Document:

Exhibit 10.1

AMENDMENT
AGREEMENT

This Amendment Agreement
(the “Agreement”), dated as of June
29, 2007, is by and among Ceragenix Pharmaceuticals, Inc., a Delaware
corporation (the “Company”) and the investors signatory hereto (each, a
“Purchaser” and collectively, the “Purchasers”).  Capitalized terms not defined in this
Agreement shall have the meanings ascribed to such terms in the Purchase
Agreement (as defined below).

WHEREAS, pursuant to a
securities purchase agreement dated December 5, 2006 among the Company and the
Purchasers (the “Purchase Agreement”), the Purchasers were issued
convertible debentures with an original aggregate principal amount of
$5,000,000 and warrants to purchase shares of Common Stock. 

WHEREAS, the
parties wish to amend certain terms of the Transaction Documents.

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for good
and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Purchasers and the Company agree as follows:

ARTICLE
I

AMENDMENTS AND OTHER AGREEMENTS

Section 1.1.            Amendment to Section 5(h) of the
Debentures.  Section 5(h) of each of
the Debentures is hereby deleted in its entirety and replaced with the
following:

“Adjustment upon
Failure to Enter a Partnership Agreement. 
In the event that the Company fails to enter into a partnership
agreement for the sales, marketing and distribution of its “EpiCeram” products
on or before August 15, 2007 with a nationally recognized pharmaceutical
company with a minimum up front royalty payment of $2,000,000, and file a
Current Report on Form 8-K with respect thereto, the Conversion Price shall be
reduced to equal the lesser of (i) the then Conversion Price and (ii) a price
equal to the average of each of the VWAPs for the 20 Trading Days immediately
prior to August 15, 2007.  For clarity,
the Conversion Price can only be adjusted downward pursuant to this Section
5(h).  Such adjustment shall be effective
notwithstanding any later disclosure that such event occurred prior to, during
or after August 15, 2007.”

Section 1.2             Issuance of New Warrants.  As partial consideration hereunder, each
Purchaser shall be issued new five year warrants (the “Warrants”) to
purchase up to a number of shares of Common Stock equal to such Purchaser’s
pro-rata share (based on such Purchaser’s Subscription Amount under the
Purchase Agreement and the aggregate Subscription Amount of all Purchasers
under the Purchase Agreement) of 400,000 shares, with an Initial Exercise Date
(as defined therein) of June 29, 2007, a Termination Date (as defined therein)
of June 29, 2012, and an initial Exercise Price (as defined therein) of $2.25,
subject to adjustment therein, which

Warrants shall otherwise be in the form of the Warrants issued pursuant to the
Purchase Agreement.  The shares of Common
Stock underlying such Warrants shall be referred to herein as the “Warrant
Shares”.  The date
of the effectiveness of the transactions contemplated hereunder shall be
referred to as the “Closing”.

Section 1.3             Registration Rights.  The Warrant Shares shall be included as
“Registerable Securities” under the terms of the Registration Rights Agreement
between each Purchaser and the Company dated December 5, 2005.

Section 1.4             Effect on Purchase Agreement.  The foregoing amendments are given solely in
respect of the transactions described herein. Except as expressly set forth
herein, all of the terms and conditions of the Transaction Documents shall
continue in full force and effect after the execution of this Agreement, and
shall not be in any way changed, modified or superseded by the terms set forth
herein.  This Agreement shall not
constitute a novation or satisfaction and accord of any Transaction Document.

Section 1.5.            Filing of Form 8-K.  Within 3 Trading Days of the date hereof, the
Company shall issue a Current Report on Form 8-K, reasonably acceptable to each
Purchaser disclosing the material terms of the transactions contemplated
hereby, which shall include this Agreement as an attachment thereto. In addition, within 3 Trading Days of the date hereof, the
Company shall file a prospectus supplement under Rule 424 under the Securities
Act to registration statement number 333-[                     ,
disclosing the terms of the transactions hereunder.  

Section
1.6.            Conditions to
Purchasers Obligations.  The
respective obligations of the Purchasers hereunder in connection with the
Closing are subject to the following conditions being met:

(a)           the accuracy in all material respects
on the date of the Closing of the representations and warranties of the Company
contained herein;

(b)           all obligations, covenants and
agreements of the Company required to be performed at or prior to the Closing
shall have been performed;

(c)           all Purchasers parties to the
Purchase Agreement shall have agreed to the terms and conditions of this
Agreement;

(d)           there shall have been no Material
Adverse Effect with respect to the Company since the date hereof; and

(e)           from the date hereof to the Closing,
trading in the Common Stock shall not have been suspended by the Commission
(except for any suspension of trading of limited duration agreed to by the
Company, which suspension shall be terminated prior to the Closing), and, at
any time prior to the Closing, trading in securities generally as reported by
Bloomberg Financial Markets shall not have been suspended or limited, or
minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking
moratorium have been declared

 2
 

either by the United States or New York State
authorities nor shall there have occurred any material outbreak or escalation
of hostilities or other national or international calamity of such magnitude in
its effect on, or any material adverse change in, any financial market which,
in each case, in the reasonable judgment of each Purchaser, makes it
impracticable or inadvisable to consummate the transactions hereunder.

ARTICLE
II

REPRESENTATIONS AND WARRANTIES

Section 2.1.            Representations and Warranties of
the Company.  The Company hereby makes the representations and warranties set forth below to
the Purchasers that as of the date of its execution of this Agreement:

(a)           Authorization; Enforcement.  The Company has the requisite corporate power
and authority to enter into and to consummate the transactions contemplated by
this Agreement and otherwise to carry out its obligations hereunder and
thereunder.  The execution and delivery
of this Agreement by the Company and the consummation by it of the transactions
contemplated hereby have been duly authorized by all necessary action on the
part of such Company and no further action is required by such Company, its
board of directors or its stockholders in connection therewith.  This Agreement has been duly executed by the
Company and, when delivered in accordance with the terms hereof will constitute
the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms except (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of
specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by
applicable law.

(b)           No Conflicts.  The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby do not and will not: (i) conflict with or
violate any provision of the Company’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii)
conflict with, or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, result in the creation of any
lien upon any of the properties or assets of the Company, or give to others any
rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any material agreement, credit facility,
debt or other material instrument (evidencing Company debt or otherwise) or
other material understanding to which the Company is a party or by which any property
or asset of the Company is bound or affected, or (iii) conflict with or result
in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the
Company is subject (including federal and state securities laws and
regulations), or by which any property or asset of the Company is bound or
affected.

 3
 

(c)           Capitalization.  The Company is a duly organized and validly
existing corporation in good standing under the laws of the State of Delaware.  The capitalization of
the Company is as set forth on Schedule 2.1(c).  Immediately following the issuance of the
Warrants hereunder, there will be issued and outstanding  31,925,892 shares of Common Stock,
all of which such issued and outstanding shares will be validly issued, fully
paid and nonassessable.  The Warrants and
Warrant Shares, when issued in accordance with the terms of this Agreement and
the Warrants, will be duly authorized, validly issued, fully paid and
nonassessable. Except as described in this Section or as set forth on the Disclosure Schedules to the Purchase Agreement or
Schedule 2.1(c) attached hereto,
there are no issued or outstanding securities and no issued or outstanding
options, warrants or other rights, or commitments or agreements of any kind,
contingent or otherwise, to purchase or otherwise acquire shares of Common
Stock or any issued or outstanding securities of any nature convertible into
shares of Common Stock.  There is no
proxy or any other agreement, arrangement or understanding of any kind
authorized, effective or outstanding which restricts, limits or otherwise
affects the right to vote any shares of Common Stock.  

(d)           Other Representations, Warranties
and Covenants.  Except as set forth
on Schedule 2.1(d), the representations, warranties and covenants of the
Company with respect to the Warrants and Warrant Shares shall be identical in
all respects to the representations, warranties and covenants of the Company
with respect to the warrants issued pursuant to the Purchase Agreement (and
shares of Common Stock underlying such existing warrants) issued pursuant to
the Purchase Agreement and other Transaction Documents (as defined under the
Purchase Agreement) and the Company hereby makes such representations,
warranties and covenants as though fully set forth herein as of the date
hereof, and all such representations, warranties and obligations are
incorporated herein by reference, including without
limitation, all registration rights with respect to the Warrant Shares as
though such shares were Registrable Securities (as defined under the
Registration Rights Agreement entered into in connection with the Purchase
Agreement).

Section 2.2.            Representations and Warranties of
the Purchasers.  The Purchasers
severally and not jointly hereby make the representations and warranties set
forth below to the Company that as of the date of its execution of this
Agreement:

(a)           Due Authorization. Such
Purchaser represents and warrants that (i) the execution and delivery of this
Agreement by it and the consummation by it of the transactions contemplated
hereby have been duly authorized by all necessary action on its behalf and (ii)
this Agreement has been duly executed and delivered by such Purchaser and
constitutes the valid and binding obligation of such Purchaser, enforceable
against it in accordance with its terms except (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may
be limited by applicable law.

 4
 

ARTICLE
III

MISCELLANEOUS

Section 3.1.            Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be made in
accordance with the provisions of the Purchase Agreement.

Section 3.2.            Survival.  All warranties and representations (as of the
date such warranties and representations were made) made herein or in any
certificate or other instrument delivered by it or on its behalf under this
Agreement shall be considered to have been relied upon by the parties hereto
and shall survive the issuance of the Warrants. This
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties; provided however that no party may
assign this Agreement or the obligations and rights of such party hereunder
without the prior written consent of the other parties hereto.

Section 3.3.            Execution.  This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. 
In the event that any signature is delivered by facsimile transmission,
such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force
and effect as if such facsimile signature page were an original thereof.

Section 3.4.            Severability.  If any provision of this Agreement is held to
be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

Section 3.5.            Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be determined
pursuant to the Governing Law provision of the Purchase Agreement.

Section 3.6.            Entire Agreement.  The Agreement, together with the exhibits and
schedules thereto, contain the entire understanding of the parties with respect
to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the
parties acknowledge have been merged into such documents, exhibits and
schedules.

Section 3.7.            Construction.  The headings herein are for convenience only,
do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.  The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict construction
will be applied against any party.

Section 3.8             Independent Nature of
Purchasers’ Obligations and Rights. 
The obligations of each Purchaser hereunder are several and not joint
with the obligations of any other Purchasers hereunder, and no Purchaser shall
be responsible in any way for the

 5
 

performance of the
obligations of any other Purchaser hereunder. Nothing contained herein or in
any other agreement or document delivered at any closing, and no action taken
by any Purchaser pursuant hereto, shall be deemed to constitute the Purchasers
as a partnership, an association, a joint venture or any other kind of entity,
or create a presumption that the Purchasers are in any way acting in concert
with respect to such obligations or the transactions contemplated by this
Agreement. Each Purchaser shall be entitled to protect and enforce its rights,
including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Purchaser to be joined as an additional
party in any proceeding for such purpose.

Section 3.9             Termination.  This Agreement may be terminated by any
Purchaser, as to such Purchaser’s obligations hereunder, by written notice to
the other parties, if the Closing has not been consummated on or before June
30, 2007.

Section 3.10           Fees
and Expenses.  Each party shall pay
the fees and expenses of its advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this
Agreement.  The Company
shall pay all transfer agent fees, stamp taxes and other taxes and duties levied
in connection with the delivery of any Warrants or Warrant Shares.

 

 

***********************

 6
 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

	
  

  	
  CERAGENIX
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 7
 

[PURCHASER SIGNATURE PAGES TO CGXP

AMENDMENT
AGREEMENT]

 

IN WITNESS WHEREOF, the
undersigned have caused this Amendment Agreement to be duly executed by their
respective authorized signatories as of the date first indicated above.

Name of Purchaser:
________________________________________________________

Signature of Authorized Signatory of Purchaser:
__________________________________

Name of Authorized Signatory:
____________________________________________________

Title of Authorized Signatory:
_____________________________________________________

Email Address of
Purchaser:________________________________________________

 

Address for Notice of Purchaser:

 

 

 

 

Address for Delivery of Securities for Purchaser (if
not same as above):

 

 

 

 

 

New Warrants with an exercise price of $2.25:

 

 8
 

SCHEDULE
2.1(c) 

Section 2.1(c) - Capitalization

 

Authorized Common Shares – 50,000,000

Authorized Preferred Shares – 5,000,000

 

 

Outstanding Shares as of June 30, 2007

 

	
  Common Shares

  	
   

  	
  16,393,724

  	
   

  
	
  Series A Preferred Stock

  	
   

  	
  1,000,000

  	
   

  
	
  Convertible debt

  	
   

  	
  4,073,007

  	
   

  
	
  Stock Options

  	
   

  	
  4,805,750

  	
   

  
	
  Stock Warrants

  	
   

  	
  5,653,412

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  31,925,892

  	
   

  

 

 9
 

SCHEDULE
2.1(d) 

None

 

 10Exhibit
10.1

AMENDED AND
RESTATED DECLARATION OF TRUST

OF

FPBN TRUST I

Dated as of June
28, 2007

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE I

  
	
  INTERPRETATION
  AND DEFINITIONS

  
	
   

  
	
  Section 1.1.

  	
   

  	
  Definitions

  	
   

  	
     1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
  ORGANIZATION

  
	
   

  
	
  Section 2.1.

  	
   

  	
  Name

  	
   

  	
  10

  
	
  Section 2.2.

  	
   

  	
  Office

  	
   

  	
  10

  
	
  Section 2.3

  	
   

  	
  Purpose

  	
   

  	
  10

  
	
  Section 2.4.

  	
   

  	
  Authority

  	
   

  	
  10

  
	
  Section 2.5.

  	
   

  	
  Title to Property of the Trust

  	
   

  	
  11

  
	
  Section 2.6.

  	
   

  	
  Powers and Duties of the Trustees and the
  Administrators

  	
   

  	
  11

  
	
  Section 2.7.

  	
   

  	
  Prohibition of Actions by the Trust and the Trustees

  	
   

  	
  16

  
	
  Section 2.8.

  	
   

  	
  Powers and Duties of the Institutional Trustee

  	
   

  	
  16

  
	
  Section 2.9.

  	
   

  	
  Certain Duties and Responsibilities of the Trustees
  and the Administrators

  	
   

  	
  18

  
	
  Section 2.10.

  	
   

  	
  Certain Rights of Institutional Trustee

  	
   

  	
  20

  
	
  Section 2.11.

  	
   

  	
  Delaware Trustee

  	
   

  	
  22

  
	
  Section 2.12.

  	
   

  	
  Execution of Documents

  	
   

  	
  22

  
	
  Section 2.13.

  	
   

  	
  Not Responsible for Recitals or Issuance of
  Securities

  	
   

  	
  22

  
	
  Section 2.14.

  	
   

  	
  Duration of Trust

  	
   

  	
  23

  
	
  Section 2.15.

  	
   

  	
  Mergers

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
  SPONSOR

  
	
   

  
	
  Section 3.1.

  	
   

  	
  Sponsor’s Purchase of Common Securities

  	
   

  	
  25

  
	
  Section 3.2.

  	
   

  	
  Responsibilities of the Sponsor

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
  TRUSTEES AND
  ADMINISTRATORS

  
	
   

  
	
  Section 4.1.

  	
   

  	
  Number of Trustees

  	
   

  	
  25

  
	
  Section 4.2.

  	
   

  	
  Delaware Trustee

  	
   

  	
  25

  
	
  Section 4.3.

  	
   

  	
  Institutional Trustee; Eligibility

  	
   

  	
  26

  
	
  Section 4.4.

  	
   

  	
  Administrators

  	
   

  	
  26

  
	
  Section 4.5.

  	
   

  	
  Appointment, Removal and Resignation of the Trustees
  and the Administrators

  	
   

  	
  27

  
	
  Section 4.6.

  	
   

  	
  Vacancies Among Trustees

  	
   

  	
  28

  
	
  Section 4.7.

  	
   

  	
  Effect of Vacancies

  	
   

  	
  29

  
	
  Section 4.8.

  	
   

  	
  Meetings of the Trustees and the Administrators

  	
   

  	
  29

  
	
  Section 4.9.

  	
   

  	
  Delegation of Power

  	
   

  	
  29

  
							

 

   
 

 

	
  Section 4.10.

  	
   

  	
  Merger, Conversion, Consolidation or Succession to
  Business

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
  DISTRIBUTIONS

  
	
   

  
	
  Section 5.1.

  	
   

  	
  Distributions

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
  ISSUANCE OF
  SECURITIES

  
	
   

  
	
  Section 6.1.

  	
   

  	
  General Provisions Regarding Securities

  	
   

  	
  30

  
	
  Section 6.2.

  	
   

  	
  Paying Agent, Transfer Agent, Calculation Agent and
  Registrar

  	
   

  	
  32

  
	
  Section 6.3.

  	
   

  	
  Form and Dating

  	
   

  	
  32

  
	
  Section 6.4.

  	
   

  	
  Book-Entry Capital Securities

  	
   

  	
  33

  
	
  Section 6.5.

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen Certificates

  	
   

  	
  36

  
	
  Section 6.6.

  	
   

  	
  Temporary Certificates

  	
   

  	
  36

  
	
  Section 6.7.

  	
   

  	
  Cancellation

  	
   

  	
  36

  
	
  Section 6.8.

  	
   

  	
  Rights of Holders; Waivers of Past Defaults

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
  DISSOLUTION AND
  TERMINATION OF TRUST

  
	
   

  
	
  Section 7.1.

  	
   

  	
  Dissolution and Termination of Trust

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
  TRANSFER OF
  INTERESTS

  
	
   

  
	
  Section 8.1.

  	
   

  	
  General

  	
   

  	
  39

  
	
  Section 8.2.

  	
   

  	
  Transfer Procedures and Restrictions

  	
   

  	
  41

  
	
  Section 8.3.

  	
   

  	
  Deemed Security Holders

  	
   

  	
  44

  
	
  Section 8.4.

  	
   

  	
  Transfer of Initial Securities

  	
   

  	
  44

  
	
  Section 8.5.

  	
   

  	
  Obligation of the Trust to Eliminate a DTC Deliver
  Order Chill In Certain  Circumstances

  	
   

  	
  45

  
	
   

  
	
  ARTICLE IX

  
	
  LIMITATION OF
  LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

  
	
   

  
	
  Section 9.1.

  	
   

  	
  Liability

  	
   

  	
  46

  
	
  Section 9.2.

  	
   

  	
  Exculpation

  	
   

  	
  46

  
	
  Section 9.3.

  	
   

  	
  Fiduciary Duty

  	
   

  	
  47

  
	
  Section 9.4.

  	
   

  	
  Indemnification

  	
   

  	
  47

  
	
  Section 9.5.

  	
   

  	
  Outside Businesses

  	
   

  	
  50

  
	
  Section 9.6.

  	
   

  	
  Compensation; Fee

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
  ACCOUNTING

  
	
   

  
	
  Section 10.1.

  	
   

  	
  Fiscal Year

  	
   

  	
  51

  
	
  Section 10.2.

  	
   

  	
  Certain Accounting Matters

  	
   

  	
  51

  
	
  Section 10.3.

  	
   

  	
  Banking

  	
   

  	
  53

  

 

 ii
 

 

	
  Section 10.4.

  	
   

  	
  Withholding

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  
	
  AMENDMENTS AND
  MEETINGS

  
	
   

  
	
  Section 11.1.

  	
   

  	
  Amendments

  	
   

  	
  53

  
	
  Section 11.2.

  	
   

  	
  Meetings of the Holders of the Securities; Action by
  Written Consent

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII
  REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.1.

  	
   

  	
  Representations and Warranties of Institutional
  Trustee

  	
   

  	
  57

  
	
  Section 12.2.

  	
   

  	
  Representations and Warranties of Delaware Trustee

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  
	
  MISCELLANEOUS

  
	
   

  
	
  Section 13.1.

  	
   

  	
  Notices

  	
   

  	
  58

  
	
  Section 13.2.

  	
   

  	
  Governing Law

  	
   

  	
  59

  
	
  Section 13.3.

  	
   

  	
  Submission to Jurisdiction

  	
   

  	
  59

  
	
  Section 13.4.

  	
   

  	
  Intention of the Parties

  	
   

  	
  60

  
	
  Section 13.5.

  	
   

  	
  Headings

  	
   

  	
  60

  
	
  Section 13.6.

  	
   

  	
  Successors and Assigns

  	
   

  	
  60

  
	
  Section 13.7.

  	
   

  	
  Partial Enforceability

  	
   

  	
  60

  
	
  Section 13.8.

  	
   

  	
  Counterparts

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ANNEXES AND
  EXHIBITS

  
	
   

  
	
  ANNEX I

  	
   

  	
  Terms of Capital Securities and Common Securities

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A-1

  	
   

  	
  Form of Capital Security Certificate

  	
   

  	
   

  
	
  EXHIBIT A-2

  	
   

  	
  Form of Common Security Certificate

  	
   

  	
   

  
	
  EXHIBIT B

  	
   

  	
  Form of Administrator’s Certificate of the Trust

  	
   

  	
   

  
	
  EXHIBIT C

  	
   

  	
  Form of Transferee Certificate to be Executed by
  Accredited Investors

  	
   

  	
   

  
	
  EXHIBIT D

  	
   

  	
  Form of Transferor Certificate to be Executed for
  QIBs

  	
   

  	
   

  
	
  EXHIBIT E

  	
   

  	
  Form of Transferee Certificate to be Executed by
  Non-U.S. Persons

  	
   

  	
   

  

 

 iii

AMENDED AND RESTATED DECLARATION OF TRUST

OF

FPBN TRUST I

June 28, 2007

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 June 28, 2007, 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 FPBN Trust I (the “Trust”), a statutory trust under the Statutory
Trust Act (as defined herein), pursuant to a Declaration of Trust, dated as of
June 22, 2007 (the “Original Declaration”), and a Certificate of Trust filed
with the Secretary of State of the State of Delaware on June 22, 2007, for the
sole purpose of issuing and selling the Securities (as defined herein)
representing undivided beneficial interests in the assets of the Trust,
investing the proceeds thereof in the Debentures (as defined herein) of the
Debenture Issuer (as defined herein) and engaging in those activities
necessary, advisable or incidental thereto;

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

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

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

ARTICLE I

INTERPRETATION AND
DEFINITIONS

Section
1.1.  Definitions.  Unless the context otherwise requires:

(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 James H. Burgess, A.
Vincent Siciliano and Shelly Hicks, solely in such Person’s capacity as
Administrator of the Trust continued hereunder and not in such Person’s
individual capacity, or such Administrator’s successor in interest in such
capacity, or any successor appointed as herein provided.

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

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

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

“Bankruptcy Event” means, with respect to any Person:

(a)           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 

 2
 

order for relief in an
involuntary case under any such law, or consents to the appointment of or
taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of such Person 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.

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

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

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

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

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

“Capital Security Certificate” means a definitive
Certificate registered in the name of the Holder representing a Capital
Security substantially in the form of Exhibit A-1.

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

“Certificate” means any certificate evidencing
Securities.

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

“Closing Date” has the meaning set forth in the
Placement Agreement.

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

“Commission” means the United States Securities and
Exchange Commission.

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

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

“Company Indemnified Person” means (a) any
Administrator, (b) any Affiliate of any Administrator, (c) any officers,
directors, shareholders, members, partners, employees, 

 3
 

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

“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
Securities.

“Debenture Issuer” means 1st Pacific Bancorp, a bank holding company
incorporated in the State of California, in its capacity as issuer of the
Debentures under the Indenture, and any permitted successor under the Indenture.

“Debenture 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.

“Debentures” means the Floating Rate Junior
Subordinated Debt Securities due 2037 to be issued by the Debenture Issuer
under the Indenture.

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

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

“Delaware Trustee” has the meaning set forth in
Section 4.2.

“Depositary” means an organization registered as a
clearing agency under the Exchange Act that is designated as Depositary by the
Sponsor.  DTC will be the initial
Depositary.

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

 4
 

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

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

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

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

“DTC” means The Depository Trust Company or any
successor thereto.

“Event of Default” means the occurrence of an
Indenture Event of Default.

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

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

“Federal Reserve” has the meaning set forth in
paragraph 3 of Annex I.

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

“Fiscal Year” has the meaning set forth in Section
10.1.

“Global Capital Security” means a global Certificate
evidencing ownership of Book-Entry Capital Securities.

“Guarantee” means the Guarantee Agreement, dated as of
the Closing Date, of the Sponsor (the “Guarantor”) in respect of the Capital
Securities.

“Holder” means a Person in whose name a Certificate
representing a 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 Debenture Issuer and the Debenture Trustee, and any
indenture supplemental thereto pursuant to which the Debentures are to be
issued.

“Indenture Event of Default” means an “Event of
Default” as defined in the Indenture.

 5
 

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

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

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

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

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

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

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

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

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

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

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

“Majority in liquidation amount of the Securities”
means Holders of outstanding Securities voting together as a single class or,
as the context may require, Holders of outstanding Capital Securities or
Holders of outstanding Common Securities voting separately as a class, who are
the record owners of more than 50% of the aggregate liquidation amount
(including the 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
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.

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

 6
 

(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.

“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.

“Paying Agent” has the meaning set forth in Section
6.2.

“Payment Amount” has the meaning set forth in
Section 5.1.

“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.

“Placement Agent” has the meaning given in the
Placement Agreement.

“Placement Agreement” means the Placement Agreement
relating to the offer and sale of Capital Securities.

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

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

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

“Purchaser” has the meaning set forth in the Placement
Agreement.

“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.

 7
 

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

“Reference Banks” has the meaning set forth in
paragraph 2(b)(2) of Annex I.

“Registrar” has the meaning set forth in Section 6.2.

“Regulation S Global Capital Security” means a Global
Capital Security evidencing ownership of Book-Entry Capital Securities
initially issued to non-”U.S. Persons” in “offshore transactions” under, and
within the meaning of, Regulation S under the Securities Act.

“Relevant Trustee” has the meaning set forth in
Section 4.5(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 Securities Legend” has the meaning set
forth in Section 8.2(c).

“Rule 144A” means Rule 144A under the Securities Act.

“Rule 144A Global Capital Security” means a Global
Capital Security evidencing ownership of Book-Entry Capital Securities
initially issued to QIBs.

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

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

“Securities” means the Common Securities and the
Capital Securities.

“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 6.2(a).

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

 8
 

“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 1st Pacific Bancorp, a bank holding company that
is incorporated in the State of California, or any permitted successor of the
Debenture 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 § 3801 et seq., as it may be amended from time
to time, or any successor legislation.

“Successor Delaware Trustee” has the meaning set forth
in Section 4.5(e).

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

“Successor Institutional Trustee” has the meaning set
forth in Section 4.5(b).

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

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

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

“Telerate Page 3750” has the meaning set forth in
paragraph 2(b)(1) of Annex I.

“10% in liquidation amount of the Securities” means
Holders of outstanding Securities voting together as a single class or, as the
context may require, Holders of outstanding Capital Securities or Holders of
outstanding Common Securities voting separately as a class, who are the record
owners of 10% or more of the aggregate liquidation amount (including the stated
amount that would be paid 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 Securities of
the relevant class.

“Transfer Agent” has the meaning set forth in Section
6.2.

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

 9
 

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

“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.

ARTICLE II

ORGANIZATION

Section 2.1.  Name.  The Trust is named “FPBN Trust I,” as such
name may be modified from time to time by the Administrators following written
notice to the Institutional Trustee and the Holders of the Securities.  The Trust’s activities may be conducted under
the name of the Trust or any other name deemed advisable by the Administrators.

Section 2.2.  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 4275 Executive Square, Suite 650, La Jolla, California 92037.  On ten Business Days’ written notice to the
Institutional Trustee and the Holders of the Securities, the Administrators may
designate another principal office, which shall be in a state of the United
States or the District of Columbia.

Section 2.3.  Purpose.  The exclusive purposes and functions of the
Trust are (a) to issue and sell the Securities representing undivided
beneficial interests in the assets of the Trust, (b) to invest the gross
proceeds from such sale in the Debentures 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 not to be classified
for United States federal income tax purposes as a grantor trust.

Section 2.4.  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 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 

 10
 

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

Section 2.5.  Title to
Property of the Trust.  Except as
provided in Section 2.6(g) and Section 2.8 with respect to the Debentures and
the Property Account or as otherwise provided in this Declaration, legal title
to all assets of the Trust shall be vested in the Trust.  The Holders shall not have legal title to any
part of the assets of the Trust, but shall have an undivided beneficial
interest in the assets of the Trust.

Section 2.6.  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 Securities;

(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, a
subscription agreement for Debentures between the Trust and the Sponsor, a
subscription agreement for Capital Securities between the Trust and the
Purchaser and a subscription agreement for Common Securities between the Trust
and the Sponsor;

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

(D)          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;

(E)           the sending of notices
(other than notices of default) and other information regarding the Securities
and the Debentures to the Holders in accordance with this Declaration,
including notice of any notice received from the Debenture Issuer of its
election to defer payments

 11

of interest on the Debentures by extending
the interest payment period under the Indenture;

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

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

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

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

(J)                                   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);

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

(L)                                 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;

(M)                            to
negotiate the terms of, and the execution and delivery of, the Placement
Agreement and any other related agreements providing for the sale of the
Capital Securities or the resale thereof by the Purchaser;

(N)                               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;

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

 12
 

(P)                                 to
give the certificate, substantially in the form of Exhibit B attached
hereto,  required by § 314(a)(4) of the
Trust Indenture Act to the Institutional Trustee, which certificate may be
executed by an Administrator; and

(Q)                               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 Debentures;

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

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

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

(F)                                 the
sending of notices of default and other information regarding the Securities
and the Debentures 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 2.10(m) hereof)) (provided, that such Event of
Default is not by or with respect to the Institutional Trustee), the taking of
any action 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 

 13
 

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 § 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
2.6(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, mortgage, pledge, set-off or
otherwise dispose of any of the Trust Property or interests therein, including
to Holders, except as expressly provided herein, (iii) take any action
that would cause (or in the case of the Institutional Trustee, to the actual
knowledge of a Responsible Officer would cause) the Trust to fail or cease to
qualify as a grantor trust for United States federal income tax purposes,
(iv) incur any indebtedness for borrowed money or issue any other debt or
(v) take or consent to any action that would result in the placement of a
lien on any of the Trust Property.  The
Institutional Trustee shall, at the sole cost and expense of the Trust subject
to reimbursement under Section 9.6(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;

 14
 

(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 Debentures as indebtedness of the Debenture Issuer for United States
federal income tax purposes (in the case of the Institutional Trustee, to the
actual knowledge of a Responsible Officer). 
In this connection, the Institutional Trustee, the Administrators and
the Holders of a Majority in liquidation amount of the Common Securities are
authorized to take any action, not inconsistent with applicable laws or this
Declaration, as amended from time to time, that each of the Institutional
Trustee, the Administrators and such Holders determine in their discretion to
be necessary or desirable for such purposes, even if such action adversely
affects the interests of the Holders of the Capital Securities.

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

(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.

 15
 

Section
2.7.  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 Debentures, but shall
distribute all such proceeds to Holders of the Securities pursuant to the terms
of this Declaration and of the 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
Debentures;

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

(f)                                    issue
any securities or other evidences of beneficial ownership of, or beneficial
interest in, the Trust other than the 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 Debenture
Trustee with respect to the Debentures, (ii) waive any past default that is
waivable under the Indenture, (iii) exercise any right to rescind or annul any
declaration that the principal of all the Debentures shall be due and payable,
or (iv) consent to any amendment, modification or termination of the Indenture
or the Debentures where such consent shall be required unless the Trust shall
have received a written opinion of counsel experienced in such matters to the
effect that such amendment, modification or termination will not cause the
Trust to cease to be classified as a grantor trust for United States federal
income tax purposes.

Section
2.8.  Powers and Duties of the
Institutional Trustee.

(a)                                  The
legal title to the Debentures shall be owned by and held of record in the name
of the Institutional Trustee in trust for the benefit of the Trust.  The right, title and interest of the
Institutional Trustee to the Debentures shall vest automatically in each Person
who may hereafter be appointed as Institutional Trustee in accordance with
Section 4.5.  Such vesting and cessation
of title shall be effective whether or not conveyancing documents with regard
to the Debentures have been executed and delivered.

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

(c)                                  The
Institutional Trustee shall:

 16
 

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

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

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

(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 Debenture Issuer to pay
interest or premium, if any, on or principal of the Debentures on the date such
interest, premium, if any, or principal is otherwise payable (or in the case of
redemption, on the 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 or premium, if any, or interest that is so payable on the
Debentures having a principal amount equal to the aggregate liquidation amount
of the Capital Securities of such Holder (a “Direct Action”) on or after the
respective due date specified in the Debentures.  In connection with such Direct Action, the
rights of the Holders of the Common Securities will be subrogated to the rights
of such Holder of the Capital Securities to the extent of any payment made by
the Debenture Issuer to such Holder of the Capital Securities in such Direct
Action; provided, however, that a Holder of the Common Securities
may exercise such right of subrogation only if no Event of Default with respect
to the Capital Securities has occurred and is continuing.

 17
 

(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 Securities pursuant to the terms of the
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 4.5.

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

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

Section
2.9.  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 2.10(m)
hereof)) and after the curing of all Events of Default that may have occurred,
shall undertake to perform only such duties as are specifically set forth in
this Declaration and no implied covenants shall be read into this Declaration
against the Institutional Trustee.  In
case an Event of Default (of which the Institutional Trustee has knowledge (as
provided in Section 2.10(m) hereof)), has occurred (that has not been cured or
waived pursuant to Section 6.8), the Institutional Trustee shall exercise such
of the rights and powers vested in it by this Declaration, and use the same
degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of his or her own affairs.

(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 (including fiduciary duties) to the Trust or to 

 18
 

the Holders,
such Trustee’s or Administrator’s duties may be restricted or eliminated by
provisions in this Declaration, except that this Declaration may not eliminate
the implied contractual covenant of good faith and fair dealing. A Trustee or
Administrator shall not be liable to the Trust or a Holder or another Person
that is party to or otherwise bound by the Declaration for breach of fiduciary
duty for such Trustee’s or Administrator’s good faith reliance on the
provisions of the Declaration. The provisions of this Declaration, to the
extent that they restrict or eliminate the liabilities of the Trustees or the
Administrators otherwise existing at law or in equity, are agreed by the
Sponsor and the Holders to replace such other liabilities of the Trustees or
the Administrators, as the case may be, except that no provision of this
Declaration may limit or eliminate liability for any act or omission that
constitutes a bad faith violation of the implied contractual covenant of good
faith and fair dealing.

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

(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 Debentures and the Property Account shall be to
deal with such property in a similar manner as the Institutional Trustee deals
with similar property for its own account, subject to the 

 19
 

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 2.8(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.

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

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

(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;

 20
 

(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 security or indemnity reasonably
satisfactory to it against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction; provided,
that nothing contained in this Section 2.10(g) shall be taken to relieve
the Institutional Trustee, upon the occurrence of an Event of Default (of which
the Institutional Trustee has knowledge (as provided in Section 2.10(m)
hereof)) that has not been cured or waived, of its obligation to exercise the
rights and powers vested in it by this Declaration;

(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;

 21
 

(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), 5.01(b) or
5.01(c) of the Indenture (other than an Event of Default resulting from the
default in the payment of Additional Amounts if the Institutional Trustee does
not have actual knowledge or written notice that such payment is due and
payable);

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

(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 2.11.  Delaware
Trustee.  Notwithstanding any other
provision of this Declaration other than Section 4.2, the Delaware Trustee
shall not be entitled to exercise any powers, 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 4.2, the Delaware Trustee shall be a Trustee for the sole and
limited purpose of fulfilling the requirements of § 3807 of the Statutory Trust
Act.

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

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

 22

Trustees make
no representations as to the validity or sufficiency of this Declaration, the
Debentures or the Securities.

Section 2.14.  Duration of
Trust.  The Trust, unless dissolved
pursuant to the provisions of Article VII hereof, shall have existence for five
(5) years after the Maturity Date.

Section 2.15.  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 2.15 and except with respect to the distribution of
Debentures to Holders of Securities pursuant to Section 7.1(a)(iv) of this
Declaration or Section 4 of Annex I.

(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 Securities; or

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

(ii)                                  the
Sponsor expressly appoints, as the holder of the Debentures, 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 Securities or any Successor Securities in any 

 23
 

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 a written opinion of a nationally recognized
independent counsel to the Trust experienced in such matters to the effect
that:

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

 24
 

ARTICLE III

SPONSOR

Section 3.1. 
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 3.2. 
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 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;

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

(c)                                  to negotiate the
terms of and/or execute and deliver on behalf of the Trust, the Placement
Agreement and other related agreements providing for the sale of the Capital
Securities or the resale thereof by the Purchaser.

ARTICLE IV

TRUSTEES AND ADMINISTRATORS

Section
4.1.  Number of Trustees.  The number of Trustees initially shall be
two, and:

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

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

Section
4.2.  Delaware Trustee.  If required by the Statutory Trust Act, one
Trustee (the “Delaware Trustee”) shall be:

 25
 

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

The initial Delaware Trustee shall be Wilmington Trust
Company.

Section
4.3.  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 and authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least fifty million U.S.
dollars ($50,000,000), and subject to supervision or examination by federal,
state or District of Columbia authority. 
If such corporation or national association publishes reports of
condition at least annually, pursuant to law or to the requirements of the
supervising or examining authority referred to above, then for the purposes of
this Section 4.3(a)(iii), the combined capital and surplus of such corporation
or national association shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published.

(b)                                 If
at any time the Institutional Trustee shall cease to be eligible to so act
under Section 4.3(a), the Institutional Trustee shall immediately resign in the
manner and with the effect set forth in Section 4.5.

(c)                                  If
the Institutional Trustee has or shall acquire any “conflicting interest”
within the meaning of § 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
initial Institutional Trustee shall be Wilmington Trust Company.

Section 4.4. 
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 

 26
 

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

Section
4.5.  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 4.5(a), a Relevant Trustee may resign at any time by giving written
notice thereof to the Holders of the Securities and by appointing a successor
Relevant Trustee.  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 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.

 27
 

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

(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 4.6. 
Vacancies Among Trustees. 
If a Trustee ceases to hold office for any reason and the number of
Trustees is not reduced pursuant to Section 4.1, or if the number of Trustees
is increased pursuant to Section 4.1, a vacancy shall occur.  A resolution certifying the existence of such
vacancy by the Trustees or, if there are more than two, a majority of the

 28
 

Trustees shall
be conclusive evidence of the existence of such vacancy.  The vacancy shall be filled with a Trustee
appointed in accordance with Section 4.5.

Section 4.7.  Effect of
Vacancies.  The death, resignation,
retirement, removal, bankruptcy, dissolution, liquidation, incompetence or
incapacity to perform the duties of a Trustee shall not operate to dissolve,
terminate or annul the Trust or terminate this Declaration.  Whenever a vacancy in the number of Trustees
shall occur, until such vacancy is filled by the appointment of a Trustee in accordance
with Section 4.5, 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 4.8.  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 4.9.  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 2.6.

(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 the Trust, as set forth herein.

 29
 

Section 4.10.  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 4.5(i).

ARTICLE V

DISTRIBUTIONS

Section 5.1.  Distributions.  Holders shall receive Distributions in
accordance with the applicable terms of the relevant Holder’s Securities.  Distributions shall be made on the Capital
Securities and the Common Securities in accordance with the preferences set
forth in their respective terms.  If and
to the extent that the Debenture Issuer makes a payment of interest (including
any Additional Amounts or Deferred Interest) or premium, if any, on and/or
principal of the Debentures held by the Institutional Trustee (the amount of
any such payment being a “Payment Amount”), the Institutional Trustee shall and
is directed, to the extent funds are available in the Property Account for that
purpose, to make a distribution (a “Distribution”) of the Payment Amount to
Holders.  For the avoidance of doubt,
funds in the Property Account shall not be distributed to Holders to the extent
of any taxes payable by the Trust, in the case of withholding taxes, as
determined by the Institutional Trustee or any Paying Agent and, in the case of
taxes other than withholding taxes, as determined by the Administrators in a
written notice to the Institutional Trustee.

ARTICLE VI

ISSUANCE OF SECURITIES

Section
6.1.  General Provisions Regarding
Securities.

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

 30
 

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 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 Certificates evidencing Capital Securities.  A Common Security need not be so
authenticated and shall be valid upon execution by one or more Administrators.

(c)                                  Capital
Securities initially issued by the Trust to Persons other than QIBs or non-”U.S.
Persons” in “offshore transactions” under, and within the meaning of,
Regulation S under the Securities Act shall be issued in the form of one or
more Definitive Capital Securities Certificates. The Capital Securities
initially issued to QIBs or non-”U.S. Persons” in “offshore transactions”
under, and within the meaning of, Regulation S under the Securities Act shall
be issued either (i) in the form of one or more Global Capital Securities
Certificates or (ii) if indicated in writing by the Placement Agent to the
Sponsor on or prior to the Closing Date, in the form of one or more Definitive
Capital Securities Certificates.  Global
Capital Security Certificates shall be, except as provided in Section 6.4,
registered in the name of the Depositary or its nominee and deposited with the
Depositary or, if not so deposited, held by the Institutional Trustee as a
custodian for the Depositary, for credit by the Depositary to the respective
accounts of the Depositary Participants (or such other accounts as they may
direct). The Trust, as issuer and the Institutional Trustee, as custodian, are
hereby authorized to execute, deliver and perform any letter of representations
and other similar agreements or writings in connection with Capital Securities
issued in the form of Global Capital Securities.

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

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

 31
 

(f)                                    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
6.2.  Paying Agent, Transfer Agent,
Calculation Agent and Registrar.

(a)                                  The
Trust shall maintain in Wilmington, Delaware (i) an office or agency where the
Securities may be presented for payment (the “Paying Agent”) and (ii) an office
or agency where Securities may be presented for registration of transfer or
exchange (the “Transfer Agent”).  The
Trust shall keep or cause to be kept at such office or agency a register (the “Securities
Register”) for the purpose of registering Securities and transfers and
exchanges of 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.

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

Section
6.3.  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, 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.  Certificates
evidencing Securities may have letters, numbers, notations or other marks of
identification or designation and such legends or endorsements required by law,
stock exchange rule, agreements to which the Trust is subject, if any, or usage
(provided, that any such notation, legend or endorsement is in a form
acceptable to the Sponsor).  The Trust at
the direction of the Sponsor shall furnish any such legend not contained in
Exhibit A-1 to the Institutional Trustee in writing.  Each Capital Security Certificate shall be
dated the date of its authentication. 
The terms and provisions of the 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 

 32
 

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)                                 The
Capital Securities are being offered and sold by the Trust initially pursuant
to the Placement Agreement in the form of a Global Capital Security or one or
more Definitive Capital Securities, in accordance with Section 6.1(c), and will
be registered in the name of the Holder thereof, without coupons and with the
Restricted Securities Legend.

Section
6.4.  Book-Entry Capital Securities.

(a)                                  Book-Entry
Capital Securities and Definitive Capital Securities may be exchanged or
transferred, in whole or in part, for one another only if such exchange or
transfer complies with such procedures as are substantially consistent with
this Section 6.4 and Article VIII.  In
addition, if (i) the Depositary advises the Administrators and the
Institutional Trustee in writing that the Depositary is no longer willing or
able to properly discharge its responsibilities with respect to the Global
Capital Security, and no qualified successor is appointed by the Administrators
within ninety (90) days of receipt of such notice, (ii) the Depositary ceases
to be a clearing agency registered under the Exchange Act and the
Administrators fail to appoint a qualified successor within ninety (90) days of
obtaining knowledge of such event or (iii) an Indenture Event of Default has
occurred and is continuing, a Global Capital Security may be exchanged, in
whole or in part, for Definitive Capital Securities registered in the names of
the Beneficial Owners of the Book-Entry Capital Securities evidenced thereby.
Upon the occurrence of any event specified in clause (i), (ii) or (iii) above,
the Administrators shall notify the Depositary and instruct the Depositary to
notify all Beneficial Owners and the Institutional Trustee of the occurrence of
such event and of the availability of Definitive Capital Securities
Certificates to Beneficial Owners. Upon the issuance of Definitive Capital
Securities Certificates, the Administrators and the Institutional Trustee shall
recognize the Persons in whose names the Definitive Capital Securities
Certificates are registered in the Securities Register as the Holders of the
Capital Securities evidenced thereby for all purposes under this Declaration
and the Capital Securities.

(b)                                 If
any Global Capital Security is to be exchanged or transferred for Definitive
Capital Securities Certificates, or canceled in part, or if any Definitive
Capital Securities Certificate is to be exchanged in whole or in part for any
Global Capital Security, then (i) such Global Capital Security shall be so
surrendered for exchange, transfer or cancellation as provided in this Section
6.4 and Article VIII and (ii) the aggregate liquidation amount represented by
such Global Capital Security shall be reduced or increased, subject to Section
8.2(d), by an amount equal to the liquidation amount represented by that
portion of the Global Capital Security to be so exchanged, transferred or
canceled, or equal to the liquidation amount represented by such Definitive
Capital Securities Certificates to be so exchanged for any Global Capital
Security, as the case may be, by means of an appropriate adjustment made on the
records of the Registrar, whereupon the Institutional Trustee, in accordance
with the Applicable Depositary Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender or adjustment to the Administrators or the Registrar of
any Global Capital Security or Securities by the Depositary, accompanied by
registration instructions, the Administrators, or any one of them, 

 33
 

shall execute and the Institutional Trustee shall authenticate and
deliver  Definitive Capital Securities
Certificates issuable in exchange for such Global Capital Securities (or any
portion thereof) in accordance with the instructions of the Depositary.  The Registrar, Administrators and the
Institutional Trustee may conclusively rely on, and shall be fully protected in
relying on, such instructions.

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

(d)                                 Rule
144A Global Capital Security to Regulation S Global Capital Security. Prior
to the Resale Restriction Termination Date, if a Beneficial Owner of Book-Entry
Capital Securities evidenced by a Rule 144A Global Capital Security deposited
with the Depositary wishes at any time to exchange its interest in such Rule
144A Global Capital Security for an interest in a Regulation S Global Capital
Security, or to transfer its interest in such 
Rule 144A Global Capital Security to a person who wishes to take
delivery thereof in the form of an interest in such  Regulation S Global Capital Security, such
Beneficial Owner may, subject to the Applicable Depositary Procedures and to
the requirements set forth in the following sentence, exchange or cause the
exchange or transfer or cause the transfer of such interest for an equivalent
beneficial interest in such Regulation S Global Capital Security.  Upon receipt by the Registrar at its office
in Wilmington, Delaware of (1) instructions given in accordance with the
Applicable Depositary Procedures by a Depositary Participant directing the
Registrar to credit or cause to be credited a beneficial interest in the  Regulation S Global Capital Security in an
amount equal to the beneficial interest in the Rule 144A Global Capital
Security to be exchanged or transferred, (2) a written order from such
Depositary Participant given in accordance with the Applicable Depositary
Procedures containing information regarding the Depositary Participant’s
account and, in the case of a transfer pursuant to and in accordance with
Regulation S, the Euroclear or Clearstream Luxembourg account to be credited
with such increase and (3) a certificate substantially in the form of Exhibit E
hereto given by such Beneficial  Owner,
the Registrar shall instruct the Depositary, its nominee, or the custodian for
the Depositary, as the case may be, to reduce or reflect on its records a
reduction of the Rule 144A Global Capital Security by the aggregate liquidation
amount of the beneficial interest in such Rule 144A Global Capital Security to
be so exchanged or transferred and the Registrar shall instruct the Depositary,
its nominee, or the custodian for the Depositary, as the case may be,
concurrently with such reduction, to increase or reflect on its records an
increase of the liquidation amount of such 
Regulation S Global Capital Security by the aggregate liquidation amount
of the beneficial interest in such Rule 144A Global Capital Security to be so
exchanged or transferred, and to credit or cause to be credited to the account
of the person specified in such instructions a beneficial interest in such  Regulation S Global Capital Security equal to
the reduction in the liquidation amount of such Rule 144A Global Capital
Security.

(e)                                  Regulation
S Global Capital Security to Rule 144A Global Capital Security.  Prior to the Resale Restriction Termination
Date, if a Beneficial Owner of Book-Entry Capital Securities evidenced by a
Regulation S Global Capital Security which is deposited with the Depositary
wishes at any time to exchange its interest in such Regulation S 

 34
 

Global Capital Security for an interest in a Rule 144A Global Capital
Security, or to transfer its interest in such Regulation S Global Capital
Security to a person who wishes to take delivery thereof in the form of an
interest in such Rule 144A Global Capital Security, such Beneficial Owner may,
subject to the rules and procedures of Euroclear or Clearstream Luxembourg and the
Applicable Depositary Procedures, as the case may be, and to the requirements
set forth in the following sentence, exchange or cause the exchange or transfer
or cause the transfer of such interest for an equivalent beneficial interest in
such Rule 144A Global Capital Security. 
Upon receipt by the Registrar at its office in Wilmington, Delaware of
(1) instructions from Euroclear or Clearstream Luxembourg or the Depositary, as
the case may be, directing the Registrar to credit or cause to be credited a
beneficial interest in the Rule 144A Global Capital Security equal to the
beneficial interest in the  Regulation S
Global Capital Security to be exchanged or transferred, such instructions to
contain information regarding the Depositary Participant’s account with the
Depositary to be credited with such increase, and (2) a certificate
substantially in the form of Exhibit D hereto given by such Beneficial  Owner, the Registrar shall instruct the
Depositary, its nominee, or the custodian for the Depositary, as the case may
be, to reduce or reflect on its records a reduction of such  Regulation S Global Capital Security by the
aggregate liquidation amount of the beneficial interest in such Regulation S
Global Capital Security to be exchanged or transferred, and the Registrar shall
instruct the Depositary, its nominee, or the custodian for the Depositary, as
the case may be, concurrently with such reduction, to increase or reflect on
its records an increase of the liquidation amount of such Rule 144A Global
Capital Security to be so exchanged or transferred, and to credit or cause to
be credited to the account of the person specified in such instructions a
beneficial interest in such Rule 144A Global Capital Security equal to the
reduction in the liquidation amount of such 
Regulation S Global Capital Security.

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

(g)                                 The rights of the
Beneficial Owners of the Book-Entry Capital Securities shall be exercised only
through the Depositary and shall be limited to those established by law, the
Applicable Depositary Procedures and agreements between such Beneficial Owners
and the Depositary and/or its Depositary Participants; provided, solely for the
purpose of determining whether the Holders of the requisite amount of Capital
Securities have voted on any matter provided for in this Declaration, to the
extent that Capital Securities are represented by a Global Capital Security,
the Administrators and the Institutional Trustee may conclusively rely on, and
shall be fully protected in relying on, any written instrument (including a
proxy) delivered to the Institutional Trustee by the Depositary setting forth
the Beneficial Owners’ votes or assigning the right to vote on any matter to
any other Persons either in whole or in part. 
To the extent that Capital Securities are represented by a Global
Capital Security, subject to this Section 6.4, the 

 35
 

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

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

Section 6.5.  Mutilated,
Destroyed, Lost or Stolen Certificates. 
If (a) any mutilated Certificate 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 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 Securities, as if originally issued, whether
or not the lost, stolen or destroyed Certificate shall be found at any time.

Section 6.6.  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 Capital Security Certificates, the
Institutional Trustee shall 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 Capital Security Certificates, the Institutional Trustee shall
authenticate definitive Certificates in exchange for temporary Certificates.

Section 6.7.  Cancellation.  The Administrators at any time may deliver
Certificates evidencing Securities to the Institutional Trustee for
cancellation.  The Registrar shall
forward to the Institutional Trustee any Certificates evidencing 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 Securities that have been paid or, except for Certificates
surrendered for purposes of the transfer or exchange of the Securities
evidenced thereby, that have been delivered to the Institutional Trustee for
cancellation.

 36
 

Section
6.8.  Rights of Holders; Waivers of
Past Defaults.

(a)                                  The
legal title to the Trust Property is vested exclusively in the Institutional
Trustee (in its capacity as such) in accordance with Section 2.5, 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 Securities
and they shall have no right to call for any partition or division of property,
profits or rights of the Trust except as described below.  The Securities shall be personal property
giving only the rights specifically set forth therein and in this
Declaration.  The Securities shall have
no, and the issuance of the Securities shall not be subject to, preemptive or
other similar rights and when issued and delivered to Holders against payment
of the purchase price therefor, the Securities will be fully paid and
nonassessable by the Trust.

(b)                                 For
so long as any Capital Securities remain outstanding, if, upon an Indenture
Event of Default pursuant to Sections 5.01(b), (e), (f), (g), (h) or (i) of the
Indenture, the Debenture Trustee fails or the holders of not less than 25% in
principal amount of the outstanding Debentures fail to declare the principal of
all of the Debentures to be immediately due and payable, the Holders of not
less than a Majority in liquidation amount of the Capital Securities then
outstanding shall have the right to make such declaration by a notice in
writing to the Institutional Trustee, the Sponsor and the Debenture Trustee.

(c)                                  At
any time after the acceleration of maturity of the Debentures has been made and
before a judgment or decree for payment of the money due has been obtained by
the Debenture Trustee as provided in the Indenture, if the Institutional
Trustee, subject to the provisions hereof, fails to annul any such 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 Debenture Trustee, may rescind and annul such acceleration and its
consequences if:

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

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

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

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

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

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

 37
 

(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 on the Debentures
(unless such Default or Event of Default has been cured and a sum sufficient to
pay all matured installments of interest, premium and principal due otherwise
than by acceleration has been deposited with the Debenture Trustee) or a
Default or Event of Default in respect of a covenant or provision that under
the Indenture cannot be modified or amended without the consent of the holder
of each outstanding Debenture.  No such
rescission shall affect any subsequent default or impair any right consequent thereon.

(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 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.

(f)                                    Except
as otherwise provided in this Section, 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 and its
consequences.  Upon such waiver,  any such Default or Event of Default shall
cease to exist, and any Default or Event of Default arising therefrom shall be
deemed to have been cured, for every purpose of this Declaration, but no such
waiver shall extend to any subsequent or other Default or Event of Default or
impair any right consequent thereon.

ARTICLE VII

DISSOLUTION AND TERMINATION OF TRUST

Section 7.1.  Dissolution and
Termination of Trust.  (a)      The
Trust shall dissolve on the first to occur of :

(i)                                     unless
earlier dissolved, on September 1, 2042, the expiration of the term of the
Trust;

 38

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

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

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

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

(vi)                              when
all of the 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 Securities; or

(vii)                           before
the issuance of any 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
7.1(a), and after satisfaction of liabilities to creditors of the Trust as
required by applicable law, including §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 2.9 and Article IX shall survive the termination of the
Trust.

ARTICLE VIII

TRANSFER OF INTERESTS

Section
8.1.  General.  (a)              Subject to Section 6.4 and Section
8.1(c), when a Holder of Capital Securities delivers to the Registrar in
accordance with this Declaration a request to register a transfer of such
Holder’s Capital Securities or to exchange them for an equal aggregate
liquidation amount of Capital Securities represented by different Certificates,
the Registrar shall register the transfer or make the exchange when the
requirements provided for herein for such transfer or exchange are met.  To facilitate registrations of transfers and
exchanges, the Trust shall execute and the Institutional Trustee shall
authenticate Capital Security Certificates at the Registrar’s request.

(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 Securities remain outstanding, the Sponsor shall maintain 100% ownership of
the Common

 39
 

Securities; provided, however, that any
permitted successor of the Debenture Issuer under the Indenture may succeed to
the Sponsor’s ownership of the Common Securities.

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

(d)                                 The
Registrar shall provide in the Securities Register for the registration of
Securities and of transfers of Securities, which will be effected without
charge but only upon payment (with such indemnity as the Registrar may
reasonably require) in respect of any tax or other governmental charges that
may be imposed in relation to it.

With respect to Capital Securities that are not
Book-Entry Capital Securities, upon its receipt of the documents required under
this Section 8.1(d) for registration of transfer of any Securities, the
Registrar shall register in the Securities Register, in the name of the
designated transferee or transferees, the Securities being transferred and
thereupon, for all purposes of this Declaration, such transfer shall be
effective and such transferee or transferees shall be, and such transferor
shall no longer be, the Holder of the transferred Securities.  Upon the registration of transfer of a
Security pursuant to the terms of this Declaration in the name of the new
Holder thereof, such Security shall constitute the same Security as the
Security so transferred and shall be entitled to the same benefits under this
Declaration as the Security so transferred. 
The Registrar shall, and is authorized to, record and register in the
Securities Register the transfer of a Security upon the Registrar’s receipt of
originals or copies (which may be by facsimile or other form of electronic
transmission) of (i) a written instrument of transfer in form reasonably
satisfactory to the Registrar duly executed by the Holder or such Holder’s
attorney duly authorized in writing, and (ii) if such Security is being
transferred prior to the Resale Restriction Termination Date other than in
accordance with Section 8.4, a certificate substantially in the form set forth
as Exhibit C, D or E, as applicable, hereto, executed by the transferor or
transferee, as applicable; thereupon, the Registrar is authorized to confirm in
writing to the transferee and, if requested, to the transferor of such Security
that such transfer has been registered in the Securities Register and that such
transferee is the Holder of such Security. 
The Definitive Capital Securities Certificate so transferred, duly
endorsed by the transferor, shall be surrendered to the Registrar at the time
the transfer conditions specified in the immediately preceding sentence are
satisfied or within five (5) Business Days after the Registrar has registered
the transfer of such Security on the Securities Register, and promptly after
such surrender, an Administrator on behalf of the Trust shall execute and the Institutional
Trustee shall, and is authorized to, authenticate a Certificate in the name of
the transferee or, if the transferee is a QIB desiring a beneficial interest in
a Global Capital Security, in the name of the Depositary or its nominee, as
applicable, as the new Holder of the Security evidenced thereby.  Until the Definitive Capital Securities
Certificate evidencing the Security so transferred is surrendered to the
Registrar, such Security may not be transferred by such new Holder.

 40
 

Each
Definitive Capital Securities Certificate surrendered in connection with a
registration of transfer shall be canceled by the Institutional Trustee
pursuant to Section 6.7.  A transferee of
a Security shall be entitled to the rights and subject to the obligations of a
Holder hereunder upon the registration of such transfer in the Securities
Register.  Each such transferee shall be
deemed to have agreed to be bound by this Declaration.

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

Section
8.2.  Transfer Procedures and
Restrictions.

(a)                                  Prior
to the Resale Restriction Termination Date, Certificates evidencing Capital
Securities shall bear the Restricted Securities Legend.  The Restricted Securities Legend on any
Certificate evidencing outstanding Capital Securities shall not be removed
unless there is delivered to the Trust such satisfactory evidence, which may
include an opinion of counsel, as may be reasonably required by the Trust, that
neither the Restricted Securities Legend nor the restrictions on transfer set
forth therein are required to ensure that transfers thereof comply with the
provisions of the Securities Act or that such Securities are not “restricted”
within the meaning of Rule 144 under the Securities Act.  Upon provision of such satisfactory evidence,
the Institutional Trustee, at the written direction of the Trust, shall
authenticate and deliver Capital Securities Certificates that do not bear the
Restricted Securities Legend (other than the first two paragraphs of the legend
specified in Section 8.2(c)) in exchange for the Capital Securities
Certificates bearing the Restricted Securities Legend.

(b)                                 Prior
to the Resale Restriction Termination Date, without the written consent of the
Sponsor, Capital Securities that are not Book-Entry Capital Securities may only
be transferred:  (i) to a QIB if the
instrument of transfer is accompanied by a certificate of the transferor
substantially in the form set forth as Exhibit D hereto; (ii) to an “accredited
investor” within the meaning of Rule 501(a) (1), (2), (3), (7) or (8) under the
Securities Act if the instrument of transfer is accompanied by a certificate of
the transferee substantially in the form set forth as Exhibit C hereto; or
(iii)  to a non-”U.S. Person” in an “offshore
transaction” under, and within the meaning of, Regulation S under the
Securities Act if the instrument of transfer is accompanied by a certificate of
the transferee substantially in the form set forth as Exhibit E hereto.  Each certificate furnished pursuant to this
Section 8.2(b) may be an original or a copy (which may be furnished by
facsimile or other form of electronic transmission).

(c)                                  The
Capital Securities may not be transferred prior to the Resale Restriction
Termination Date except in compliance with restrictions on transfer set forth
in the legend set forth below (the “Restricted Securities Legend”), and except
as otherwise contemplated in Section 8.2(a), prior to the Resale Restriction
Termination Date, each Certificate evidencing outstanding Capital Securities
shall bear the Restricted Securities Legend:

 41
 

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

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.](1)

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

(1) Only applicable to Global Capital Securities.

 42
 

144A, (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF
SUBPARAGRAPH (a) (1), (2), (3), (7) OR (8) OF RULE 501 UNDER THE SECURITIES ACT
THAT IS ACQUIRING THIS SECURITY OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN ACCREDITED INVESTOR, FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO OFFERS AND
SALES TO NON-US PERSONS THAT OCCUR OUTSIDE THE UNITED STATES PURSUANT TO
REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE RIGHT OF THE DEBENTURE ISSUER AND THE TRUST PRIOR TO ANY SUCH OFFER, SALE
OR TRANSFER PURSUANT TO CLAUSE (C) OR (E) ABOVE TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A
COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST.  THE HOLDER OF THIS SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY
BE, AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

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

 43
 

PURCHASE,
OR (ii) SUCH PURCHASE AND HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO
APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

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

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

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

Section
8.3.  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 Security shall be registered on the Securities Register of the
Trust as the sole Holder and owner of such 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
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
8.4.  Transfer of Initial Securities.  With respect to Capital Securities that are
not Book-Entry Capital Securities, and notwithstanding the foregoing provisions
of this Article VIII or any other provision of this Declaration (including all
Annexes and Exhibits hereto) to the contrary, any or all of the Capital
Securities initially issued to the Purchaser (the “Initial Securities”) may be
transferred by the Purchaser to any transferee selected by it  that meets the parameters specified below
and, upon delivery to the Registrar, of originals or copies

 44
 

(which may be by facsimile or other form of
electronic transmission) of a written instrument of transfer in form reasonably
satisfactory to the Registrar duly executed by the Purchaser or the Purchaser’s
attorney duly authorized in writing (it being understood that no signature
guarantee shall be required), then the Registrar shall, and is authorized to,
record and register on the Securities Register the transfer of such Initial Securities
to such transferee; thereupon, the Registrar is authorized to confirm in
writing to the transferee and, if requested, to the transferor of such Initial
Securities that such transfer has been registered in the Securities Register
and that such transferee is the Holder of such Initial Securities; provided,
however, that the Purchaser of the Initial Securities, by its acceptance
thereof, agrees that it may not transfer any Initial Securities prior to the
Resale Restriction Termination Date to any transferee that is not a QIB, an “accredited
investor” within the meaning of Rule 501(a)(1), (2), (3), (7) or (8) under the
Securities Act or a non-”U.S. Person” in an “offshore transaction” under, and
within the meaning of, Regulation S under the Securities Act.  The Definitive Capital Securities Certificate
evidencing the Initial Securities to be transferred, duly endorsed by the
Purchaser, shall be surrendered to the Registrar at the time the transfer
conditions specified in the immediately preceding sentence are satisfied or
within five (5) Business Days after the Registrar has registered the transfer
of such Initial Securities in the Securities Register, and promptly after such
surrender, an Administrator on behalf of the Trust shall execute and, in the case
of a Capital Security Certificate, the Institutional Trustee shall, and is
authorized to, authenticate a Certificate in the name of the transferee or, if
the transferee is a QIB desiring a beneficial interest in a Global Capital
Security, in the name of the Depositary or its nominee, as applicable, as the
new Holder of the Initial Securities evidenced thereby.  Until the Definitive Capital Securities
Certificate evidencing the Initial Securities so transferred is surrendered to
the Registrar, such Initial Securities may not be transferred by such new
Holder.  No other conditions,
restrictions or other provisions of this Declaration or any other document
shall apply to a transfer of Initial Securities by the Purchaser.

Section
8.5.  Obligation of the Trust to
Eliminate a DTC Deliver Order Chill In Certain Circumstances.  In the event that:

(a)                                  the
DTC is the Depositary of a Global Capital Security representing Book-Entry
Capital Securities eligible for transfer pursuant to Regulation S under the
Securities Act; and

(b)                                 in
respect of such Book-Entry Capital Securities, the Trust has issued an order
(the “Deliver Order Chill”) to DTC not to effect book-entry deliveries (except
deliveries via DTC’s Deposit/Withdrawal at Custodian DWAC system in DTC’s
Depositary Participant accounts maintained by banks that act as depositaries
for          Clearstream Banking
société anonyme and Euroclear) until a specified date (the “Deliver Order Chill
Termination Date”); and

(c)                                  prior
to the Deliver Order Chill Termination Date, a Beneficial Owner of, the
authorized representative of such Beneficial Owner, or any Depositary
Participant of DTC in respect of, such Book-Entry Capital Securities gives the
Trust or the Registrar written notice of its intention to transfer any of such
Book-Entry Capital Securities pursuant to Rule 144A under the Securities Act
and otherwise in compliance with the terms of this Declaration;

 45
 

then, upon receipt of such written notice by the Trust
or the Registrar, as the case may be, the Trust, or the Registrar at the
written direction of an Administrator on behalf of the Trust, shall send DTC a
notice requesting that the Deliver Order Chill be eliminated as of a date no
later than 2 Business Days after DTC receives such notice from the Trust, or
from the Registrar at the written direction of an Administrator on behalf of
the Trust.

Such notice shall be sent to DTC by secure means (e.g.
legible telecopy, registered or certified mail, overnight delivery) in a timely
manner designed to assure that such notice is in DTC’s possession no later than
the close of business two Business Days prior to the date specified for
elimination of the Delivery Order Chill. Subject to the then applicable rules
and procedures of the DTC, such notice shall (i) if sent by telecopy, be sent
to (212) 344-1531 or (212) 855-3728 and (ii) if delivered by hand or sent by
mail or overnight delivery, such notice shall be sent to: Manager, Eligibility
Section, Underwriting Department, The Depository Trust Company, 55 Water
Street, 25th Floor, New York, NY 10041-0099; provided that
in the case of (i) the Trust shall confirm DTC’s receipt of such telecopy by
telephoning DTC’s Underwriting Department at (212) 855-3731.

ARTICLE IX

LIMITATION OF LIABILITY OF

HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

Section
9.1.  Liability.  (a) 
Except as expressly set forth in this Declaration, the Guarantee and the
terms of the 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 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 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 Securities) to the
extent not satisfied out of the Trust’s assets.

(c)                                  Pursuant
to § 3803(a) of the Statutory Trust Act, the Holders of the Securities shall be
entitled to the same limitation of personal liability extended to stockholders
of private corporations for profit organized under the General Corporation Law
of the State of Delaware, except as otherwise specifically set forth herein.

Section
9.2.  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 

 46
 

Indemnified Person by this Declaration or by
law, except that an Indemnified Person (other than an Administrator) shall be
liable for any such loss, damage or claim incurred by reason of such
Indemnified Person’s negligence, 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
Securities might properly be paid.

Section
9.3.  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
9.4.  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,

 47
 

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 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 9.4(a) (unless ordered by a court) shall be made by the Sponsor only as
authorized in the specific case upon a determination that indemnification of
the Indemnified Person is proper in the circumstances because such Person has
met the applicable standard of conduct set forth in paragraphs (i) and
(ii).  Such determination shall be made
(A) by the Administrators by a majority vote of a Quorum consisting of such
Administrators who were not parties to such action, suit or proceeding, (B) if
such a Quorum is not obtainable, or, even if obtainable,

 48
 

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.

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

(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

 49
 

by such Indemnified Person by reason of
negligence, willful misconduct or bad faith with respect to such acts or
omissions.

(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 Securities upon
all property and funds held or collected by the Trustees as such, except funds
held in trust for the benefit of the Holders of particular Capital Securities, provided,
that the Sponsor is the Holder of the Common Securities.

Section
9.5.  Outside Businesses.  Any Covered Person, the Sponsor, the Delaware
Trustee and the Institutional Trustee (subject to Section 4.3(c)) may engage in
or possess an interest in other business ventures of any nature or description,
independently or with others, similar or dissimilar to the business of the
Trust, and the Trust and the Holders of Securities shall have no rights by
virtue of this Declaration in and to such independent ventures

 50
 

or the income or profits derived therefrom,
and the pursuit of any such venture, even if competitive with the business of
the Trust, shall not be deemed wrongful or improper.  None of any Covered Person, the Sponsor, the
Delaware Trustee or the Institutional Trustee shall be obligated to present any
particular investment or other opportunity to the Trust even if such
opportunity is of a character that, if presented to the Trust, could be taken
by the Trust, and any Covered Person, the Sponsor, the Delaware Trustee and the
Institutional Trustee shall have the right to take for its own account
(individually or as a partner or fiduciary) or to recommend to others any such
particular investment or other opportunity. 
Any Covered Person, the Delaware Trustee and the Institutional Trustee
may engage or be interested in any financial or other transaction with the
Sponsor or any Affiliate of the Sponsor, or may act as depositary for, trustee
or agent for, or act on any committee or body of holders of, securities or
other obligations of the Sponsor or its Affiliates.

Section
9.6.  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 X

ACCOUNTING

Section
10.1.  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
10.2.  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 § 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.

 51
 

(b)                                 The
Sponsor shall cause the Administrators to deliver, by hardcopy or electronic
transmission, (i) to the Purchaser and each Holder or beneficial owner of
Securities each Report on Form 10-K and Form 10-Q, if any, prepared by the
Sponsor and filed with the Commission in accordance with the Exchange Act,
within 10 Business Days after the filing thereof or (ii)  if the Sponsor is (a) not then subject to
Section 13 or 15(d) of the Exchange Act (a “Private Entity”) or (b) exempt from
reporting pursuant to Rule 12g3-2(b) thereunder, the information required by
Rule 144A(d)(4) under the Securities Act. 
Notwithstanding the foregoing, so long as a Holder or beneficial owner
of the Capital Securities is the Purchaser or an entity that holds a pool of
trust preferred securities and/or debt securities as collateral for its
securities or a trustee thereof, and the Sponsor is (i) a Private Entity that,
on the date of original issuance of the Capital Securities, is required to
provide audited consolidated financial statements to its primary regulatory
authority, (ii) a Private Entity that, on the date of original issuance of the
Capital Securities, is not required to provide audited consolidated financial
statements to its primary regulatory authority, but subsequently becomes
subject to the audited consolidated financial statement reporting requirements
of that regulatory authority or (iii) subject to Section 13 or 15(d) of the
Exchange Act on the date of original issuance of the Capital Securities or
becomes so subject after the date hereof but subsequently becomes a Private
Entity, then, within 90 days after the end of each fiscal year, beginning with
the fiscal year in which the Capital Securities were originally issued if the
Sponsor was then subject to (x) Section 13 or 15(d) of the Exchange Act or (y)
audited consolidated financial statement reporting requirements of its primary
regulatory authority or, otherwise, the earliest fiscal year in which the
Sponsor becomes subject to (1) Section 13 or 15(d) of the Exchange Act or (2)
the audited consolidated financial statement reporting requirements of its
primary regulatory authority, the Sponsor shall deliver, by hardcopy or
electronic transmission, to the Purchaser and each Holder or beneficial owner
of Securities, unless otherwise provided pursuant to the preceding sentence,
(A) a copy of the Sponsor’s audited consolidated financial statements
(including balance sheet and income statement) covering the related annual
period and (B) the report of the independent accountants with respect to such
financial statements.  In addition to the
foregoing, the Sponsor shall deliver to the Purchaser and each Holder or
beneficial owner of Securities within 90 days after the end of each Fiscal Year
of the Trust, annual financial statements of the Trust, including a balance
sheet of the Trust as of the end of such Fiscal Year and the 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 § 301.7701-7.

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

(d)                                 The
Administrators shall cause to be duly prepared in the United States, as defined
for purposes of Treasury Regulations § 301.7701-7, and filed an annual United
States federal

 52
 

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.

(e)                                  So
long as a Holder or beneficial owner of the Capital Securities is Citigroup
Global Markets Inc. or an entity that holds a pool of trust preferred
securities and/or debt securities or a trustee thereof, the Sponsor shall cause
the Administrators to deliver the Sponsor’s reports on Forms FR Y-9C, FR Y-9LP
and FR Y-6  to such Holder promptly
following their filing with the Federal Reserve.

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

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

ARTICLE XI

AMENDMENTS AND MEETINGS

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

(i)                                     the
Institutional Trustee,

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

 53
 

(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 XI, 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 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 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 cease 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

(D)                               cause
the Debenture Issuer to be unable to treat an amount equal to the liquidation
amount of the Capital Securities as “Tier 1 Capital” (or its equivalent) for
purposes of the capital adequacy guidelines of the Federal Reserve (or any
successor regulatory authority with jurisdiction over bank holding companies).

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

(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
Securities or any redemption or liquidation provisions applicable to the
Securities or otherwise adversely affect the amount of any Distribution
required to be made in respect of the Securities as of a specified date or (ii)
restrict

 54

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
9.1(b) and 9.1(c) and this Section shall not be amended without the consent of
all of the Holders of the 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; or

(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 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);

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

Section
11.2.  Meetings of the Holders of the
Securities; Action by Written Consent.

(a)                                  Meetings
of the Holders of the Capital Securities or the Common Securities may be called
at any time by the Administrators (or as provided in the terms of such
Securities) to consider and act on any matter on which Holders of such
Securities are entitled to act under the terms of this Declaration, the terms
of such 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 Securities if directed to do so by the Holders of not less
than 10% in liquidation amount of such 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 Securities wish to call a meeting and indicating the general or
specific purpose for which the meeting is to be called.  Any Holders of Securities calling a meeting
shall

 55
 

specify in writing the Certificates held by
the Holders of the Securities exercising the right to call a meeting and only
those 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 Securities, the following
provisions shall apply to meetings of Holders of the Securities:

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

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

(iii)                               Unless
the Statutory Trust Act, this Declaration, the terms of the Securities, the
Trust Indenture Act or the listing rules of any stock exchange on which the
Capital Securities are then listed 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 Securities, including
notice of the time, place or purpose of any meeting at which any matter is to
be voted on by any Holders of the Securities, waiver of any such notice, action
by consent 

 56
 

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 Regulations § 301.7701-7).

ARTICLE XII

REPRESENTATIONS OF INSTITUTIONAL TRUSTEE

AND DELAWARE TRUSTEE

Section
12.1.  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 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
12.2.  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 

 57
 

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;

(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 §3807 of the Statutory Trust Act.

ARTICLE XIII

MISCELLANEOUS

Section
13.1.  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 Securities): FPBN Trust I, c/o 1st Pacific Bancorp, 4275 Executive Square, Suite
650, La Jolla, California 92037, Attention: Shelly Hicks, Telecopy:
858-875-2020, Telephone: 858-875-2009;

 58
 

(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
Securities): Wilmington Trust Company, Rodney Square North, 1100 North Market
Street, Wilmington, DE 19890-0001, Attention: Corporate Capital Markets,
Telecopy: 302-636-4140, Telephone: 302-651-1000;

(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 Securities): Wilmington Trust Company, Rodney
Square North, 1100 North Market Street, Wilmington, DE 19890-0001, Attention:
Corporate Capital Markets, Telecopy: 302-636-4140, Telephone: 302-651-1000;

(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): 1st Pacific Bancorp, 4275 Executive Square, Suite
650, La Jolla, California 92037, Attention: Shelly Hicks, Telecopy:
858-875-2020, Telephone: 858-875-2009; 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
13.2.  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 without regard to the principles of
conflict of laws of the State of Delaware or any other jurisdiction that would
call for the application of the law of any jurisdiction other than the State of
Delaware.

Section
13.3.  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 

 59
 

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
13.1 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
13.4.  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
13.5.  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
13.6.  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
13.7.  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 of this Declaration, or the application of such
provision to persons or circumstances other than those to which it is held
invalid, shall not be affected thereby.

Section
13.8.  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.

 60
 

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/ W. Thomas
  Morris II

  	
   

  
	
   

  	
   

  	
   

  	
  Name: W. Thomas
  Morris II

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Assistant
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILMINGTON TRUST
  COMPANY,

  	
   

  
	
   

  	
   

  	
   

  	
  as Institutional
  Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ W. Thomas
  Morris II

  	
   

  
	
   

  	
   

  	
   

  	
  Name: W. Thomas
  Morris II

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Assistant
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1ST PACIFIC
  BANCORP,

  	
   

  
	
   

  	
   

  	
   

  	
  as Sponsor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ James H.
  Burgess

  	
   

  
	
   

  	
   

  	
   

  	
  Name: James H.
  Burgess

  	
   

  
	
   

  	
   

  	
   

  	
  Title: EVP Chief
  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ James H.
  Burgess

  	
   

  
	
   

  	
   

  	
  James H. Burgess

  
	
   

  	
   

  	
  as Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ A. Vincent
  Siciliano

  	
   

  
	
   

  	
   

  	
  A. Vincent
  Siciliano

  
	
   

  	
   

  	
  as Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Shelly Hicks

  	
   

  
	
   

  	
   

  	
  Shelly Hicks

  
	
   

  	
   

  	
  as Administrator

  
								

 

 61

ANNEX I

TERMS OF

CAPITAL SECURITIES AND COMMON SECURITIES

Pursuant to Section 6.1 of the Amended and Restated
Declaration of Trust, dated as of June 28, 2007 (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 “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.  5,000 Capital Securities of
FPBN Trust I (the “Trust”), with an aggregate liquidation amount with respect
to the assets of the Trust of FIVE MILLION Dollars ($5,000,000) 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 the “MMCapSSM”
(the “Capital Securities”).  The Capital
Security Certificates evidencing the Capital Securities shall be substantially
in the form of Exhibit A-1 to the Declaration, with such changes and additions
thereto or deletions therefrom as may be required by ordinary usage, custom or
practice or to conform to the rules of any stock exchange on which the Capital
Securities are listed, if any.

(b)                                 Common
Securities.  155 Common Securities of the
Trust (the “Common Securities”) will be evidenced by Common Security
Certificates substantially in the form of Exhibit A-2 to the Declaration, with
such changes and additions thereto or deletions therefrom as may be required by
ordinary usage, custom or practice.  In
the absence of an Event of Default, the Common Securities will have an
aggregate liquidation amount with respect to the assets of the Trust of ONE
HUNDRED FIFTY-FIVE Dollars ($155,000) 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 Security will be payable at a rate of
interest per annum, which, with respect to any Distribution Period (as defined
herein), will be equal to LIBOR, as determined on the LIBOR Determination Date
for such Distribution Period (or, in the case of the first Distribution Period,
will be 5.36%), plus 1.40% (the “Coupon Rate”); provided, however,
that the Coupon Rate for any Distribution Period may not exceed the Interest
Rate (as defined in the Indenture) for the related Interest Period (as defined
in the Indenture).  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 Debentures unless otherwise stated.  A Distribution is payable only to the extent
that payments are made in respect of the Debentures held by the Institutional
Trustee and to the extent the Institutional Trustee has funds legally available
in the Property Account therefor.  The
amount of Distributions payable for any Distribution Period will be computed on
the basis of a 360-day year and the actual number of days elapsed in such
Distribution Period.

 A-I-1
 

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 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)                                 LIBOR
shall be determined by the Calculation Agent for each Distribution Period
(other than the first Distribution Period, in which case LIBOR will be 5.36%
per annum) in accordance with the following provisions:

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

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

 A-I-2
 

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

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

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

(e)                                  Distributions
on the Securities will be cumulative, will accrue from the date of original
issuance, and will be payable, subject to extension of Distribution Periods as
described herein, quarterly in arrears on March 1, June 1, September 1 and
December 1 of each year, commencing on September 1, 2007 (each, a “Distribution
Payment Date”), and on any earlier date of redemption, as applicable.  The Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures 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 Debentures, 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 Debentures, and interest on such accrued interest
(such accrued interest and interest thereon referred to herein as “Deferred
Interest”) will accrue, at an annual rate equal to the Coupon Rate applicable
during such Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent
permitted by applicable law.  At the end
of any Extension Period, the Debenture Issuer shall pay all Deferred Interest
then accrued and unpaid on the Debentures; provided, however,
that during any Extension Period, the Debenture Issuer may not (i) declare or
pay any dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of the Debenture Issuer’s capital
stock, (ii) make any payment of principal or premium or interest on or repay,
repurchase or redeem any debt securities of the Debenture Issuer that rank in
all respects pari passu with or junior in
interest to the Debentures or (iii) make any payment under any guarantees of
the Debenture Issuer that rank 

 A-I-3
 

in all respects pari passu with or junior in interest to the Guarantee
(other than (a) repurchases, redemptions or other acquisitions of shares of
capital stock of the Debenture Issuer (A) in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
one or more employees, officers, directors or consultants, (B) in connection
with a dividend reinvestment or stockholder stock purchase plan or (C) in
connection with the issuance of capital stock of the Debenture Issuer (or
securities convertible into or exercisable for such capital stock), as
consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of any exchange or conversion of
any class or series of the Debenture Issuer’s capital stock (or any capital
stock of a subsidiary of the Debenture Issuer) for any class or series of the
Debenture Issuer’s capital stock or of any class or series of the Debenture
Issuer’s indebtedness for any class or series of the Debenture Issuer’s capital
stock, (c) the purchase of fractional interests in shares of the Debenture
Issuer’s capital stock pursuant to the conversion or exchange provisions of
such capital stock or the 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 Debenture 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 Debenture 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 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 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 Securities will be limited to payments received from the
Debenture Issuer.  The payment of
Distributions out of moneys held by the Trust is guaranteed by the Guarantor
pursuant to the Guarantee.

(f)                                    Distributions
on the Securities on any Distribution Payment 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 Securities that are not 

 A-I-4
 

punctually paid on any
Distribution Payment Date, as a result of the Debenture Issuer having failed to
make a payment under the Debentures, as the case may be, when due (taking into
account any Extension Period), will cease to be payable to the Person in whose
name such Securities are registered on the original relevant regular record
date, and such defaulted Distributions will instead be payable to the Person in
whose name such 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.

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

(h)                                 If
any Distribution Payment Date other than any date of redemption falls on a day
that is not a Business Day, then Distributions payable will be paid on, and
such Distribution Payment Date will be moved to, the next succeeding Business
Day, and additional Distributions will accrue for each day that such payment is
delayed as a result thereof.

3.                                       Liquidation
Distribution Upon Dissolution.  In
the event of the voluntary or involuntary liquidation, dissolution, winding-up
or termination of the Trust (each, a “Liquidation”), the Holders of the
Securities will be entitled to receive out of the assets of the Trust legally
available for distribution to Holders of the Securities, after satisfaction of
liabilities to creditors of the Trust (to the extent not satisfied by the
Debenture Issuer), an amount in cash equal to the aggregate of the liquidation
amount of $1,000 per Security plus unpaid Distributions accrued thereon to the
date of payment (collectively, the “Liquidation Distribution”), unless: (i) the
Debentures have been redeemed in full in accordance with the terms thereof and
of the Indenture; or (ii) the Debentures in an aggregate principal amount equal
to the aggregate liquidation amount of such Securities and bearing accrued and
unpaid interest in an amount equal to the accrued and unpaid Distributions on
such Securities, after paying or making reasonable provision to pay all claims
and obligations of the Trust in accordance with Section 3808(e) of the
Statutory Trust Act, shall be distributed on a Pro Rata basis to the Holders of
the Securities in exchange for such Securities.

The Sponsor, as the Holder of all of the Common
Securities, has the right at any time, upon receipt by the Debenture 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 Debentures, 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 Board of Governors of the Federal Reserve System (the “Federal Reserve”)
(if then required under applicable capital guidelines or policies of the
Federal Reserve) and, after satisfaction of liabilities to creditors of the
Trust, cause the Debentures to be distributed to the Holders of the Securities
on a Pro Rata basis in accordance with the aggregate liquidation amount
thereof.

The Trust shall dissolve on the first to occur of (i)
September 1, 2042, the expiration of the term of the Trust, (ii) a Bankruptcy
Event with respect to the Sponsor, the Trust 

 A-I-5
 

or the Debenture Issuer,
(iii) (other than in connection with a merger, consolidation or similar
transaction not prohibited by the Indenture, this Declaration or the Guarantee,
as the case may be) the filing of a certificate of dissolution or its
equivalent with respect to the Sponsor or upon the revocation of the charter of
the Sponsor and the expiration of 90 days after the date of revocation without
a reinstatement thereof, (iv) the distribution of all of the Debentures to the
Holders of the Securities, upon exercise of the right of the Holders of all of
the outstanding Common Securities to dissolve the Trust as 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 Debenture Issuer, (vi) when all of
the 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 Securities or (vii) before the issuance of any 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 Debenture Issuer) as provided by applicable
law, to the Holders of the Securities, the Debentures 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 Securities, after satisfaction of liabilities to
creditors of the Trust (to the extent not satisfied by the Debenture 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 Debenture Issuer), to the Holders of the
Securities on a Pro Rata basis, the Debentures, 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 Securities shall be paid to the
Holders of the Securities on a Pro Rata basis, except that if an Event of
Default has occurred and is continuing, 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 Debentures, if at the time of such Liquidation, the Capital
Securities were rated by at least one nationally-recognized statistical rating
organization, the Debenture Issuer will use its reasonable best efforts to
obtain from at least one such or other rating organization a rating for the
Debentures.

After the date for any distribution of the Debentures
upon any Liquidation of the Trust, (i) the Securities of the Trust will be
deemed to be no longer outstanding, (ii) any certificates representing the
Capital Securities will be deemed to represent undivided beneficial interests
in such of the Debentures as have an aggregate principal amount equal to the
aggregate 

 A-I-6
 

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 Debenture Issuer or its agent for transfer or
reissuance (and until such certificates are so surrendered, no payments shall
be made to Holders of Securities in respect of any payments due and payable
under the Debentures) and (iii) all rights of Holders of Securities shall
cease, except the right of such Holders to receive Debentures upon surrender of
certificates representing such Securities.

4.                                       Redemption
and Distribution.

(a)                                  The
Debentures will mature on September 1, 2037 (the “Maturity Date”) at an amount
in cash equal to 100% of the principal amount thereof plus unpaid interest
accrued thereon to such date (the “Maturity Redemption Price”).  The Debentures may be redeemed by the
Debenture Issuer, at its option, in whole or in part, on any Distribution
Payment Date on or after September 1, 2012 (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 Debentures.  In addition, upon the occurrence and
continuation of a Tax Event, an Investment Company Event or a Capital Treatment
Event, the Debentures may be redeemed by the Debenture Issuer, 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 Debentures so long as such Tax Event, Investment Company Event or Capital
Treatment Event, as the case may be, is continuing.  In each case, the right of the Debenture
Issuer to redeem the Debentures prior to maturity is subject to the Debenture
Issuer and the Trust having received prior approval from the Federal Reserve,
if then required under applicable capital guidelines or policies of the Federal
Reserve.

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

 A-I-7
 

more than a de minimis
amount of other taxes (including withholding taxes), duties, assessments or
other governmental charges.

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

“Capital Treatment Event” means, if the Debenture
Issuer is organized and existing under the laws of the United States or any
state thereof or the District of Columbia, the receipt by the Debenture Issuer
and the Trust of an opinion of counsel experienced in such matters to the
effect that, as a result of any amendment to, or change in, the laws, rules or
regulations of the United States or any political subdivision thereof or
therein, or as the result of any official or administrative pronouncement or
action or decision interpreting or applying such laws, rules or regulations,
which amendment or change is effective or which pronouncement, action or
decision is announced on or after the date of original issuance of the Debentures,
there is more than an insubstantial risk that the Debenture Issuer will not,
within 90 days of the date of such opinion, be entitled to treat Capital
Securities as “Tier 1 Capital” (or the then equivalent thereof) for purposes of
the capital adequacy guidelines of the Federal Reserve (or any successor
regulatory authority with jurisdiction over bank holding companies), as then in
effect and applicable to the Debenture Issuer; provided, however, that the inability of the Debenture Issuer to treat
all or any portion of the aggregate Liquidation Amount of the Capital
Securities as “Tier 1 Capital” shall not constitute the basis for a Capital
Treatment Event if such inability results from the Debenture Issuer having
preferred stock, minority interests in consolidated subsidiaries and any other
class of security or interest which the Federal Reserve (or any successor
regulatory authority with jurisdiction over bank holding companies) may now or
hereafter accord “Tier 1 Capital” treatment that, in the aggregate, exceed the
amount which may now or hereafter qualify for treatment as “Tier 1 Capital”
under applicable capital adequacy guidelines of the Federal Reserve (or any
successor regulatory authority with jurisdiction over bank holding companies); provided,
further, however, that the distribution of the Debentures in connection with
the Liquidation of the Trust by the Debenture Issuer shall not in and of itself
constitute a Capital Treatment Event unless such Liquidation shall have
occurred in connection with a Tax Event or an Investment Company Event.  For the avoidance of doubt, the inability of
the Debenture Issuer to treat all or any portion of the aggregate Liquidation
Amount of the Capital Securities as “Tier 1 Capital” as a result of the changes
effected by the final rule adopted by the Federal Reserve on March 1, 2005
shall not constitute the basis for a Capital Treatment Event.

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

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

 A-I-8
 

“Special Redemption Price”
means, with respect to the redemption of the Debentures following a Special
Event, an amount in cash equal to 103.40% of the principal amount of
Debentures to be redeemed prior to September 1, 2008 and thereafter equal to
the percentage of the principal amount of the Debentures that is specified below
for the Special Redemption Date plus, in each case, unpaid interest accrued
thereon to the Special Redemption Date:

	
  Special Redemption During the 12-Month

  	
   

  	
   

  	
   

  
	
  Period Beginning September 1,

  	
   

  	
  Percentage of Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  102.72

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  102.04

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  101.36

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
  100.68

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2012 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

(b)                                 Upon
any repayment of the Debentures at maturity or in whole or in part upon
redemption (other than following the distribution of the Debentures to the
Holders of the 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 Debentures, as the case may be, Securities having an
aggregate liquidation amount equal to the aggregate principal amount of the
Debentures so repaid; provided, however, that Holders of such
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 Debentures on the Maturity Date).

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

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

(e)                                  Redemption
or Distribution Procedures.

(i)                                     Written
notice of any redemption of, or written notice of distribution of the Debentures
in exchange for, the Securities (a “Redemption/Distribution Notice”) will be
given by the Trust by mail to each Holder of Securities to be redeemed or
exchanged not fewer than 30 nor more than 60 days before the date of redemption
or exchange thereof which, in the case of a redemption, will be the date of
redemption of the Debentures.  For
purposes of the calculation of the date of redemption or exchange and the dates
on which notices are given pursuant to this Section

 A-I-9
 

4(e)(i), a
Redemption/Distribution Notice shall be deemed to be given on the day such
notice is first mailed by first-class mail, postage prepaid, to Holders of such
Securities.  Each Redemption/Distribution
Notice shall be addressed to the Holders of such Securities at the address of each
such Holder appearing on the books and records of the Registrar.  No defect in the Redemption/Distribution
Notice or in the mailing thereof with respect to any Holder shall affect the
validity of the redemption or exchange proceedings with respect to any other
Holder.

(ii)                                  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.

(iii)                               If
the Securities are to be redeemed and the Trust gives a Redemption/Distribution
Notice, which notice may only be issued if the Debentures are redeemed 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 Debentures, the Institutional
Trustee will, with respect to Book-Entry Capital Securities, irrevocably
deposit with the Depositary for such Book-Entry Capital Securities, the price
payable upon redemption of the Securities, and will give such Depositary
irrevocable instructions and authority to pay the price payable upon redemption
of such Book-Entry Capital Securities to Beneficial Owners of the Capital
Securities.  With respect to Capital
Securities that are not Book-Entry Capital Securities, the Institutional
Trustee will pay the price payable upon redemption of such Securities to the
Holders of such 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 Securities so subject to redemption and all rights of
Holders of such Securities so subject to redemption will cease, except the
right of the Holders of such Securities to receive the applicable price
specified in Section 4(a), but without interest on such price.  If any date of redemption of the 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 Securities is improperly withheld or refused and
not paid either by the Trust, the Debenture Issuer or the Sponsor as guarantor
pursuant to the Guarantee, Distributions on such 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 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 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

 A-I-10
 

redemption, in whole or in
part, except for the unredeemed portion of any Capital Securities being
redeemed in part.

(iv)                              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.

(v)                                 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 conducting any proceeding for any remedy available to the Debenture Trustee,
or exercising any trust or power conferred on the Debenture Trustee with
respect to the Debentures, (ii) waiving any past default and its consequences
that are waivable under the Indenture, (iii) exercising any right to
rescind or annul an acceleration of the principal of all the Debentures or (iv)
consenting on behalf of all the Holders of the Capital Securities to any
amendment, modification or termination of the Indenture or the Debentures where
such consent shall be required; provided, however, that, where a
consent or action under the Indenture would require the consent or act of the
holders of greater than a simple majority in principal amount of Debentures (a “Super
Majority”) affected thereby, the Institutional Trustee may only give such
consent or take such action at the written direction of the Holders of not less
than the proportion in liquidation amount of the Capital Securities outstanding
which the relevant Super Majority represents of the aggregate principal amount
of the Debentures outstanding.  If the
Institutional Trustee fails to enforce its rights under the Debentures after
the Holders of a Majority or Super Majority, as the case may be, in liquidation
amount of such Capital Securities have so directed the Institutional Trustee,
to the fullest extent permitted by law, a Holder of the Capital Securities may
institute a legal proceeding directly against the Debenture Issuer to enforce
the Institutional Trustee’s rights under the Debentures without first
instituting any legal proceeding against the Institutional Trustee or any other
person or entity.  Notwithstanding the
foregoing, if an Event of Default has occurred and is continuing and such event
is attributable to the failure of the Debenture Issuer to pay interest or
premium, if any, on or principal of the Debentures on the date such interest,
premium, if any, 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 

 A-I-11
 

payment, on or after the
respective due dates specified in the Debentures, to such Holder directly of
the principal of or premium, if any, or interest on the Debentures having an
aggregate principal amount equal to the aggregate liquidation amount of the
Capital Securities of such Holder.  The
Institutional Trustee shall notify all Holders of the Capital Securities of any
default actually known to the Institutional Trustee with respect to the
Debentures unless (x) such default has been cured prior to the giving of such
notice or (y) the Institutional Trustee determines in good faith that the
withholding of such notice is in the interest of the Holders of such Capital
Securities, except where the default relates to the payment of principal of or
interest on any of the Debentures.  Such
notice shall state that such Indenture Event of Default also constitutes an
Event of Default hereunder.  Except with
respect to directing the time, method and place of conducting a proceeding for
a remedy, the Institutional Trustee shall not take any of the actions described
in clause (i), (ii), (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 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 resolution
proposed for adoption at such meeting on which such Holders are entitled to
vote or of such matter upon which written consent is sought and (iii)
instructions for the delivery of proxies or consents.  No vote or consent of the Holders of the
Capital Securities will be required for the Trust to redeem and cancel Capital
Securities or to distribute the Debentures in accordance with the Declaration
and the terms of the Securities.

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

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

6.                                       Voting
Rights - Common Securities.  (a)
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.

 A-I-12
 

(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 6.8 of the Declaration and only after each Event of Default (if any)
with respect to the Capital Securities has been cured, waived or otherwise eliminated
and subject to the requirements of the second to last sentence of this
paragraph, the 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 Debenture Trustee, or exercising any trust or power conferred
on the Debenture Trustee with respect to the Debentures, (ii) waiving any past
default and its consequences that are waivable under the Indenture, or (iii)
exercising any right to rescind or annul an acceleration of the principal of
all the Debentures.  Notwithstanding this
Section 6(c), the Institutional Trustee shall not revoke any action previously
authorized or approved by a vote or consent of the Holders of the Capital
Securities.  Other than with respect to
directing the time, method and place of conducting any proceeding for any
remedy available to the Institutional Trustee or the Debenture Trustee as set
forth above, the Institutional Trustee shall not take any action described in
clause (i), (ii) or (iii) above, unless the Institutional Trustee has obtained
an opinion of tax counsel to the effect that for the purposes of United States
federal income tax the Trust will not be classified as other than a grantor
trust on account of such action.  If the
Institutional Trustee fails to enforce its rights under the Declaration, to the
fullest extent permitted by law, 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.

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
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 Debentures in accordance with the Declaration
and the terms of the Securities.

7.                                       Amendments
to Declaration and Indenture.  In
addition to any requirements under Section 11.1 of the Declaration, if any
proposed amendment to the Declaration provides for, or the Trustees otherwise
propose to effect, (i) any action that would adversely affect the powers,
preferences or special rights of the Securities, whether by way of amendment to
the Declaration or otherwise, or (ii) the Liquidation of the Trust, other than
as described in Section 7.1 of the Declaration, then the Holders of outstanding
Securities, voting

 A-I-13
 

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 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 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 Securities.

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

(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 be classified for
purposes of United States federal income taxation as other than a grantor
trust, (ii) reduce or otherwise adversely affect the powers of the
Institutional Trustee or (iii) cause the Trust to be deemed an Investment
Company which is required to be registered under the Investment Company Act.

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

 A-I-14
 

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 Securities, agrees to the provisions of the Guarantee and the
Indenture, including the subordination provisions therein.

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

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

 A-I-15

EXHIBIT A-1

FORM OF CAPITAL SECURITY
CERTIFICATE

[FORM OF FACE OF SECURITY]

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

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.](1)

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

(1) Only applicable if
this Capital Security is a Global Capital Security.

 A-1-1
 

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 DEBENTURE
ISSUER OR THE TRUST, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER,” AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3), (7) OR (8) OF
RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY OR SUCH
INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR
OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR
OUTSIDE THE UNITED STATES PURSUANT TO REGULATION S UNDER THE SECURITIES ACT OR
(E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO THE RIGHT OF THE DEBENTURE ISSUER AND THE
TRUST PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C) OR (E)
ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE AMENDED
AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE
DEBENTURE ISSUER OR THE TRUST.  THE
HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS
ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT IT WILL COMPLY
WITH THE FOREGOING RESTRICTIONS.

THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION
HEREIN, BY ITS ACCEPTANCE HEREOF OR
THEREOF, AS THE CASE MAY BE, ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS
NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING
ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY
AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS
SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, UNLESS SUCH PURCHASER OR
HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF
LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14
OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY OR
SUCH INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING.

 A-1-2
 

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

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

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

 A-1-3
 

Certificate Number               [           ]                                                                  Number of
Capital Securities  [        ]

CUSIP NO [          
]

Certificate Evidencing Capital Securities

of

FPBN TRUST I

Capital Securities

(liquidation amount $1,000 per Capital Security)

FPBN 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                      
capital securities of the Trust representing undivided beneficial interests in
the assets of the Trust, designated as MMCapSSM (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 June
28, 2007, among James H. Burgess, A. Vincent Siciliano and Shelly Hicks, as
Administrators, Wilmington Trust Company, as Delaware Trustee, Wilmington Trust
Company, as Institutional Trustee, 1st Pacific Bancorp, 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.

The aggregate liquidation amount of the Capital
Securities represented by this Global Capital Security may from time to time be
reduced to reflect transfers or redemptions of all or a portion of such Capital
Securities or cancellations of all or a portion of such Capital Securities, in
each case, and in any such case, by means of notations on the Global
Certificate Transfer Schedule on the last page hereof. Notwithstanding any
provisions of this Global Capital Security to the contrary, transfers or
redemptions of all or a portion of the Capital Securities represented hereby
and cancellations of all or a portion of the Capital Securities represented
hereby, may be effected without the surrendering of this Global Capital Security,
provided the appropriate notations on the Global Certificate Transfer Schedule
are made by the Institutional Trustee or the Depositary at the direction of the
Institutional Trustee, to reflect the appropriate reduction or increase, as the
case may be, in the aggregate liquidation amount of the Capital Securities
evidenced by this Global Capital Security.

 A-1-4
 

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 Debentures as
indebtedness and the Capital Securities as evidence of undivided beneficial
ownership in the Debentures.

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.

This Certificate may contain more than one counterpart
of the signature page and this Certificate may be executed and authenticated by
the affixing of the signature of an Administrator on behalf of the Trust, and
the signature of the Institutional Trustee providing authentication, 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 the Trust had executed, and the
Institutional Trustee had authenticated, a single signature page.

 A-1-5
 

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

	
  

  	
  FPBN TRUST I

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:
  Administrator

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
					

 

CERTIFICATE OF AUTHENTICATION

This Certificate
represents Capital Securities 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-1-6
 

[FORM OF REVERSE OF SECURITY]

Distributions payable on each Capital Security will be
payable at a rate of interest per annum, which, with respect to any
Distribution Period, will be equal to LIBOR, as determined on the LIBOR
Determination Date for such Distribution Period (or, in the case of the first
Distribution Period, will be 5.36%), plus 1.40% (the “Coupon Rate”); provided,
however, that the Coupon Rate for any Distribution Period may not exceed
the Interest Rate (as defined in the Indenture) for the related Interest Period
(as defined in the Indenture). 
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 Debentures, unless otherwise stated.  A Distribution is payable only to the extent
that payments are made in respect of the Debentures held by the Institutional
Trustee and to the extent the Institutional Trustee has funds legally available
in the Property Account therefor.  The
amount of Distributions payable for any Distribution Period will be computed on
the basis of a 360-day year and the actual number of days elapsed in such Distribution
Period.

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 March 1, June 1,
September 1, and December 1 of each year, commencing on September 1, 2007
(each, a “Distribution Payment Date”), and on any earlier date of redemption,
subject, in each case, to the Business Day convention specified in the
Declaration.  The Debenture Issuer has
the right under the Indenture to defer payments of interest on the Debentures
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 Debentures, 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 Debentures, and interest on such
accrued interest (such accrued interest and interest thereon referred to herein
as “Deferred Interest”) will accrue, at an annual rate equal to the Coupon Rate
applicable during such Extension Period, compounded quarterly from the date
such Deferred Interest would have been payable were it not for the Extension
Period, to the extent permitted by applicable law.  At the end of any Extension Period, the
Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the
Debentures; provided, however, that prior to the termination of
any Extension Period, the Debenture 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 Debenture 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-1-7
 

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-1-8
 

ASSIGNMENT

FOR VALUE
RECEIVED, the undersigned assigns and transfers the Capital Securities
evidenced by this Capital Security 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 Capital Security 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 Capital Security 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-1-9
 

Schedule
A

Global Certificate
Transfer Schedule

Changes to Liquidation
Amount of Global Capital Security

	
  Date

  	
   

  	
  Liquidation Amount of Capital

  Securities by which this Global

  Capital Security Is to Be

  Reduced or Increased

  	
   

  	
  Remaining Liquidation

  Amount of the Global Capital

  Security (following decrease or

  increase)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Schedule to be maintained by Institutional Trustee or
Depositary in cooperation with Institutional Trustee, as applicable.

 A-1-10

EXHIBIT A-2

FORM OF COMMON SECURITY CERTIFICATE

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

EXCEPT AS SET FORTH IN SECTION 8.1(b) OF THE
DECLARATION (AS DEFINED BELOW), THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED.

 A-2-1
 

Certificate
Number               [           ]                                                  Number of Common
Securities [      ]

Certificate Evidencing Common Securities

of

FPBN TRUST I

FPBN Trust I, a statutory trust created under the laws
of the State of Delaware (the “Trust”), hereby certifies that 1st Pacific Bancorp is the registered owner (the “Holder”)
of                   
common securities of the Trust representing undivided 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 June 28,
2007, among James H. Burgess, A. Vincent Siciliano and Shelly Hicks, 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 Debentures as
indebtedness and the Common Securities as evidence of undivided beneficial
ownership in the Debentures.

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.

IN WITNESS WHEREOF, the Trust has executed this
Certificate this         day of       ,
2007.

	
  

  	
  FPBN TRUST I

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:
  Administrator

  	
   

  

 

 A-2-2
 

[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 rate of interest per annum, which, with respect to any
Distribution Period (as defined herein), will be equal to LIBOR, as determined
on the LIBOR Determination Date for such Distribution Period (or, in the case
of the first Distribution Period, will be 5.36%), plus 1.40% (the “Coupon Rate”);
provided, however, that the Coupon Rate for any Distribution
Period may not exceed the Interest Rate (as defined in the Indenture) for the
related Interest Period (as defined in the Indenture).  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 Debentures, unless otherwise
stated.  A Distribution is payable only
to the extent that payments are made in respect of the Debentures held by the
Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor.  The amount of Distributions payable for any
Distribution Period will be computed on the basis of a 360-day year and the
actual number of days elapsed in such Distribution Period.

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 March 1, June 1, September
1 and December 1 of each year, commencing on September 1, 2007 (each, a “Distribution
Payment Date”), and on any earlier date of redemption, subject, in each case,
to the Business Day convention specified in the Declaration.  The Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures 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 Debentures, 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 Debentures, and interest on such
accrued interest (such accrued interest and interest thereon referred to herein
as “Deferred Interest”) will accrue, at an annual rate equal to the Coupon Rate
applicable during such Extension Period, compounded quarterly from the date
such Deferred Interest would have been payable were it not for the Extension
Period, to the extent permitted by applicable law.  At the end of any Extension Period, the
Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the
Debentures; provided, however, that prior to the termination of
any Extension Period, the Debenture 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 Debenture 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

 A-2-3
 

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 Extension Period terminates to Holders of the 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-2-4
 

ASSIGNMENT

FOR VALUE RECEIVED, the
undersigned assigns and transfers the Common Securities evidenced by this
Common Security 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 Common Security
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 Common Security 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-2-5

EXHIBIT B

FORM OF ADMINISTRATOR’S CERTIFICATE 

OF THE TRUST

Pursuant
to Section 2.6(a)(i)(P) of the Amended and Restated Declaration of Trust, dated
as of June 28, 2007 (as amended or supplemented from time to time, the “Trust
Agreement”), of FPBN Trust I (the “Trust”) among 1st Pacific Bancorp as Sponsor, Wilmington Trust
Company, as Institutional Trustee, Wilmington Trust Company, as Delaware
Trustee, the Administrators named therein, and the holders from time to time of
beneficial interests in the assets of the Trust, the undersigned (on behalf of
the Trust) hereby certifies that he/she is an Administrator of the Trust and
that, to his/her knowledge under the terms of the Trust Agreement, the Trust
has complied (without regard to any period of grace or requirement of notice
provided under the Trust Agreement) with all conditions and covenants under the
Trust Agreement for the year 20    .

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

IN WITNESS
WHEREOF, the undersigned has executed this Administrator’s Certificate as of              ,
20      .

	
  

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 B-1

EXHIBIT C

FORM OF TRANSFEREE CERTIFICATE

TO BE EXECUTED BY ACCREDITED INVESTORS

                       ,
[     ]

1st Pacific Bancorp

FPBN Trust I

4275 Executive Square

Suite 650

La Jolla, California 92037

Re:                   Purchase
of $[SPECIFY] liquidation amount of MMCapSSM

(the “Capital Securities”) of FPBN 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.
Person 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 

 C-1
 

subparagraph (a)(1), (2),
(3), (7) or (8) of Rule 501 under the Securities Act that is acquiring such
Capital Securities for investment purposes and not for any distribution in
violation of the Securities Act. 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 1st Pacific Bancorp  (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 the junior subordinated debt
securities of the Company, and to have consented to the appointment of the
institutional trustee of the Trust.

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

 C-2
 

agreements are no longer
accurate, we shall promptly notify the applicable Purchaser. 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:

  	
   

  	
   

  
						

 

 C-3

EXHIBIT D

FORM OF TRANSFEROR
CERTIFICATE

TO BE EXECUTED FOR QIBs

                     ,
[     ]

1st Pacific Bancorp

FPBN Trust I

4275 Executive Square

Suite 650

La Jolla, California 92037

Re:                   Purchase
of $[SPECIFY] liquidation amount of MMCapSSM

(the “Capital Securities”) of FPBN Trust I (the “Trust”)

Reference is hereby made to the Amended and Restated
Declaration of Trust of FPBN Trust I, dated as of June 28, 2007 (the “Declaration”),
among James H. Burgess, A. Vincent Siciliano and Shelly Hicks, as Administrators,
Wilmington Trust Company, as Delaware Trustee, Wilmington Trust Company, as
Institutional Trustee, 1st Pacific Bancorp, 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”).](1)

[This letter relates to $[                       ]
aggregate liquidation amount of Capital Securities which are held in the form
of a Regulation S Global Capital Security (CUSIP No.                       )
with [Euroclear] [Clearstream Luxembourg] (ISIN #                )
(Common Code                   )
through the Depositary by or on behalf of [                       ]
as beneficial owner (the “Transferor”). 
The Transferor has requested an exchange or transfer of its interest in
the Capital Securities for an interest in a Rule 144A Global Capital Security
(CUSIP No.                        ).](2)

In accordance with Section 8.2(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.

(1)  Only applicable to transfer of Definitive Capital
Securities.

(2)  Only
applicable to transfer of Book-Entry Capital Securities.

 D-1
 

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:

  	
   

  	
   

  
						

 

 D-2

EXHIBIT E

FORM OF TRANSFEREE
CERTIFICATE

TO BE EXECUTED BY NON-U.S. PERSONS

                    ,
[     ]

1st Pacific Bancorp

FPBN Trust I

4275 Executive Square

Suite 650

La Jolla, California 92037

Re:                   Purchase
of $[SPECIFY] liquidation amount of MMCapSSM

(the “Capital Securities”) of FPBN Trust I (the “Trust”)

Reference is hereby made to the Amended and Restated
Declaration of Trust of FPBN Trust I, dated as of June 28, 2007 (the “Declaration”),
among James H. Burgess, A. Vincent Siciliano and Shelly Hicks, as
Administrators, Wilmington Trust Company, as Delaware Trustee, Wilmington Trust
Company, as Institutional Trustee, 1st Pacific Bancorp, 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]](1).

[This letter relates to $[                                ]
aggregate liquidation amount of Capital Securities represented by a beneficial
interest in a Rule 144A Global Capital Security (CUSIP No.                   )
held with the Depositary by or on behalf of [                      ]
transferor as beneficial owner (the “Transferor”). The Transferor has requested
an exchange or transfer of its beneficial interests for an interest in a
Regulation S Global Capital Security (CUSIP No.                            )](2)

In accordance with Section 8.2(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 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.

(1)   Only
applicable to transfer of Definitive Capital Securities.

(2)   Only
applicable to transfer of Book-Entry Capital Securities.

	
  

  	
   

  	
   

  
	
   

  	
  (Name of Transferee)

  
	
   

  	
   

  	
   

  
	
  By:   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

 A-1-1

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