed for redemption of
                  the Debentures. For purposes of the calculation of the date of
                  redemption or exchange and the dates on which notices are
                  given pursuant to this Section 4(e)(i), a
                  Redemption/Distribution Notice shall be deemed to be given on
                  the day such notice is first mailed by first-class mail,
                  postage prepaid, to Holders of such Securities. Each
                  Redemption/Distribution Notice shall be addressed to the
                  Holders of such Securities at the address of each such Holder
                  appearing on the books and records of the Registrar. No defect
                  in the Redemption/Distribution Notice or in the mailing
                  thereof with respect to any Holder shall affect the validity
                  of the redemption or exchange proceedings with respect to any
                  other Holder.

         2.       In the event that fewer than all the outstanding Securities
                  are to be redeemed, the Securities to be redeemed shall be
                  redeemed Pro Rata from each Holder of Capital Securities.

         3.       If the Securities are to be redeemed and the Trust gives a
                  Redemption/Distribution Notice, which notice may only be
                  issued if the Debentures are redeemed as set out in this
                  Section 4 (which notice will be irrevocable), then, provided,
                  that the Institutional Trustee has a sufficient amount of cash
                  in connection with the related redemption or maturity of the
                  Debentures, the Institutional Trustee will, with respect to
                  Book-Entry Capital Securities, on the Redemption Date or
                  Special Redemption Date, as applicable, irrevocably deposit
                  with the Depositary for such Book-Entry Capital Securities, to
                  the extent available therefor, funds sufficient to pay the
                  relevant Redemption Price or Special Redemption Price, as
                  applicable, and will give such Depositary irrevocable
                  instructions and authority to pay the Redemption Price or
                  Special Redemption Price, as applicable, to the Owners of the
                  Capital Securities. With respect to Capital Securities that
                  are not Book-Entry Capital Securities, the Institutional
                  Trustee will pay, to the extent available therefore, the
                  relevant Redemption Price or Special Redemption Price, as
                  applicable, to the Holders of such Securities by check mailed
                  to the address of

                                     A-I-10
<PAGE>

                  each such Holder appearing on the books and records of the
                  Trust on the redemption date. If a Redemption/Distribution
                  Notice shall have been given and funds deposited as required,
                  then immediately prior to the close of business on the date of
                  such deposit, Distributions will cease to accrue on the
                  Securities so called for redemption and all rights of Holders
                  of such Securities so called for redemption will cease, except
                  the right of the Holders of such Securities to receive the
                  applicable Redemption Price or Special Redemption Price, as
                  applicable, specified in Section 4(a). If any date fixed for
                  redemption of Securities is not a Business Day, then payment
                  of any such Redemption Price or Special Redemption Price, as
                  applicable, payable on such date will be made on the next
                  succeeding day that is a Business Day except that, if such
                  Business Day falls in the next calendar year, such payment
                  will be made on the immediately preceding Business Day, in
                  each case with the same force and effect as if made on such
                  date fixed for redemption. If payment of the Redemption Price
                  or Special Redemption Price, as applicable, in respect of any
                  Securities is improperly withheld or refused and not paid
                  either by the Trust or by the Debenture Issuer as guarantor
                  pursuant to the Guarantee, Distributions on such Securities
                  will continue to accrue at the then applicable rate from the
                  original redemption date to the actual date of payment, in
                  which case the actual payment date will be considered the date
                  fixed for redemption for purposes of calculating the
                  Redemption Price or Special Redemption Price, as applicable.
                  In the event of any redemption of the Capital Securities
                  issued by the Trust in part, the Trust shall not be required
                  to (i) issue, register the transfer of or exchange any
                  Security during a period beginning at the opening of business
                  15 days before any selection for redemption of the Capital
                  Securities and ending at the close of business on the earliest
                  date on which the relevant notice of redemption is deemed to
                  have been given to all Holders of the Capital Securities to be
                  so redeemed or (ii) register the transfer of or exchange any
                  Capital Securities so selected for redemption, in whole or in
                  part, except for the unredeemed portion of any Capital
                  Securities being redeemed in part.

         4.       Redemption/Distribution Notices shall be sent by the
                  Administrators on behalf of the Trust (A) in respect of the
                  Capital Securities, to the Holders thereof, and (B) in respect
                  of the Common Securities, to the Holder thereof.

         5.       Subject to the foregoing and applicable law (including,
                  without limitation, United States federal securities laws),
                  and provided, that the acquiror is not the Holder of the
                  Common Securities or the obligor under the Indenture, the
                  Sponsor or any of its subsidiaries may at any time and from
                  time to time purchase outstanding Capital Securities by
                  tender, in the open market or by private agreement.

         (5)      Voting Rights - Capital Securities.

         a.       Except as provided under Sections 5(b) and 7 and as otherwise
                  required by law and the Declaration, the Holders of the
                  Capital Securities will have no voting rights. The
                  Administrators are required to call a meeting of the Holders
                  of the Capital Securities if directed to do so by Holders of
                  not less than 10% in liquidation amount of the Capital
                  Securities.

                                     A-I-11
<PAGE>

         b.       Subject to the requirements of obtaining a tax opinion by the
                  Institutional Trustee in certain circumstances set forth in
                  the last sentence of this paragraph, the Holders of a Majority
                  in liquidation amount of the Capital Securities, voting
                  separately as a class, have the right to direct the time,
                  method, and place of conducting any proceeding for any remedy
                  available to the Institutional Trustee, or exercising any
                  trust or power conferred upon the Institutional Trustee under
                  the Declaration, including the right to direct the
                  Institutional Trustee, as holder of the Debentures, to (i)
                  exercise the remedies available under the Indenture as the
                  holder of the Debentures, (ii) waive any past default that is
                  waivable under the Indenture, (iii) exercise any right to
                  rescind or annul a declaration that the principal of all the
                  Debentures shall be due and payable or (iv) consent on behalf
                  of all the Holders of the Capital Securities to any amendment,
                  modification or termination of the Indenture or the Debentures
                  where such consent shall be required; provided, however, that,
                  where a consent or action under the Indenture would require
                  the consent or act of the holders of greater than a simple
                  majority in principal amount of Debentures (a "Super
                  Majority") affected thereby, the Institutional Trustee may
                  only give such consent or take such action at the written
                  direction of the Holders of not less than the proportion in
                  liquidation amount of the Capital Securities outstanding which
                  the relevant Super Majority represents of the aggregate
                  principal amount of the Debentures outstanding. If the
                  Institutional Trustee fails to enforce its rights under the
                  Debentures after the Holders of a Majority or Super Majority,
                  as the case may be, in liquidation amount of such Capital
                  Securities have so directed the Institutional Trustee, to the
                  fullest extent permitted by law, a Holder of the Capital
                  Securities may institute a legal proceeding directly against
                  the Debenture Issuer to enforce the Institutional Trustee's
                  rights under the Debentures without first instituting any
                  legal proceeding against the Institutional Trustee or any
                  other person or entity. Notwithstanding the foregoing, if an
                  Event of Default has occurred and is continuing and such event
                  is attributable to the failure of the Debenture Issuer to pay
                  interest or premium, if any, on or principal of the Debentures
                  on the date such interest, premium, if any, on or principal is
                  payable (or in the case of redemption, the redemption date),
                  then a Holder of record of the Capital Securities may directly
                  institute a proceeding for enforcement of payment, on or after
                  the respective due dates specified in the Debentures, to such
                  Holder directly of the principal of or premium, if any, or
                  interest on the Debentures having an aggregate principal
                  amount equal to the aggregate liquidation amount of the
                  Capital Securities of such Holder. The Institutional Trustee
                  shall notify all Holders of the Capital Securities of any
                  default actually known to the Institutional Trustee with
                  respect to the Debentures unless (x) such default has been
                  cured prior to the giving of such notice or (y) the
                  Institutional Trustee determines in good faith that the
                  withholding of such notice is in the interest of the Holders
                  of such Capital Securities, except where the default relates
                  to the payment of principal of or interest on any of the
                  Debentures. Such notice shall state that such Indenture Event
                  of Default also constitutes an Event of Default hereunder.
                  Except with respect to directing the time, method and place of
                  conducting a proceeding for a remedy, the Institutional
                  Trustee shall not take any of the actions described in clause
                  (i), (ii) or (iii) above unless the

                                     A-I-12
<PAGE>

                  Institutional Trustee has obtained an opinion of tax counsel
                  to the effect that, as a result of such action, the Trust will
                  not be classified as other than a grantor trust for United
                  States federal income tax purposes.

         In the event the consent of the Institutional Trustee, as the holder of
the Debentures is required under the Indenture with respect to any amendment,
modification or termination of the Indenture, the Institutional Trustee shall
request the written direction of the Holders of the Securities with respect to
such amendment, modification or termination and shall vote with respect to such
amendment, modification or termination as directed by a Majority in liquidation
amount of the Securities voting together as a single class; provided, however,
that where a consent under the Indenture would require the consent of a Super
Majority, the Institutional Trustee may only give such consent at the written
direction of the Holders of not less than the proportion in liquidation amount
of such Securities outstanding which the relevant Super Majority represents of
the aggregate principal amount of the Debentures outstanding. The Institutional
Trustee shall not take any such action in accordance with the written directions
of the Holders of the Securities unless the Institutional Trustee has obtained
an opinion of tax counsel to the effect that, as a result of such action, the
Trust will not be classified as other than a grantor trust for United States
federal income tax purposes.

         A waiver of an Indenture Event of Default will constitute a waiver of
the corresponding Event of Default hereunder. Any required approval or direction
of Holders of the Capital Securities may be given at a separate meeting of
Holders of the Capital Securities convened for such purpose, at a meeting of all
of the Holders of the Securities in the Trust or pursuant to written consent.
The Institutional Trustee will cause a notice of any meeting at which Holders of
the Capital Securities are entitled to vote, or of any matter upon which action
by written consent of such Holders is to be taken, to be mailed to each Holder
of record of the Capital Securities. Each such notice will include a statement
setting forth the following information (i) the date of such meeting or the date
by which such action is to be taken, (ii) a description of any resolution
proposed for adoption at such meeting on which such Holders are entitled to vote
or of such matter upon which written consent is sought and (iii) instructions
for the delivery of proxies or consents. No vote or consent of the Holders of
the Capital Securities will be required for the Trust to redeem and cancel
Capital Securities or to distribute the Debentures in accordance with the
Declaration and the terms of the Securities.

         Notwithstanding that Holders of the Capital Securities are entitled to
vote or consent under any of the circumstances described above, any of the
Capital Securities that are owned by the Sponsor or any Affiliate of the Sponsor
shall not entitle the Holder thereof to vote or consent and shall, for purposes
of such vote or consent, be treated as if such Capital Securities were not
outstanding.

         In no event will Holders of the Capital Securities have the right to
vote to appoint, remove or replace the Administrators, which voting rights are
vested exclusively in the Sponsor as the Holder of all of the Common Securities
of the Trust. Under certain circumstances as more fully described in the
Declaration, Holders of Capital Securities have the right to vote to appoint,
remove or replace the Institutional Trustee and the Delaware Trustee.

         (6)      Voting Rights - Common Securities.

                                     A-I-13
<PAGE>

         a.       Except as provided under Sections 6(b), 6(c) and 7 and as
                  otherwise required by law and the Declaration, the Common
                  Securities will have no voting rights.

         b.       The Holders of the Common Securities are entitled, in
                  accordance with Article IV of the Declaration, to vote to
                  appoint, remove or replace any Administrators.

         c.       Subject to Section 6.8 of the Declaration and only after each
                  Event of Default (if any) with respect to the Capital
                  Securities has been cured, waived or otherwise eliminated and
                  subject to the requirements of the second to last sentence of
                  this paragraph, the Holders of a Majority in liquidation
                  amount of the Common Securities, voting separately as a class,
                  may direct the time, method, and place of conducting any
                  proceeding for any remedy available to the Institutional
                  Trustee, or exercising any trust or power conferred upon the
                  Institutional Trustee under the Declaration, including (i)
                  directing the time, method, place of conducting any proceeding
                  for any remedy available to the Debenture Trustee, or
                  exercising any trust or power conferred on the Debenture
                  Trustee with respect to the Debentures, (ii) waiving any past
                  default and its consequences that are waivable under the
                  Indenture, or (iii) exercising any right to rescind or annul a
                  declaration that the principal of all the Debentures shall be
                  due and payable, provided, however, that, where a consent or
                  action under the Indenture would require a Super Majority, the
                  Institutional Trustee may only give such consent or take such
                  action at the written direction of the Holders of not less
                  than the proportion in liquidation amount of the Common
                  Securities which the relevant Super Majority represents of the
                  aggregate principal amount of the Debentures outstanding.
                  Notwithstanding this Section 6(c), the Institutional Trustee
                  shall not revoke any action previously authorized or approved
                  by a vote or consent of the Holders of the Capital Securities.
                  Other than with respect to directing the time, method and
                  place of conducting any proceeding for any remedy available to
                  the Institutional Trustee or the Debenture Trustee as set
                  forth above, the Institutional Trustee shall not take any
                  action described in clause (i), (ii) or (iii) above, unless
                  the Institutional Trustee has obtained an opinion of tax
                  counsel to the effect that for the purposes of United States
                  federal income tax the Trust will not be classified as other
                  than a grantor trust on account of such action. If the
                  Institutional Trustee fails to enforce its rights under the
                  Declaration, to the fullest extent permitted by law any Holder
                  of the Common Securities may institute a legal proceeding
                  directly against any Person to enforce the Institutional
                  Trustee's rights under the Declaration, without first
                  instituting a legal proceeding against the Institutional
                  Trustee or any other Person.

         Any approval or direction of Holders of the Common Securities may be
given at a separate meeting of Holders of the Common Securities convened for
such purpose, at a meeting of all of the Holders of the Securities in the Trust
or pursuant to written consent. The Administrators will cause a notice of any
meeting at which Holders of the Common Securities are entitled to vote, or of
any matter upon which action by written consent of such Holders is to be taken,
to be mailed to each Holder of the Common Securities. Each such notice will
include a statement setting forth (i) the date of such meeting or the date by
which such action is to be taken, (ii) a description of any resolution proposed
for adoption at such meeting on which such

                                     A-I-14
<PAGE>

Holders are entitled to vote or of such matter upon which written consent is
sought and (iii) instructions for the delivery of proxies or consents.

         No vote or consent of the Holders of the Common Securities will be
required for the Trust to redeem and cancel Common Securities or to distribute
the Debentures in accordance with the Declaration and the terms of the
Securities.

         (7)      Amendments to Declaration and Indenture.

         a.       In addition to any requirements under Section 11.1 of the
                  Declaration, if any proposed amendment to the Declaration
                  provides for, or the Trustees otherwise propose to effect, (i)
                  any action that would adversely affect the powers, preferences
                  or special rights of the Securities, whether by way of
                  amendment to the Declaration or otherwise, or (ii) the
                  Liquidation of the Trust, other than as described in Section
                  7.1 of the Declaration, then the Holders of outstanding
                  Securities, voting together as a single class, will be
                  entitled to vote on such amendment or proposal and such
                  amendment or proposal shall not be effective except with the
                  approval of the Holders of not less than a Majority in
                  liquidation amount of the Securities affected thereby;
                  provided, however, if any amendment or proposal referred to in
                  clause (i) above would adversely affect only the Capital
                  Securities or only the Common Securities, then only the
                  affected class will be entitled to vote on such amendment or
                  proposal and such amendment or proposal shall not be effective
                  except with the approval of a Majority in liquidation amount
                  of such class of Securities.

         b.       In the event the consent of the Institutional Trustee as the
                  holder of the Debentures is required under the Indenture with
                  respect to any amendment, modification or termination of the
                  Indenture or the Debentures, the Institutional Trustee shall
                  request the written direction of the Holders of the Securities
                  with respect to such amendment, modification or termination
                  and shall vote with respect to such amendment, modification,
                  or termination as directed by a Majority in liquidation amount
                  of the Securities voting together as a single class; provided,
                  however, that where a consent under the Indenture would
                  require a Super Majority, the Institutional Trustee may only
                  give such consent at the written direction of the Holders of
                  not less than the proportion in liquidation amount of the
                  Securities which the relevant Super Majority represents of the
                  aggregate principal amount of the Debentures outstanding.

         c.       Notwithstanding the foregoing, no amendment or modification
                  may be made to the Declaration if such amendment or
                  modification would (i) cause the Trust to be classified for
                  purposes of United States federal income taxation as other
                  than a grantor trust, (ii) reduce or otherwise adversely
                  affect the powers of the Institutional Trustee or (iii) cause
                  the Trust to be deemed an "investment company" which is
                  required to be registered under the Investment Company Act.

         d.       Notwithstanding any provision of the Declaration, the right of
                  any Holder of the Capital Securities to receive payment of
                  distributions and other payments upon

                                     A-I-15
<PAGE>

                  redemption or otherwise, on or after their respective due
                  dates, or to institute a suit for the enforcement of any such
                  payment on or after such respective dates, shall not be
                  impaired or affected without the consent of such Holder. For
                  the protection and enforcement of the foregoing provision,
                  each and every Holder of the Capital Securities shall be
                  entitled to such relief as can be given either at law or
                  equity.

         (8)      Pro Rata. A reference in these terms of the Securities to any
                  payment, distribution or treatment as being "Pro Rata" shall
                  mean pro rata to each Holder of the Securities according to
                  the aggregate liquidation amount of the Securities held by the
                  relevant Holder in relation to the aggregate liquidation
                  amount of all Securities outstanding unless, in relation to a
                  payment, an Event of Default has occurred and is continuing,
                  in which case any funds available to make such payment shall
                  be paid first to each Holder of the Capital Securities Pro
                  Rata according to the aggregate liquidation amount of the
                  Capital Securities held by the relevant Holder relative to the
                  aggregate liquidation amount of all Capital Securities
                  outstanding, and only after satisfaction of all amounts owed
                  to the Holders of the Capital Securities, to each Holder of
                  the Common Securities Pro Rata according to the aggregate
                  liquidation amount of the Common Securities held by the
                  relevant Holder relative to the aggregate liquidation amount
                  of all Common Securities outstanding.

         (9)      Ranking. The Capital Securities rank pari passu with, and
                  payment thereon shall be made Pro Rata with, the Common
                  Securities except that, where an Event of Default has occurred
                  and is continuing, the rights of Holders of the Common
                  Securities to receive payment of Distributions and payments
                  upon liquidation, redemption and otherwise are subordinated to
                  the rights of the Holders of the Capital Securities with the
                  result that no payment of any Distribution on, or Redemption
                  Price or Special Redemption Price of, any Common Security, and
                  no other payment on account of redemption, liquidation or
                  other acquisition of Common Securities, shall be made unless
                  payment in full in cash of all accumulated and unpaid
                  Distributions on all outstanding Capital Securities for all
                  distribution periods terminating on or prior thereto, or in
                  the case of payment of the Redemption Price or Special
                  Redemption Price the full amount of such Redemption Price or
                  the Special Redemption Price on all outstanding Capital
                  Securities then called for redemption, shall have been made or
                  provided for, and all funds immediately available to the
                  Institutional Trustee shall first be applied to the payment in
                  full in cash of all Distributions on, or the Redemption Price
                  or the Special Redemption Price of, the Capital Securities
                  then due and payable.

         (10)     Acceptance of Guarantee and Indenture. Each Holder of the
                  Capital Securities and the Common Securities, by the
                  acceptance of such Securities, agrees to the provisions of the
                  Guarantee, including the subordination provisions therein and
                  to the provisions of the Indenture.

                                     A-I-16
<PAGE>

         (11)     No Preemptive Rights. The Holders of the Securities shall have
                  no, and the issuance of the Securities is not subject to,
                  preemptive or similar rights to subscribe for any additional
                  securities.

         (12)     Miscellaneous. These terms constitute a part of the
                  Declaration. The Sponsor will provide a copy of the
                  Declaration, the Guarantee, and the Indenture to a Holder
                  without charge on written request to the Sponsor at its
                  principal place of business.

                                     A-I-17Exhibit 10.2

                                    INDENTURE
                            Dated as of July 24, 2006

                     WELLS FARGO BANK, NATIONAL ASSOCIATION
                                   As Trustee

                       JUNIOR SUBORDINATED DEBT SECURITIES

                               Due October 7, 2036

<PAGE>

                                Table of Contents

                                                                           Page

                                    ARTICLE I
                                   DEFINITIONS

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

                                   ARTICLE II
                                 DEBT SECURITIES

SECTION 2.01.  Authentication and Dating.....................................8

SECTION 2.02.  Form of Trustee's Certificate of Authentication...............9

SECTION 2.03.  Form and Denomination of Debt Securities......................9

SECTION 2.04.  Execution of Debt Securities..................................9

SECTION 2.05.  Exchange and Registration of Transfer of Debt Securities.....10

SECTION 2.06.  Mutilated, Destroyed, Lost or Stolen Debt Securities.........13

SECTION 2.07.  Temporary Debt Securities....................................13

SECTION 2.08.  Payment of Interest..........................................14

SECTION 2.09.  Cancellation of Debt Securities Paid, etc....................15

SECTION 2.10.  Computation of Interest......................................15

SECTION 2.11.  Extension of Interest Payment Period.........................17

SECTION 2.12.  CUSIP Numbers................................................18

SECTION 2.13.  Global Debentures............................................18

                                   ARTICLE III
                       PARTICULAR COVENANTS OF THE COMPANY

SECTION 3.01.  Payment of Principal, Premium and Interest; Agreed Treatment
               of the Debt Securities.......................................20

SECTION 3.02.  Offices for Notices and Payments, etc........................21

SECTION 3.03.  Appointments to Fill Vacancies in Trustee's Office...........22

SECTION 3.04.  Provision as to Paying Agent.................................22

SECTION 3.05.  Certificate to Trustee.......................................23

SECTION 3.06.  Additional Interest..........................................23

SECTION 3.07.  Compliance with Consolidation Provisions.....................23

SECTION 3.08.  Limitation on Dividends......................................24

SECTION 3.09.  Covenants as to the Trust....................................25

                                   ARTICLE IV
                LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

SECTION 4.01.  Securityholders' Lists.......................................26

                                      -i-
<PAGE>

                                Table of Contents
                                   (Continued)

                                                                           Page

SECTION 4.02.  Preservation and Disclosure of Lists.........................26

SECTION 4.03.  Financial and Other Information..............................27

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

SECTION 5.01.  Events of Default............................................28

SECTION 5.02.  Payment of Debt Securities on Default; Suit Therefor.........30

SECTION 5.03.  Application of Moneys Collected by Trustee...................31

SECTION 5.04.  Proceedings by Securityholders...............................32

SECTION 5.05.  Proceedings by Trustee.......................................32

SECTION 5.06.  Remedies Cumulative and Continuing...........................32

SECTION 5.07.  Direction of Proceedings and Waiver of Defaults by Majority
               of Securityholders...........................................33

SECTION 5.08.  Notice of Defaults...........................................34

SECTION 5.09.  Undertaking to Pay Costs.....................................34

                                   ARTICLE VI
                             CONCERNING THE TRUSTEE

SECTION 6.01.  Duties and Responsibilities of Trustee.......................35

SECTION 6.02.  Reliance on Documents, Opinions, etc.........................36

SECTION 6.03.  No Responsibility for Recitals, etc..........................37

SECTION 6.04.  Trustee, Authenticating Agent, Paying Agents, Transfer
               Agents or Registrar May Own Debt Securities..................37

SECTION 6.05.  Moneys to be Held in Trust...................................37

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

SECTION 6.07.  Officers' Certificate as Evidence............................38

SECTION 6.08.  Eligibility of Trustee.......................................39

SECTION 6.09.  Resignation or Removal of Trustee, Calculation Agent,
               Paying Agent or Debt Security Registrar......................39

SECTION 6.10.  Acceptance by Successor......................................40

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

SECTION 6.12.  Authenticating Agents........................................42

                                      -ii-
<PAGE>

                                Table of Contents
                                   (Continued)

                                                                           Page

                                   ARTICLE VII
                         CONCERNING THE SECURITYHOLDERS

SECTION 7.01.  Action by Securityholders....................................43

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

SECTION 7.03.  Who Are Deemed Absolute Owners...............................44

SECTION 7.04.  Debt Securities Owned by Company Deemed Not Outstanding......44

SECTION 7.05.  Revocation of Consents; Future Securityholders Bound.........45

                                  ARTICLE VIII
                            SECURITYHOLDERS' MEETINGS

SECTION 8.01.  Purposes of Meetings.........................................45

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

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

SECTION 8.04.  Qualifications for Voting....................................46

SECTION 8.05.  Regulations..................................................46

SECTION 8.06.  Voting.......................................................47

SECTION 8.07.  Quorum; Actions..............................................47

SECTION 8.08.  Written Consent Without a Meeting............................48

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

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

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

SECTION 9.03.  Effect of Supplemental Indentures............................51

SECTION 9.04.  Notation on Debt Securities..................................51

SECTION 9.05.  Evidence of Compliance of Supplemental Indenture to be
               furnished to Trustee.........................................52

                                    ARTICLE X
                            REDEMPTION OF SECURITIES

SECTION 10.01. Optional Redemption..........................................52

SECTION 10.02. Special Event Redemption.....................................52

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

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

                                      -iii-
<PAGE>

                                Table of Contents
                                   (Continued)

                                                                           Page

                                   ARTICLE XI
                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

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

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

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

                                   ARTICLE XII
                     SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 12.01. Discharge of Indenture.......................................55

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

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

SECTION 12.04. Return of Unclaimed Moneys...................................56

                                  ARTICLE XIII
         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

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

                                   ARTICLE XIV
                            MISCELLANEOUS PROVISIONS

SECTION 14.01. Successors...................................................57

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

SECTION 14.03. Surrender of Company Powers..................................57

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

SECTION 14.05. Governing Law................................................58

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

SECTION 14.07. Non-Business Days............................................58

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

SECTION 14.09. Execution in Counterparts....................................59

SECTION 14.10. Severability.................................................59

SECTION 14.11. Assignment...................................................59

SECTION 14.12. Acknowledgment of Rights.....................................59

                                   ARTICLE XV
                        SUBORDINATION OF DEBT SECURITIES

SECTION 15.01. Agreement to Subordinate.....................................60

SECTION 15.02. Default on Senior Indebtedness...............................60

SECTION 15.03. Liquidation; Dissolution; Bankruptcy.........................61

                                      -iv-
<PAGE>

                                Table of Contents
                                   (Continued)

                                                                           Page

SECTION 15.04. Subrogation..................................................62

SECTION 15.05. Trustee to Effectuate Subordination..........................63

SECTION 15.06. Notice by the Company........................................63

SECTION 15.07. Rights of the Trustee, Holders of Senior Indebtedness........63

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

EXHIBITS

EXHIBIT A                  FORM OF DEBT SECURITY

                                      -v-
<PAGE>

         THIS INDENTURE, dated as of July 24, 2006, between Monroe Bancorp, a
bank holding company incorporated in Indiana (hereinafter sometimes called the
"Company"), and Wells Fargo Bank, National Association, a national banking
association with its principal place of business in the State of Delaware, as
trustee (hereinafter sometimes called the "Trustee").

                              W I T N E S S E T H:

         WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the issuance of its Junior Subordinated Debt Securities due October
7, 2036 (the "Debt Securities") under this Indenture and to provide, among other
things, for the execution and authentication, delivery and administration
thereof, the Company has duly authorized the execution of this Indenture.

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

                                   ARTICLE I

                                   DEFINITIONS

         SECTION 1.01. Definitions.

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

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

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

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

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

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

                                       1
<PAGE>

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

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

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

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

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

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

         "Capital Treatment Event" means the receipt by the Company and the
Trust of an Opinion of Counsel experienced in such matters to the effect that,
as a result of any amendment to, or change in, the laws, rules or regulations of
the United States or any political subdivision thereof or therein, or as the
result of any official or administrative pronouncement or action or decision
interpreting or applying such laws, rules or regulations, which amendment or
change is effective or which pronouncement, action or decision is announced on
or after the date of original issuance of the Debt Securities, there is more
than an insubstantial risk that, within 90 days of the receipt of such opinion,
the aggregate Liquidation Amount of the Capital Securities will not be eligible
to be treated by the Company as "Tier 1 Capital" (or the then equivalent
thereof) for purposes of the capital adequacy guidelines of the Federal Reserve
or OTS; as applicable (or any successor regulatory authority with jurisdiction
over bank, savings & loan or financial holding companies), as then in effect and
applicable to the Company; provided, however, that the inability of the Company
to treat all or any portion of the Liquidation Amount of the Capital Securities
as Tier 1 Capital shall not constitute the basis for a Capital Treatment Event,
if such inability results from the Company having cumulative preferred stock,
minority interests in consolidated subsidiaries, or any other class of security
or interest which the

                                      -2-
<PAGE>

Federal Reserve or OTS, as applicable, may now or hereafter accord Tier 1
Capital treatment in excess of the amount which may now or hereafter qualify for
treatment as Tier 1 Capital under applicable capital adequacy guidelines;
provided further, however, that the distribution of the Debt Securities in
connection with the liquidation of the Trust by the Company shall not in and of
itself constitute a Capital Treatment Event unless such liquidation shall have
occurred in connection with a Tax Event or an Investment Company Event.

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

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

         "Company" means Monroe Bancorp, a bank holding company incorporated in
Indiana, and, subject to the provisions of Article XI, shall include its
successors and assigns.

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

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

         "Declaration" means the Amended and Restated Declaration of Trust of
the Trust dated as of July 24, 2006, as amended or supplemented from time to
time.

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

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

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

         "Depositary" means an organization registered as a clearing agency
under the Securities Exchange Act of 1934 that is designated as Depositary by
the Company or any successor thereto. DTC will be the initial Depositary.

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

         "DTC" means The Depository Trust Company, a New York corporation.
"Event of Default" means any event specified in Section 5.01, which has
continued for the period of time, if any, and after the giving of the notice, if
any, therein designated.

                                      -3-
<PAGE>

         "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, or any successor legislation. "Extension Period" has the
meaning set forth in Section 2.11.

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

         "Fixed Rate" means a per annum rate of interest, equal to 7.1475%
commencing July 24, 2006.

         "Global Debenture" means a security that evidences all or part of the
Debt Securities, the ownership and transfers of which shall be made through book
entries by a Depositary. "Indenture" means this instrument as originally
executed or, if amended or supplemented as herein provided, as so amended or
supplemented, or both.

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

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

         "Interest Payment Date" means January 7, April 7, July 7 and October 7
of each year, commencing on October 7, 2006, during the term of this Indenture.

         "Interest Payment Period" means the period from and including an
Interest Payment Date, or in the case of the first Interest Payment Period, the
original date of issuance of the Debt Securities, to, but excluding, the next
succeeding Interest Payment Date or, in the case of the last Interest Payment
Period, the Redemption Date, Special Redemption Date or Maturity Date, as the
case may be.

         "Interest Rate" is defined to mean the Fixed Rate and Variable Rate, as
applicable.

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

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

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

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

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

                                      -4-
<PAGE>

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

         "Maturity Date" means October 7, 2036.

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

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

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

         "OTS" means the Office of Thrift Supervision and any successor federal
agency that is primarily responsible for regulating the activities of savings
and loan holding companies.

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

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

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

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

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

                                      -5-
<PAGE>

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

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

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

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

         "Redemption Price" means 100% of the principal amount of the Debt
Securities being redeemed plus accrued and unpaid interest on such Debt
Securities to the Redemption Date or, in the case of a redemption due to the
occurrence of a Special Event to the Special Redemption Date if such Special
Redemption Date is on or after October 7, 2011.

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

         "Securities Act" means the Securities Act of 1933, as amended from time
to time, or any successor legislation.

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

         "Senior Indebtedness" means, with respect to the Company, (i) the
principal, premium, if any, and interest in respect of (A) indebtedness of the
Company for money borrowed and (B) indebtedness evidenced by securities,
debentures, notes, bonds or other similar instruments issued by the Company;
(ii) all capital lease obligations of the Company; (iii) all obligations of the
Company issued or

                                      -6-
<PAGE>

assumed as the deferred purchase price of property, all conditional sale
obligations of the Company and all obligations of the Company under any title
retention agreement (but excluding trade accounts payable arising in the
ordinary course of business); (iv) all obligations of the Company for the
reimbursement of any letter of credit, any banker's acceptance, any security
purchase facility, any repurchase agreement or similar arrangement, any interest
rate swap, any other hedging arrangement, any obligation under options or any
similar credit or other transaction; (v) all obligations of the type referred to
in clauses (i) through (iv) above of other Persons for the payment of which the
Company is responsible or liable as obligor, guarantor or otherwise; and (vi)
all obligations of the type referred to in clauses (i) through (v) above of
other Persons secured by any lien on any property or asset of the Company
(whether or not such obligation is assumed by the Company), whether incurred on
or prior to the date of this Indenture or thereafter incurred, unless (1) with
the prior approval of the Federal Reserve or OTS, as applicable, if not
otherwise generally approved, in the instrument creating or evidencing the same
or pursuant to which the same is outstanding, it is provided that such
obligations are not superior or are pari passu in right of payment to the Debt
Securities; or (2) the Federal Reserve or OTS, as applicable, shall hereafter
classify or otherwise recognize any such obligation as pari passu or subordinate
to the Debt Securities.

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

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

         "Special Redemption Price" means (1) if the Special Redemption Date is
before October 7, 2011, One Hundred Five Percent (105%) of the principal amount
of the Debt Securities to be redeemed plus any accrued and unpaid interest
thereon to the date of such redemption or (2) if the Special Redemption Date is
on or after October 7, 2011, the Redemption Price for such Special Redemption
Date.

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

                                      -7-
<PAGE>

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

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

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

         "Trust Securities" means Common Securities and Capital Securities of
Monroe Bancorp Capital Trust I.

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

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

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

         "Variable Rate" means a per annum rate of interest, equal to LIBOR plus
1.60%, as determined on the LIBOR Determination Date preceding each Interest
Payment Date, reset quarterly, commencing upon expiration of the Fixed Rate
Period.

                                      -8-
<PAGE>

                                   ARTICLE II

                                 DEBT SECURITIES

         SECTION 2.01. Authentication and Dating.

         Upon the execution and delivery of this Indenture, or from time to time
thereafter, Debt Securities in an aggregate principal amount not in excess of
$3,093,000 may be executed and delivered by the Company to the Trustee for
authentication, and the Trustee shall thereupon authenticate and make available
for delivery said Debt Securities to or upon the written order of the Company,
signed by its Chairman of the Board of Directors, Vice Chairman, President or
Chief Financial Officer or one of its Vice Presidents, without any further
action by the Company hereunder. In authenticating such Debt Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Debt Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.01) shall be fully protected in relying upon a copy of any Board
Resolution or Board Resolutions relating thereto and, if applicable, an
appropriate record of any action taken pursuant to such resolution, in each case
certified by the Secretary or an Assistant Secretary or other officers with
appropriate delegated authority of the Company as the case may be.

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

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

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

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

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

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

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

         SECTION 2.03. Form and Denomination of Debt Securities.

         The Debt Securities shall be substantially in the form of Exhibit A
hereto. The Debt Securities shall be in registered, certificated form without
coupons and in minimum denominations of $100,000 and any multiple of $1,000 in
excess thereof. The Debt Securities shall be numbered, lettered, or otherwise
distinguished in such manner or in accordance with

                                      -9-
<PAGE>

such plans as the officers executing the same may determine with the approval of
the Trustee as evidenced by the execution and authentication thereof.

         SECTION 2.04. Execution of Debt Securities.

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

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

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

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

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

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

                                      -10-
<PAGE>

Debt Security for a like aggregate principal amount. Registration or
registration of transfer of any Debt Security by the Trustee or by any agent of
the Company appointed pursuant to Section 3.02, and delivery of such Debt
Security, shall be deemed to complete the registration or registration of
transfer of such Debt Security.

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

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

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

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

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

                                      -11-
<PAGE>

OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE
OBTAINED FROM THE COMPANY. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

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

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

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

                                      -12-
<PAGE>

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

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

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

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

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

         Every substituted Debt Security issued pursuant to the provisions of
this Section 2.06 by virtue of the fact that any such Debt Security is
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen

                                      -13-
<PAGE>

Debt Security shall be found at any time, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Debt Securities duly issued hereunder. All Debt Securities shall be held and
owned upon the express condition that, to the extent permitted by applicable
law, the foregoing provisions are exclusive with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Debt Securities and shall
preclude any and all other rights or remedies notwithstanding any law or statute
existing or hereafter enacted to the contrary with respect to the replacement or
payment of negotiable instruments or other securities without their surrender.

         SECTION 2.07. Temporary Debt Securities.

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

         SECTION 2.08. Payment of Interest.

         During the Fixed Rate Period, each Debt Security will bear interest at
the Fixed Rate. Thereafter each Debt Security will bear interest at the then
applicable Variable Rate from and including each Interest Payment Date, but
excluding, the next succeeding Interest Payment Date or, in the case of the last
Interest Payment Period, the Redemption Date, Special Redemption Date or
Maturity Date, as applicable, on the principal thereof, on any overdue principal
and (to the extent that payment of such interest is enforceable under applicable
law) on Deferred Interest and on any overdue installment of interest (including
Defaulted Interest), payable (subject to the provisions of Article XV) on each
Interest Payment Date commencing on October 7, 2011. Interest and any Deferred
Interest on any Debt Security that is payable, and is punctually paid or duly
provided for by the Company, on any Interest Payment Date shall be paid to the
Person in whose name said Debt Security (or one or more Predecessor Securities)
is registered at the close of business on the regular record date for such
interest installment, except that interest and any Deferred Interest payable on
the Maturity Date, the Redemption Date (to the extent redeemed),

                                      -14-
<PAGE>

or the Special Redemption Date, shall be paid to the Person to whom principal is
paid. In (i) case the Maturity Date of any Debt Security or (ii) the event that
any Debt Security or portion thereof is called for redemption and the redemption
date is subsequent to a regular record date with respect to any Interest Payment
Date and either on or prior to such Interest Payment Date, interest on such Debt
Security will be paid upon presentation and surrender of such Debt Security.

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

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

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

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

                                      -15-
<PAGE>

         SECTION 2.09. Cancellation of Debt Securities Paid, etc.

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

         SECTION 2.10. Computation of Interest.

         (a)      From July 24, 2006 until October 7, 2011 (the "Fixed Rate
                  Period"), the interest shall be computed on the basis of a
                  360-day year of twelve 30-day months and the amount payable
                  for any partial period shall be computed on the basis of the
                  number of days elapsed in a 360-day year of twelve 30-day
                  months. Upon expiration of the Fixed Rate Period, the amount
                  of interest payable for any Interest Payment Period will be
                  computed on the basis of a 360-day year and the actual number
                  of days elapsed in the relevant interest period; provided,
                  however, that upon the occurrence of a Special Event
                  Redemption pursuant to Section 10.02 the amounts payable
                  pursuant to this Indenture shall be calculated as set forth in
                  the definition of Special Redemption Price.

         (b)      Upon expiration of the Fixed Rate Period, LIBOR, for any
                  Interest Payment Period, shall be determined by the
                  Calculation Agent in accordance with the following provisions:

         (1)      On the second LIBOR Business Day (provided, that on such day
                  commercial banks are open for business (including dealings in
                  foreign currency deposits) in London (a "LIBOR Banking Day"),
                  and otherwise the next preceding LIBOR Business Day that is
                  also a LIBOR Banking Day) prior to the January 15, April 15,
                  July 15 and October 15 immediately succeeding the commencement
                  of such Interest Payment Period (or, with respect to the first
                  Interest Payment Period subsequent to the Fixed Rate Period,
                  on October 7, 2011) (each such day, a "LIBOR Determination
                  Date" for such Interest Payment Period), the Calculation Agent
                  shall obtain the rate for three-month U.S. Dollar deposits in
                  Europe, which appears on Telerate Page 3750 (as defined in the
                  International Swaps and Derivatives Association, Inc. 2000
                  Interest Rate and Currency Exchange Definitions) or such other
                  page as may replace such Telerate Page 3750 on the Moneyline
                  Telerate, Inc. service (or such other service or services as
                  may be nominated by the British Banker's Association as the
                  information vendor for the purpose of displaying London
                  interbank offered rates for U.S. dollar deposits), as of 11:00
                  a.m. (London time) on such LIBOR Determination Date, and the
                  rate so

                                      -16-
<PAGE>

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

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

         (3)      If the Calculation Agent is required but is unable to
                  determine a rate in accordance with at least one of the
                  procedures provided above, LIBOR for the applicable Interest
                  Payment Period shall be LIBOR in effect for the immediately
                  preceding Interest Payment Period.

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

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

                                      -17-
<PAGE>

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

         SECTION 2.11. Extension of Interest Payment Period.

         So long as no Event of Default leading to an acceleration event
pursuant to paragraphs (c), (e) (f) or (g) of Section 5.01 of the Indenture has
occurred and is continuing, the Company shall have the right under the
Indenture, from time to time and without causing an Event of Default, to defer
payments of interest on the Debt Securities by extending the interest
distribution period on the Debt Securities at any time and from time to time
during the term of the Debt Securities, for up to twenty consecutive quarterly
periods (each such extended interest distribution period, an "Extension
Period"), during which Extension Period no interest shall be due and payable
(except any Additional Interest that may be due and payable). No Extension
Period may end on a date other than an Interest Payment Date or extend beyond
the Maturity Date, any Redemption Date (to the extent redeemed) or any Special
Redemption Date. During any Extension Period, interest will continue to accrue
on the Debt Securities, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as "Deferred Interest") will
accrue at an annual rate equal to the Interest Rate applicable during such
Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent
permitted by law. No interest or Deferred Interest shall be due and payable
during an Extension Period, except at the end thereof. At the end of any such
Extension Period the Company shall pay all Deferred Interest then accrued and
unpaid on the Debt Securities; provided, however, that no Extension Period may
extend beyond the Maturity Date, Redemption Date (to the extent redeemed) or
Special Redemption Date; and provided further, however, that during any such
Extension Period, the Company shall be subject to the restrictions set forth in
Section 3.08 of this Indenture. Prior to the termination of any Extension
Period, the Company may further extend such period, provided, that such period
together with all such previous and further consecutive extensions thereof shall
not exceed twenty consecutive quarterly periods, or extend beyond the Maturity
Date, Redemption Date (to the extent redeemed) or Special Redemption Date. Upon
the termination of any Extension Period and upon the payment of all Deferred
Interest, the Company may commence a new Extension Period, subject to the
foregoing requirements. The Company must give the Trustee notice of its election
to begin such Extension Period ("Notice") not later than the related regular
record date for the relevant Interest Payment Date. The Notice shall describe,
in reasonable detail, why the Company has elected to begin an Extension Period.
The Notice shall acknowledge and affirm the Company's understanding that it is
prohibited from issuing dividends and other distributions during the Extension
Period. Upon receipt of the Notice, an Initial Purchaser shall have the right,
at its sole discretion, to disclose the name of the Company, the fact that the
Company has elected to begin an Extension Period and other information that such
Initial Purchaser, at its sole discretion, deems relevant to the Company's
election to begin an Extension Period. The Trustee shall give notice of the
Company's election to begin a new Extension Period to the Securityholders.

                                      -18-
<PAGE>

         SECTION 2.12. CUSIP Numbers.

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

         SECTION 2.13. Global Debentures.

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

         (b)      Notwithstanding any other provision in this Indenture, no
                  Global Debenture may be exchanged in whole or in part for Debt
                  Securities registered, and no transfer of a Global Debenture
                  in whole or in part may be registered, in the name of any
                  Person other than the Depositary for such Global Debenture or
                  a nominee thereof unless (i) such Depositary advises the
                  Trustee and the Company in writing that such Depositary is no
                  longer willing or able to properly discharge its
                  responsibilities as Depositary with respect to such Global
                  Debenture, and no qualified successor is appointed by the
                  Company within ninety (90) days of receipt by the Company of
                  such notice, (ii) such Depositary ceases to be a clearing
                  agency registered under the Exchange Act and no successor is
                  appointed by the Company within ninety (90) days after
                  obtaining knowledge of such event, (iii) the Company executes
                  and delivers to the Trustee a company order stating that the
                  Company elects to terminate the book-entry system through the
                  Depositary or (iv) an Event of Default shall have occurred and
                  be continuing. Upon the occurrence of any event specified in
                  clause (i), (ii), (iii) or (iv) above, the Trustee shall
                  notify the Depositary and instruct the Depositary to notify
                  all owners of beneficial interests in such Global Debenture of
                  the occurrence of such event and of the availability of Debt
                  Securities to such owners of beneficial interests requesting
                  the same. Upon the issuance of such Debt Securities and the
                  registration in the Debt Security Register of such Debt
                  Securities in the names of the holders of the beneficial
                  interests therein, the Trustee shall recognize such holders of
                  beneficial interests as holders thereof.

         (c)      If any Global Debenture is to be exchanged for other Debt
                  Securities or canceled in part, or if another Debt Security is
                  to be exchanged in whole or in part for a

                                      -19-
<PAGE>

                  beneficial interest in any Global Debenture, then either (i)
                  such Global Debenture shall be so surrendered for exchange or
                  cancellation as provided in this Article II or (ii) the
                  principal amount thereof shall be reduced or increased by an
                  amount equal to the portion thereof to be so exchanged or
                  canceled, or equal to the principal amount of such other Debt
                  Security to be so exchanged for a beneficial interest therein,
                  as the case may be, by means of an appropriate adjustment made
                  on the records of the Debt Security registrar, whereupon the
                  Trustee, in accordance with the applicable depository
                  procedures, shall instruct the Depositary or its authorized
                  representative to make a corresponding adjustment to its
                  records. Upon any such surrender or adjustment of a Global
                  Debenture by the Depositary, accompanied by registration
                  instructions, the Company shall execute and the Trustee shall
                  authenticate and deliver any Debt Securities issuable in
                  exchange for such Global Debenture (or any portion thereof) in
                  accordance with the instructions of the Depositary. The
                  Trustee shall not be liable for any delay in delivery of such
                  instructions and may conclusively rely on, and shall be fully
                  protected in relying on, such instructions.

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

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

         (f)      The Depositary or its nominee, as the registered owner of a
                  Global Debenture, shall be the holder of such Global Debenture
                  for all purposes under this Indenture and the Debt Securities,
                  and owners of beneficial interests in a Global Debenture shall
                  hold such interests pursuant to the Applicable Depository
                  Procedures. Accordingly, any such owner's beneficial interest
                  in a Global Debenture shall be shown only on, and the transfer
                  of such interest shall be effected only through, records
                  maintained by the Depositary or its nominee or its Depositary
                  Participants. The Debt Securities registrar and the Trustee
                  shall be entitled to deal with the Depositary for all purposes
                  of this Indenture relating to a Global Debenture (including
                  the payment of principal and interest thereon and the giving
                  of instructions or directions by owners of beneficial
                  interests therein and the giving of notices) as the sole
                  holder of the Debt Security and shall have no

                                      -20-
<PAGE>

                  obligations to the owners of beneficial interests therein.
                  Neither the Trustee nor the Debt Securities registrar shall
                  have any liability in respect of any transfers affected by the
                  Depositary.

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

         (h)      No holder of any beneficial interest in any Global Debenture
                  held on its behalf by a Depositary shall have any rights under
                  this Indenture with respect to such Global Debenture, and such
                  Depositary may be treated by the Company, the Trustee and any
                  agent of the Company or the Trustee as the owner of such
                  Global Debenture for all purposes whatsoever. None of the
                  Company, the Trustee nor any agent of the Company or the
                  Trustee will have any responsibility or liability for any
                  aspect of the records relating to or payments made on account
                  of beneficial ownership interests of a Global Debenture or
                  maintaining, supervising or reviewing any records relating to
                  such beneficial ownership interests. Notwithstanding the
                  foregoing, nothing herein shall prevent the Company, the
                  Trustee or any agent of the Company or the Trustee from giving
                  effect to any written certification, proxy or other
                  authorization furnished by a Depositary or impair, as between
                  a Depositary and such holders of beneficial interests, the
                  operation of customary practices governing the exercise of the
                  rights of the Depositary (or its nominee) as holder of any
                  Debt Security.

                                  ARTICLE III

                       PARTICULAR COVENANTS OF THE COMPANY

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

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

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

                                      -21-
<PAGE>

                  successor form) establishing its non-U.S. status for U.S.
                  federal income tax purposes.

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

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

         SECTION 3.02. Offices for Notices and Payments, etc.

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

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

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

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

                                      -22-
<PAGE>

         SECTION 3.04. Provision as to Paying Agent.

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

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

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

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

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

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

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

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

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

                                      -23-
<PAGE>

         SECTION 3.05. Certificate to Trustee.

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

         SECTION 3.06. Additional Interest.

         If and for so long as the Trust is the holder of all Debt Securities
and is subject to or otherwise required to pay, or is required to withhold from
distributions to holders of Trust Securities, any additional taxes (including
withholding taxes), duties, assessments or other governmental charges as a
result of a Tax Event, the Company will pay such additional amounts (the
"Additional Interest") on the Debt Securities as shall be required so that the
net amounts received and retained by the Trust for distribution to holders of
Trust Securities after paying all taxes (including withholding taxes on
distributions to holders of Trust Securities), duties, assessments or other
governmental charges will be equal to the amounts the Trust would have received
and retained for distribution to holders of Trust Securities after paying all
taxes (including withholding taxes on distributions to holders of Trust
Securities), duties, assessments or other governmental charges if no such
additional taxes, duties, assessments or other governmental charges had been
imposed. Whenever in this Indenture or the Debt Securities there is a reference
in any context to the payment of principal of or premium, if any, or interest on
the Debt Securities, such mention shall be deemed to include mention of payments
of the Additional Interest provided for in this paragraph to the extent that, in
such context, Additional Interest is, was or would be payable in respect thereof
pursuant to the provisions of this paragraph and express mention of the payment
of Additional Interest (if applicable) in any provisions hereof shall not be
construed as excluding Additional Interest in those provisions hereof where such
express mention is not made, provided, however, that notwithstanding anything to
the contrary contained in this Indenture or any Debt Security, the deferral of
the payment of interest during an Extension Period pursuant to Section 2.11
shall not defer the payment of any Additional Interest that may be due and
payable.

         SECTION 3.07. Compliance with Consolidation Provisions.

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

         SECTION 3.08. Limitation on Dividends.

         If Debt Securities are initially issued to the Trust or a trustee of
such Trust in connection with the issuance of Trust Securities by the Trust
(regardless of whether Debt Securities continue to be held by such Trust) and
(i) there shall have occurred and be continuing an Event of Default,

                                      -24-
<PAGE>

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

         SECTION 3.09. Covenants as to the Trust.

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

                                      -25-
<PAGE>

                                   ARTICLE IV

                LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

         SECTION 4.01. Securityholders' Lists.

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

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

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

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

         SECTION 4.02. Preservation and Disclosure of Lists.

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

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

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

         (2)      inform such applicants as to the approximate number of holders
                  of Debt Securities whose names and addresses appear in the
                  information preserved at the time by the Trustee in accordance
                  with the provisions of subsection (a) of this Section 4.02,
                  and as to the approximate cost of mailing to such
                  Securityholders

                                      -26-
<PAGE>

                  the form of proxy or other communication, if any, specified in
                  such application.

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

         (c)      Each and every holder of Debt Securities, by receiving and
                  holding the same, agrees with the Company and the Trustee that
                  neither the Company nor the Trustee nor any Paying Agent shall
                  be held accountable by reason of the disclosure of any such
                  information as to the names and addresses of the holders of
                  Debt Securities in accordance with the provisions of
                  subsection (b) of this Section 4.02, regardless of the source
                  from which such information was derived, and that the Trustee
                  shall not be held accountable by reason of mailing any
                  material pursuant to a request made under said subsection (b).

         SECTION 4.03. Financial and Other Information.

         The Company shall deliver to each Securityholder (1) each Report on
Form 10-K and Form 10-Q prepared by the Company and filed with the Securities
and Exchange Commission in accordance with the Exchange Act within 7 days after
the filing thereof, (2) if the Company is not then (y) subject to Section 13 or
15(d) of the Exchange Act or (z) exempt from reporting pursuant to Rule
12g3-2(b) thereunder, the Company shall be required to provide within 45 days of
the end of each calendar quarterly period and 90 days after the end of each
calendar year, the information required to be provided by Rule 144A(d)(4) under
the Securities Act and (3) within 30 days after the end of the fiscal year of
the Company, Form 1099 or such other annual U.S. federal income tax information
statement required by the Code containing such information with regard to the
Debt Securities held by such holder as is required by the Code and the income
tax regulations of the U.S. Treasury thereunder.

         The Company will cause copies of its regulatory reports to be delivered
to the Holder promptly following their filing with the Federal Reserve.

                                      -27-
<PAGE>

                                   ARTICLE V

      REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

         SECTION 5.01. Events of Default.

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

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

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

         (c)      the Company defaults in the payment of any interest upon any
                  Debt Security when it becomes due and payable following the
                  nonpayment of any such interest for 20 or more consecutive
                  quarterly periods; or

         (d)      the Company defaults in the performance of, or breaches, any
                  of its covenants or agreements in Sections 3.06, 3.07, 3.08 or
                  3.09 of this Indenture, and continuance of such default or
                  breach for a period of 30 days after there has been given, by
                  registered or certified mail, to the Company by the Trustee or
                  to the Company and the Trustee by the holders of not less than
                  25% in aggregate principal amount of the outstanding Debt
                  Securities, a written notice specifying such default or breach
                  and requiring it to be remedied and stating that such notice
                  is a "Notice of Default" hereunder; or

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

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

                                      -28-
<PAGE>

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

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

         If an Event of Default specified under clause (c) of this Section 5.01
occurs and is continuing with respect to the Debt Securities, then, and in each
and every such case, unless the principal of the Debt Securities shall have
already become due and payable, either the Trustee or the holders of not less
than 25% in aggregate principal amount of the Debt Securities then outstanding
hereunder, by notice in writing to the Company (and to the Trustee if given by
Securityholders), may declare the entire principal of the Debt Securities and
any premium and interest accrued, but unpaid, thereon, if any, to be due and
payable immediately, and upon any such declaration the same shall become
immediately due and payable. If an Event of Default specified under clause (e),
(f) or (g) of this Section 5.01 occurs, then, in each and every such case, the
entire principal amount of the Debt Securities and any premium and interest
accrued, but unpaid, thereon shall ipso facto become immediately due and payable
without further action. Notwithstanding anything to the contrary in this Section
5.01, if at any time during the period in which this Indenture remains in force
and effect, the Company ceases or elects to cease to be subject to the
supervision and regulations of the Federal Reserve, OTS, OCC or similar
regulatory authority overseeing bank, thrift, savings and loan or financial
holding companies or similar institutions requiring specifications for the
treatment of capital similar in nature to the capital adequacy guidelines under
the Federal Reserve rules and regulations, then the first sentence of this
paragraph shall be deemed to include clauses (a), (b) and (d) under this Section
5.01 as an Event of Default resulting in an acceleration of payment of the Debt
Securities to the same extent as provided herein for clause (c).

         Anything in this Section 5.01 to the contrary notwithstanding, if an
Event of Default specified under clause (d) occurs and is continuing, then, and
in each and every such case, the Trustee, in its own name and as trustee of an
express trust, shall pursue all available remedies at law and/or equity against
the Company. The Company acknowledges and affirms that in the event of breach of
such covenants and agreements referenced in clause (d) of this Section 5.01, the
damages to the holders of the Debt Securities and the Capital Securities may be
difficult or impossible to ascertain. Therefore, in addition to any remedies
available at law for breach of any or all of said covenants or agreements, the
holders of the Debt Securities and the Capital Securities shall be entitled to
injunctive or other equitable relief in connection with the violation of any
such covenants or agreements referenced in Section 5.01(d).

         The foregoing provisions, however, are subject to the condition that
if, at any time after the principal of the Debt Securities shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, (i)
the Company shall pay or shall deposit with the Trustee a sum sufficient to pay
all matured installments of interest upon all the Debt Securities and all
payments on the

                                      -29-
<PAGE>

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

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

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

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

         In case there shall be pending proceedings for the bankruptcy or for
the reorganization of the Company or any other obligor on the Debt Securities
under Bankruptcy Law, or in case a receiver or trustee shall have been appointed
for the property of the Company or such other obligor, or in the case of any
other similar judicial proceedings relative to the Company or other obligor upon
the Debt Securities, or to the creditors or property of the Company or such
other obligor, the Trustee, irrespective of whether the principal of the Debt
Securities shall then be due

                                      -30-
<PAGE>

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

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

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

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

         SECTION 5.03. Application of Moneys Collected by Trustee.

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

                                      -31-
<PAGE>

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

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

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

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

         SECTION 5.04. Proceedings by Securityholders.

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

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

         SECTION 5.05. Proceedings by Trustee.

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

         SECTION 5.06. Remedies Cumulative and Continuing.

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

                                      -32-
<PAGE>

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

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

                                      -33-
<PAGE>

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

         SECTION 5.08. Notice of Defaults.

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

         SECTION 5.09. Undertaking to Pay Costs.

         All parties to this Indenture agree, and each holder of any Debt
Security by such holder's acceptance thereof shall be deemed to have agreed,
that any court may in its discretion require, in any suit for the enforcement of
any right or remedy under this Indenture, or in any suit against the Trustee for
any action taken or omitted by it as Trustee, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit, and that such
court may in its discretion assess reasonable costs, including reasonable
attorneys' fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section 5.09 shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Securityholder, or
group of Securityholders, holding in the aggregate more than 10% in principal
amount of the Debt Securities (or, if such Debt Securities are held by the Trust
or a trustee of the Trust, more than 10% in liquidation amount of the
outstanding Capital Securities), to any suit instituted by any Securityholder
for the enforcement of the payment of the principal of (or premium, if any) or
interest on any Debt Security against the Company on or after the same shall
have become due and payable, or to any suit instituted in accordance with
Section 14.12.

                                      -34-
<PAGE>

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

         SECTION 6.01. Duties and Responsibilities of Trustee.

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

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

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

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

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

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

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

                                      -35-
<PAGE>

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

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

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

         SECTION 6.02. Reliance on Documents, Opinions, etc.

         Except as otherwise provided in Section 6.01:

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

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

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

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

         (e)      the Trustee shall not be liable for any action taken or
                  omitted by it in good faith and reasonably believed by it to
                  be authorized or within the discretion or rights or powers
                  conferred upon it by this Indenture; nothing contained herein
                  shall,

                                      -36-
<PAGE>

                  however, relieve the Trustee of the obligation, upon the
                  occurrence of an Event of Default with respect to the Debt
                  Securities (that has not been cured or waived) to exercise
                  with respect to the Debt Securities such of the rights and
                  powers vested in it by this Indenture, and to use the same
                  degree of care and skill in their exercise, as a prudent
                  person would exercise or use under the circumstances in the
                  conduct of such person's own affairs;

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

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

         SECTION 6.03. No Responsibility for Recitals, etc.

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

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

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

         SECTION 6.05. Moneys to be Held in Trust.

         Subject to the provisions of Section 12.04, all moneys received by the
Trustee or any Paying Agent shall, until used or applied as herein provided, be
held in trust for the purpose for

                                      -37-
<PAGE>

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

         SECTION 6.06. Compensation and Expenses of Trustee.

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

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

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

                                      -38-
<PAGE>

         SECTION 6.07. Officers' Certificate as Evidence.

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

         SECTION 6.08. Eligibility of Trustee.

         The Trustee hereunder shall at all times be a U.S. Person that is a
banking corporation or national association organized and doing business under
the laws of the United States of America or any state thereof or of the District
of Columbia and authorized under such laws to exercise corporate trust powers,
having a combined capital and surplus of at least fifty million U.S. dollars
($50,000,000) and subject to supervision or examination by federal, state, or
District of Columbia authority. If such corporation or national association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 6.08 the combined capital and surplus of such
corporation or national association shall be deemed to be its combined capital
and surplus as set forth in its most recent records of condition so published.

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

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

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

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

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

                                      -39-
<PAGE>

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

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

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

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

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

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

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

         (d)      Any resignation or removal of the Trustee, the Calculation
                  Agent, the Paying Agent and any Debt Security Registrar and
                  appointment of a successor pursuant

                                      -40-
<PAGE>

                  to any of the provisions of this Section 6.09 shall become
                  effective upon acceptance of appointment by the successor as
                  provided in Section 6.10.

         SECTION 6.10. Acceptance by Successor.

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

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

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

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

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

                                      -41-
<PAGE>

         SECTION 6.11. Succession by Merger, etc.

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

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

         SECTION 6.12. Authenticating Agents.

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

         Any Person into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, consolidation or conversion to which any Authenticating Agent shall be a
party, or any Person succeeding to all or substantially all of the corporate
trust business of any Authenticating Agent, shall be the successor of such
Authenticating Agent hereunder, if such successor Person is otherwise eligible

                                      -42-
<PAGE>

under this Section 6.12 without the execution or filing of any paper or any
further act on the part of the parties hereto or such Authenticating Agent.

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

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

                                  ARTICLE VII

                         CONCERNING THE SECURITYHOLDERS

         SECTION 7.01. Action by Securityholders.

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

         If the Company shall solicit from the Securityholders any request,
demand, authorization, direction, notice, consent, waiver or other action or
revocation of the same, the Company may, at its option, as evidenced by an
Officers' Certificate, fix in advance a record date for such Debt

                                      -43-
<PAGE>

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

         SECTION 7.02. Proof of Execution by Securityholders.

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

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

         SECTION 7.03. Who Are Deemed Absolute Owners.

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

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

         In determining whether the holders of the requisite aggregate principal
amount of Debt Securities have concurred in any direction, consent or waiver
under this Indenture, Debt Securities which are owned by the Company or any
other obligor on the Debt Securities or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common

                                      -44-
<PAGE>

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

         SECTION 7.05. Revocation of Consents; Future Securityholders Bound.

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

                                  ARTICLE VIII

                            SECURITYHOLDERS' MEETINGS

         SECTION 8.01. Purposes of Meetings.

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

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

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

                                      -45-
<PAGE>

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

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

         SECTION 8.02. Call of Meetings by Trustee.

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

         SECTION 8.03. Call of Meetings by Company or Securityholders.

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

         SECTION 8.04. Qualifications for Voting.

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

         SECTION 8.05. Regulations.

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

                                      -46-
<PAGE>

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

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

         SECTION 8.06. Voting.

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

         SECTION 8.07. Quorum; Actions.

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

                                      -47-
<PAGE>

appointed for any such meeting, the meeting shall, if convened at the request of
Securityholders, be dissolved. In any other case the meeting may be adjourned
for a period of not less than 10 days as determined by the permanent chairman of
the meeting prior to the adjournment of such meeting. In the absence of a quorum
at any such adjourned meeting, such adjourned meeting may be further adjourned
for a period of not less than 10 days as determined by the permanent chairman of
the meeting prior to the adjournment of such adjourned meeting. Notice of the
reconvening of any adjourned meeting shall be given as provided in Section 8.02,
except that such notice need be given only once not less than five days prior to
the date on which the meeting is scheduled to be reconvened. Notice of the
reconvening of an adjourned meeting shall state expressly the percentage, as
provided above, of the outstanding principal amount of the Debt Securities which
shall constitute a quorum.

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

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

         SECTION 8.08. Written Consent Without a Meeting.

         Whenever under this Indenture, Securityholders are required or
permitted to take any action by vote, such action may be taken without a meeting
on written consent, setting forth the action so taken, signed by the
Securityholders of all outstanding Debt Securities entitled to vote thereon. No
consent shall be effective to take the action referred to therein unless, within
sixty days of the earliest dated consent delivered in the manner required by
this paragraph to the Trustee, written consents signed by a sufficient number of
Securityholders to take action are delivered to the Trustee at its Principal
Office. Delivery made to the Trustee at its Principal Office, shall be by hand
or by certificated or registered mail, return receipt requested. Written consent
thus given by the Securityholders of such number of Debt Securities as is
required hereunder, shall have the same effect as a valid vote of
Securityholders of such number of Debt Securities.

                                      -48-
<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

         SECTION 9.01. Supplemental Indentures without Consent of
Securityholders.

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

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

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

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

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

                                      -49-
<PAGE>

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

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

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

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

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

         SECTION 9.02. Supplemental Indentures with Consent of Securityholders.

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

                                      -50-
<PAGE>

the Debt Securities are held by the Trust or a trustee of such trust, such
supplemental indenture shall not be effective until the holders of a majority in
Liquidation Amount of the outstanding Capital Securities shall have consented to
such supplemental indenture; provided, further, that if the consent of the
Securityholder of each outstanding Debt Security is required, such supplemental
indenture shall not be effective until each holder of the outstanding Capital
Securities shall have consented to such supplemental indenture.

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

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

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

         SECTION 9.03. Effect of Supplemental Indentures.

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

         SECTION 9.04. Notation on Debt Securities.

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

                                      -51-
<PAGE>

         SECTION 9.05. Evidence of Compliance of Supplemental Indenture to be
furnished to Trustee.

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

                                   ARTICLE X

                            REDEMPTION OF SECURITIES

         SECTION 10.01. Optional Redemption.

         At any time the Company shall have the right, subject to the receipt by
the Company of prior approval from any regulatory authority with jurisdiction
over the Company if such approval is then required under applicable capital
guidelines or policies of such regulatory authority, to redeem the Debt
Securities, in whole or (provided that all accrued and unpaid interest has been
paid on all Debt Securities for all Interest Payment Periods terminating on or
prior to such date) from time to time in part, on any January 7, April 7, July 7
or October 7 on or after October 7, 2011 (the "Redemption Date"), at the
Redemption Price.

         SECTION 10.02. Special Event Redemption.

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

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

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

                                      -52-
<PAGE>

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

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

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

         SECTION 10.04. Payment of Debt Securities Called for Redemption.

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

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

                                      -53-
<PAGE>

                                   ARTICLE XI

                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

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

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

         SECTION 11.02. Successor Entity to be Substituted.

         In case of any such consolidation, merger, sale, conveyance, transfer
or other disposition contemplated in Section 11.01 and upon the assumption by
the successor entity, by supplemental indenture, executed and delivered to the
Trustee and reasonably satisfactory in form to the Trustee, of the due and
punctual payment of the principal of and premium, if any, and interest on

                                      -54-
<PAGE>

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

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

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

                                  ARTICLE XII

                     SATISFACTION AND DISCHARGE OF INDENTURE

         SECTION 12.01. Discharge of Indenture.

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

                                      -55-
<PAGE>

Securities (1) theretofore repaid to the Company in accordance with the
provisions of Section 12.04, or (2) paid to any state or to the District of
Columbia pursuant to its unclaimed property or similar laws, and if in the case
of either clause (a) or clause (b) the Company shall also pay or cause to be
paid all other sums payable hereunder by the Company, then this Indenture shall
cease to be of further effect except for the provisions of Sections 2.05, 2.06,
3.01, 3.02, 3.04, 6.06, 6.09 and 12.04 hereof, which shall survive until such
Debt Securities shall mature or are redeemed, as the case may be, and are paid
in full. Thereafter, Sections 6.06, 6.09 and 12.04 shall survive, and the
Trustee, on demand of the Company accompanied by an Officers' Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the satisfaction and discharge of this Indenture have been
complied with, and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction of and discharging this Indenture, the
Company, however, hereby agreeing to reimburse the Trustee for any costs or
expenses thereafter reasonably and properly incurred by the Trustee in
connection with this Indenture or the Debt Securities.

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

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

         SECTION 12.03. Paying Agent to Repay Moneys Held.

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

         SECTION 12.04. Return of Unclaimed Moneys.

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

                                      -56-
<PAGE>

                                  ARTICLE XIII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

         SECTION 13.01. Indenture and Debt Securities Solely Corporate
Obligations.

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

                                  ARTICLE XIV

                            MISCELLANEOUS PROVISIONS

         SECTION 14.01. Successors.

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

         SECTION 14.02. Official Acts by Successor Entity.

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

         SECTION 14.03. Surrender of Company Powers.

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

         SECTION 14.04. Addresses for Notices, etc.

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

                                      -57-
<PAGE>

Monroe Bancorp
210 E. Kirkwood Avenue
Bloomington, Indiana 47408
Attention:  Gordon M. Dyott

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

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

         SECTION 14.05. Governing Law.

         This Indenture and each Debt Security shall be deemed to be a contract
made under the law of the State of New York, and for all purposes shall be
governed by and construed in accordance with the law of said State, without
regard to conflict of laws principles of said State other than Section 5 1401 of
the New York General Obligations Law.

         SECTION 14.06. Evidence of Compliance with Conditions Precedent.

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

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

         SECTION 14.07. Non-Business Days.

         Notwithstanding anything to the contrary contained herein, if any
Interest Payment Date, other than on the Maturity Date, any Redemption Date or
the Special Redemption Date, falls on a day that is not a Business Day, then any
interest payable will be paid on, and such Interest Payment Date will be moved
to, the next succeeding Business Day, and additional interest will

                                      -58-
<PAGE>

accrue for each day that such payment is delayed as a result thereof. If the
Maturity Date, any Redemption Date or the Special Redemption Date falls on a day
that is not a Business Day, then the principal, premium, if any, and/or interest
payable on such date will be paid on the next succeeding Business Day, and no
additional interest will accrue in respect of such payment made on such next
succeeding Business Day (except that, if such Business Day falls in the next
calendar year, such payment will be made on the immediately preceding Business
Day).

         SECTION 14.08. Table of Contents, Headings, etc.

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

         SECTION 14.09. Execution in Counterparts.

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

         SECTION 14.10. Severability.

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

         SECTION 14.11. Assignment.

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

         SECTION 14.12. Acknowledgment of Rights.

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

                                      -59-
<PAGE>

(or in the case of redemption, on the redemption date), the Company acknowledges
that a holder of record of Capital Securities of the Trust may directly
institute a proceeding against the Company for enforcement of payment to such
holder directly of the principal of (or premium, if any) or interest on the Debt
Securities having an aggregate principal amount equal to the aggregate
Liquidation Amount of the Capital Securities of such holder on or after the
respective due date specified in the Debt Securities.

                                   ARTICLE XV

                        SUBORDINATION OF DEBT SECURITIES

         SECTION 15.01. Agreement to Subordinate.

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

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

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

         SECTION 15.02. Default on Senior Indebtedness.

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

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

                                      -60-
<PAGE>

         SECTION 15.03. Liquidation; Dissolution; Bankruptcy.

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

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

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

                                      -61-
<PAGE>

or substantially as an entirety, to another corporation upon the terms and
conditions provided for in Article XI of this Indenture shall not be deemed a
dissolution, winding-up, liquidation or reorganization for the purposes of this
Section 15.03 if such other corporation shall, as a part of such consolidation,
merger, conveyance or transfer, comply with the conditions stated in Article XI
of this Indenture. Nothing in Section 15.02 or in this Section 15.03 shall apply
to claims of, or payments to, the Trustee under or pursuant to Section 6.06 of
this Indenture.

         SECTION 15.04. Subrogation.

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

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

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

                                      -62-
<PAGE>

         SECTION 15.05. Trustee to Effectuate Subordination.

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

         SECTION 15.06. Notice by the Company.

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

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

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

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

                                      -63-
<PAGE>

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

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

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

         SECTION 15.08. Subordination May Not Be Impaired.

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

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

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

                                      -64-
<PAGE>

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

                             Monroe Bancorp

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

                             Wells Fargo Bank, National Association,
                             as Trustee

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

<PAGE>

EXHIBIT A

                    FORM OF JUNIOR SUBORDINATED DEBT SECURITY
                                    DUE 2036

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

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

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

<PAGE>

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

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

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

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

<PAGE>

               Form of Junior Subordinated Debt Security due 2036

                                       of

                                 Monroe Bancorp

         Monroe Bancorp, a bank holding company incorporated in Indiana (the
"Company"), for value received promises to pay to Wells Fargo Bank, National
Association, not in its individual capacity but solely as Institutional Trustee
for Monroe Bancorp Capital Trust I, a Delaware statutory trust (the "Holder"),
or registered assigns, the principal sum of Three Million Ninety Three Thousand
Dollars on October 7, 2036 and to pay interest on said principal sum from July
24, 2006, or from the most recent interest payment date (each such date, an
"Interest Payment Date") to which interest has been paid or duly provided for,
quarterly (subject to deferral as set forth herein) in arrears on January 7,
April 7, July 7 and October 7 of each year commencing October 7, 2006, at the
rate of 7.1475% (the "Fixed Rate") per annum until October 7, 2011 (the "Fixed
Rate Period") and thereafter at a variable per annum rate equal to LIBOR (as
defined in the Indenture) plus 1.60% (the "Variable Rate") ("Interest Rate" is
defined to include the Fixed Rate and the Variable Rate, as applicable)
(provided, however, that the Interest Rate for any Interest Payment Period may
not exceed the highest rate permitted by New York law, as the same may be
modified by United States law of general applicability) until the principal
hereof shall have become due and payable, and on any overdue principal and
(without duplication and to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at an
annual rate equal to the Interest Rate in effect for each such Extension Period
compounded quarterly. The amount of interest payable on any Interest Payment
Date shall be computed during the Fixed Rate Period on the basis of a 360-day
year of twelve 30-day months, and thereafter on the basis of a 360-day year and
the actual number of days elapsed in the relevant interest period.
Notwithstanding anything to the contrary contained herein, if any Interest
Payment Date, other than on the Maturity Date, any Redemption Date or the
Special Redemption Date, falls on a day that is not a Business Day, then any
interest payable will be paid on, and such Interest Payment Date will be moved
to, the next succeeding Business Day, and additional interest will accrue for
each day that such payment is delayed as a result thereof. If the Maturity Date,
any Redemption Date or the Special Redemption Date falls on a day that is not a
Business Day, then the principal, premium, if any, and/or interest payable on
such date will be paid on the next succeeding Business Day, and no additional
interest will accrue (except that, if such Business Day falls in the next
calendar year, such payment will be made on the immediately preceding Business
Day). The interest installment so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in the Indenture, be paid to
the Person in whose name this Debt Security (or one or more Predecessor
Securities, as defined in said Indenture) is registered at the close of business
on the regular record date for such interest installment, except that interest
and any Deferred Interest payable on the Maturity Date shall be paid to the
Person to whom principal is paid. Any such interest installment not punctually
paid or duly provided for shall forthwith cease to be payable to the registered
holders on such regular record date and may be paid to the Person in whose name
this Debt Security (or one or more Predecessor Debt Securities) is registered at
the close of business on a special record date to be fixed by the Trustee for
the payment of such defaulted interest, notice whereof shall be given to the
registered holders of the Debt Securities not less than 10 days prior to such
special record date, all as more fully provided in the Indenture. The principal

<PAGE>

of and interest on this Debt Security shall be payable at the office or agency
of the Trustee (or other Paying Agent appointed by the Company) maintained for
that purpose in any coin or currency of the United States of America that at the
time of payment is legal tender for payment of public and private debts;
provided, however, that payment of interest may be made at the option of the
Company by check mailed to the registered holder at such address as shall appear
in the Debt Security Register or by wire transfer of immediately available funds
to an account appropriately designated by the holder hereof. Notwithstanding the
foregoing, so long as the holder of this Debt Security is the Institutional
Trustee, the payment of the principal of and premium, if any, and interest on
this Debt Security shall be made in immediately available funds when due at such
place and to such account as may be designated by the Institutional Trustee. All
payments in respect of this Debt Security shall be payable in any coin or
currency of the United States of America that at the time of payment is legal
tender for payment of public and private debts.

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

<PAGE>

any class or series of the Company's capital stock, (c) the purchase of
fractional interests in shares of the Company's capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged, (d) any declaration of a dividend in connection with any
stockholder's rights plan, or the issuance of rights, stock or other property
under any stockholder's rights plan, or the redemption or repurchase of rights
pursuant thereto, or (e) any dividend in the form of stock, warrants, options or
other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks pari passu with or junior to such stock). Prior
to the termination of any Extension Period, the Company may further extend such
period, provided, that such period together with all such previous and further
consecutive extensions thereof shall not exceed 20 consecutive quarterly
periods, or extend beyond the Maturity Date, Redemption Date (to the extent
redeemed) or Special Redemption Date. Upon the termination of any Extension
Period and upon the payment of all Deferred Interest, the Company may commence a
new Extension Period, subject to the foregoing requirements. No interest or
Deferred Interest shall be due and payable during an Extension Period, except at
the end thereof, but Deferred Interest shall accrue upon each installment of
interest that would otherwise have been due and payable during such Extension
Period until such installment is paid. The Company must give the Trustee notice
of its election to begin or extend an Extension Period ("Notice") not later than
the related regular record date for the relevant Interest Payment Date. The
Notice shall describe, in reasonable detail, why the Company has elected to
begin an Extension Period. The Notice shall acknowledge and affirm the Company's
understanding that it is prohibited from issuing dividends and other
distributions during the Extension Period. Upon receipt of the Notice, an
Initial Purchaser shall have the right, at its sole discretion, to disclose the
name of the Company, the fact that the Company has elected to begin an Extension
Period and other information that such Initial Purchaser, at its sole
discretion, deems relevant to the Company's election to begin an Extension
Period. The Trustee shall give notice of the Company's election to begin a new
Extension Period to the Securityholders.

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

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

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

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

<PAGE>

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

                                        Monroe Bancorp

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

Dated:__________________, 2006

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

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

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

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

Dated:__________________, 2006

<PAGE>

                          [FORM OF REVERSE OF SECURITY]

         This Debt Security is one of a duly authorized series of Debt
Securities of the Company, all issued or to be issued pursuant to an Indenture
(the "Indenture"), dated as of July 24, 2006, duly executed and delivered
between the Company and Wells Fargo Bank, National Association, as Trustee (the
"Trustee"), to which Indenture and all indentures supplemental thereto reference
is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee, the Company and
the holders of the Debt Securities (referred to herein as the "Debt Securities")
of which this Debt Security is a part. The summary of the terms of this Debt
Security contained herein does not purport to be complete and is qualified by
reference to the Indenture.

         Upon the occurrence and continuation of a Tax Event, an Investment
Company Event or a Capital Treatment Event (each a "Special Event"), this Debt
Security may become due and payable, in whole or in part, at any time, within 90
days following the occurrence of such Tax Event, Investment Company Event or
Capital Treatment Event (the "Special Redemption Date"), as the case may be, at
the Special Redemption Price. In the event that the Special Redemption Date
falls on a day after the Fixed Rate Period but prior to the LIBOR Determination
Date for any Interest Payment Period, then the Company shall be required to pay
to Securityholders, on the Business Day following such LIBOR Determination Date,
any additional amount of interest that would have been payable on the Special
Redemption Date had the amount of interest determined on such LIBOR
Determination Date been known on the first day of such Interest Payment Period.
The Company shall also have the right to redeem this Debt Security at the option
of the Company, in whole or in part, on any January 7, April 7, July 7 or
October 7 on or after October 7, 2011 (a "Redemption Date"), at the Redemption
Price.

         Any redemption pursuant to the preceding paragraph will be made,
subject to the receipt by the Company of prior approval from any regulatory
authority with jurisdiction over the Company if such approval is then required
under applicable capital guidelines or policies of such regulatory authority,
upon not less than 30 days' nor more than 60 days' notice. If the Debt
Securities are only partially redeemed by the Company, the Debt Securities will
be redeemed pro rata or by lot or by any other method utilized by the Trustee.

         "Redemption Price" means 100% of the principal amount of the Debt
Securities being redeemed plus accrued and unpaid interest on such Debt
Securities to the Redemption Date or, in the case of a redemption due to the
occurrence of a Special Event, to the Special Redemption Date if such Special
Redemption Date is on or after October 7, 2011.

         "Special Redemption Price" means (1) if the Special Redemption Date is
before October 7, 2011, One Hundred Five Percent (105%) of the principal amount
to be redeemed plus any accrued and unpaid interest thereon to the date of such
redemption and (2) if the Special Redemption Date is on or after October 7,
2011, the Redemption Price for such Special Redemption Date.

<PAGE>

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

         Upon the occurrence of an Event of Default pursuant to paragraphs (c),
(e), (f) or (g), of Section 5.01 of the Indenture, the principal of all of the
Debt Securities may be declared, and in certain cases shall ipso facto become,
due and payable, and upon such acceleration shall become due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.

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

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

<PAGE>

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

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

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

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

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

         THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THE
DEBT SECURITIES, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER
THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

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