Document:

SECOND AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                         Dime Community Capital Trust I

                            Dated as of July 29, 2004

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                                TABLE OF CONTENTS

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                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

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

                                       ARTICLE II
                                  TRUST INDENTURE ACT

Section 2.1.    Trust Indenture Act; Application..............................11
Section 2.2.    List of Holders of Trust Securities...........................11
Section 2.3.    Reports by the Institutional Trustee..........................11
Section 2.4.    Periodic Reports to Institutional Trustee.....................12
Section 2.5.    Evidence of Compliance with Conditions Precedent..............12
Section 2.6.    Events of Default; Waiver.....................................12
Section 2.7.    Default; Notice...............................................13

                                      ARTICLE III
                                      ORGANIZATION

Section 3.1.    Name..........................................................14
Section 3.2.    Office........................................................14
Section 3.3.    Purpose.......................................................14
Section 3.4.    Authority.....................................................14
Section 3.5.    Title to Property of the Trust................................15
Section 3.6.    Powers and Duties of the Trustees and the Administrators......15
Section 3.7.    Prohibition of Actions by the Trust and the Trustees..........20
Section 3.8.    Powers and Duties of the Institutional Trustee................21
Section 3.9.    Certain Duties and Responsibilities of the Trustees and
                the Administrators............................................23
Section 3.10.   Certain Rights of Institutional Trustee.......................25
Section 3.11.   Delaware Trustee..............................................27
Section 3.12.   Execution of Documents........................................27
Section 3.13.   Not Responsible for Recitals or Issuance of Trust Securities..27
Section 3.14.   Duration of Trust.............................................27
Section 3.15.   Mergers.......................................................27

                                       ARTICLE IV
                                        SPONSOR

Section 4.1.    Sponsor's Purchase of Common Securities.......................29
Section 4.2.    Responsibilities of the Sponsor...............................29

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                                       ARTICLE V
                              TRUSTEES AND ADMINISTRATORS

Section 5.1.    Number of Trustees............................................30
Section 5.2.    Delaware Trustee..............................................30
Section 5.3.    Institutional Trustee; Eligibility............................31
Section 5.4.    Administrators................................................31
Section 5.5.    Appointment, Removal and Resignation of the Trustees and
                the Administrators............................................32
Section 5.6.    Vacancies Among Trustees......................................33
Section 5.7.    Effect of Vacancies...........................................34
Section 5.8.    Meetings of the Trustees and the Administrators...............34
Section 5.9.    Delegation of Power...........................................34
Section 5.10.   Merger, Conversion, Consolidation or Succession to Business...35

                                       ARTICLE VI
                                     DISTRIBUTIONS

Section 6.1.    Distributions.................................................35

                                      ARTICLE VII
                              ISSUANCE OF TRUST SECURITIES

Section 7.1.    General Provisions Regarding Trust Securities.................35
Section 7.2.    Paying Agent, Transfer Agent, Calculation Agent and
                Registrar.....................................................36
Section 7.3.    Form and Dating...............................................37
Section 7.4.    Temporary Certificates........................................39
Section 7.5.    Mutilated, Destroyed, Lost or Stolen Certificates.............39
Section 7.6.    Cancellation..................................................40
Section 7.7.    Rights of Holders.............................................40

                                      ARTICLE VIII
                          DISSOLUTION AND TERMINATION OF TRUST

Section 8.1.    Dissolution and Termination of Trust..........................42

                                       ARTICLE IX
                                 TRANSFER OF INTERESTS

Section 9.1.    Transfer of Securities........................................43
Section 9.2.    Transfer Procedures and Restrictions..........................43
Section 9.3.    Deemed Security Holders.......................................51
Section 9.4.    Book-Entry Interests..........................................51
Section 9.5.    Appointment of Successor Clearing Agency......................52

                                    ARTICLE X
   LIMITATION OF LIABILITY OF HOLDERS OF TRUST SECURITIES, TRUSTEES OR OTHERS

Section 10.1.   Liability.....................................................52

                                       ii

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Section 10.2.   Exculpation...................................................52
Section 10.3.   Fiduciary Duty................................................53
Section 10.4.   Indemnification...............................................53
Section 10.5.   Outside Businesses............................................56
Section 10.6.   Compensation; Fee.............................................57

                                       ARTICLE XI
                                       ACCOUNTING

Section 11.1.   Fiscal Year...................................................57
Section 11.2.   Certain Accounting Matters....................................57
Section 11.3.   Banking.......................................................58
Section 11.4.   Withholding...................................................58

                                      ARTICLE XII
                                AMENDMENTS AND MEETINGS

Section 12.1.   Amendments....................................................59
Section 12.2.   Meetings of the Holders of the Trust Securities; Action
                by Written Consent............................................61

                                  ARTICLE XIII
          REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

Section 13.1.   Representations and Warranties of Institutional Trustee.......62
Section 13.2.   Representations and Warranties of Delaware Trustee............63

                                   ARTICLE XIV
                               REGISTRATION RIGHTS

Section 14.1.   Registration Rights Agreement; Liquidated Damages.............64

                                   ARTICLE XV
                                  MISCELLANEOUS

Section 15.1.   Notices.......................................................64
Section 15.2.   Governing Law.................................................65
Section 15.3.   Submission to Jurisdiction....................................66
Section 15.4.   Intention of the Parties......................................66
Section 15.5.   Headings......................................................66
Section 15.6.   Successors and Assigns........................................66
Section 15.7.   Partial Enforceability........................................66
Section 15.8.   Counterparts..................................................67

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                              ANNEXES AND EXHIBITS

ANNEX I         Terms of Fixed Rate, Series A/Series B Capital Securities and
                Common Securities

EXHIBIT A-1-A   Form of Capital Security Certificate, Series A
EXHIBIT A-1-B   Form of Capital Security Certificate, Series B
EXHIBIT A-2     Form of Common Security Certificate
EXHIBIT B       Form of Transferee Certificate to be Executed by Accredited
                Investors
EXHIBIT C       Form of Transferor Certificate to be Executed for QIBs
EXHIBIT D       Form of Transferee Certificate to be Executed by Non-U.S.
                Persons

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                             CROSS-REFERENCE TABLE*

Section of Trust
Indenture Act of                                                  Section of
1939, as Amended                                                 Declaration
----------------                                                 -----------

    310(a)            ......................................          5.3

    310(b)            ......................................    5.3(c), 5.3(d)

    311(a)            ......................................        2.2(b)

    311(b)            ......................................        2.2(b)

    312(a)            ......................................        2.2(a)

    312(b)            ......................................        2.2(b)

     313              ......................................          2.3

    314(a)            ......................................     2.4; 2.7(c);
                                                                 3.6(a)(i)(O)
    314(c)            ......................................          2.5

    315(a)            ......................................      3.6(j); 3.9

    315(b)            ......................................        2.7(a)

    315(c)            ......................................        3.9(a)

    315(d)            ......................................        3.9(b)

    316(a)            ......................................          2.6

    316(c)            ......................................     3.6(a)(i)(M)

    317(a)            ......................................    3.8(e); 3.8(i);
                                                                 3.6(a)(ii)(K)

    317(b)            ......................................      3.8(i); 7.4

     318              ......................................          2.1
------------------

*        This Cross-Reference Table does not constitute part of this Declaration
         and shall not affect the interpretation of any of its terms or
         provisions.

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                SECOND AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                         Dime Community Capital Trust I

                                  July 29, 2004

                  SECOND AMENDED AND RESTATED DECLARATION OF TRUST (as amended
or supplemented from time to time in accordance with the terms hereof, this
"Declaration"), dated and effective as of July 29, 2004, 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 and the Sponsor established
Dime Community Capital Trust I (the "Trust"), a statutory trust created under
the Statutory Trust Act (as defined herein), pursuant to a Declaration of Trust,
dated as of March 11, 2004 (the "Original Declaration"), and a Certificate of
Trust filed with the Secretary of State of the State of Delaware on March 12,
2004, for the sole purpose of issuing and selling the Trust Securities (as
defined herein) representing undivided beneficial interests in the assets of the
Trust, investing the proceeds thereof in the Debt Securities (as defined herein)
of the Debt Security Issuer (as defined herein) and engaging in those activities
necessary, advisable or incidental thereto;

                  WHEREAS, the Trustees and the Sponsor amended and restated the
Original Declaration in its entirety by entering into an Amended and Restated
Declaration of Trust, dated March 19, 2004;

                  WHEREAS, the Sponsor and the Trust desire to amend and restate
the Amended and Restated Declaration of Trust in its entirety as set forth
herein to provide for, among other things, (i) the authorization of additional
Paying Agents, and (ii) the duties and responsibilities of Paying Agents other
than the Institutional Trustee; and

                  NOW, THEREFORE, it being the intention of the parties hereto
to continue the Trust as a statutory trust under the Statutory Trust Act, 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 Trust Securities, subject to
the provisions of this Declaration, and, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, each party, for the
benefit of the other parties and for the benefit of the Holders, hereby amends
and restates the Amended and Restated Declaration of Trust in its entirety and
agrees as follows:

                                   ARTICLE I
                         INTERPRETATION AND DEFINITIONS

        Section 1.1. DEFINITIONS. Unless the context otherwise requires:

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                  (a) 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;

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

                  (c) all references to "the Declaration" or "this Declaration"
are to this Declaration and each Annex and Exhibit hereto, as modified,
supplemented or amended from time to time;

                  (d) 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;

                  (e) 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

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

                  "Additional Amounts" 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 Kenneth J. Mahon, Michael
Pucella and Lance Bennett, 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" shall have the meaning given to that term in Rule
405 of the Securities Act or any successor rule thereunder.

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

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

                  (a) 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

                  (b) 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

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taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of such Person or of any substantial 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 Interest" means a beneficial interest in the
Global Capital Security registered in the name of a Clearing Agency or its
nominee, ownership and transfers of which shall be maintained and made through
book entries by a Clearing Agency as described in Section 9.4.

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

                  "Capital Securities" means, collectively, the Series A Capital
Securities and the Series B Capital Securities.

                  "Capital Security Beneficial Owner" means, with respect to a
Book-Entry Interest, a Person who is the beneficial owner of such Book-Entry
Interest, as reflected on the books of the Clearing Agency, or on the books of a
Person maintaining an account with such Clearing Agency (directly as a Clearing
Agency Participant or as an indirect participant, in each case in accordance
with the rules of such Clearing Agency).

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

                  "Certificate" means any certificate evidencing Trust
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.

                  "Clearing Agency" means an organization registered as a
"clearing agency" pursuant to Section 17A of the Exchange Act that is acting as
depositary for the Capital Securities and in whose name or in the name of a
nominee of that organization shall be registered a global certificate and which
shall undertake to effect book entry transfers of the Capital Securities.

                  "Clearing Agency Participant" means a broker, dealer, bank,
other financial institution or other Person for whom from time to time the
Clearing Agency effects book entry transfers of Trust Securities deposited with
the Clearing Agency.

                  "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.

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

                  "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 its corporate trust business shall be principally administered,
which at all times shall be located within the United States and at the time of
execution of this Declaration shall be Rodney Square North, 1100 North Market
Street, Wilmington, DE 19890-0001, Attention: Corporate Trust Administration.

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

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

                  "Debt Security Issuer" means Dime Community Bancshares, Inc.,
a Delaware corporation, in its capacity as issuer of the Debt Securities under
the Indenture, and any permitted successor under the Indenture.

                  "Debt Securities" means, collectively, the Series A Debt
Securities and the Series B Debt Securities.

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

                  "Deferred Interest" means any interest on the Debt Securities
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 certificated form issued by the Trust substantially in the form of Exhibit
A-1-A.

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

                  "Delaware Trustee" has the meaning set forth in Section 5.2.

                  "Direct Action" has the meaning set forth in Section 3.8(e).

                  "Distribution" means a distribution payable to Holders of
Trust Securities in accordance with Section 6.1.

                                       4
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                  "Distribution Payment Date" has the meaning set forth in
paragraph 2(c) of Annex I.

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

                  "DTC" means The Depository Trust Company, the initial Clearing
Agency.

                  "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.

                  "Exchange Offer" means the offer that may be made pursuant to
the Registration Rights Agreement (i) by the Trust to exchange Series A Capital
Securities for Series B Capital Securities and (ii) by the Debt Security Issuer
to exchange Series A Debt Securities for Series B Debt Securities and to execute
the Series B Guarantee in respect of the Series B Capital Securities.

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

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

                  "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 11.1.

                  "Global Capital Security" has the meaning set forth in Section
7.3(b).

                  "Guarantee" means, collectively, the Series A Guarantee and
the Series B Guarantee.

                  "Holder" means a Person in whose name a Certificate
representing a Trust Security is registered on the Securities 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 the Closing Date,
between the Debt Security Issuer and the Indenture Trustee, and any indenture
supplemental thereto pursuant to which the Debt Securities are to be issued.

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

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                  "Indenture Trustee" means Wilmington Trust Company, a Delaware
banking corporation, not in its individual capacity but solely as trustee under
the Indenture until a successor is appointed thereunder, and thereafter means
such successor trustee.

                  "Institutional Trustee" means the Trustee meeting the
eligibility requirements set forth in Section 5.3.

                  "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.

                  "Issuer Order" shall mean a written order signed in the name
of the Trust by an Administrator and delivered to the Institutional Trustee.

                  "Legal Action" has the meaning set forth in Section 3.8(e).

                  "Liquidated Damages Agreement" means the Liquidated Damages
Agreement, dated as of March 12, 2004, by and among the Company, the Trust and
the Initial Purchaser named therein, as such agreement may be amended, modified
or supplemented from time to time.

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

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

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

                  "List of Holders" has the meaning set forth in Section 2.2.

                  "Majority in Liquidation Amount of the Trust Securities" means
Holders of outstanding Trust 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
amount that would be paid upon the redemption, liquidation or otherwise on the
date upon which the voting percentages are determined, plus unpaid Distributions
accrued thereon to such date) of all outstanding Trust Securities of the
relevant class.

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

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

                                       6
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                  "Officers' Certificate" means a certificate signed by the
Chairman of the Board, the Vice Chairman, the Chief Executive Officer, 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
Institutional Trustee. Any Officers' Certificate delivered with respect to
compliance with a condition or covenant provided for in this Declaration shall
include:

                  (a) a statement that each Authorized Officer or Person, as the
case may be, signing the Officers' Certificate has read the covenant or
condition and the definitions relating thereto;

                  (b) a brief statement of the nature and scope of the
examination or investigation undertaken by each Authorized Officer or Person, as
the case may be, in rendering the Officers' Certificate;

                  (c) a statement that each Authorized Officer or Person, as the
case may be, has made such examination or investigation as, in his or her
opinion, is necessary to enable such Authorized Officer or Person, as the case
may be, to express an informed opinion as to whether or not such covenant or
condition has been complied with; and

                  (d) a statement as to whether, in the opinion of each
Authorized Officer or Person, as the case may be, such condition or covenant has
been complied with.

                  "Offering Memorandum" has the meaning set forth in Section
3.6(a)(i)(B).

                  "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 acceptable to the Institutional Trustee.

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

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

                  "OTS" means the Office of Thrift Supervision or any successor
regulatory agency.

                  "Paying Agent" has the meaning set forth in Section 7.2.

                  "Payment Amount" has the meaning set forth in Section 6.1.

                  "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)(F).

                                       7
<PAGE>

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

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

                  "Purchase Agreement" means the Purchase Agreement, dated March
12, 2004, by and among the Trust, the Debt Security Issuer, The Dime Savings
Bank of Williamsburgh and the Initial Purchaser named therein.

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

                  "Registrar" has the meaning set forth in Section 7.2.

                  "Registration Rights Agreement" means the Registration Rights
Agreement, dated as of March 12, 2004, by and among the Trust, the Debt Security
Issuer and the Initial Purchaser named therein, as amended from time to time.

                  "Registration Statement" has the meaning set forth in the
Registration Rights Agreement.

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

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

                  "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 Capital Securities" means Capital Securities
required by Section 9.2 to contain a Restricted Securities Legend.

                  "Restricted Definitive Capital Securities" means Restricted
Capital Securities that are also Definitive Capital Securities.

                                       8
<PAGE>

                  "Restricted Securities Legend" has the meaning set forth in
Section 9.2(h).

                  "Rule 144A" means Rule 144A under the Securities Act, as such
rule may be amended from time to time, or any similar rule or regulation
hereinafter adopted by the Commission.

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

                  "Securities Register" has the meaning set forth in Section
7.2(a).

                  "Series A Capital Securities" has the meaning specified in
Section 7.1(a).

                  "Series A Debt Securities" means the Fixed Rate Junior
Subordinated Deferrable Interest Debt Securities due April 14, 2034, Series A,
of the Debt Security Issuer issued pursuant to the Indenture.

                  "Series A Guarantee" means the Series A Guarantee, dated as of
the Closing Date, by Dime Community Bancshares, Inc., in respect of the Series A
Capital Securities.

                  "Series B Capital Securities" has the meaning specified in
Section 7.1(a).

                  "Series B Debt Securities" means the Fixed Rate Junior
Subordinated Deferrable Interest Debt Securities due April 14, 2034, Series B,
of the Debt Security Issuer to be issued pursuant to the Indenture in connection
with the Exchange Offer.

                  "Series B Guarantee" means the Series B Guarantee to be
entered into in connection with the Exchange Offer by Dime Community Bancshares,
Inc., in respect of the Series B Capital Securities.

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

                  "Special Redemption Date" 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 Dime Community Bancshares, Inc., a Delaware
corporation, or any permitted successor of the Debt Security Issuer under the
Indenture, in its capacity as sponsor of the Trust.

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

                                       9
<PAGE>

                  "Successor Delaware Trustee" has the meaning set forth in
Section 5.5(e).

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

                  "Successor Institutional Trustee" has the meaning set forth in
Section 5.5(b).

                  "Successor Securities" has the meaning set forth in Section
3.15(b)(i)(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 Capital Securities" means
Holders of outstanding Trust 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 upon the redemption, liquidation or otherwise on the
date upon which the voting percentages are determined, plus unpaid Distributions
accrued thereon to such date) of all outstanding Trust Securities of the
relevant class.

                  "Transfer Agent" has the meaning set forth in Section 7.2.

                  "Treasury Regulations" means the income tax regulations,
including temporary and proposed regulations, promulgated under the Code by the
United States Treasury, as such regulations may be amended from time to time
(including corresponding provisions of succeeding regulations).

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

                  "Trust Property" means (a) the Debt Securities, (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 property and assets for the time being
held or deemed to be held by the Institutional Trustee pursuant to the trusts of
this Declaration.

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

                  "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.

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

                                       10
<PAGE>

                                   ARTICLE II
                               TRUST INDENTURE ACT

                  Section 2.1. TRUST INDENTURE ACT; APPLICATION.

                  (a) This Declaration is subject to the provisions of the Trust
Indenture Act that are required to be part of this Declaration in order for this
Declaration to be qualified under the Trust Indenture Act and shall, to the
extent applicable, be governed by such provisions.

                  (b) The Institutional Trustee shall be the only Trustee which
is a trustee for the purposes of the Trust Indenture Act.

                  (c) If and to the extent that any provision of this
Declaration limits, qualifies or conflicts with the duties imposed by ss. 310 to
317, inclusive, of the Trust Indenture Act, such imposed duties shall control.

                  (d) The application of the Trust Indenture Act to this
Declaration shall not affect the nature of the Trust Securities as representing
undivided beneficial interests in the assets of the Trust.

                  Section 2.2. LIST OF HOLDERS OF TRUST SECURITIES.

                  (a) Each of the Sponsor and the Administrators on behalf of
the Trust shall provide the Institutional Trustee, unless the Institutional
Trustee is Registrar for the Trust Securities, (i) within 14 days after each
record date for payment of Distributions, a list, in such form as the
Institutional Trustee may reasonably require, of the names and addresses of the
Holders ("List of Holders") as of such record date, PROVIDED, THAT, neither the
Sponsor nor the Administrators on behalf of the Trust shall be obligated to
provide such List of Holders at any time that the List of Holders does not
differ from the most recent List of Holders given to the Institutional Trustee
by the Sponsor and the Administrators on behalf of the Trust, and (ii) at any
other time, within 30 days of receipt by the Trust of a written request for a
List of Holders as of a date no more than 14 days before such List of Holders is
given to the Institutional Trustee. The Institutional Trustee shall preserve, in
as current a form as is reasonably practicable, all information contained in
Lists of Holders given to it or which it receives in the capacity as Paying
Agent if acting in such capacity), PROVIDED, THAT, the Institutional Trustee may
destroy any List of Holders previously given to it on receipt of a new List of
Holders.

                  (b) The Institutional Trustee shall comply with its
obligations under ss. 310(b), 311(a) and 312(b) of the Trust Indenture Act.

                  Section 2.3. REPORTS BY THE INSTITUTIONAL TRUSTEE.

                  Within 60 days after the date hereof, and no later than the
anniversary date hereof in each succeeding year, the Institutional Trustee shall
provide to the Holders of the Capital Trust Securities such reports as are
required by ss. 313 of the Trust Indenture Act, if any, in the form and in the
manner provided by ss. 313 of the Trust Indenture Act. The Institutional Trustee
shall also comply with the requirements of ss. 313(d) of the Trust Indenture
Act.

                                       11
<PAGE>

                  Section 2.4. PERIODIC REPORTS TO INSTITUTIONAL TRUSTEE.

                  Each of the Sponsor and the Administrators on behalf of the
Trust shall provide to the Institutional Trustee and the Commission such
documents, reports and information as are required by ss. 314 (if any) of the
Trust Indenture Act and shall provide to the Institutional Trustee the
compliance certificate required by ss. 314 of the Trust Indenture Act in the
form, in the manner and at the times required by ss. 314 of the Trust Indenture
Act.

                  Section 2.5. EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT.

                  Each of the Sponsor and the Administrators on behalf of the
Trust shall provide to the Institutional Trustee such evidence of compliance
with any conditions precedent provided for in this Declaration that relate to
any of the matters set forth in ss. 314(c) of the Trust Indenture Act. Any
certificate or opinion required to be given by an officer pursuant to ss.
3l4(c)(1) of the Trust Indenture Act may be given in the form of an Officers'
Certificate.

                  Section 2.6. EVENTS OF DEFAULT; WAIVER.

                  (a) The Holders of a Majority in Liquidation Amount of Capital
Securities may, by vote, on behalf of the Holders of all of the Capital
Securities, waive any past Event of Default in respect of the Capital Securities
and its consequences, PROVIDED, THAT if the underlying Indenture Event of
Default:

                           (i) is not waivable under the Indenture, the Event of
                  Default under this Declaration shall also not be waivable; or

                           (ii) requires the consent or vote of greater than a
                  majority in aggregate principal amount of the holders of the
                  Debt Securities (a "Super Majority") to be waived under the
                  Indenture, the Event of Default under this Declaration may
                  only be waived by the vote of the Holders of at least the
                  proportion in aggregate Liquidation Amount of the Capital
                  Securities that the relevant Super Majority represents of the
                  aggregate principal amount of the Debt Securities outstanding.

The foregoing provisions of this Section 2.6(a) shall be in lieu of ss.
3l6(a)(l)(B) of the Trust Indenture Act and such ss. 316(a)(1)(B) of the Trust
Indenture Act is hereby expressly excluded from this Declaration and the Trust
Securities, as permitted by the Trust Indenture Act. Upon such waiver, any such
Default shall cease to exist, and any Event of Default with respect to the
Capital Securities arising therefrom shall be deemed to have been cured, for
every purpose of this Declaration, but no such waiver shall extend to any
subsequent or other Default or an Event of Default with respect to the Capital
Securities or impair any right consequent thereon. Any waiver by the Holders of
the Capital Securities of an Event of Default with respect to the Capital
Securities shall also be deemed to constitute a waiver by the Holders of the
Common Securities of any such Event of Default with respect to the Common
Securities for all purposes of this Declaration without any further action.

                  (b) The Holders of a Majority in Liquidation Amount of the
Common Securities may, by vote, on behalf of the Holders of all of the Common
Securities, waive any

                                       12
<PAGE>

past Event of Default with respect to the Common Securities and its
consequences, PROVIDED, THAT if the underlying Indenture Event of Default:

                           (i) is not waivable under the Indenture, the Event of
                  Default under this Declaration shall also not be waivable; or
                  except where the Holders of the Common Securities are deemed
                  to have waived such Event of Default under this Declaration as
                  provided below in this Section 2.6(b), the Event of Default
                  under the Declaration shall also not be waivable; or

                           (ii) requires the consent or vote of a Super Majority
                  to be waived, except where the Holders of the Common
                  Securities are deemed to have waived such Event of Default
                  under this Declaration as provided below in this Section
                  2.6(b), the Event of Default under this Declaration may only
                  be waived by the vote of the Holders of at least the
                  proportion in aggregate Liquidation Amount of the Common
                  Securities that the relevant Super Majority represents of the
                  aggregate principal amount of the Debt Securities outstanding;

PROVIDED FURTHER, each Holder of Common Securities will be deemed to have waived
any such Event of Default and all Events of Default with respect to the Common
Securities and their consequences if all Events of Default with respect to the
Capital Securities have been cured, waived or otherwise eliminated, and until
such Events of Default have been so cured, waived or otherwise eliminated, the
Institutional Trustee will be deemed to be acting solely on behalf of the
Holders of the Capital Securities and only the Holders of the Capital Securities
will have the right to direct the Institutional Trustee in accordance with the
terms of the Trust Securities. The foregoing provisions of this Section 2.6(b)
shall be in lieu of ss.ss. 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture
Act and such ss.ss. 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act are
hereby expressly excluded from this Declaration and the Trust Securities, as
permitted by the Trust Indenture Act. Subject to the foregoing provisions of
this Section 2.6(b), upon such waiver, any such Default shall cease to exist and
any Event of Default with respect to the Common Securities arising therefrom
shall be deemed to have been cured for every purpose of this Declaration, but no
such waiver shall extend to any subsequent or other Default or Event of Default
with respect to the Common Securities or impair any right consequent thereon.

                  (c) A waiver of an Indenture Event of Default by the
Institutional Trustee, at the direction of the Holders of the Capital
Securities, constitutes a waiver of the corresponding Event of Default under
this Declaration. The foregoing provisions of this Section 2.6(c) shall be in
lieu of ss. 316(a)(1)(B) of the Trust Indenture Act and such ss. 316(a)(1)(B) of
the Trust Indenture Act is hereby expressly excluded from this Declaration and
the Trust Securities, as permitted by the Trust Indenture Act.

                  Section 2.7. DEFAULT; NOTICE.

                  (a) The Institutional Trustee shall, within 90 days after a
Responsible Officer has actual knowledge of the occurrence of a Default with
respect to the Trust Securities, transmit by mail, first class postage prepaid,
to the Holders, notices of all such Defaults, unless such Defaults have been
cured before the giving of such notice or previously waived; PROVIDED, HOWEVER,
that except in the case of a Default arising from the nonpayment of principal
of, or

                                       13
<PAGE>

premium, if any, or interest or Liquidated Damages, if any, on any of the Debt
Securities, the Institutional Trustee shall be protected in withholding such
notice if and so long as a Responsible Officer in good faith determines that the
withholding of such notice is in the interests of the Holders.

                  (b) The Institutional Trustee shall not be deemed to have
knowledge of any Default or Event of Default except as provided in Section
3.10(m) hereof.

                  (c) Within ten Business Days after a Responsible Officer has
actual knowledge of the occurrence of any Event of Default, the Institutional
Trustee shall transmit notice of such Event of Default to the Holders of the
Capital Securities, the Administrators and the Sponsor, unless such Event of
Default shall have been cured or waived. The Sponsor and the Administrators
shall file annually with the Institutional Trustee a certification as to whether
or not they are in compliance with all the conditions and covenants applicable
to them under this Declaration.

                                  ARTICLE III
                                  ORGANIZATION

                  Section 3.1. NAME. The Trust is named "Dime Community 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
Trust Securities. The Trust's activities may be conducted under the name of the
Trust or any other name deemed advisable by the Administrators.

                  Section 3.2. 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 c/o Dime Community Bancshares, Inc., 209 Havemeyer Street,
Brooklyn, New York 11211. On ten Business Days' prior written notice to the
Institutional Trustee and the Holders of the Trust Securities, the
Administrators may designate another principal office, which shall be in a state
of the United States or the District of Columbia.

                  Section 3.3. PURPOSE. The exclusive purposes and functions of
the Trust are (a) to issue and sell the Trust Securities, (b) to invest the
gross proceeds from such sale in the Debt Securities and (c) except as otherwise
limited herein, to engage in only those other activities deemed necessary,
advisable or incidental thereto 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 to fail to be classified for United States
federal income tax purposes as a grantor trust.

                  Section 3.4. 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

                                       14
<PAGE>

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 respect to the Trust or the Holders. The
Institutional Trustee shall have the right, but shall not be obligated except as
provided in Section 3.6(a)(iii), to perform those duties assigned to the
Administrators.

                  Section 3.5. TITLE TO PROPERTY OF THE TRUST. Except as
provided in Section 3.8 with respect to the Debt Securities 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 3.6. POWERS AND DUTIES OF THE TRUSTEES AND THE
                               ADMINISTRATORS.

                  (a) 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:

                           (i) 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:

                                    (A) the issuance and sale of the Trust
                           Securities and the consummation of the Exchange
                           Offer;

                                    (B) 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,
                           the Registration Rights Agreement, the Liquidated
                           Damages Agreement, a subscription agreement for Debt
                           Securities between the Trust and the Sponsor, a
                           subscription agreement for Common Securities between
                           the Trust and the Sponsor, an offering memorandum
                           (the "Offering Memorandum") in preliminary and final
                           form prepared by the Sponsor, in relation to the
                           offering and sale of the Series A Capital Securities
                           to QIBs in reliance on Rule 144A and to institutional
                           "accredited investors" (as defined in Rule 50l(a)(1),
                           (2), (3), (7) or (8) under the Securities Act);

                                    (C) if required, execute and file with the
                           Commission a Registration Statement on Form 8-A,
                           including any amendments thereto, prepared by the
                           Sponsor, relating to the registration of the Capital

                                       15
<PAGE>

                           Securities under Section 12(b) or 12(g) of the
                           Exchange Act, as the case may be;

                                    (D) letters, documents, or instruments with
                           DTC and other Clearing Agencies relating to the
                           Capital Securities;

                                    (E) ensuring compliance with the Securities
                           Act and applicable securities or blue sky laws of
                           states and other jurisdictions;

                                    (F) 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;

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

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

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

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

                                    (K) unless otherwise determined by the
                           Holders of a Majority in Liquidation Amount of the
                           Trust 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;

                                    (L) the taking of any action as the Sponsor
                           or an Administrator may from time to time determine
                           is necessary, advisable or incidental to the
                           foregoing 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);

                                    (M) to establish a record date with respect
                           to all actions to be taken hereunder that require a
                           record date be established, including and with
                           respect to, for the purposes of ss. 316(c) of the
                           Trust Indenture Act, Distributions, voting rights,
                           redemptions and exchanges, and to issue

                                       16
<PAGE>

                           relevant notices to the Holders of Capital Securities
                           and Holders of Common Securities as to such actions
                           and applicable record dates;

                                    (N) to cause the Trust to comply with the
                           Trust's obligations under the Trust Indenture Act;

                                    (O) to give the certificate required by ss.
                           314(a)(4) of the Trust Indenture Act to the
                           Institutional Trustee, which certificate may be
                           executed by any Administrator;

                                    (P) 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;

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

                                    (R) 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;

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

                                    (T) 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.

                           (ii) 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:

                                    (A) the establishment of the Property
                           Account;

                                    (B) the receipt of the Debt Securities;

                                    (C) the collection of interest, principal
                           and any other payments made in respect of the Debt
                           Securities in the Property Account;

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

                                       17
<PAGE>

                                    (E) the exercise of all of the rights,
                           powers and privileges of a holder of the Debt
                           Securities;

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

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

                                    (H) 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;

                                    (I) after any Event of Default (of which the
                           Institutional Trustee has knowledge (as provided in
                           Section 3.10(m) hereof)) (PROVIDED, THAT such Event
                           of Default is not by or with respect to the
                           Institutional Trustee), the taking of any action that
                           the Institutional Trustee may from time to time
                           determine is necessary, advisable or incidental for
                           the foregoing 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);

                                    (J) 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

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

                           (iii) 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 3.6(a)(i)(E) and (F) 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.

                  (b) 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,

                                       18
<PAGE>

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 to be classified 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 subject to reimbursement under Section 10.6(a),
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.

                  (c) 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):

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

                           (ii) the determination of the jurisdictions 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
                  jurisdictions in connection with the sale of the Capital
                  Securities; and

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

                  (d) 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 required to be registered under
the Investment Company Act (in the case of the Institutional Trustee, to the
actual knowledge of a Responsible Officer), and (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 Debt Securities as indebtedness of the Debt Security
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

                                       19
<PAGE>

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.

                  (e) All expenses incurred by the Administrators or the
Trustees pursuant to this Section 3.6 shall be reimbursed by the Sponsor, and
the Trustees shall have no obligations with respect to such expenses.

                  (f) The assets of the Trust shall consist of the Trust
Property.

                  (g) 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.

                  (h) 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.

                  Section 3.7. 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:

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

                  (b) acquire any assets other than as expressly provided
herein;

                  (c) possess Trust Property for other than a Trust purpose;

                  (d) make any loans or incur any indebtedness other than loans
represented by the Debt Securities;

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

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

                  (g) 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 Indenture Trustee with respect to the Debt Securities, (ii)
waive any past default that is waivable under the

                                       20
<PAGE>

Indenture, (iii) exercise any right to rescind or annul any declaration that the
principal of all the Debt Securities shall be due and payable, or (iv) consent
to any amendment, modification or termination of the Indenture or the Debt
Securities where such consent shall be required, in each case unless the Trust
shall have received an Opinion of Counsel experienced in such matters to the
effect that the Trust will continue to be classified as a grantor trust for
United States federal income tax purposes.

                  Section 3.8. POWERS AND DUTIES OF THE INSTITUTIONAL TRUSTEE.

                  (a) The legal title to the Debt Securities 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 Debt Securities shall vest automatically in each Person who may hereafter
be appointed as Institutional Trustee in accordance with Section 5.5. Such
vesting and cessation of title shall be effective whether or not conveyancing
documents with regard to the Debt Securities have been executed and delivered.

                  (b) The Institutional Trustee shall not transfer its right,
title and interest in the Debt Securities to the Administrators or to the
Delaware Trustee.

                  (c) The Institutional Trustee shall:

                           (i) establish and maintain a segregated non-interest
                  bearing trust account (the "Property Account") in the United
                  States (as defined in Treasury Regulationsss.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
                  Trust Securities and, upon the receipt of payments of funds
                  made in respect of the Debt Securities 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 6.1. Funds in the
                  Property Account shall be held uninvested until disbursed in
                  accordance with this Declaration;

                           (ii) engage in such ministerial activities as shall
                  be necessary or appropriate to effect the redemption of the
                  Trust Securities to the extent the Debt Securities are
                  redeemed or mature; and

                           (iii) upon written notice of distribution issued by
                  the Administrators in accordance with the terms of the Trust
                  Securities, engage in such ministerial activities as shall be
                  necessary or appropriate to effect the distribution of the
                  Debt Securities to Holders of Trust Securities upon the
                  occurrence of the circumstances specified therefor under the
                  terms of the Trust Securities.

                  (d) 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 Trust Securities.

                                       21
<PAGE>

                  (e) 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 Debt
Security Issuer to pay interest or premium, if any, or Liquidated Damages, if
any, on or principal of the Debt Securities on the date such interest, premium
or Liquidated Damages, if any, or principal is otherwise payable (or in the case
of redemption, on the date of redemption), then a Holder of the Capital
Securities may directly institute a proceeding for enforcement of payment to
such Holder of the principal of and premium, if any, and Liquidated Damages, if
any, and interest on the Debt Securities 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 Debt Securities
(or, in the case of redemption, on or after the date of redemption). 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 Debt Security 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.

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

                           (i) the Trust has been completely liquidated and the
                  proceeds of the liquidation distributed to the Holders of the
                  Trust Securities pursuant to the terms of the Trust Securities
                  and this Declaration (including Annex I); or

                           (ii) a Successor Institutional Trustee has been
                  appointed and has accepted that appointment in accordance with
                  Section 5.5.

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

                  (h) The Institutional Trustee must exercise the powers set
forth in this Section 3.8 in a manner that is consistent with the purposes and
functions of the Trust set out in Section 3.3, and the Institutional Trustee
shall not take any action that is inconsistent with the purposes and functions
of the Trust set out in Section 3.3.

                  (i) For such time as the Institutional Trustee is the Paying
Agent, the Institutional Trustee may authorize one or more Persons to act as
additional Paying Agents and to pay Distributions, redemption payments or
liquidation payments on behalf of the Trust with respect to all Securities and
any such additional Paying Agent shall comply with ss. 317(b) of the Trust
Indenture Act. Any such additional Paying Agent may be removed by the
Institutional

                                       22
<PAGE>

Trustee at any time the Institutional Trustee remains as Paying Agent and a
successor Paying Agent or additional Paying Agents may be (but are not required
to be) appointed at any time by the Institutional Trustee while the
Institutional Trustee is acting as Paying Agent.

                  (j) The Institutional Trustee shall be authorized to undertake
any actions set forth in ss. 317(a) of the Trust Indenture Act.

                  Section 3.9. CERTAIN DUTIES AND RESPONSIBILITIES OF THE
                               TRUSTEES AND THE ADMINISTRATORS.

                  (a) The Institutional Trustee, before the occurrence of any
Event of Default (of which the Institutional Trustee has knowledge (as provided
in Section 3.10(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 3.10(m) hereof)), has occurred (that has not been cured or waived
pursuant to Section 7.7), 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.

                  (b) 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 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.

                  (c) All payments made by the Institutional Trustee or a Paying
Agent in respect of the Trust Securities shall be made only from the revenue and
proceeds from the Trust Property and only to the extent that there shall be
sufficient revenue or proceeds from the Trust Property to enable the
Institutional Trustee or a Paying Agent to make payments in accordance with the
terms hereof. Each Holder, by its acceptance of a Trust Security, agrees that it
will

                                       23
<PAGE>

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 Trust Security or for any other liability in
respect of any Trust Security. This Section 3.9(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.

                  (d) 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:

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

                           (ii) 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 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;

                           (iii) the Institutional Trustee's sole duty with
                  respect to the custody, safe keeping and physical preservation
                  of the Debt Securities 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;

                           (iv) 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
                  3.8(c)(i) and except to the extent otherwise required by law;
                  and

                           (v) 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.

                                       24
<PAGE>

                  Section 3.10. CERTAIN RIGHTS OF INSTITUTIONAL TRUSTEE. Subject
to the provisions of Section 2.9:

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

                  (b) 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;

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

                  (d) 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;

                  (e) 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;

                  (f) 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;

                  (g) 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

                                       25
<PAGE>

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 3.10(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 3.10(m) hereof)) that has not been cured or waived, of its obligation to
exercise the rights and powers vested in it by this Declaration;

                  (h) 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;

                  (i) 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;

                  (j) 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 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;

                  (k) 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;

                  (l) 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;

                  (m) 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 that the
Institutional Trustee shall be deemed to have knowledge of any 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 Amounts or
Liquidated Damages if the Institutional Trustee does not have actual knowledge
or written notice that such payment is due and payable);

                                       26
<PAGE>

                  (n) any action taken by the Institutional Trustee or its
agents hereunder shall bind the Trust and the Holders of the Trust 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

                  (o) 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, and no permissive power or authority available to the Institutional
Trustee shall be construed to be a duty.

                  Section 3.11. DELAWARE TRUSTEE. Notwithstanding any other
provision of this Declaration other than Section 5.2, the Delaware Trustee shall
not be entitled to exercise any powers, and the Delaware Trustee shall not have
any of the duties and responsibilities of any of the Trustees or the
Administrators specified in this Declaration (except as may be required under
the Statutory Trust Act). Except as set forth in Section 5.2, the Delaware
Trustee shall be a Trustee for the sole and limited purpose of fulfilling the
requirements of ss. 3807 of the Statutory Trust Act.

                  Section 3.12. 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 3.6.

                  Section 3.13. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF
TRUST SECURITIES. The recitals contained in this Declaration and the Trust
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 Trust Property or any part
thereof. The Trustees make no representations as to the validity or sufficiency
of this Declaration, the Debt Securities or the Trust Securities.

                  Section 3.14. DURATION OF TRUST. The Trust, unless dissolved
pursuant to the provisions of Article VIII hereof, shall have existence for five
years after the Maturity Date.

                  Section 3.15. MERGERS. (a) 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 3.15 and except with respect
to the distribution of Debt Securities to Holders of Trust Securities pursuant
to Section 8.1(a)(iv) of this Declaration or Section 4 of Annex I.

                                       27
<PAGE>

                  (b) 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:

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

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

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

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

                           (iii) the Capital Securities or any Successor
                  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;

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

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

                           (vi) such Successor Entity, if any, has a purpose
                  substantially identical to that of the Trust;

                           (vii) prior to such merger, consolidation,
                  amalgamation, replacement, conveyance, transfer or lease, the
                  Trust has received an Opinion of Counsel experienced in such
                  matters to the effect that:

                                    (A) such merger, consolidation,
                           amalgamation, replacement, conveyance, transfer or
                           lease does not adversely affect the rights,

                                       28
<PAGE>

                           preferences and privileges of the Holders of the
                           Trust Securities or any Successor Securities in any
                           material respect (other than with respect to any
                           dilution of such Holders' interests in the Successor
                           Entity);

                                    (B) 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
                           under the Investment Company Act; and

                                    (C) 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;

                           (viii) the Sponsor guarantees the obligations of the
                  Successor Entity under the Successor Securities to the same
                  extent provided by the Indenture, the Guarantee, the Debt
                  Securities and this Declaration; and

                           (ix) 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.

                  (c) Notwithstanding Section 3.15(b), the Trust shall not,
except with the consent of Holders of 100% in Liquidation Amount of the Trust
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 IV

                                     SPONSOR

                  Section 4.1. 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 4.2. 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:

                  (a) to prepare the Offering Memorandum, in both preliminary
and final form and to cause the Trust to file with the Commission any
Registration Statement, including any amendments thereto, as contemplated by the
Registration Rights Agreement;

                                       29
<PAGE>

                  (b) to determine the jurisdictions in which to take
appropriate action to qualify or register for sale 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, advisable or incidental thereto in order to comply
with the applicable laws of any such jurisdictions;

                  (c) 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;

                  (d) to cause the Trust to file with the Commission a
Registration Statement on Form 8-A, including any amendments thereto, relating
to the registration of the Capital Securities under Section 12(b) or 12(g) of
the Exchange Act, as the case may be, including any amendments thereto; and

                  (e) to negotiate the terms of and/or execute and deliver on
behalf of the Trust, the Purchase Agreement, the Registration Rights Agreement
and the Liquidated Damages Agreement and any other agreements related to the
sale of the Capital Securities.

                                   ARTICLE V

                           TRUSTEES AND ADMINISTRATORS

                  Section 5.1. NUMBER OF TRUSTEES. The number of Trustees
initially shall be two, and:

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

                  (b) after the issuance of any Trust 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 5.2; 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 3.11 shall have no application to such entity in its capacity as
Institutional Trustee.

                  Section 5.2. DELAWARE TRUSTEE. If required by the Statutory
Trust Act, one Trustee (the "Delaware Trustee") shall be:

                  (a) a natural person who is a resident of the State of
Delaware and a U.S. Person at least 21 years of age; or

                  (b) 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

                                       30
<PAGE>

in the State of Delaware, and otherwise meets the requirements of applicable
law, including ss.3807 of the Statutory Trust Act.

                  The initial Delaware Trustee shall be Wilmington Trust
Company.

                  Section 5.3. INSTITUTIONAL TRUSTEE; ELIGIBILITY.

                  (a) There shall at all times be one Trustee that shall act as
Institutional Trustee which shall:

                           (i) not be an Affiliate of the Sponsor;

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

                           (iii) 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 or other Person permitted by the
                  Commission to act as indenture trustee under the Trust
                  Indenture Act 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, national
                  association or other Person publishes reports of condition at
                  least annually, pursuant to law or to the requirements of the
                  supervising or examining authority referred to above, then for
                  the purposes of this Section 5.3(a)(iii), the combined capital
                  and surplus of such corporation, national association or other
                  Person shall be deemed to be its combined capital and surplus
                  as set forth in its most recent report of condition so
                  published.

                  (b) If at any time the Institutional Trustee shall cease to be
eligible to so act under Section 5.3(a), the Institutional Trustee shall
immediately resign in the manner and with the effect set forth in Section 5.5.

                  (c) If the Institutional Trustee has or shall acquire any
"conflicting interest" within the meaning of ss. 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.

                  (d) The Guarantee shall be deemed to be specifically described
in this Declaration for purposes of clause (i) of the first proviso contained in
ss. 310(b) of the Trust Indenture Act.

                  (e) The initial Institutional Trustee shall be Wilmington
Trust Company.

                  Section 5.4. 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

                                       31
<PAGE>

of the Administrators may be exercised by, or with the consent of, any one such
Administrator acting alone.

                  Section 5.5. APPOINTMENT, REMOVAL AND RESIGNATION OF THE
TRUSTEES AND THE ADMINISTRATORS.

                  (a) 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.

                  (b) Subject to Section 5.5(a), a Relevant Trustee may resign
at any time by giving written notice thereof to the Holders of the Trust
Securities and by appointing a successor Relevant Trustee. 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
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 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.

                  (c) 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 Relevant Trustee shall comply with the applicable requirements of this
Section. 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
Relevant Trustee shall comply with the applicable requirements of this Section.
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 within 30 days after delivery
of an instrument of removal, the Relevant Trustee or any Holder who has been a
Holder of the Trust 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.

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                  (d) 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.

                  (e) 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 following the procedures in this Section (with the
successor being a Person who satisfies the eligibility requirement for a
Delaware Trustee set forth in this Declaration) (the "Successor Delaware
Trustee").

                  (f) In case of the appointment hereunder of a successor
Relevant Trustee, the retiring Relevant Trustee and each successor Relevant
Trustee with respect to the Trust 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 Trust 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 Trust
Securities and the Trust subject to the payment of all unpaid fees, expenses and
indemnities of such retiring Relevant Trustee.

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

                  (h) 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.

                  (i) 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.

                  Section 5.6. VACANCIES AMONG TRUSTEES. If a Trustee ceases to
hold office for any reason and the number of Trustees is not reduced pursuant to
Section 5.1, or if the number of Trustees is increased pursuant to Section 5.1,
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

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<PAGE>

Trustees shall be conclusive evidence of the existence of such vacancy. The
vacancy shall be filled with a Trustee appointed in accordance with Section 5.5.

                  Section 5.7. EFFECT OF VACANCIES. The death, resignation,
retirement, removal, bankruptcy, dissolution, liquidation, incompetence or
incapacity to perform the duties of an Trustees 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 the Trustees in accordance with Section 5.5, 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 5.8. 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 5.9. DELEGATION OF POWER. (a) 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 3.6 including any
Registration Statement or amendment thereto filed with the Commission, or
including any other governmental filing.

                  (b) 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 this
Declaration.

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<PAGE>

                  Section 5.10. 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 5.5(i).

                                   ARTICLE VI

                                  DISTRIBUTIONS

                  Section 6.1. DISTRIBUTIONS. Holders shall receive
Distributions in accordance with the applicable terms of the relevant Holder's
Trust 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 Debt Security Issuer makes a
payment of interest (including any Additional Amounts or Deferred Interest) or
premium, or Liquidated Damages, if any, on and/or principal of the Debt
Securities 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 taxes, as determined by
the Administrators in a written notice to the Institutional Trustee.

                                  ARTICLE VII

                          ISSUANCE OF TRUST SECURITIES

                  Section 7.1. GENERAL PROVISIONS REGARDING TRUST SECURITIES.

                  (a) On the Closing Date, the Administrators shall on behalf of
the Trust issue one series of securities, evidenced by a certificate
substantially in the form of Exhibit A-1-A, representing undivided preferred
beneficial interests in the assets of the Trust and having such terms as are set
forth in Annex I (the "Series A Capital Securities"), and one series of common
securities, evidenced by a certificate substantially in the form of Exhibit A-2,
representing undivided common beneficial interests in the assets of the Trust
and having such terms as are set forth in Annex I (the "Common Securities"). In
the Exchange Offer, the Administrators shall, on behalf of the Trust, issue
securities representing undivided preferred beneficial interests in the assets
of the Trust having such terms as set forth in Annex I (the "Series B Capital
Securities") in exchange for the Series A Capital Securities tendered and
accepted for exchange, which Series B Capital Securities shall not bear the
Restricted Securities Legend

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<PAGE>

unless the Holder of such Series A Capital Securities is (A) a broker-dealer who
purchased such Series A Capital Securities directly from the Trust for resale
pursuant to Rule 144A or any other available exemption under the Securities Act,
(B) a Person participating in the distribution of the Series A Capital
Securities or (C) a Person who is an Affiliate of the Sponsor or the Trust. 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 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 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.

                  (b) 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 Trust 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 Certificate, 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 the
Certificate evidencing it is authenticated by the manual or facsimile signature
of an Authorized Officer of the Institutional Trustee. Such signature shall be
conclusive evidence that the Certificate evidencing such Capital Security has
been authenticated under this Declaration. Upon written order of the Trust
signed by one Administrator, the Institutional Trustee shall authenticate one or
more Certificates evidencing the Capital Securities for original issue. The
Institutional Trustee may appoint an authenticating agent that is a U.S. Person
acceptable to the Sponsor to authenticate the Certificates evidencing Capital
Securities. A Common Security need not be so authenticated and shall be valid
upon execution by one or more Administrators.

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

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

                  (e) 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.

                  Section 7.2. PAYING AGENT, TRANSFER AGENT, CALCULATION AGENT
AND REGISTRAR.

                  (a) The Trust shall maintain in Wilmington, Delaware (i) an
office or agency where the Trust Securities may be presented for payment (the
"Paying Agent") and (ii) an office or agency where Trust 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

                                       36
<PAGE>

(the "Securities Register") for the purpose of registering Trust Securities and
transfers and exchanges of Trust Securities, such Securities 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.

                  Section 7.3. FORM AND DATING.

                  (a) The Capital Securities shall be evidenced by one or more
Certificates and the Institutional Trustee's certificate of authentication
thereon shall be substantially in the form of Exhibit A-1-A, and the Common
Securities shall be evidenced by one or more Certificates 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 evidencing Trust Securities may have letters, "CUSIP" or other
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-A to the Institutional Trustee in writing. Each Capital Security Certificate
shall be dated the date of its authentication. The terms and provisions of the
Trust Securities set forth in Annex I and the forms of Certificates 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 be bound thereby. Capital Securities
will be issued only in blocks having an aggregate Liquidation Amount of not less
than $100,000.

                  (b) GLOBAL CAPITAL SECURITY. Capital Securities offered and
sold to QIBs in reliance on Rule 144A, as provided in the Purchase Agreement,
shall be issued in the form of a single permanent global Capital Security in
definitive, fully registered form without distribution coupons and shall
include, prior to the Resale Restriction Termination Date, the appropriate
global legends and Restricted Securities Legend set forth in Exhibit A-1-A
hereto (the "Global Capital Security"). Global Capital Securities which shall be
deposited on behalf of the purchasers of the Capital Securities represented
thereby with the Institutional Trustee, at its Corporate Trust Office, as
custodian for the Clearing Agency, and registered in the name of the Clearing
Agency or a nominee of the Clearing Agency, duly executed by the Trust and
authenticated by the Institutional Trustee as hereinafter provided. The number
of Capital

                                       37
<PAGE>

Securities represented by the Global Capital Security may from time to time be
increased or decreased by adjustments made on the records of the Institutional
Trustee and the Clearing Agency or its nominee as hereinafter provided.

                  (c) BOOK-ENTRY PROVISIONS. This Section 7.3(b) shall apply
only to the Global Capital Security as may be authorized by the Trust to be
deposited with or on behalf of the Clearing Agency.

                  An Administrator shall execute and the Institutional Trustee
shall, upon receipt of an Issuer Order to do so, authenticate and make available
for delivery initially a single Global Capital Security that (i) shall be
registered in the name of Cede & Co. or other nominee of such Clearing Agency,
and (ii) shall be delivered by the Institutional Trustee to such Clearing Agency
or pursuant to such Clearing Agency's written instructions or, if no such
written instructions are received by the Institutional Trustee, held by the
Institutional Trustee as custodian for the Clearing Agency.

                  Members of, or participants in, the Clearing Agency
("Participants") shall have no rights under this Declaration with respect to the
Global Capital Security held on their behalf by the Clearing Agency or by the
Institutional Trustee as the custodian of the Clearing Agency or under such
Global Capital Security, and the Clearing Agency may be treated by the Trust,
the Institutional Trustee and any agent of the Trust or the Institutional
Trustee as the absolute owner of such Global Capital Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Trust, the Institutional Trustee or any agent of the Trust or the Institutional
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Clearing Agency or impair, as between the
Clearing Agency and its Participants, the operation of customary practices of
such Clearing Agency governing the exercise of the rights of a holder of a
beneficial interest in the Global Capital Security.

                  Subject to the provisions of Section 7.3(c), and to the
fullest extent permitted by law, the Holder of the Global Capital Security may
grant proxies and otherwise authorize any Person, including Participants and
Persons that may hold interests through Participants, to take any action which
such Holder is entitled to take under this Declaration or the Trust Securities.

                  (d) DEFINITIVE CAPITAL SECURITIES. Except as provided in
Section 7.4 or 9.2(e)(i), owners of beneficial interests in the Global Capital
Security will not be entitled to receive physical delivery of Definitive Capital
Securities. Purchasers of Securities who are "accredited investors" (as defined
in Rule 501(a)(l), (2), (3), (7) or (8) under the Securities Act) and who are
not QIBs will receive Capital Securities in the form of individual certificates
in definitive, fully registered form without distribution coupons and shall
include, prior to the Resale Restriction Termination Date, the Restricted
Securities Legend set forth in Exhibit A-1-A hereto ("Restricted Definitive
Capital Securities"); PROVIDED, HOWEVER, that upon registration of transfer of
such Restricted Definitive Capital Securities to a QIB, such Restricted
Definitive Capital Securities will, unless the Global Capital Security has
previously been exchanged, be exchanged for an interest in the Global Capital
Security pursuant to the provisions of Section 9.2. Restricted Definitive
Capital Securities will bear the Restricted Securities Legend set forth on
Exhibit A-1-A unless removed in accordance with Section 9.2.

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<PAGE>

                  (e) The Trust in issuing the Capital Securities may use
"CUSIP" numbers (if then generally in use), and, if so, the Institutional
Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders of Capital Securities; PROVIDED, THAT, any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Capital 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
Capital Securities, and any such redemption shall not be affected by any defect
in or omission of such numbers. The Sponsor will promptly notify the
Institutional Trustee of any change in the CUSIP numbers.

                  Section 7.4. PAYING AGENT TO HOLD MONEY IN TRUST. The Trust
shall require each Paying Agent other than the Institutional Trustee to agree in
writing that such Paying Agent will hold in trust for the benefit of Holders or
the Institutional Trustee all money held by such Paying Agent for the payment of
liquidation amounts or Distributions, and will notify the Institutional Trustee
if there are insufficient funds for such purpose. While any such insufficiency
continues, the Institutional Trustee may require a Paying Agent to pay all money
held by it to the Institutional Trustee. The Trust at any time may require a
Paying Agent to pay all money held by it to the Institutional Trustee and to
account for any money disbursed by it. Upon payment over to the Institutional
Trustee, the Paying Agent (if other than the Trust or an Affiliate of the Trust)
shall have no further liability for the money. If the Trust or the Sponsor or an
Affiliate of the Trust or the Sponsor acts as Paying Agent, it shall segregate
and hold in a separate trust fund for the benefit of the Holders all money held
by it as Paying Agent.

                  Section 7.5. TEMPORARY CERTIFICATES. Until definitive
Certificates are ready for delivery, the Administrators may prepare and execute
on behalf of the Trust and, in the case of Definitive Capital Securities, the
Institutional Trustee shall, upon receipt of an Issuer Order to do so,
authenticate, temporary Certificates. Temporary Certificates shall be
substantially in the form of definitive Certificates but may have variations
that the Administrators consider appropriate for temporary Certificates. Without
unreasonable delay, the Administrators shall prepare and execute on behalf of
the Trust and, in the case of the Definitive Capital Securities, the
Institutional Trustee shall, upon receipt of an Issuer Order to do so,
authenticate definitive Certificates in exchange for temporary Certificates.

                  Section 7.6. MUTILATED, DESTROYED, LOST OR STOLEN
CERTIFICATES. If:

                  (a) 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

                  (b) the related Holder shall deliver to the Registrar, the
Administrators and the Institutional Trustee such security or indemnity as may
be reasonably required by them to keep 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 to such Holder, 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

                                       39
<PAGE>

this Section, the Registrar or the Administrators may require such Holder to pay
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith. Any Certificate executed and delivered pursuant
to this Section shall constitute conclusive evidence of an ownership interest in
the relevant Trust Securities, as if originally issued, whether or not the lost,
stolen or destroyed Certificate shall be found at any time.

                  Section 7.7. CANCELLATION. The Administrators at any time may
deliver Certificates evidencing Trust Securities to the Institutional Trustee
for cancellation. The Registrar shall forward to the Institutional Trustee any
Certificates evidencing Trust Securities surrendered to it for registration of
transfer, redemption or payment. The Institutional Trustee shall promptly cancel
all Certificates surrendered for registration of transfer, payment, replacement
or cancellation and shall dispose of such canceled Certificates as the
Administrators direct. The Administrators may not issue new Certificates to
replace Certificates evidencing Trust Securities that have been paid or, except
for Certificates surrendered for purposes of the transfer or exchange of the
Trust Securities evidenced thereby, that have been delivered to the
Institutional Trustee for cancellation.

                  Section 7.8. RIGHTS OF HOLDERS.

                  (a) The legal title to the Trust Property is vested
exclusively in the Institutional Trustee (in its capacity as such) in accordance
with Section 3.5, 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 Trust Securities and they shall have no right to call for any
partition or division of property, profits or rights of the Trust except as
described below. The Trust Securities shall be personal property giving only the
rights specifically set forth therein and in this Declaration. The Trust
Securities shall have no, and the issuance of the Trust 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 Trust Securities
will be fully paid and nonassessable by the Trust.

                  (b) For so long as any Capital Securities remain outstanding,
if, upon an Indenture Event of Default, the Indenture Trustee fails or the
holders of not less than 25% in principal amount of the outstanding Debt
Securities fail to declare the principal of all of the Debt Securities 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 Indenture Trustee.

                  (c) At any time after the acceleration of maturity of the Debt
Securities has been made and before a judgment or decree for payment of the
money due has been obtained by the Indenture Trustee as provided in the
Indenture, if the Institutional Trustee, subject to the provisions hereof, fails
to annul any such acceleration and waive such default, the Holders of a Majority
in Liquidation Amount of the Capital Securities, by written notice to the
Institutional Trustee, the Sponsor and the Indenture Trustee, may rescind and
annul such acceleration and its consequences if:

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<PAGE>

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

                                    (A) all overdue installments of interest on
                           all of the Debt Securities;

                                    (B) any accrued Deferred Interest on all of
                           the Debt Securities;

                                    (C) all payments on any Debt Securities that
                           have become due otherwise than by such acceleration
                           and interest and Deferred Interest thereon at the
                           rate borne by the Debt Securities; and

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

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

                  (d) The Holders of 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
arising from the non-payment of principal of or premium, if any, or interest or
Liquidated Damages, if any, on the Debt Securities (unless such Default or Event
of Default has been cured and a sum sufficient to pay all matured installments
of Liquidated Damages, if any, interest, premium, if any, and principal due
otherwise than by acceleration has been deposited with the Indenture 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 Debt Security. No such waiver shall affect any subsequent
default or impair any right consequent thereon.

                  (e) 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

                                       41
<PAGE>

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.

                                  ARTICLE VIII

                      DISSOLUTION AND TERMINATION OF TRUST

                  Section 8.1. DISSOLUTION AND TERMINATION OF TRUST. (a) The
Trust shall dissolve on the first to occur of :

                           (i) April 14, 2039, the expiration of the term of the
                  Trust;

                           (ii) a Bankruptcy Event with respect to the Sponsor,
                  the Trust or the Debt Security 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 reinstatement thereof;

                           (iv) the distribution of all of the Debt Securities
                  to the Holders of the Trust 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;

                           (v) the entry of a decree of judicial dissolution of
                  any Holder of the Common Securities, the Sponsor, the Trust or
                  the Debt Security Issuer;

                           (vi) when all of the Trust Securities are then
                  subject to redemption and the amounts necessary for redemption
                  thereof shall have been paid to the Holders in accordance with
                  the terms of the Trust Securities; or

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

                  (b) As soon as is practicable after the occurrence of an event
referred to in Section 8.1(a), and after satisfaction of liabilities to
creditors of the Trust as required by applicable law, including ss.3808 of the
Statutory Trust Act, and subject to the terms set forth in Annex I, the
Institutional Trustee shall terminate the Trust by filing a certificate of
cancellation with the Secretary of State of the State of Delaware.

                  (c) The provisions of Section 3.9 and Article X shall survive
the termination of the Trust.

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<PAGE>

                                   ARTICLE IX

                              TRANSFER OF INTERESTS

                  Section 9.1. TRANSFER OF TRUST SECURITIES.

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

                  (b) 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 Trust Securities remain outstanding, the Sponsor shall
maintain 100% ownership of the Common Securities; provided, however, that any
permitted successor of the Debt Security Issuer under the Indenture may succeed
to the Sponsor's ownership of the Common Securities.

                  (c) Neither the Trust nor the Registrar shall be required (i)
to issue Certificates representing Trust Securities or register the transfer of,
or exchange any Trust Securities during a period beginning at the opening of
business 15 days before the day of any selection of Trust 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
Trust Securities to be redeemed, or (ii) to register the transfer or exchange of
any Trust Security so selected for redemption in whole or in part, except the
unredeemed portion of any Trust Security being redeemed in part.

                  Section 9.2. TRANSFER PROCEDURES AND RESTRICTIONS.

                  (a) GENERAL. Except as otherwise provided in Section 9.2(b),
if Capital Securities are issued upon the transfer, exchange or replacement of
Capital Securities bearing the Restricted Securities Legend set forth in Exhibit
A-1-A hereto, or if a request is made to remove such Restricted Securities
Legend on Capital Securities, the Capital Securities so issued shall bear the
Restricted Securities Legend, or the Restricted Securities Legend shall not be
removed, as the case may be, unless there is delivered to the Trust and the
Institutional Trustee such satisfactory evidence, as may be reasonably required
by the Trust and the Institutional Trustee, that neither the Restricted
Securities Legend nor the restrictions on transfer set forth therein are
required to ensure that transfers thereof are made pursuant to an exemption from
the registration requirements of the Securities Act or, with respect to
Restricted Capital Securities, that such Securities are not "restricted" within
the meaning of Rule 144. Upon provision of such satisfactory evidence, the
Institutional Trustee shall, upon receipt of an Issuer Order to do so,
authenticate and deliver Capital Securities that do not bear the Restricted
Securities Legend. Such satisfactory evidence shall include (i) an Opinion of
Counsel or (ii) if to a QIB, a certificate of the transferor substantially in
the form set forth as Exhibit C hereto; or (iii) if to an

                                       43
<PAGE>

"accredited investor" within the meaning of Rule 501 (a)(1), (2), (3), (7) or
(8) under the Securities Act, a certificate of the transferee substantially in
the form set forth as Exhibit B hereto; or (iv) if to a non-"U.S. Person" in an
"offshore transaction" under, and within the meaning of, Regulation S under the
Securities Act, a certificate of the transferee substantially in the form set
forth as Exhibit D hereto. Each certificate furnished pursuant to this Section
9.2(a) may be an original or a copy (which may be furnished by facsimile or
other form of electronic transmission).

                  (b) TRANSFERS AFTER EFFECTIVENESS OF A REGISTRATION STATEMENT.
After the effectiveness of a Registration Statement with respect to any Capital
Securities, the Restricted Securities Legend on such Capital Securities will
cease to apply (other than the legend requiring that transfers of Capital
Securities be made in blocks having an aggregate Liquidation Amount of not less
than $100,000 (100 Capital Securities) and multiples of $1,000 in excess thereof
and such restrictions as may be required by law), and beneficial interests in
the Global Capital Security without legends will be available to transferees of
such Capital Securities, upon exchange of the transferring Holder's Restricted
Definitive Capital Security or directions to transfer such Holder's beneficial
interest in the Global Capital Security, as the case may be. No such transfer or
exchange of a Restricted Definitive Capital Security or of an interest in the
Global Capital Security shall be effective unless the transferor delivers to the
Institutional Trustee a certificate in a form substantially similar to that
attached hereto as the form of "Assignment" in Exhibit A-1-A. Except as
otherwise provided in Section 9.2(m), after the effectiveness of a Registration
Statement, an Administrator on behalf of the Trust shall issue and the
Institutional Trustee, upon receipt of an Issuer Order to do so, shall
authenticate a Capital Security without the Restricted Securities Legend to
deposit with the Clearing Agency to evidence transfers of beneficial interests
from the Global Capital Security or Restricted Definitive Capital Securities, as
the case maybe.

                  (c) TRANSFER AND EXCHANGE OF DEFINITIVE CAPITAL SECURITIES.
When Definitive Capital Securities are presented to the Registrar or
co-registrar (x) to register the transfer of such Definitive Capital Securities
or (y) to exchange such Definitive Capital Securities which became mutilated,
destroyed, defaced, stolen or lost, for an equal number of Definitive Capital
Securities, the Registrar or co-registrar shall register the transfer or make
the exchange as requested if its reasonable requirements for such transaction
are met;

PROVIDED, HOWEVER, that the Definitive Capital Securities surrendered for
registration of transfer or exchange:

                           (i) shall be duly endorsed or accompanied by a
                  written instrument of transfer in form reasonably satisfactory
                  to the Trust and the Registrar or co-registrar, duly executed
                  by the Holder thereof or his attorney duly authorized in
                  writing; and

                           (ii) in the case of Restricted Definitive Capital
                  Securities, shall be accompanied by:

                                    (A) if such Restricted Definitive Capital
                           Securities are being delivered to the Registrar by a
                           Holder for registration in the

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<PAGE>

                           name of such Holder, without transfer,
                           certification(s) from such Holder to that effect; or

                                    (B) if such Restricted Definitive Capital
                           Securities are being transferred: (i)
                           certification(s) in a form substantially similar to
                           that attached hereto as the form of "Assignment" in
                           Exhibit A-1-A, (ii) if the Trust or Registrar so
                           requests, evidence reasonably satisfactory to them as
                           to the compliance with the restrictions set forth in
                           the Restricted Securities Legend and (iii) a
                           certificate of (x) the transferor substantially in
                           the form set forth as Exhibit C hereto if the
                           transferee is a QIB, (y) the transferee substantially
                           in the form set forth as Exhibit B hereto if the
                           transferee is an "accredited investor" within the
                           meaning of Rule 501(a)(1), (2), (3), (7) or 8 under
                           the Securities Act or (z) the transferee
                           substantially in the form set forth as Exhibit D
                           hereto if the transferee is a non-"U.S. Person" in an
                           "offshore transaction" under and within the meaning
                           of Regulation S under the Securities Act

                  (d) RESTRICTIONS ON TRANSFER OF A DEFINITIVE CAPITAL SECURITY
FOR A BENEFICIAL INTEREST IN THE GLOBAL CAPITAL SECURITY. A Definitive Capital
Security may not be exchanged for a beneficial interest in the Global Capital
Security except upon satisfaction of the requirements set forth below. Upon
receipt by the Institutional Trustee of a Definitive Capital Security, duly
endorsed or accompanied by appropriate instruments of transfer, in form
satisfactory to the Institutional Trustee, together with:

                           (i) if such Definitive Capital Security is a
                  Restricted Definitive Capital Security, certification(s) in a
                  form substantially similar to that attached hereto as the form
                  of "Assignment" in Exhibit A-1-A;

                           (ii) a certificate of the transferor substantially in
                  the form set forth as Exhibit C hereto; and

                           (iii) whether or not such Definitive Capital Security
                  is a Restricted Definitive Capital Security, written
                  instructions directing the Institutional Trustee to make, or
                  to direct the Clearing Agency to make, an adjustment on its
                  books and records with respect to the Global Capital Security
                  to reflect an increase in the number of the Capital Securities
                  represented by such Global Capital Security,

then the Institutional Trustee shall cancel such Definitive Capital Security and
cause, or direct the Clearing Agency to cause, the aggregate number of Capital
Securities represented by the Global Capital Security to be increased
accordingly. If the Global Capital Security is not then outstanding, an
Administrator on behalf of the Trust shall execute and issue and the
Institutional Trustee shall, upon receipt of an Issuer Order to do so,
authenticate a new Global Capital Security representing an appropriate number of
Capital Securities.

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<PAGE>

                  (e) TRANSFER AND EXCHANGE OF THE GLOBAL CAPITAL SECURITY.
Subject to Section 9.2(g), the transfer and exchange of the Global Capital
Security or beneficial interests therein shall be effected through the Clearing
Agency in accordance with this Declaration (including applicable restrictions on
transfer set forth herein, if any) and the procedures of the Clearing Agency
therefor.

                  (f) TRANSFER OF A BENEFICIAL INTEREST IN THE GLOBAL CAPITAL
SECURITY FOR A DEFINITIVE CAPITAL SECURITY.

                           (i) Any Person having a beneficial interest in the
                  Global Capital Security may upon request, but only upon 20
                  days prior notice to the Institutional Trustee, and if
                  accompanied by the information specified below, exchange such
                  beneficial interest for a Definitive Capital Security
                  representing the same number of Capital Securities. Upon
                  receipt by the Institutional Trustee from the Clearing Agency
                  or its nominee on behalf of any Person having a beneficial
                  interest in the Global Capital Security of written
                  instructions or such other form of instructions as is
                  customary for the Clearing Agency or the Person designated by
                  the Clearing Agency as having such a beneficial interest in a
                  Restricted Capital Security and certification(s) from the
                  transferor in a form substantially similar to that attached
                  hereto as the form of "Assignment" in Exhibit A-1-A, which may
                  be submitted by facsimile, then the Institutional Trustee will
                  cause the aggregate number of Capital Securities represented
                  by the Global Capital Security to be reduced on its books and
                  records and, following such reduction, an Administrator on
                  behalf of the Trust will execute and issue and the
                  Institutional Trustee will, upon receipt of an Issuer Order to
                  do so, authenticate and make available for delivery to the
                  transferee a Definitive Capital Security.

                           (ii) Definitive Capital Securities issued in exchange
                  for a beneficial interest in the Global Capital Security
                  pursuant to this Section 9.2(f) shall be registered in such
                  names and in such authorized denominations as the Clearing
                  Agency, pursuant to instructions from its Clearing Agency
                  Participants or indirect participants or otherwise, shall
                  instruct the Institutional Trustee in writing. The
                  Institutional Trustee shall deliver such Capital Securities to
                  the Persons in whose names such Capital Securities are so
                  registered in accordance with such instructions of the
                  Clearing Agency.

                  (g) RESTRICTIONS ON TRANSFER AND EXCHANGE OF THE GLOBAL
CAPITAL SECURITY. Notwithstanding any other provisions of this Declaration
(other than the provisions set forth in subsection (h) of this Section 9.2), the
Global Capital Security may not be transferred as a whole except by the Clearing
Agency to a nominee of the Clearing Agency or another nominee of the Clearing
Agency or by the Clearing Agency or any such nominee to a successor Clearing
Agency or a nominee of such successor Clearing Agency.

                                       46
<PAGE>

                  (h) AUTHENTICATION OF DEFINITIVE CAPITAL SECURITIES. If at any
time:

                           (i) a Default or an Event of Default has occurred and
                  is continuing,

                           (ii) at the Debt Security Issuer's request, the
                  Clearing Agency may notify Capital Security Beneficial Owners
                  that they may request the Clearing Agency to cause the
                  issuance of Definitive Capital Securities, or

                           (iii) the Clearing Agency notifies the Sponsor that
                  it is unwilling or unable to continue as Clearing Agency for
                  such Global Capital Security or if at any time such Clearing
                  Agency ceases to be a "clearing agency" registered under the
                  Exchange Act, and, in each case, a clearing agency is not
                  appointed by the Sponsor within 90 days of receipt of such
                  notice or of becoming aware of such condition, then an
                  Administrator on behalf of the Trust will execute, and the
                  Institutional Trustee will, upon receipt of an Issuer Order to
                  do so, authenticate and make available for delivery Definitive
                  Capital Securities, equal in number to the number of Capital
                  Securities represented by the Global Capital Security, in
                  exchange for such Global Capital Security. Any portion of the
                  Global Capital Security transferred pursuant to this Section
                  shall be registered in such names as the Clearing Agency shall
                  direct. Any Definitive Capital Security delivered in exchange
                  for an interest in a Global Capital Security with a Restricted
                  Securities Legend shall, except as otherwise provided by
                  Section 9.2, bear the Restricted Securities Legend set forth
                  in Exhibit A-1-A hereto.

                  (i) Prior to the Resale Restriction Termination Date, the
Capital Securities may not be transferred except in compliance with restrictions
on transfer set forth in the legend set forth in Exhibit A-1-A (the "Restricted
Securities Legend"), and except as otherwise contemplated in Section 9.2(a),
each Certificate evidencing outstanding Capital Securities shall bear the
Restricted Securities Legend as set forth in Exhibit A-1-A.

                  (j) Upon any sale or transfer of a Restricted Capital Security
(including any Restricted Capital Security represented by the Global Capital
Security) pursuant to an effective registration statement under the Securities
Act or pursuant to Rule 144:

                                    (A) in the case of any Restricted Definitive
                           Capital Security, at the direction of the
                           Administrators, the Registrar shall permit the Holder
                           thereof to exchange such Restricted Capital Security
                           for a Definitive Capital Security that does not bear
                           the Restricted Securities Legend at the direction of
                           the Administrators, and rescind any restriction on
                           the transfer of such Restricted Capital Security; and

                                    (B) in the case of any Restricted Capital
                           Security that is represented by the Global Capital
                           Security, the Registrar shall

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<PAGE>

                           permit the Capital Security Beneficial Owner to
                           exchange its interest in the Global Capital Security
                           for another Global Capital Security that does not
                           bear the Restricted Securities Legend.

                  (k) CANCELLATION OR ADJUSTMENT OF GLOBAL CAPITAL SECURITY. At
such time as all beneficial interests in the Global Capital Security have either
been exchanged for Definitive Capital Securities to the extent permitted by this
Declaration or redeemed, repurchased or canceled in accordance with the terms of
this Declaration, such Global Capital Security shall be returned to the Clearing
Agency for cancellation or retained and canceled by the Institutional Trustee.
At any time prior to such cancellation, if any beneficial interest in the Global
Capital Security is exchanged for Definitive Capital Securities, Capital
Securities represented by such Global Capital Security shall be reduced and an
adjustment shall be made on the books and records of the Institutional Trustee
and the Clearing Agency or its nominee to reflect such reduction.

                  (l) OBLIGATIONS WITH RESPECT TO TRANSFERS AND EXCHANGES OF
CAPITAL SECURITIES.

                           (i) To permit registrations of transfers and
                  exchanges, an Administrator on behalf of the Trust shall
                  execute and the Institutional Trustee shall, upon receipt of
                  an Issuer Order to do so, authenticate Definitive Capital
                  Securities and the Global Capital Security at the Registrar's
                  or co-registrar's request in accordance with the terms of this
                  Declaration.

                           (ii) Registrations of transfers or exchanges will be
                  effected without charge, but only upon payment (with such
                  indemnity as the Trust or the Sponsor may reasonably require)
                  in respect of any tax or other governmental charge that may be
                  imposed in relation to it, other than exchanges relating to
                  partial redemptions and Section 7.5 that do not involve any
                  transfer.

                           (iii) The Registrar or co-registrar shall not be
                  required to register the transfer of or exchange of (a)
                  Capital Securities during a period beginning at the opening of
                  business 15 days before the day of mailing of a notice of
                  redemption and ending at the close of business on the day of
                  such mailing or (b) any Capital Security so selected for
                  redemption in whole or in part, except the unredeemed portion
                  of any Capital Security being redeemed in part.

                           (iv) Prior to the due presentation for registration
                  of transfer of any Capital Security, the Trust, the
                  Institutional Trustee, the Paying Agent, the Registrar or any
                  co-registrar may deem and treat the Person in whose name a
                  Capital Security is registered as the absolute owner of such
                  Capital Security for the purpose of receiving Distributions on
                  such Capital Security and for all other purposes whatsoever,
                  and none of the Trust, the

                                       48
<PAGE>

                  Institutional Trustee, the Paying Agent, the Registrar or any
                  co-registrar shall be affected by notice to the contrary.

                           (v) All Capital Securities 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
                  Capital Securities surrendered upon such registration of
                  transfer or exchange.

                  (m) EXCHANGE OF SERIES A CAPITAL SECURITIES FOR SERIES B
CAPITAL SECURITIES. The Series A Capital Securities shall be exchanged for
Series B Capital Securities pursuant to the terms of the Exchange Offer if the
following conditions are satisfied: The Sponsor shall present the Institutional
Trustee with an Officers' Certificate certifying the following:

                           (A)      upon issuance of the Series B Capital
                                    Securities, the transactions contemplated by
                                    the Exchange Offer have been consummated;
                                    and

                           (B)      the number of Series A Capital Securities
                                    properly tendered in the Exchange Offer that
                                    are represented by the Global Capital
                                    Security and the number of Series A Capital
                                    Securities properly tendered in the Exchange
                                    Offer that are represented by Definitive
                                    Capital Securities, the name of each Holder
                                    of such Definitive Capital Securities and
                                    its Liquidation Amount and the name and
                                    address to which Definitive Capital
                                    Securities for Series B Capital Securities
                                    shall be registered and sent for each such
                                    Holder.

                  The Institutional Trustee, upon receipt of (i) such Officers'
Certificate, (ii) an Opinion of Counsel (x) to the effect that the Series B
Capital Securities and the Series B Guarantee have been registered under Section
5 of the Securities Act and that this Declaration and the Series B Guarantee
have been qualified under the Trust Indenture Act and (y) with respect to the
matters set forth in Section 3(q) of the Registration Rights Agreement, shall
authenticate (A) the Global Capital Security, executed and delivered by the
Trust to the Institutional Trustee, for Series B Capital Securities in aggregate
Liquidation Amount equal to the aggregate Liquidation Amount of Series A Capital
Securities represented by the Global Capital Security indicated in such
Officers' Certificate as having been properly tendered and (B) Definitive
Capital Securities, executed and delivered by the Trust to the Institutional
Trustee, representing Series B Capital Securities registered in the names and in
the Liquidation Amounts indicated in such Officers' Certificate.

                  Upon any properly tendered and accepted Series A Capital
Securities in the Exchange Offer that are represented by a Global Security, the
Institutional Trustee shall make an endorsement on the Global Capital Security
for Series A Capital Securities indicating the

                                       49
<PAGE>

reduction in the number and aggregate Liquidation Amount represented thereby as
a result of the Exchange Offer.

                  The Trust shall deliver such authenticated Definitive Capital
Securities for Series B Capital Securities to the Holders thereof as indicated
in such Officers' Certificate.

                  (n) NO OBLIGATION OF THE INSTITUTIONAL TRUSTEE.

                           (i) The Institutional Trustee shall have no
                  responsibility or obligation to any Capital Security
                  Beneficial Owner, a Participant in the Clearing Agency or
                  other Person with respect to the accuracy of the records of
                  the Clearing Agency or its nominee or of any Participant
                  thereof, with respect to any ownership interest in the Capital
                  Securities or with respect to the delivery to any Participant,
                  Capital Security Beneficial Owner or other Person (other than
                  the Clearing Agency) of any notice (including any notice of
                  redemption) or the payment of any amount under or with respect
                  to such Capital Securities. All notices and communications to
                  be given to the Holders and all payments to be made to Holders
                  under the Capital Securities shall be given or made only to or
                  upon the order of the Holders (which shall be the Clearing
                  Agency or its nominee in the case of the Global Capital
                  Security). The rights of Capital Security Beneficial Owners
                  shall be exercised only through the Clearing Agency subject to
                  the applicable rules and procedures of the Clearing Agency.
                  The Institutional Trustee may conclusively rely and shall be
                  fully protected in relying upon information furnished by the
                  Clearing Agency or any agent thereof with respect to its
                  Participants and any Capital Security Beneficial Owners.

                           (ii) The Institutional Trustee and the Registrar
                  shall have no obligation or duty to monitor, determine or
                  inquire as to compliance with any restrictions on transfer
                  imposed under this Declaration or under applicable law with
                  respect to any transfer of any interest in any Capital
                  Security (including any transfers between or among Clearing
                  Agency Participants or Capital Security Beneficial Owners)
                  other than to require delivery of such certificates and other
                  documentation or evidence as are expressly required by, and to
                  do so if and when expressly required by, the terms of this
                  Declaration, and to examine the same to determine whether or
                  not on their face they comply as to form with the express
                  requirements hereof.

                  (o) MINIMUM TRANSFERS. The Series A Capital Securities and, if
and when issued, Series B 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 Series A
Capital Securities or Series B 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 Series A Capital Securities or Series B Capital Securities for
any purpose,

                                       50
<PAGE>

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.

                  Section 9.3. 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 Trust Security shall be
registered on the Securities Register of the Trust as the sole Holder and owner
of such Trust Security 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 Trust Security on the part of
any other 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.

                  Section 9.4. BOOK-ENTRY INTERESTS.

                  The Global Capital Security shall initially be registered on
the books and records of the Trust in the name of Cede & Co., the nominee of the
Clearing Agency and no Capital Security Beneficial Owner will receive physical
delivery of a definitive Capital Security certificate (a "Capital Security
Certificate") representing such Capital Security Beneficial Owner's interests in
such Global Capital Security, except as provided in Section 9.2 and Section 7.4.
Unless and until Definitive Capital Securities have been issued to the Capital
Security Beneficial Owners pursuant to Section 9.2 or Section 7.4

                  (a) the provisions of this Section 9.4 shall be in full force
and effect;

                  (b) the Trust and the Trustees shall be entitled to deal with
the Clearing Agency for all purposes of this Declaration (including the payment
of Distributions on the Global Capital Security and receiving approvals, votes
or consents hereunder) as the sole Holder of the Global Capital Security and
shall have no obligation to the Capital Security Beneficial Owners;

                  (c) to the extent that the provisions of this Section 9.4
conflict with any other provisions of this Declaration, the provisions of this
Section 9.4 shall control; and

                  (d) the rights of the Capital Security Beneficial Owners shall
be exercised only through the Clearing Agency and shall be limited to those
established by law and agreements between such Capital Security Beneficial
Owners and the Clearing Agency and/or the Clearing Agency Participants, and the
Clearing Agency shall receive and transmit payments of Distributions on the
Global Capital Security to such Clearing Agency Participants; provided, HOWEVER
that solely for the purposes of determining whether the Holders of the requisite
amount of Capital Securities have voted on any matter provided for in this
Declaration, the Trustees, with respect to the Global Capital Security, may
conclusively rely on, and shall be protected in relying on, any written
instrument (including a proxy) delivered to the Trustees by the Clearing Agency
setting forth the Capital Security Beneficial Owners' votes or assigning the
right to vote on any matter to any other Persons either in whole or in part; and
the Clearing Agency will also make book-entry transfers among the Clearing
Agency Participants.

                                       51
<PAGE>

                  (e) NOTICES TO CLEARING AGENCY.

                  Whenever a notice or other communication to the Capital
Security Holders is required to be given by a Trustee under this Declaration,
such Trustee shall give all such notices and communications specified herein to
be given to the Holder of the Global Capital Security to the Clearing Agency and
shall have no notice obligations to the Capital Security Beneficial Owners.

                  Section 9.5. APPOINTMENT OF SUCCESSOR CLEARING AGENCY.

                  If any Clearing Agency elects to discontinue its services as
securities depositary with respect to the Capital Securities, the Administrators
may, in their sole discretion, appoint a successor Clearing Agency with respect
to such Capital Securities.

                                   ARTICLE X

                           LIMITATION OF LIABILITY OF
                 HOLDERS OF TRUST SECURITIES, TRUSTEES OR OTHERS

                  Section 10.1. LIABILITY. (a) Except as expressly set forth in
this Declaration, the Guarantee and the terms of the Trust Securities, the
Sponsor shall not be:

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

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

                  (b) 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
Trust Securities) to the extent not satisfied out of the Trust's assets.

                  (c) Pursuant to ss. 3803(a) of the Statutory Trust Act, the
Holders of the Trust 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 10.2. EXCULPATION. (a) 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

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<PAGE>

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

                  (b) An Indemnified Person shall be fully protected in relying
in good faith upon the records of the 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 Trust Securities might properly be paid.

                  Section 10.3. FIDUCIARY DUTY. (a) 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.

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

                           (i) 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

                           (ii) 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 10.4. INDEMNIFICATION. (a)

                           (i) 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 action, suit
                  or proceeding if such Person acted in good faith and in a
                  manner such Person reasonably believed to be in or not

                                       53
<PAGE>

                  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.

                           (ii) 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.

                           (iii) 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.

                           (iv) Any indemnification of an Administrator under
                  paragraphs (i) and (ii) of this Section 10.4(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.

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<PAGE>

                           (v) 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 10.4(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 10.4(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.

                  (b) 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.

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<PAGE>

                  (c) The indemnification and advancement of expenses provided
by, or granted pursuant to, the other paragraphs of this Section 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 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 is in effect. Any repeal or modification
of this Section shall not affect any rights or obligations then existing.

                  (d) 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.

                  (e) For purposes of this Section, 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
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.

                  (f) The indemnification and advancement of expenses provided
by, or granted pursuant to, this Section 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.

                  (g) The provisions of this Section 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 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 Trust 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 10.5. OUTSIDE BUSINESSES. Any Covered Person, the
Sponsor, the Delaware Trustee and the Institutional Trustee (subject to Section
5.3(c)) may engage in or possess an interest in other business ventures of any
nature or description, independently or with others, similar or dissimilar to
the business of the Trust, and the Trust and the Holders of Trust 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

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<PAGE>

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 10.6. COMPENSATION; FEE. (a) The Sponsor agrees:

                           (i) 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

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

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

                                   ARTICLE XI

                                   ACCOUNTING

                  Section 11.1. 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 11.2. CERTAIN ACCOUNTING MATTERS.

                  (a) 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 ss.
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.

                  (b) The Sponsor shall cause the Administrators to deliver, by
hardcopy or electronic transmission, to each Holder of Securities: (1) each Form
10-K and Form 10-Q prepared by the Sponsor and filed with the Commission in
accordance with the Exchange Act, within ten Business Days after the filing
thereof; (2) if the Sponsor is not then (y) subject to

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Section 13 or 15(d) of the Exchange Act or (z) exempt from reporting pursuant to
Rule 12g3-2(b) thereunder, the information required to be provided by Rule
144A(d)(4) under the Securities Act, the information required to be provided by
Rule 144A(d)(4) under the Securities Act; and (3) 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
statements of income or loss for the Fiscal Year then ended, that are prepared
at the principal office of the Trust in the United States, as defined for
purposes of Treasury Regulations ss. 301.7701-7.

                  (c) The Administrators shall cause to be duly prepared and
delivered to each of the Holders of Trust 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 Trust 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.

                  (d) The Administrators shall cause to be duly prepared in the
United States, as defined for purposes of Treasury Regulations ss. 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.

                  Section 11.3. BANKING. The Trust shall maintain one or more
bank accounts in the United States, as defined for purposes of Treasury
Regulations ss. 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 Debt Securities
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 11.4. 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

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Distributions made, the Institutional Trustee or any Paying Agent may reduce
subsequent Distributions by the amount of such withholding.

                                  ARTICLE XII

                             AMENDMENTS AND MEETINGS

                  Section 12.1. AMENDMENTS. (a) Except as otherwise provided in
this Declaration or by any applicable terms of the Trust Securities, this
Declaration may only be amended by a written instrument approved and executed by

                           (i) the Institutional Trustee,

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

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

                           (iv) the Holders of a Majority in Liquidation Amount
                  of the Common Securities.

                  (b) Notwithstanding any other provision of this Article XII,
no amendment shall be made, and any such purported amendment shall be void and
ineffective:

                           (i) unless the Institutional Trustee shall have first
                  received

                                    (A) 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 Trust
                           Securities); and

                                    (B) 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 Trust
                           Securities) and that all conditions precedent to the
                           execution and delivery of such amendment have been
                           satisfied; or

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

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

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

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

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<PAGE>

                                    (D) cause the Debt Security Issuer to be
                           unable to treat an amount equal to the Liquidation
                           Amount of the Capital Securities as "Tier 1 Capital"
                           (or its then equivalent if the Debt Security Issuer
                           (or its successors) were subject to such capital
                           requirement) applied as if the Debt Security Issuer
                           (or its successors) were a bank holding company for
                           purposes of the capital adequacy guidelines of the
                           Federal Reserve (or any successor regulatory
                           authority with jurisdiction over bank holding
                           companies), or any capital adequacy guidelines as
                           then in effect and applicable to the Debt Security
                           Issuer.

                  (c) Except as provided in Section 12.1(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.

                  (d) 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
Trust Securities or any redemption or liquidation provisions applicable to the
Trust Securities or otherwise adversely affect the amount of any Distribution
required to be made in respect of the Trust Securities as of a specified date or
(ii) restrict the right of a Holder to institute suit for the enforcement of any
Distributions or other amounts on or after their due date.

                  (e) Sections 10.1(b) and 10.1(c) and this Section shall not be
amended without the consent of all of the Holders of the Trust Securities.

                  (f) 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.

                  (g) This Declaration may be amended by the Institutional
Trustee and the Holder of the Common Securities without the consent of the
Holders of the Capital Securities to:

                           (i) cure any ambiguity;

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

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

                           (iv) 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

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<PAGE>

                           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); or

                           (v) to modify eliminate or add any provisions of this
                           Declaration to such extent as shall be necessary to
                           enable the Trust or the Sponsor to conduct an
                           Exchange Offer in the manner contemplated by the
                           Registration Rights Agreement.

PROVIDED, HOWEVER, that no such amendment contemplated in clause (i), (ii),
(iii), (iv) or (v) shall adversely affect the powers, preferences, rights or
interests of Holders of Capital Securities.

                  Section 12.2. MEETINGS OF THE HOLDERS OF THE TRUST SECURITIES;
ACTION BY WRITTEN CONSENT.

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

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

                           (i) Notice of any such meeting shall be given to all
                  the Holders of the Trust Securities having a right to vote
                  thereat at least 7 days and not more than 60 days before the
                  date of such meeting. Whenever a vote, consent or approval of
                  the Holders of the Trust 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 Trust Securities. Any
                  action that may be taken at a meeting of the Holders of the
                  Trust 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 Trust Securities owning not less than the
                  minimum Liquidation Amount of Trust Securities that would be
                  necessary to authorize or take such action at a meeting at
                  which all Holders of the Trust 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 Trust Securities entitled to vote who have not

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<PAGE>

                  consented in writing. The Administrators may specify that any
                  written ballot submitted to the Holders of the Trust
                  Securities for the purpose of taking any action without a
                  meeting shall be returned to the Trust within the time
                  specified by the Administrators.

                           (ii) Each Holder of a Trust Security may authorize
                  any Person to act for it by proxy on all matters in which a
                  Holder of Trust 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 Trust 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 Trust
                  Securities were stockholders of a Delaware corporation. Each
                  meeting of the Holders of the Trust Securities shall be
                  conducted by the Administrators or by such other Person that
                  the Administrators may designate.

                           (iii) Unless the Statutory Trust Act, this
                  Declaration, the terms of the Trust Securities, the Trust
                  Indenture Act or the listing rules of any stock exchange on
                  which the Capital Securities are then listed or admitted for
                  trading, if any, otherwise provides, the Administrators, in
                  their sole discretion, shall establish all other provisions
                  relating to meetings of Holders of Trust 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 Trust
                  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 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
                  Regulationsss.301.7701-7).

                                  ARTICLE XIII

                    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
                              AND DELAWARE TRUSTEE

                  Section 13.1. 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:

                  (a) 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

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to execute and deliver, and to carry out and perform its obligations under the
terms of, this Declaration;

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

                  (c) 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;

                  (d) 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, and 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);

                  (e) 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

                  (f) 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.

                  Section 13.2. 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:

                  (a) if it is not a natural person, the Delaware Trustee is
duly organized, validly existing and in good standing under the laws of the
State of Delaware;

                  (b) 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, and 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);

                  (c) 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 charter or by-laws of the Delaware Trustee;

                                       63
<PAGE>

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

                  (e) 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

                  (f) the Delaware Trustee is a natural person who is a resident
of the State of Delaware or, if not a natural person, it is an entity which has
its principal place of business in the State of Delaware and, in either case, a
Person that satisfies for the Trust the requirements of ss.3807 of the Statutory
Trust Act.

                                   ARTICLE XIV

                               REGISTRATION RIGHTS

                  Section 14.1. REGISTRATION RIGHTS AGREEMENT; LIQUIDATED
DAMAGES. The Holders of the Series A Capital Securities, the Series A Debt
Securities and the Series A Guarantee are entitled to the benefits of the
Registration Rights Agreement and the Liquidated Damages Agreement. In certain
limited circumstances set forth in the Registration Rights Agreement and the
Liquidated Damages Agreement, the Debt Security Issuer shall be required to pay
Liquidated Damages with respect to the Series A Debt Securities. The Sponsor
shall promptly notify the Institutional Trustee of any time during which the
Debt Security Issuer is required to pay Liquidated Damages. Unless otherwise
stated, the term "Distribution," as used in this Declaration, includes any and
all Liquidated Damages.

                                   ARTICLE XV
                                  MISCELLANEOUS

                  Section 15.1. 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:

                  (a) 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 Trust Securities):

                  Dime Community Capital Trust I
                  c/o Dime Community Bancshares, Inc.
                  209 Havemeyer Street,
                  Brooklyn, New York 11211
                  Attention: Lance Bennett
                  Telephone: (718) 782-6200
                  Telecopy: (718) 782-4683;

                                       64
<PAGE>

                  (b) 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 Trust Securities):

                  Wilmington Trust Company
                  Rodney Square North
                  1100 North Market Street
                  Wilmington, DE 19890-0001
                  Attention: Corporate Trust Administration
                  Telephone: (302) 651-1000
                  Telecopy: (302) 651-8882;

                  (c) 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 Trust
Securities):

                  Wilmington Trust Company
                  Rodney Square North
                  1100 North Market Street
                  Wilmington, DE 19890-0001
                  Attention: Corporate Trust Administration
                  Telephone: (302) 651-1000
                  Telecopy: (302) 651-8882;

                  (d) 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):

                  Dime Community Bancshares, Inc.
                  209 Havemeyer Street
                  Brooklyn, NY 11211
                  Attention: Lance Bennett
                  Telephone: (718) 782-6200
                  Telecopy: (718) 782-4683; or

                  (e) 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 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 15.2. 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

                                       65
<PAGE>

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 15.3. SUBMISSION TO JURISDICTION.

                  (a) 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 courts of the State of New
York and the United States District Courts, in each case located in the Borough
of Manhattan, City and State of New York, and further agrees to submit to the
jurisdiction of 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.

                  (b) 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 15.1 hereof.

                  (c) 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.

                  Section 15.4. 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 15.5. 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 15.6. 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 15.7. 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

                                       66
<PAGE>

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 15.8. 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.

                  Section 15.9. CHARACTERIZATION. Each of the Sponsor, the
Trust, the Trustees, the Administrators and the Holders and beneficial owners of
the Trust Securities agrees, for United States federal income tax purposes, to
treat the Debt Securities as indebtedness of the Debt Security Issuer and to
treat the Trust Securities as evidence of a beneficial ownership interest in the
Debt Securities through a grantor trust.

                                       67
<PAGE>

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

                                       WILMINGTON TRUST COMPANY,
                                              as Delaware Trustee

                                       By: /s/ Mary St. Amand
                                          -------------------------------------
                                           Mary St. Amand
                                           Assistant Vice President

                                       WILMINGTON TRUST COMPANY,
                                           as Institutional Trustee

                                       By: /s/ Mary St. Amand
                                          -------------------------------------
                                           Mary St. Amand
                                           Assistant Vice President

                                       Dime Community Bancshares, Inc.
                                           as Sponsor

                                       By: /s/ Michael P. Devine
                                          -------------------------------------
                                           Michael P. Devine
                                           President and Chief Operating Officer

                                       /s/ Kenneth J. Mahon
                                          -------------------------------------
                                       Kenneth J. Mahon
                                           as Administrator

                                       /s/ Michael Pucella
                                          -------------------------------------
                                       Michael Pucella
                                          as Administrator

                                       /s/ Lance Bennett
                                          -------------------------------------
                                       Lance Bennett
                                          as Administrator

                                       68
<PAGE>

                                     ANNEX I

                     TERMS OF FIXED RATE, SERIES A/SERIES B
                    CAPITAL SECURITIES AND COMMON SECURITIES

                  Pursuant to Section 7.1 of the Amended and Restated
Declaration of Trust, dated as of March 19, 2004 (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 (collectively, the "Trust 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. 70,000 Series A Capital Securities of
Dime Community Capital Trust I (the "Trust") and 70,000 Series B Capital
Securities of the Trust, each series, with an aggregate Liquidation Amount with
respect to the assets of the Trust at any one time outstanding of Seventy
Million Dollars ($70,000,000) and a 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 "Fixed Rate Capital Securities, Series A"
and "Fixed Rate Capital Securities, Series B," respectively (collectively the
"Capital Securities"). The Certificates evidencing the Capital Securities shall
be substantially in the form of Exhibit A-1-A or Exhibit A-1-B, respectively, 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 or quotation system on or in which the Capital
Securities are listed, traded or quoted, if any.

                  (b) Common Securities. 2,165 Common Securities of the Trust
(the "Common Securities") will be evidenced by Definitive Common Securities
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 Liquidation Amount with respect to the assets
of the Trust of Two Million One Hundred Sixty-Five Thousand Dollars ($2,165,000)
and a Liquidation Amount with respect to the assets of the Trust of $1,000 per
Common Security.

                  2. DISTRIBUTIONS.

                  (a) Distributions payable on each Trust Security will be
payable at a fixed rate of interest equal to 7.0% (such rate, together with the
rate of any applicable Liquidated Damages, is referred to herein as the "Coupon
Rate"). Distributions in arrears for more than one Distribution Period will bear
interest thereon, compounded quarterly, at the applicable Coupon Rate for each
Distribution Period thereafter (to the extent permitted by applicable law). The
term "Distributions", as used herein, includes cash Distributions, any such
compounded Distributions, any Additional Amounts payable on the Debt Securities
and Liquidated Damages, if any, unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debt
Securities held by the Institutional Trustee and to the extent the Institutional
Trustee has funds legally available in the Property Account therefor. The amount
of Distributions

                                     A-I-1
<PAGE>

payable for any Distribution Period will be computed on the basis of a 360-day
year consisting of twelve 30-day months.

                  The term "Distribution Period", as used herein, means (i) in
the case of the first Distribution Period, the period from, and including, the
date of original issuance of the Trust Securities to, but excluding, the initial
Distribution Payment Date and (ii) thereafter, from, and including, the first
day following the end of the preceding Distribution Period to, but excluding,
the applicable Distribution Payment Date or, in the case of the last
Distribution Period, the related date of redemption.

                  (b) Distributions on the Trust Securities will be cumulative,
will accrue from the date of original issuance, and will be payable, subject to
extension of Distribution Periods as described herein, quarterly in arrears on
January 15th, April 15th, July 15th and October 15th of each year, commencing on
July 15, 2004, and on any date of redemption (each, a "Distribution Payment
Date"). The Debt Security Issuer has the right under the Indenture to defer
payments of interest and Liquidated Damages, if any, on the Debt Securities by
extending the interest payment period for up to 20 consecutive quarterly periods
(each such extended interest payment period, together with all previous and
future consecutive extensions thereof, is referred to herein as an "Extension
Period") at any time and from time to time on the Debt Securities, subject to
the conditions described below and in the Indenture. No Extension Period may end
on a date other than a Distribution Payment Date or extend beyond the Maturity
Date, any Optional Redemption Date or the Special Redemption Date, as the case
may be (each such term as defined herein). 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 Coupon Rate
compounded quarterly from the date such Deferred Interest would have been
payable were it not for the Extension Period, to the extent permitted by
applicable law. At the end of any Extension Period, the Debt Security Issuer
shall pay all Deferred Interest then accrued and unpaid on the Debt Securities;
PROVIDED, HOWEVER, that during any Extension Period, the Debt Security 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
Debt Security Issuer's capital stock, (ii) make any payment of principal or
premium or interest on or repay, repurchase or redeem any debt securities of the
Debt Security Issuer that rank in all respects PARI PASSU with or junior in
interest to the Debt Securities or (iii) make any payment under any guarantees
of the Debt Security 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 Debt Security 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 Debt Security 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 or conversion of any class or series of the Debt Security
Issuer's capital stock (or any capital stock of a subsidiary of the Debt
Security Issuer) for any class or series of the Debt Security Issuer's capital
stock or of any class or series of the Debt Security Issuer's indebtedness for
any class or series of the Debt Security Issuer's capital stock, (c) the
purchase of fractional interests in shares of the Debt Security Issuer's capital
stock pursuant to the

                                     A-I-2
<PAGE>

conversion or exchange provisions of such capital stock or the security being
converted or exchanged, (d) any declaration of a dividend in connection with any
stockholder's rights plan, or the issuance of rights, stock or other property
under any stockholder's rights plan, or the redemption or repurchase of rights
pursuant thereto, or (e) any dividend in the form of stock, warrants, options or
other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks PARI PASSU with or junior in interest to such
stock). Prior to the termination of any Extension Period, the Debt Security
Issuer may further extend such Extension Period, PROVIDED, THAT no Extension
Period (including all previous and further consecutive extensions that are part
of such Extension Period) shall exceed 20 consecutive quarterly periods. Upon
the termination of any Extension Period and upon the payment of all Deferred
Interest, the Debt Security Issuer may commence a new Extension Period, subject
to the requirements herein and in the Indenture. No interest or Deferred
Interest (except any Additional Amounts that may be due and payable) shall be
due and payable during an Extension Period, except at the end thereof, 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.

                  As a consequence of any Extension Period, Distributions will
be deferred. Notwithstanding any such deferral, Distributions will continue to
accrue on the Trust Securities, and Distributions on such accrued Distributions
will accrue, at the Coupon Rate applicable during such Extension Period,
compounded quarterly, to the extent permitted by applicable law. If
Distributions are deferred, the Distributions due shall be paid on the date that
such Extension Period terminates to Holders of the Trust Securities as they
appear on the books and records of the Trust on the regular record date
immediately preceding the Distribution Payment Date on which such Extension
Period terminates 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 Distributions to the Holders
of the Trust Securities will be limited to payments received from the Debt
Security Issuer. The payment of Distributions out of moneys held by the Trust is
guaranteed by the Guarantor pursuant to the Guarantee.

                  (c) Distributions on the Trust Securities, other than
Distributions payable on any redemption date, will be payable to the Holders
thereof as they appear on the books and records of the Registrar on the relevant
regular record dates. The relevant "regular record dates" shall be 15 days
before the relevant Distribution Payment Dates. Distributions payable on any
Trust Securities that are not punctually paid on any Distribution Payment Date,
as a result of the Debt Security Issuer having failed to make a payment under
the Debt Securities, 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
Trust Securities are registered on the original relevant regular record date,
and such defaulted Distributions will instead be payable to the Person in whose
name such Trust Securities are registered on the regular record date preceding
the Distribution Payment Date on which the related Extension Period terminates
or, in the absence of an Extension Period, a special record date therefor
selected by the Administrators.

                                     A-I-3
<PAGE>

                  (d) 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 Trust
Securities.

                  (e) If any Distribution Payment Date falls on a day that is
not a Business Day, then Distributions payable on such Distribution Payment Date
will be paid on the next succeeding Business Day, and no additional
Distributions will accrue in respect of such payment on such next succeeding
Business Day.

                  3. UPON DISSOLUTION. In the event of the voluntary or
involuntary liquidation, dissolution, winding-up or termination of the Trust
(each, a "Liquidation"), the Holders of the Trust Securities will be entitled to
receive out of the assets of the Trust legally available for distribution to
Holders of the Trust Securities, after satisfaction of liabilities to creditors
of the Trust (to the extent not satisfied by the Debt Security Issuer), an
amount in cash equal to the aggregate of the Liquidation Amount of $1,000 per
Trust Security plus unpaid Distributions accrued thereon to the date of payment
(collectively, the "Liquidation Distribution"), unless: (i) the Debt Securities
have been redeemed in full in accordance with the terms thereof and of the
Indenture; or (ii) the Debt Securities in an aggregate principal amount equal to
the aggregate Liquidation Amount of such Trust Securities and bearing accrued
and unpaid interest in an amount equal to the accrued and unpaid Distributions
on such Trust 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 Trust Securities in exchange for such Trust Securities.

                  The Sponsor, as the Holder of all of the Common Securities,
has the right at any time, upon receipt by the Debt Security Issuer and the
Institutional Trustee for the benefit of the Trust of (i) 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 Debt Securities, to dissolve the Trust (including, without
limitation, upon the occurrence of a Tax Event, an Investment Company Event or a
Capital Treatment Event, each as defined herein) and (ii) prior approval from
the Office of Thrift Supervision (the "OTS") or any such successor regulatory
agency (if then required under applicable capital guidelines or policies of the
OTS or any such successor regulatory agency) and, after satisfaction of
liabilities to creditors of the Trust, cause the Debt Securities to be
distributed to the Holders of the Trust Securities on a Pro Rata basis in
accordance with the aggregate Liquidation Amount thereof.

                  The Trust shall dissolve on the first to occur of (i) April
14, 2039, the expiration of the term of the Trust, (ii) a Bankruptcy Event with
respect to the Sponsor, the Trust or the Debt Security 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 reinstatement thereof, (iv)
the distribution of all of the Debt Securities to the Holders of the Trust
Securities, upon exercise of the right of the Holders 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 any Holder of the Common Securities, the
Sponsor, the Trust or the Debt Security Issuer, (vi) when all of the Trust
Securities are then subject to redemption and the

                                     A-I-4
<PAGE>

amounts necessary for redemption thereof shall have been paid to the Holders in
accordance with the terms of the Trust Securities or (vii) before the issuance
of any Trust Securities, with the consent of all of the Trustees and the
Sponsor. 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.

                  Notwithstanding the foregoing, 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 practical by
distributing, after satisfaction of liabilities to creditors of the Trust (to
the extent not satisfied by the Debt Security Issuer) as provided by applicable
law, to the Holders of the Trust Securities, the Debt Securities on a Pro Rata
basis, unless such distribution is determined by the Institutional Trustee not
to be practical, in which event such Holders will be entitled to receive on a
Pro Rata basis, out of the assets of the Trust legally available for
distribution to the Holders of the Trust Securities, after satisfaction of
liabilities to creditors of the Trust (to the extent not satisfied by the Debt
Security Issuer), an amount in cash equal to the Liquidation Distribution. A
Liquidation of the Trust pursuant to clause (iv) of the immediately preceding
paragraph shall occur if the Institutional Trustee determines that such
Liquidation is practical by distributing, after satisfaction of liabilities to
creditors of the Trust (to the extent not satisfied by the Debt Security
Issuer), to the Holders of the Trust Securities on a Pro Rata basis, the Debt
Securities, and such distribution occurs.

                  If, upon any Liquidation of the Trust, 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 the Trust Securities shall be paid to
the Holders of the Trust Securities on a Pro Rata basis, except that if an Event
of Default has occurred and is continuing, then the Capital Securities shall
have a preference over the Common Securities with regard to such amounts.

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

                  After the date for any distribution of the Debt Securities
upon any Liquidation of the Trust, (i) the Trust 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 Debt Securities as have an aggregate principal amount equal to the
aggregate Liquidation Amount of such Capital Securities and bearing accrued and
unpaid interest equal to accrued and unpaid Distributions on such Capital
Securities until such certificates are presented to the Debt Security Issuer or
its agent for transfer or reissuance (and until such certificates are so
surrendered, no payments shall be made to Holders of Trust Securities in respect
of any payments due and payable under the Debt Securities) and (iii) all rights
of Holders of Trust Securities shall cease, except the right of such Holders to
receive Debt Securities upon surrender of certificates representing such Trust
Securities.

                                     A-I-5
<PAGE>

                  4. REDEMPTION AND DISTRIBUTION.

                  (a) The Debt Securities will mature on April 14, 2034 (the
"Maturity Date") at an amount in cash equal to 100% of the principal amount
thereof plus unpaid interest and Liquidated Damages, if any, accrued thereon to
such date (the "Maturity Redemption Price"). The Debt Securities may be redeemed
by the Debt Security Issuer, at its option, in whole or in part, on any
Distribution Payment Date on or after April 15, 2009 (each, an "Optional
Redemption Date"), at the Optional Redemption Price, upon not less than 30 nor
more than 60 days' prior written notice to holders of such Debt Securities. In
addition, upon the occurrence and continuation of a Tax Event, an Investment
Company Event or a Capital Treatment Event, the Debt Securities may be redeemed
by the Debt Security Issuer, at its option, in whole but not 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' prior written notice to holders of the Debt Securities 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 Debt Security
Issuer to redeem the Debt Securities prior to maturity is subject to the Debt
Security Issuer and the Trust having received prior approval from the OTS, if
then required under applicable capital guidelines or policies of the OTS.

                  "Tax Event" means the receipt by the Debt Security 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 Debt Security 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 Initial Securities (as defined in the
Indenture), 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) if the Debt Security Issuer is organized and existing under the
laws of the United States or any state thereof or the District of Columbia
interest payable by the Debt Security Issuer on the Debt Securities is not, or
within 90 days of the date of such opinion, will not be, deductible by the Debt
Security 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 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.

                  "Capital Treatment Event" means, the receipt by the Debt
Security 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 any rules, guidelines or policies of an applicable
regulatory

                                     A-I-6
<PAGE>

agency or authority, or as the result of any official or administrative
pronouncement or action or judicial 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 Initial Securities, there is more than an insubstantial risk
that the Debt Security Issuer will not, within 90 days of the date of such
opinion, be entitled to treat an amount equal to the aggregate Liquidation
Amount of the Capital Securities as "Tier 1 Capital" (or its then equivalent) if
the Debt Security Issuer (or its successors) were subject to such capital
requirement) applied as if the Company (or its successors) were a bank holding
company for purposes of the capital adequacy guidelines of the Federal Reserve
(or any successor regulatory authority with jurisdiction over bank holding
companies), or any capital adequacy guidelines as then in effect and applicable
to the Debt Security Issuer; PROVIDED, HOWEVER, that the distribution of the
Debt Securities in connection with the liquidation of the Trust by the Debt
Security 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.

                  "Investment Company Event" means the receipt by the Debt
Security 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 judicial 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 Initial Securities, 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.

                  "Optional Redemption Price" means an amount in cash equal to
100% of the principal amount of the Debt Securities to be redeemed plus any
unpaid interest and Liquidated Damages, if any, accrued thereon to but excluding
the related Optional Redemption Date.

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

                  "Special Redemption Price" means, with respect to the
redemption of any Debt Security following a Special Event, an amount in cash
equal to the percentage of the principal amount of the Debt Securities that is
specified below for the Special Redemption Date plus unpaid interest and
Liquidated Damages, if any, accrued thereon to but excluding the Special
Redemption Date:

Special Redemption Price will be 103.5%
  to but excluding April 15, 2005 and
 thereafter will be as follows for the
  12-month Period Beginning April 15,            Percentage of Principal Amount
  -----------------------------------            ------------------------------

               2005                                       102.8%

               2006                                       102.1 %

                                      A-I-7

<PAGE>

               2007                                       101.4 %

               2008                                       100.7 %

       2009 and thereafter                                100.0 %

                  (b) Upon any repayment of the Debt Securities at maturity or
in whole or in part upon redemption (other than following the distribution of
the Debt Securities to the Holders of the Trust Securities), the proceeds from
such repayment shall concurrently be applied to redeem Pro Rata, at a redemption
price corresponding to the applicable Maturity Redemption Price, Optional
Redemption Price or Special Redemption Price for the Debt Securities, as the
case may be, Trust Securities having an aggregate Liquidation Amount equal to
the aggregate principal amount of the Debt Securities so repaid; PROVIDED,
HOWEVER, that Holders of such Trust Securities shall be given not less than 30
nor more than 60 days' prior written notice of such redemption (other than a
redemption resulting from the maturity of the Debt Securities on the Maturity
Date).

                  (c) If fewer than all the outstanding Trust 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 Distribution Periods terminating on or before the
related date of redemption.

                  (e) Written notice of any redemption of, or written notice of
distribution of the Debt Securities in exchange for, the Trust Securities (a
"Redemption/Distribution Notice") will be given by the Trust by mail to each
Holder of Trust Securities to be redeemed or exchanged not fewer than 30 nor
more than 60 days before the date of redemption or exchange thereof which, in
the case of a redemption, will be the date of redemption of the Debt Securities.
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
Trust Securities. Each Redemption/Distribution Notice shall be addressed to the
Holders of such Trust 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.

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

                  (g) If the Trust Securities are to be redeemed and the Trust
gives a Redemption/Distribution Notice, which notice may only be issued if the
Debt Securities are redeemed or repaid as set out in this Section (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 Debt Securities, the Institutional Trustee will pay the price

                                     A-I-8
<PAGE>

payable upon redemption of the Trust Securities to the Holders of such Trust
Securities by check mailed to the address of each such Holder appearing on the
books and records of the Trust on the related date of redemption. 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 Trust Securities so subject
to redemption and all rights of Holders of such Trust Securities so subject to
redemption will cease, except the right of the Holders of such Trust Securities
to receive the applicable price specified in Section 4(a), but without interest
on such price. If any date of redemption of the Trust Securities falls on a day
that is not a Business Day, then payment of all amounts payable on such date
will be made on the next succeeding Business Day, and no additional
Distributions will accrue in respect of such payment on such next succeeding
Business Day. If any amount payable upon redemption of the Trust Securities is
improperly withheld or refused and not paid either by the Trust, the Debt
Security Issuer or the Sponsor as guarantor pursuant to the Guarantee,
Distributions on such Trust Securities will continue to accrue at the Coupon
Rate applicable from the date of redemption to the actual date of payment, in
which case the actual payment date will be considered the date of redemption for
purposes of calculating the price payable upon redemption of the Trust
Securities. 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 Trust 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.

                  (h) 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.

                  (i) 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.

                  (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 (i)
directing the time, method, place of

                                     A-I-9
<PAGE>

conducting any proceeding for any remedy available to the Indenture Trustee, or
exercising any trust or power conferred on the Indenture Trustee with respect to
the Debt Securities, (ii) waiving any past default and its consequences that are
waivable under the Indenture, (iii) exercising any right to rescind or annul an
acceleration of the principal of all the Debt Securities or (iv) consenting on
behalf of all the Holders of the Capital Securities to any amendment,
modification or termination of the Indenture or the Debt Securities 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 Debt Securities (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 Debt Securities outstanding. If the Institutional Trustee fails to
enforce its rights under the Debt Securities 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 Debt Security Issuer to enforce the
Institutional Trustee's rights under the Debt Securities 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
Debt Security Issuer to pay interest, or premium, if any, or Liquidated Damages,
if any, on or principal of the Debt Securities on the date such interest,
Liquidated Damages, if any, premium, if any, or principal is payable (or in the
case of redemption, the date of redemption), then a Holder of the Capital
Securities may directly institute a proceeding for enforcement of payment, on or
after the respective due dates specified in the Debt Securities, to such Holder
directly of the principal of and premium, if any, and Liquidated Damages, if
any, and interest on the Debt Securities 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 Debt Securities 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 Debt Securities. Such notice shall state
that such Indenture Event of Default also constitutes an Event of Default
hereunder. The Institutional Trustee shall not take any of the actions described
in clause (i), (ii), (iii) or (iv) above 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 Trust 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 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

                                     A-I-10
<PAGE>

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 Debt Securities in
accordance with the Declaration and the terms of the Trust 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) 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 Holder of the Common Securities is entitled, in
accordance with Article IV of the Declaration, to vote to appoint, remove or
replace any Administrators.

                  (c) Subject to Section 6.7 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 Holder 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 Indenture Trustee, or exercising
any trust or power conferred on the Indenture Trustee with respect to the Debt
Securities, (ii) waiving any past default and its consequences that are waivable
under the Indenture, or (iii) exercising any right to rescind or annul an
acceleration of the principal of all the Debt Securities. 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 Indenture 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, the 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.

                                     A-I-11
<PAGE>

                  Any approval or direction of the Holder 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
Trust Securities in the Trust or pursuant to written consent. The Administrators
will cause a notice of any meeting at which the Holder of the Common Securities
is entitled to vote, or of any matter upon which action by written consent of
such Holder is to be taken, to be mailed to the 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 Holder is
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 Holder of the Common Securities will
be required for the Trust to redeem and cancel Common Securities or to
distribute the Debt Securities in accordance with the Declaration and the terms
of the Trust Securities.

                  7. AMENDMENTS TO DECLARATION AND INDENTURE. In addition to any
requirements under Section 12.1 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 Trust Securities, whether by way of amendment to the Declaration or
otherwise, (ii) the Liquidation of the Trust, other than as described in Section
8.1 of the Declaration, or (iii) modify, eliminate or add any provisions of the
Declaration to such extent as shall be necessary to enable the Trust or the
Sponsor to conduct an Exchange Offer in the manner contemplated by the
Registration Rights Agreement, then the Holders of outstanding Trust 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 a Majority in Liquidation Amount of the Trust
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 Holders of the affected
Trust Securities 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 a Majority in Liquidation Amount of such Trust Securities.

                  (a) In the event the consent of the Institutional Trustee, as
the holder of the Debt Securities, is required under the Indenture with respect
to any amendment, modification or termination of the Indenture or the Debt
Securities, the Institutional Trustee shall request the written direction of the
Holders of the Trust 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 Trust
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 Trust Securities which
the relevant Super Majority represents of the aggregate principal amount of the
Debt Securities outstanding.

                  (b) Notwithstanding the foregoing, no amendment or
modification may be made to the Declaration if such amendment or modification
would (i) cause the Trust to fail to be classified for purposes of United States
federal income taxation as a grantor trust, (ii) reduce

                                     A-I-12
<PAGE>

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.

                  (c) Notwithstanding any provision of the Declaration, the
right of any Holder of the Capital Securities to receive payment of
Distributions and payments upon redemption, Liquidation 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 Trust
Securities to any payment, distribution or treatment as being "Pro Rata" shall
mean pro rata to each Holder of the Trust Securities according to the aggregate
Liquidation Amount of the Trust Securities held by the relevant Holder in
relation to the aggregate Liquidation Amount of all Trust 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 any amount payable upon the redemption of, any Common
Security, and no payment to the Holder of any Common Security on account of the
Liquidation of the Trust, shall be made unless payment in full in cash of (i)
all accrued and unpaid Distributions on all outstanding Capital Securities for
all Distribution Periods terminating on or prior thereto, (ii) all amounts
payable upon Capital Securities then subject to redemption and (iii) all amounts
payable upon Capital Securities in the event of the Liquidation of the Trust, in
each case, 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 the amounts specified in clause (i), (ii) and (iii) above that
are 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 Trust
Securities, agrees to the provisions of the Guarantee and the Indenture,
including the subordination provisions therein.

                  11. NO PREEMPTIVE RIGHTS. The Holders of the Trust Securities
shall have no, and the issuance of the Trust Securities is not subject to,
preemptive or similar rights to subscribe for any additional securities.

                                     A-I-13
<PAGE>

                  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-14
<PAGE>

                                  EXHIBIT A-1-A

                  FORM OF SERIES A CAPITAL SECURITY CERTIFICATE

                       [FORM OF FACE OF CAPITAL SECURITY]

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

                  UNLESS THIS SERIES A CAPITAL SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE CLEARING AGENCY TO THE TRUST OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES A CAPITAL SECURITY
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE CLEARING AGENCY AND ANY PAYMENT HEREON IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO.,
HAS AN INTEREST HEREIN.]

                  THIS SERIES A CAPITAL 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 SERIES A
CAPITAL 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 SERIES A CAPITAL SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS
ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SERIES A CAPITAL SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (i) TWO YEARS (OR
SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES
ACT) AFTER THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE
LAST DATE ON WHICH THE TRUST OR ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER

                                    A-1-A-1
<PAGE>

THE SECURITIES ACT) OF THE TRUST WAS THE HOLDER OF THIS SERIES A CAPITAL
SECURITY OR SUCH INTEREST OR PARTICIPATION (OR ANY PREDECESSOR THERETO) AND (ii)
SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN
APPLICABLE LAW, ONLY (A) TO THE DEBT SECURITY ISSUER OR THE TRUST, (B) PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) 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, (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), (7) OR (8) OF
RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SERIES A CAPITAL
SECURITY OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, (E) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT
OCCUR OUTSIDE THE UNITED STATES PURSUANT TO REGULATION S UNDER THE SECURITIES
ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE RIGHT OF THE DEBT SECURITY
ISSUER AND THE TRUST PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSE (D) OR (F) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN
ACCORDANCE WITH THE DECLARATION (AS DEFINED BELOW), A COPY OF WHICH MAY BE
OBTAINED FROM THE DEBT SECURITY ISSUER OR THE TRUST. THE HOLDER OF THIS SERIES A
CAPITAL SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE
HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT IT WILL COMPLY WITH THE
FOREGOING RESTRICTIONS.

                  THE HOLDER OF THIS SERIES A CAPITAL SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY
BE, ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT,
INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH
A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON
OF ANY PLAN'S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING "PLAN ASSETS" OF
ANY PLAN MAY ACQUIRE OR HOLD THIS SERIES A CAPITAL SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE
EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION
CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE

                                    A-1-A-2
<PAGE>

EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SERIES A CAPITAL SECURITY OR SUCH
INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR
HOLDER OF THIS SERIES A CAPITAL SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN
WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF OR
THEREOF, AS THE CASE MAY BE, THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN
WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF
THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF
ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH
PURCHASE AND HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION
406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE
STATUTORY OR ADMINISTRATIVE EXEMPTION.

                  IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SERIES A
CAPITAL SECURITY WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE DECLARATION (AS
DEFINED BELOW) TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.

                  THIS SERIES A CAPITAL 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 SERIES
A CAPITAL 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 SERIES A CAPITAL
SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN FOR ANY PURPOSE, INCLUDING, BUT
NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS SERIES A CAPITAL SECURITY
OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
TO HAVE NO INTEREST WHATSOEVER IN THIS SERIES A CAPITAL SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN.

                  THE HOLDER OF THIS SERIES A CAPITAL SECURITY OR ANY INTEREST
HEREIN BY ITS ACCEPTANCE HEREOF AGREES TO BE BOUND BY BOTH THE REGISTRATION
RIGHTS AGREEMENT AND THE LIQUIDATED DAMAGES AGREEMENT DATED AS OF MARCH 12,
2004, BY AND AMONG THE TRUST, THE SPONSOR AND THE INITIAL PURCHASER NAMED
THEREIN, AS AMENDED FROM TIME TO TIME.

                                    A-1-A-3
<PAGE>

Certificate Number [_____]                  Number of Capital Securities [_____]

                              CUSIP NO [________]

                   Certificate Evidencing Capital Securities

                                       of

                         Dime Community Capital Trust I

                    Fixed Rate Capital Securities, Series A

                (Liquidation Amount $1,000 per Capital Security)

                  Dime Community Capital Trust I, a statutory trust created
under the laws of the State of Delaware (the "Trust"), hereby certifies that
[Cede & Co.]/1 [_________]/2 [HOLDER OF CAPITAL SECURITIES] is the registered
owner (the "Holder") of [NUMBER OF CAPITAL SECURITIES] capital securities,
series A, of the Trust representing undivided preferred beneficial interests in
the assets of the Trust, designated as the Fixed Rate Capital Securities, Series
A (Liquidation Amount $1,000 per Capital Security) (the "Capital Securities").
Subject to the Declaration (as defined below), the Capital Securities are
transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this Certificate duly endorsed and in
proper form for transfer. The Capital Securities represented hereby are issued
pursuant to, and the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Capital Securities shall in all respects
be subject to, the provisions of the Amended and Restated Declaration of Trust
of the Trust, dated as of March 19, 2004, among Kenneth J. Mahan, Michael
Pucella and Lance Bennett, as Administrators, Wilmington Trust Company, as
Delaware Trustee, Wilmington Trust Company, as Institutional Trustee, Dime
Community Bancshares, Inc., as Sponsor, and the holders from time to time of
undivided beneficial interests in the assets of the Trust, including the
designation of the terms of the Capital Securities as set forth in Annex I to
the Declaration, as the same may be amended from time to time (the
"Declaration"). Capitalized terms used herein but not defined shall have the
meaning given them in the Declaration. The Holder is entitled to the benefits of
the Guarantee and the Indenture to the extent provided therein. The Sponsor will
provide a copy of the Declaration, the Guarantee, and the Indenture to the
Holder without charge upon written request to the Sponsor at its principal place
of business.

                  By acceptance of this Certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder.

                  By acceptance of this Certificate, the Holder agrees to treat,
for United States federal income tax purposes, the Debt Securities as
indebtedness and the Capital Securities as evidence of undivided beneficial
ownership in the Debt Securities through a grantor trust.

----------------------
1  Insert in Global Capital Securities only.
2  Insert in Definitive Capital Securities only.

                                    A-1-A-4
<PAGE>

                  This Certificate and the Capital Securities evidenced hereby
are governed by, and shall be construed in accordance with, the laws of the
State of Delaware, without regard to principles of conflict of laws.

                                    A-1-A-5
<PAGE>

                  IN WITNESS WHEREOF, the Trust has duly executed this
Certificate.

                                            Dime Community Capital Trust I

                                            By:________________________________
                                                Name:
                                                Title: Administrator

                                            Dated: ___________________________

                          CERTIFICATE OF AUTHENTICATION

                  This Certificate represents Fixed Rate Capital Securities,
Series A referred to in the within-mentioned Declaration.

                                            WILMINGTON TRUST COMPANY,
                                            not in its individual capacity but
                                            solely as the Institutional Trustee

                                            By:_______________________________
                                                Authorized Officer

                                            Dated: ___________________________

                                    A-1-A-6
<PAGE>

                      [FORM OF REVERSE OF CAPITAL SECURITY]

                  Distributions payable on each Capital Security will be payable
at a fixed rate of interest per annum, which, with respect to any Distribution
Period (as defined herein), will be equal to 7.0% (such rate, together with the
rate of any applicable Liquidated Damages (as defined in the Registration Rights
Agreement and Liquidated Damages Agreement) is referred to herein as the "Coupon
Rate"). Distributions in arrears for more than one Distribution Period will bear
interest thereon, compounded quarterly, at the applicable Coupon Rate for each
Distribution Period thereafter (to the extent permitted by applicable law). The
term "Distributions", as used herein, includes cash Distributions, any such
compounded Distributions and any Additional Amounts payable on the Debt
Securities and Liquidated Damages, if any, unless otherwise stated. A
Distribution is payable only to the extent that payments are made in respect of
the Debt Securities held by the Institutional Trustee and to the extent the
Institutional Trustee has funds legally available in the Property Account
therefor. The amount of Distributions payable for any Distribution Period will
be computed on the basis of a 360-day year consisting of twelve 30-day months.

                  Except as otherwise described below, Distributions on the
Capital Securities will be cumulative, will accrue from the date of original
issuance and will be payable quarterly in arrears on January 15th, April 15th,
July 15th and October 15th of each year, commencing on July 15, 2004, and on any
date of redemption (each, a "Distribution Payment Date"), subject to the
Business Day convention specified in the Declaration. The Debt Security Issuer
has the right under the Indenture to defer payments of interest and Liquidated
Damages, if any, on the Debt Securities by extending the interest payment period
for up to 20 consecutive quarterly periods (each such extended interest payment
period, together with all previous and future consecutive extensions thereof, is
referred to herein as an "Extension Period") at any time and from time to time
on the Debt Securities, subject to the conditions described below and in the
Declaration and the Indenture. No Extension Period may end on a date other than
a Distribution Payment Date or extend beyond the Maturity Date, any Optional
Redemption Date or the Special Redemption Date, as the case may be. During any
Extension Period, interest will continue to accrue on the Debt Securities, and
interest on such accrued interest (such accrued interest and interest thereon
referred to herein as "Deferred Interest") will accrue, at an annual rate equal
to the Coupon Rate, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent
permitted by applicable law. At the end of any Extension Period, the Debt
Security Issuer shall pay all Deferred Interest then accrued and unpaid on the
Debt Securities; PROVIDED, HOWEVER, that prior to the termination of any
Extension Period, the Debt Security Issuer may further extend such Extension
Period, PROVIDED, THAT no Extension Period (including all previous and further
consecutive extensions that are part of such Extension Period) shall exceed 20
consecutive quarterly periods. Upon the termination of any Extension Period and
upon the payment of all Deferred Interest, the Debt Security Issuer may commence
a new Extension Period, subject to the requirements set forth herein and in the
Declaration and the Indenture. No interest or Deferred Interest (except any
Additional Amounts that may be due and payable) shall be due and payable during
an Extension Period, except at the end thereof, 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.

                                    A-1-A-7
<PAGE>

                  As a consequence of any Extension Period, Distributions will
be deferred. If Distributions are deferred, the Distributions due shall be paid
on the date that the related Extension Period terminates to Holders of the
Capital Securities as they appear on the books and records of the Trust on the
regular record date immediately preceding the Distribution Payment Date on which
such Extension Period terminates to the extent that the Trust has funds legally
available for the payment of such Distributions in the Property Account of the
Trust.

                  The Capital Securities shall be redeemable, and shall be
entitled to the Liquidation Distribution, as provided in the Declaration.

                                    A-1-A-8
<PAGE>

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned assigns and transfers the
Capital Securities evidenced by this Certificate to:

_____________________________

_____________________________

_____________________________

(Insert assignee's social security or tax identification number)

_____________________________

_____________________________

_____________________________

(Insert address and zip code of assignee),

and irrevocably appoints _______________________________________________________
as agent to transfer the Capital Securities evidenced by this Certificate on the
books of the Trust. The agent may substitute another to act for it, him or her.

                  Date:__________________

                  Signature:__________________

                  (Sign exactly as your name appears on the other side of this
                  Certificate)

                  Signature Guarantee:/1 ____________________________

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

1  Signature must be guaranteed by an "eligible guarantor institution" that is a
bank, stockbroker, savings and loan association or credit union, meeting the
requirements of the Security registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Security
registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

                                    A-1-A-9
<PAGE>

                                  EXHIBIT A-1-B

                  FORM OF SERIES B CAPITAL SECURITY CERTIFICATE

                       [FORM OF FACE OF CAPITAL SECURITY]

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

                  UNLESS THIS SERIES B CAPITAL SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE CLEARING AGENCY TO THE TRUST OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES B CAPITAL SECURITY
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE CLEARING AGENCY AND ANY PAYMENT HEREON IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO.,
HAS AN INTEREST HEREIN.]

                  THE HOLDER OF THIS SERIES B CAPITAL SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY
BE, ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT,
INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH
A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON
OF ANY PLAN'S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING "PLAN ASSETS" OF
ANY PLAN MAY ACQUIRE OR HOLD THIS SERIES B CAPITAL SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE
EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION
CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE
EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SERIES B CAPITAL

                                    A-1-B-1
<PAGE>

SECURITY OR SUCH INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY
PURCHASER OR HOLDER OF THIS SERIES B CAPITAL SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND
HOLDING HEREOF OR THEREOF, AS THE CASE MAY BE, THAT EITHER (i) IT IS NOT AN
EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO
WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING
ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY
USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE,
OR (ii) SUCH PURCHASE AND HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO
APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

                  IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SERIES B
CAPITAL SECURITY WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE DECLARATION (AS
DEFINED BELOW) TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.

                  THIS SERIES B CAPITAL 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 SERIES
B CAPITAL 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 SERIES B CAPITAL
SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN FOR ANY PURPOSE, INCLUDING, BUT
NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS SERIES B CAPITAL SECURITY
OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
TO HAVE NO INTEREST WHATSOEVER IN THIS SERIES B CAPITAL SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN.

                                    A-1-B-2
<PAGE>

Certificate Number [_____]                  Number of Capital Securities [_____]

                               CUSIP NO [________]

               Certificate Evidencing Exchange Capital Securities

                                       of

                         Dime Community Capital Trust I

                     Fixed Rate Capital Securities, Series B

                (Liquidation Amount $1,000 per Capital Security)

                  Dime Community Capital Trust I, a statutory trust created
under the laws of the State of Delaware (the "Trust"), hereby certifies that
[Cede & Co.]3 [_________]4 is the registered owner (the "Holder") of
[______________] capital securities, series B, of the Trust representing
undivided preferred beneficial interests in the assets of the Trust, designated
as the Fixed Rate Capital Securities, Series B (Liquidation Amount $1,000 per
Capital Security) (the "Exchange Capital Securities"). Subject to the
Declaration (as defined below), the Exchange Capital Securities are transferable
on the books and records of the Trust, in person or by a duly authorized
attorney, upon surrender of this Certificate duly endorsed and in proper form
for transfer. The Exchange Capital Securities represented hereby are issued
pursuant to, and the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Exchange Capital Securities shall in all
respects be subject to, the provisions of the Amended and Restated Declaration
of Trust of the Trust, dated as of March 19, 2004, among Kenneth J. Mahan,
Michael Pucella and Lance Bennett, as Administrators, Wilmington Trust Company,
as Delaware Trustee, Wilmington Trust Company, as Institutional Trustee, Dime
Community Bancshares, Inc., as Sponsor, and the holders from time to time of
undivided beneficial interests in the assets of the Trust, including the
designation of the terms of the Exchange Capital Securities as set forth in
Annex I to the Declaration, as the same may be amended from time to time (the
"Declaration"). Capitalized terms used herein but not defined shall have the
meaning given them in the Declaration. The Holder is entitled to the benefits of
the Guarantee and the Indenture to the extent provided therein. The Sponsor will
provide a copy of the Declaration, the Guarantee, and the Indenture to the
Holder without charge upon written request to the Sponsor at its principal place
of business.

                  By acceptance of this Certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder.

                  By acceptance of this Certificate, the Holder agrees to treat,
for United States federal income tax purposes, the Debt Securities as
indebtedness and the Exchange Capital Securities as evidence of undivided
beneficial ownership in the Debt Securities through a grantor trust.

---------------------
4  Insert in Global Capital Securities only.
5  Insert in Definitive Capital Securities only.

                                    A-1-B-3
<PAGE>

                  This Certificate and the Exchange Capital Securities evidenced
hereby are governed by, and shall be construed in accordance with, the laws of
the State of Delaware, without regard to principles of conflict of laws.

                                    A-1-B-4
<PAGE>

                  IN WITNESS WHEREOF, the Trust has duly executed this
Certificate.

                                            Dime Community Capital Trust I

                                            By:________________________________
                                                Name:
                                                Title: Administrator

                                            Dated: ___________________________

                          CERTIFICATE OF AUTHENTICATION

                  This Certificate represents Fixed Rate Capital Securities,
Series B referred to in the within-mentioned Declaration.

                                            WILMINGTON TRUST COMPANY,
                                            not in its individual capacity but
                                            solely as the Institutional Trustee

                                            By:_______________________________
                                                Authorized Officer

                                            Dated: ___________________________

                                    A-1-B-5
<PAGE>

                      [FORM OF REVERSE OF CAPITAL SECURITY]

                  Distributions payable on each Exchange Capital Security will
be payable at a fixed rate of interest per annum, which, with respect to any
Distribution Period (as defined herein), will be equal to 7.0% (the "Coupon
Rate"). Distributions in arrears for more than one Distribution Period will bear
interest thereon, compounded quarterly, at the applicable Coupon Rate for each
Distribution Period thereafter (to the extent permitted by applicable law). The
term "Distributions", as used herein, includes cash Distributions, any such
compounded Distributions and any Additional Amounts payable on the Debt
Securities unless otherwise stated. A Distribution is payable only to the extent
that payments are made in respect of the Debt Securities held by the
Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any Distribution Period will be computed on the basis of a 360-day
year consisting of twelve 30-day months.

                  Except as otherwise described below, Distributions on the
Exchange Capital Securities will be cumulative, will accrue from the date of
original issuance and will be payable quarterly in arrears on January 15th,
April 15th, July 15th and October 15th of each year, commencing on July 15,
2004, and on any date of redemption (each, a "Distribution Payment Date"),
subject to the Business Day convention specified in the Declaration. The Debt
Security Issuer has the right under the Indenture to defer payments of interest
and Liquidated Damages, if any, on the Debt Securities by extending the interest
payment period for up to 20 consecutive quarterly periods (each such extended
interest payment period, together with all previous and future consecutive
extensions thereof, is referred to herein as an "Extension Period") at any time
and from time to time on the Debt Securities, subject to the conditions
described below and in the Declaration and the Indenture. No Extension Period
may end on a date other than a Distribution Payment Date or extend beyond the
Maturity Date, any Optional Redemption Date or the Special Redemption Date, as
the case may be. During any Extension Period, interest will continue to accrue
on the Debt Securities, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as "Deferred Interest") will
accrue, at an annual rate equal to the Coupon Rate, compounded quarterly from
the date such Deferred Interest would have been payable were it not for the
Extension Period, to the extent permitted by applicable law. At the end of any
Extension Period, the Debt Security Issuer shall pay all Deferred Interest then
accrued and unpaid on the Debt Securities; PROVIDED, HOWEVER, that prior to the
termination of any Extension Period, the Debt Security Issuer may further extend
such Extension Period, PROVIDED, THAT no Extension Period (including all
previous and further consecutive extensions that are part of such Extension
Period) shall exceed 20 consecutive quarterly periods. Upon the termination of
any Extension Period and upon the payment of all Deferred Interest, the Debt
Security Issuer may commence a new Extension Period, subject to the requirements
set forth herein and in the Declaration and the Indenture. No interest or
Deferred Interest (except any Additional Amounts that may be due and payable)
shall be due and payable during an Extension Period, except at the end thereof,
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.

                  As a consequence of any Extension Period, Distributions will
be deferred. If Distributions are deferred, the Distributions due shall be paid
on the date that the related

                                    A-1-B-6
<PAGE>

Extension Period terminates to Holders of the Exchange Capital Securities as
they appear on the books and records of the Trust on the regular record date
immediately preceding the Distribution Payment Date on which such Extension
Period terminates to the extent that the Trust has funds legally available for
the payment of such Distributions in the Property Account of the Trust.

                  The Exchange Capital Securities shall be redeemable as
provided in the Declaration.

                                    A-1-B-7
<PAGE>

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned assigns and transfers the
Capital Securities evidenced by this Certificate to:

____________________________

____________________________

____________________________

(Insert assignee's social security or tax identification number)

____________________________

____________________________

____________________________

(Insert address and zip code of assignee),

and irrevocably appoints _______________________________________________________
as agent to transfer the Capital Securities evidenced by this Certificate on the
books of the Trust. The agent may substitute another to act for it, him or her.

                  Date:__________________

                  Signature:__________________

                  (Sign exactly as your name appears on the other side of this
                  Certificate)

                  Signature Guarantee:/1 ____________________________

-----------------------
1 Signature must be guaranteed by an "eligible guarantor institution" that is a
bank, stockbroker, savings and loan association or credit union, meeting the
requirements of the Security registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Security
registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

                                    A-1-B-8
<PAGE>

                                   EXHIBIT A-2

                             FORM OF COMMON SECURITY

                  THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER
APPLICABLE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION.

                  EXCEPT AS SET FORTH IN SECTION 9.1(b) OF THE DECLARATION (AS
DEFINED BELOW), THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED.

                                     A-2-1
<PAGE>

Certificate Number [_____]                    Number of Common Securities [____]

                    Certificate Evidencing Common Securities

                                       of

                         Dime Community Capital Trust I

                          Fixed Rate Common Securities
                 (Liquidation Amount $1,000 per Common Security)

                  Dime Community Capital Trust I, a statutory trust created
under the laws of the State of Delaware (the "Trust"), hereby certifies that
[____________________] is the registered owner (the "Holder") of common
securities of the Trust representing undivided common beneficial interests in
the assets of the Trust (Liquidation Amount $1,000 per Common Security)(the
"Common Securities"). The Common Securities represented hereby are issued
pursuant to, and the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Common Securities shall in all respects be
subject to, the provisions of the Amended and Restated Declaration of Trust of
the Trust, dated as of March 19, 2004, among Kenneth J. Mahon, Michael Pucella
and Lance Bennett, as Administrators, Wilmington Trust Company, as Delaware
Trustee, Wilmington Trust Company, as Institutional Trustee, the Holder, as
Sponsor, and the holders from time to time of undivided beneficial interests in
the assets of the Trust, including the designation of the terms of the Common
Securities as set forth in Annex I to the Declaration, as the same may be
amended from time to time (the "Declaration"). Capitalized terms used herein but
not defined shall have the meaning given them in the Declaration. The Sponsor
will provide a copy of the Declaration and the Indenture to the Holder without
charge upon written request to the Sponsor at its principal place of business.

                  As set forth in the Declaration, when an Event of Default has
occurred and is continuing, the rights of the Holder of Common Securities to
payment in respect of Distributions and payments upon Liquidation, redemption or
otherwise are subordinated to the rights of payment of holders of the Capital
Securities.

                  By acceptance of this Certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder.

                  By acceptance of this Certificate, the Holder agrees to treat,
for United States federal income tax purposes, the Debt Securities as
indebtedness and the Common Securities as evidence of undivided beneficial
ownership in the Debt Securities through a grantor trust.

                  This Certificate and the Common Securities evidenced hereby
are governed by, and shall be construed in accordance with, the laws of the
State of Delaware, without regard to principles of conflict of laws.

                                     A-2-2
<PAGE>

                  IN WITNESS WHEREOF, the Trust has executed this Certificate
this ___ day of ____, 2004.

                                            Dime Community Capital Trust I

                                            By:______________________________
                                                Name:
                                                Title: Administrator

                                     A-2-3
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

                  Distributions payable on each Common Security will be
identical in amount to the Distributions payable on each Capital Security, which
is at a fixed rate of interest per annum, which, with respect to any
Distribution Period (as defined herein) (such rate, together with the rate of
any applicable Liquidated Damages (as defined in the Registration Rights
Agreement), is referred to herein as the "Coupon Rate"). Distributions in
arrears for more than one Distribution Period will bear interest thereon,
compounded quarterly, at the applicable Coupon Rate for each Distribution Period
thereafter (to the extent permitted by applicable law). The term
"Distributions", as used herein, includes cash Distributions, any such
compounded Distributions and any Additional Amounts payable on the Debt
Securities and Liquidated Damages, if any, unless otherwise stated. A
Distribution is payable only to the extent that payments are made in respect of
the Debt Securities held by the Institutional Trustee and to the extent the
Institutional Trustee has funds legally available in the Property Account
therefor. The amount of Distributions payable for any Distribution Period will
be computed on the basis of a 360-day year consisting of twelve 30 day months.

                  Except as otherwise described below, Distributions on the
Common Securities will be cumulative, will accrue from the date of original
issuance and will be payable quarterly in arrears on January 15th, April 15th,
July 15th and October 15th of each year, commencing on July 15, 2004, and on any
date of redemption (each, a "Distribution Payment Date"), subject to the
Business Day convention specified in the Declaration. The Debt Security Issuer
has the right under the Indenture to defer payments of interest on the Debt
Securities by extending the interest payment period for up to 20 consecutive
quarterly periods (each such extended interest payment period, together with all
previous and future consecutive extensions thereof, is referred to herein as an
"Extension Period") at any time and from time to time on the Debt Securities,
subject to the conditions described below and in the Declaration and the
Indenture. No Extension Period may end on a date other than a Distribution
Payment Date or extend beyond the Maturity Date, any Optional Redemption Date or
the Special Redemption Date, as the case may be. During any Extension Period,
interest will continue to accrue on the Debt Securities, and interest on such
accrued interest (such accrued interest and interest thereon referred to herein
as "Deferred Interest") will accrue, at an annual rate equal to the Coupon Rate,
compounded quarterly from the date such Deferred Interest would have been
payable were it not for the Extension Period, to the extent permitted by
applicable law. At the end of any Extension Period, the Debt Security Issuer
shall pay all Deferred Interest then accrued and unpaid on the Debt Securities;
PROVIDED, HOWEVER, that prior to the termination of any Extension Period, the
Debt Security Issuer may further extend such Extension Period, PROVIDED, THAT no
Extension Period (including all previous and further consecutive extensions that
are part of such Extension Period) shall exceed 20 consecutive quarterly
periods. Upon the termination of any Extension Period and upon the payment of
all Deferred Interest, the Debt Security Issuer may commence a new Extension
Period, subject to the requirements set forth herein and in the Declaration and
the Indenture. No interest or Deferred Interest (except any Additional Amounts
that may be due and payable) shall be due and payable during an Extension
Period, except at the end thereof, 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.

                                     A-2-4
<PAGE>

                  As a consequence of any Extension Period, Distributions will
be deferred. If Distributions are deferred, the Distributions due shall be paid
on the date that the related Extension Period terminates to Holders of the Trust
Securities as they appear on the books and records of the Trust on the regular
record date immediately preceding the Distribution Payment Date on which such
Extension Period terminates to the extent that the Trust has funds legally
available for the payment of such Distributions in the Property Account of the
Trust.

                  The Common Securities shall be redeemable, and shall be
entitled to the Liquidation Distribution, as provided in the Declaration.

                                     A-2-5
<PAGE>

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned assigns and transfers this
Common Securities evidenced by this Certificate to:

_____________________________

_____________________________

_____________________________

(Insert assignee's social security or tax identification number)

_____________________________

_____________________________

_____________________________

(Insert address and zip code of assignee),

and irrevocably appoints ___________ as agent to transfer the Common Securities
evidenced by this Certificate on the books of the Trust. The agent may
substitute another to act for him or her.

                  Date:____________________

                  Signature:________________________

                  (Sign exactly as your name appears on the other side of this
                  Certificate)

                  Signature Guarantee:/1 ________________________

---------------------------
1  Signature must be guaranteed by an "eligible guarantor institution" that is a
bank, stockbroker, savings and loan association or credit union, meeting the
requirements of the Security registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Security
registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

                                     A-2-6
<PAGE>

                                                                       EXHIBIT B

                         FORM OF TRANSFEREE CERTIFICATE
                     TO BE EXECUTED BY ACCREDITED INVESTORS

                                                      _________________, [     ]

Dime Community Bancshares, Inc.
Dime Community Capital Trust I
209 Havemeyer Street
Brooklyn, New York  11211

Re:      Purchase of $[SPECIFY] Liquidation Amount of Fixed Rate Capital
         Securities (The "Capital Securities") of Dime Community Capital Trust I
         (The "Trust")
         -----------------------------------------------------------------------

Ladies and Gentlemen:

                  In connection with our purchase of the Capital Securities, we
confirm that:

                  1. We understand that the Capital Securities of the Trust have
not been registered under the Securities Act of 1933, as amended (the
"Securities Act"), and may not be offered or sold except as permitted in the
following sentence. We agree on our own behalf and on behalf of any investor
account for which we are purchasing the Capital Securities that, if we decide to
offer, sell or otherwise transfer any such Capital Securities prior to the date
which is the later of (i) two years (or such shorter period of time as permitted
by Rule 144(k) under the Securities Act) after the later of (Y) the date of
original issuance of the Capital Securities and (Z) the last date on which the
Trust or any Affiliate (as defined in Rule 405 under the Securities Act) of the
Trust was the holder of any such Capital Securities (or any predecessor thereto)
and (ii) such later date, if any, as may be required by any subsequent change in
applicable law (the "Resale Restriction Termination Date"), then such offer,
sale or other transfer will be made only (a) to the Company or the Trust, (b)
pursuant to Rule 144A under the Securities Act, to a person we reasonably
believe is a qualified institutional buyer under Rule 144A (a "QIB"), that
purchases for its own account or for the account of a QIB and to whom notice is
given that the transfer is being made in reliance on Rule 144A, (c) pursuant to
an exemption from registration, to an "accredited investor" within the meaning
of subparagraph (a) (1), (2), (3), (7) or (8) of Rule 501 under the Securities
Act that is acquiring any such Capital Securities for its own account or for the
account of such an accredited investor for investment purposes and not with a
view to, or for offer or sale in connection with, any distribution thereof in
violation of the Securities Act, (d) pursuant to offers and sales to a non-U.S.
Persons that occur outside the United States pursuant to Regulation S under the
Securities Act, or (e) pursuant to another available exemption from the
registration requirements of the Securities Act, and in each of the foregoing
cases in accordance with any applicable state securities laws and any
requirements of law that govern the disposition of our property. If any resale
or other transfer of the Capital Securities is proposed to be made pursuant to
clause (c) above, the transferor shall deliver a letter from the transferee
substantially in the form of this letter to the Institutional Trustee as
Transfer Agent, which shall provide as applicable, among other things, that the
transferee is an accredited investor within the meaning of subparagraph (a)(1),
(2), (3), (7) or (8) of Rule 501 under the Securities Act that is acquiring

                                      B-1
<PAGE>

such Capital Securities for investment purposes and not for any distribution in
violation of the Securities Act. In addition, if any resale or other transfer of
the Capital Securities is proposed to be made pursuant to clause (b) or (d)
above, the transferor, in the case of clause (b), or the transferee, in the case
of clause (d), shall deliver a letter substantially in the form of Exhibit C, in
the case of clause (b), or Exhibit D, in the case of clause (d), to the
Declaration. We acknowledge on our behalf and on behalf of any investor account
for which we are purchasing Capital Securities that the Company and the Trust
reserve the right prior to any offer, sale or other transfer pursuant to clause
(c) or (e) to require the delivery of any Opinion of Counsel, certifications
and/or other information satisfactory to Dime Community Bancshares, Inc. (the
"Company") and the Trust. We understand that the certificates for any Capital
Securities that we receive prior to the Resale Restriction Termination Date will
bear a legend substantially to the effect of the foregoing.

                  2. We are an accredited investor within the meaning of
subparagraph (a) (1), (2), (3), (7) or (8) of Rule 501 under the Securities Act
purchasing for our own account or for the account of such an accredited
investor, and we are acquiring the Capital Securities for investment purposes
and not with view to, or for offer or sale in connection with, any distribution
in violation of the Securities Act, and we have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Capital Securities, and we and any account for
which we are acting are each able to bear the economic risks of our or its
investment.

                  3. We are acquiring the Capital Securities purchased by us for
our own account (or for one or more accounts as to each of which we exercise
sole investment discretion and have authority to make, and do make, the
statements contained in this letter) and not with a view to any distribution of
the Capital Securities in violation of the Securities Act, subject,
nevertheless, to the understanding that the disposition of our property will at
all times be and remain within our control.

                  4. In the event that we purchase any Capital Securities, we
will acquire such Capital Securities having an aggregate Liquidation Amount of
not less than $100,000 for our own account and for each separate account for
which we are acting.

                  5. We acknowledge that we either (A) are not a fiduciary of a
pension, profit-sharing or other employee benefit plan or arrangement subject to
the Employee Retirement Income Security Act of 1974, as amended, or to Section
4975 of the Internal Revenue Code of 1986, as amended (a "Plan"), or an entity
whose assets include "plan assets" by reason of any Plan's investment in the
entity and are not purchasing the Capital Securities on behalf of or with "plan
assets" by reason of any Plan's investment in the entity and are not purchasing
the Capital Securities on behalf of or with "plan assets" of any Plan or (B) are
eligible for the exemptive relief available under one or more of the following
prohibited transaction class exemptions ("PTCEs") issued by the U.S. Department
of Labor: PTCE 96-23, 95-60, 91-38, 90-1 or 84-14.

                  6. We acknowledge that each Plan, by its purchase of the
Capital Securities, will be deemed to have directed the Trust to invest in
junior subordinated debt securities of the Company, and to have consented to the
appointment of the institutional trustee of the Trust.

                                      B-2
<PAGE>

                  7. We acknowledge that the Company, the Trust and others will
rely upon the truth and accuracy of the foregoing acknowledgments,
representations, warranties and agreements and agree that if any of our
acknowledgments, representations, warranties and agreements are no longer
accurate, we shall promptly notify the applicable Placement Agent. If we are
acquiring any Capital Securities as a fiduciary or agent for one or more
investor accounts, we represent that we have sole discretion with respect to
each such investor account and that we have full power to make the foregoing
acknowledgments, representations and agreements on behalf of each such investor
account.

                  You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy thereof to any interested party in
any administrative or legal proceeding or other inquiry with respect to matters
covered hereby.

                                            ___________________________________
                                            (Name of Purchaser)

                                            By:________________________________

                                            Date:______________________________

                  Upon transfer, the Capital Securities should be registered in
the name of the new beneficial owner as follows.

Name:_________________________

Address:______________________

Taxpayer ID Number:_____________________

                                      B-3
<PAGE>

                                                                       EXHIBIT C

                                          FORM OF TRANSFEROR CERTIFICATE
                                              TO BE EXECUTED FOR QIBs

                                                             __________, [     ]

Dime Community Bancshares, Inc.
Dime Community Capital Trust I
c/o Dime Community Bancshares, Inc.
209 Havemeyer Street
Brooklyn, New York  11211

Re:      Purchase of $[_______________] Liquidation Amount of Fixed Rate Capital
         Securities (The "Capital Securities") of Dime Community Capital Trust I
         (The "Trust")
         -----------------------------------------------------------------------

                  Reference is hereby made to the Amended and Restated
Declaration of Trust of Dime Community Capital Trust I, dated as of March 19,
2004 (the "Declaration"), among Kenneth J. Mahon, Michael Pucella and Lance
Bennett, as Administrators, Wilmington Trust Company, as Delaware Trustee,
Wilmington Trust Company, as Institutional Trustee, Dime Community Bancshares,
Inc., as Sponsor, and the holders from time to time of undivided beneficial
interests in the assets of the Trust. Capitalized terms used but not defined
herein shall have the meanings given them in the Declaration.

                  This letter relates to $[_______________] aggregate
Liquidation Amount of Capital Securities which are held in the name of [name of
transferor] (the "Transferor").

                  In accordance with Section 9.2(b) of the Declaration, the
Transferor does hereby certify that such Capital Securities are being
transferred in accordance with (i) the transfer restrictions set forth in the
Capital Securities and (ii) Rule 144A under the Securities Act ("Rule 144A"), to
a transferee that the Transferor reasonably believes is purchasing the Capital
Securities for its own account or an account with respect to which the
transferee exercises sole investment discretion and the transferee and any such
account is a "qualified institutional buyer" within the meaning of Rule 144A, in
a transaction meeting the requirements of Rule 144A and in accordance with
applicable securities laws of any state of the United States or any other
jurisdiction.

                                      C-1
<PAGE>

                  You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy thereof to any interested party in
any administrative or legal proceeding or other inquiry with respect to matters
covered hereby.

                                            _____________________________
                                            (Name of Transferor)

                                            By:__________________________
                                                Name:____________________
                                                Title:___________________

                                                Date: ___________________

                                      C-2
<PAGE>

                                                                       EXHIBIT D

                         FORM OF TRANSFEREE CERTIFICATE
                        TO BE EXECUTED BY NON U.S PERSONS

                                                             __________, [     ]

Dime Community Bancshares, Inc.
Dime Community Capital Trust I
c/o Dime Community Bancshares, Inc.
209 Havemeyer Street
Brooklyn, New York  11211

Re:      Purchase of $[SPECIFY] Liquidation Amount of Fixed Rate Capital
         Securities (The "Capital Securities") of Dime Community Capital Trust I
         (The "Trust")
         -----------------------------------------------------------------------

                  Reference is hereby made to the Amended and Restated
Declaration of Trust of Dime Community Capital Trust I, dated as of March 19,
2004 (the "Declaration"), among Kenneth J. Mahon, Michael Pucella and Lance
Bennett, as Administrators, Wilmington Trust Company, as Delaware Trustee,
Wilmington Trust Company, as Institutional Trustee, Dime Community Bancshares,
Inc., as Sponsor, and the holders from time to time of undivided beneficial
interests in the assets of the Trust. Capitalized terms used but not defined
herein shall have the meanings given them in the Declaration.

                  This letter relates to $[_______________] aggregate
Liquidation Amount of Capital Securities which are held in the name of [name of
transferor].

                  In accordance with Section 9.2(b) of the Declaration, we do
hereby certify that (i) we are not a "U.S. person" (as such term is defined in
Rule 902 under the Securities Act), (ii) we are not acquiring the Capital
Securities for the account or benefit of any U.S. person and (iii) the offer and
sale of the Capital Securities to us constitutes an "offshore transaction" under
Regulation S under the Securities Act.

                  You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy thereof to any interested party in
any administrative or legal proceeding or other inquiry with respect to matters
covered hereby.

                                            _____________________________
                                            (Name of Transferee)

                                            By:__________________________
                                                Name: ___________________
                                                Title: __________________

                                                Date:__________________________

                                      D-1COMMON SECURITY

                  THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER
APPLICABLE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION.

                  EXCEPT AS SET FORTH IN SECTION 9.1(b) OF THE DECLARATION (AS
DEFINED BELOW), THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED.

<PAGE>

     Certificate Number C-001                Number of Common Securities 2,165

                    Certificate Evidencing Common Securities

                                       of

                         Dime Community Capital Trust I

                          Fixed Rate Common Securities
                 (Liquidation Amount $1,000 per Common Security)

                  Dime Community Capital Trust I, a statutory trust created
under the laws of the State of Delaware (the "Trust"), hereby certifies that
Dime Community Banchares, Inc. is the registered owner (the "Holder") of common
securities of the Trust representing undivided common beneficial interests in
the assets of the Trust (Liquidation Amount $1,000 per Common Security)(the
"Common Securities"). The Common Securities represented hereby are issued
pursuant to, and the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Common Securities shall in all respects be
subject to, the provisions of the Amended and Restated Declaration of Trust of
the Trust, dated as of March 19, 2004, among Kenneth J. Mahon, Michael Pucella
and Lance Bennett, as Administrators, Wilmington Trust Company, as Delaware
Trustee, Wilmington Trust Company, as Institutional Trustee, the Holder, as
Sponsor, and the holders from time to time of undivided beneficial interests in
the assets of the Trust, including the designation of the terms of the Common
Securities as set forth in Annex I to the Declaration, as the same may be
amended from time to time (the "Declaration"). Capitalized terms used herein but
not defined shall have the meaning given them in the Declaration. The Sponsor
will provide a copy of the Declaration and the Indenture to the Holder without
charge upon written request to the Sponsor at its principal place of business.

                  As set forth in the Declaration, when an Event of Default has
occurred and is continuing, the rights of the Holder of Common Securities to
payment in respect of Distributions and payments upon Liquidation, redemption or
otherwise are subordinated to the rights of payment of holders of the Capital
Securities.

                  By acceptance of this Certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder.

                  By acceptance of this Certificate, the Holder agrees to treat,
for United States federal income tax purposes, the Debt Securities as
indebtedness and the Common Securities as evidence of undivided beneficial
ownership in the Debt Securities through a grantor trust.

                  This Certificate and the Common Securities evidenced hereby
are governed by, and shall be construed in accordance with, the laws of the
State of Delaware, without regard to principles of conflict of laws.

<PAGE>

                  IN WITNESS WHEREOF, the Trust has executed this Certificate
this 19th day of March, 2004.

                                         Dime Community Capital Trust I

                                         By:  /s/ Kenneth J. Mahon
                                              -----------------------------
                                              Kenneth J. Mahon
                                              Administrator

<PAGE>

                              [REVERSE OF SECURITY]

                  Distributions payable on each Common Security will be
identical in amount to the Distributions payable on each Capital Security, which
is at a fixed rate of interest per annum, which, with respect to any
Distribution Period (as defined herein) (such rate, together with the rate of
any applicable Liquidated Damages (as defined in the Registration Rights
Agreement), is referred to herein as the "Coupon Rate"). Distributions in
arrears for more than one Distribution Period will bear interest thereon,
compounded quarterly, at the applicable Coupon Rate for each Distribution Period
thereafter (to the extent permitted by applicable law). The term
"Distributions", as used herein, includes cash Distributions, any such
compounded Distributions and any Additional Amounts payable on the Debt
Securities and Liquidated Damages, if any, unless otherwise stated. A
Distribution is payable only to the extent that payments are made in respect of
the Debt Securities held by the Institutional Trustee and to the extent the
Institutional Trustee has funds legally available in the Property Account
therefor. The amount of Distributions payable for any Distribution Period will
be computed on the basis of a 360-day year consisting of twelve 30 day months.

                  Except as otherwise described below, Distributions on the
Common Securities will be cumulative, will accrue from the date of original
issuance and will be payable quarterly in arrears on January 15th, April 15th,
July 15th and October 15th of each year, commencing on July 15, 2004, and on any
date of redemption (each, a "Distribution Payment Date"), subject to the
Business Day convention specified in the Declaration. The Debt Security Issuer
has the right under the Indenture to defer payments of interest on the Debt
Securities by extending the interest payment period for up to 20 consecutive
quarterly periods (each such extended interest payment period, together with all
previous and future consecutive extensions thereof, is referred to herein as an
"Extension Period") at any time and from time to time on the Debt Securities,
subject to the conditions described below and in the Declaration and the
Indenture. No Extension Period may end on a date other than a Distribution
Payment Date or extend beyond the Maturity Date, any Optional Redemption Date or
the Special Redemption Date, as the case may be. During any Extension Period,
interest will continue to accrue on the Debt Securities, and interest on such
accrued interest (such accrued interest and interest thereon referred to herein
as "Deferred Interest") will accrue, at an annual rate equal to the Coupon Rate,
compounded quarterly from the date such Deferred Interest would have been
payable were it not for the Extension Period, to the extent permitted by
applicable law. At the end of any Extension Period, the Debt Security Issuer
shall pay all Deferred Interest then accrued and unpaid on the Debt Securities;
provided, however, that prior to the termination of any Extension Period, the
Debt Security Issuer may further extend such Extension Period, provided, that no
Extension Period (including all previous and further consecutive extensions that
are part of such Extension Period) shall exceed 20 consecutive quarterly
periods. Upon the termination of any Extension Period and upon the payment of
all Deferred Interest, the Debt Security Issuer may commence a new Extension
Period, subject to the requirements set forth herein and in the Declaration and
the Indenture. No interest or Deferred Interest (except any Additional Amounts
that may be due and payable) shall be due and payable during an Extension
Period, except at the end thereof, but Deferred Interest shall accrue upon each
installment of interest that

<PAGE>

would otherwise have been due and payable during such Extension Period until
such installment is paid.

                  As a consequence of any Extension Period, Distributions will
be deferred. If Distributions are deferred, the Distributions due shall be paid
on the date that the related Extension Period terminates to Holders of the Trust
Securities as they appear on the books and records of the Trust on the regular
record date immediately preceding the Distribution Payment Date on which such
Extension Period terminates to the extent that the Trust has funds legally
available for the payment of such Distributions in the Property Account of the
Trust.

                  The Common Securities shall be redeemable, and shall be
entitled to the Liquidation Distribution, as provided in the Declaration.

<PAGE>

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned assigns and transfers this
Common Securities evidenced by this Certificate to:

____________________________

____________________________

____________________________

(Insert assignee's social security or tax identification number)

____________________________

____________________________

____________________________

(Insert address and zip code of assignee),

and irrevocably appoints as agent to transfer the Common Securities evidenced by
this Certificate on the books of the Trust. The agent may substitute another to
act for him or her.

                  Date:____________________

                  Signature:________________________

                  (Sign exactly as your name appears on the other side of this
                  Certificate)

                  Signature Guarantee:1 ________________________

-------------------
1 Signature must be guaranteed by an "eligible guarantor institution" that is a
bank, stockbroker, savings and loan association or credit union, meeting the
requirements of the Security registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Security
registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

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