Document:

Exhibit 4.3

    
      
        

      

      

      

      GUARANTEE
        AGREEMENT

       

       

      between

       

       

      TRUSTMARK
        CORPORATION,

      As
        Guarantor,

       

       

      and

       

       

      WILMINGTON
        TRUST COMPANY,

      As
        Guarantee Trustee

       

      Dated
        as
        of August 18, 2006 

       

       

      TRUSTMARK
        PREFERRED CAPITAL TRUST I

       

      

      
        
          

           

          
            
              
                
                

              

              
                
                

                
                

              

              
                
                

              

            

          

           

        

      

      TABLE
        OF
        CONTENTS

       

      

      
        	
                ARTICLE
                  I

              	
                INTERPRETATION
                  AND DEFINITIONS

              	
                2

              
	
                SECTION
                  1.1

              	
                Interpretation.

              	
                2

              
	
                SECTION
                  1.2

              	
                Definitions.

              	
                2

              
	 	 	 
	
                ARTICLE
                  II

              	
                REPORTS

              	
                6

              
	
                SECTION
                  2.1

              	
                List
                  of Holders.

              	
                6

              
	
                SECTION
                  2.2

              	
                Periodic
                  Reports to the Guarantee Trustee.

              	
                6

              
	
                SECTION
                  2.3

              	
                Event
                  of Default; Waiver.

              	
                6

              
	
                SECTION
                  2.4

              	
                Event
                  of Default; Notice.

              	
                6

              
	 	 	 
	
                ARTICLE
                  III

              	
                POWERS,
                  DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

              	
                7

              
	
                SECTION
                  3.1

              	
                Powers
                  and Duties of the Guarantee Trustee.

              	
                7

              
	
                SECTION
                  3.2

              	
                Certain
                  Rights of the Guarantee Trustee.

              	
                8

              
	
                SECTION
                  3.3

              	
                Compensation.

              	
                10

              
	
                SECTION
                  3.4

              	
                Indemnity.

              	
                10

              
	
                SECTION
                  3.5

              	
                Securities.

              	
                11

              
	 	 	
                 

              
	
                ARTICLE
                  IV

              	
                GUARANTEE
                  TRUSTEE

              	
                11

              
	
                SECTION
                  4.1

              	
                Guarantee
                  Trustee; Eligibility.

              	
                11

              
	
                SECTION
                  4.2

              	
                Appointment,
                  Removal and Resignation of the Guarantee Trustee.

              	
                11

              
	 	 	 
	
                ARTICLE
                  V

              	
                GUARANTEE

              	
                12

              
	
                SECTION
                  5.1

              	
                Guarantee.

              	
                12

              
	
                SECTION
                  5.2

              	
                Waiver
                  of Notice and Demand.

              	
                13

              
	
                SECTION
                  5.3

              	
                Obligations
                  Not Affected.

              	
                13

              
	
                SECTION
                  5.4

              	
                Rights
                  of Holders.

              	
                14

              
	
                SECTION
                  5.5

              	
                Guarantee
                  of Payment.

              	
                14

              
	
                SECTION
                  5.6

              	
                Subrogation.

              	
                14

              
	
                SECTION
                  5.7

              	
                Independent
                  Obligations.

              	
                14

              
	
                SECTION
                  5.8

              	
                Enforcement.

              	
                14

              
	 	 	 
	
                ARTICLE
                  VI

              	
                COVENANTS
                  AND SUBORDINATION

              	
                15

              
	
                SECTION
                  6.1

              	
                Dividends,
                  Distributions and Payments.

              	
                15

              
	
                SECTION
                  6.2

              	
                Subordination.

              	
                15

              
	
                SECTION
                  6.3

              	
                Pari
                  Passu Guarantees.

              	
                16

              
	 	 	
                 

              
	
                ARTICLE
                  VII

              	
                TERMINATION

              	
                16

              
	
                SECTION
                  7.1

              	
                Termination.

              	
                16

              
	 	 	
                 

              
	
                ARTICLE
                  VIII

              	
                MISCELLANEOUS

              	
                16

              
	
                SECTION
                  8.1

              	
                Successors
                  and Assigns.

              	
                16

              
	
                SECTION
                  8.2

              	
                Amendments.

              	
                17

              
	
                SECTION
                  8.3

              	
                Notices.

              	
                17

              
	
                SECTION
                  8.4

              	
                Benefit.

              	
                18

              
	
                SECTION
                  8.5

              	
                Governing
                  Law.

              	
                18

              
	
                SECTION
                  8.6

              	
                Submission
                  to Jurisdiction.

              	
                18

              
	
                SECTION
                  8.7

              	
                Counterparts.

              	
                19

              

      

      
         

        
          
            
              
                
                  
                    
                      
                      

                    

                    
                      i

                      
                      

                    

                    
                      
                      

                    

                  

                

                

                  GUARANTEE
                    AGREEMENT,
                    dated
                    as of August 18, 2006, executed and delivered by TRUSTMARK
                    CORPORATION,
                    a
                    Mississippi corporation (the "Guarantor")
                    having
                    its principal office at 248 E. Capitol Street, Jackson, Mississippi
                    39201, and
WILMINGTON
                    TRUST COMPANY,
                    a
                    Delaware banking corporation, as trustee (in such capacity, the
"Guarantee
                    Trustee"),
                    for
                    the benefit of the Holders (as defined herein) from time to time
                    of the
                    Preferred Securities (as defined herein) of TRUSTMARK
                    PREFERRED CAPITAL TRUST I,
                    a
                    Delaware statutory trust (the "Issuer").

                   

                  WITNESSETH:

                   

                  WHEREAS,
                    pursuant to an Amended and Restated Trust Agreement, dated as
                    of the date hereof
                    (the "Trust
                    Agreement"),
                    among
                    the Guarantor, as Depositor, the Property Trustee, the Delaware
                    Trustee and the
                    Administrative Trustees named therein and the Holders from time
                    to time of the
                    Preferred Securities (as hereinafter defined), the Issuer is
                    issuing $60,000,000
                    aggregate Liquidation Amount (as defined in the Trust Agreement)
                    of its Floating
                    Rate Preferred Securities (Liquidation Amount $1,000 per preferred
                    security)
                    (the "Preferred
                    Securities")
                    representing preferred undivided beneficial interests in the
                    assets of the
                    Issuer and having the terms set forth in the Trust Agreement;

                   

                  WHEREAS,
                    the
                    Preferred Securities will be issued by the Issuer and the proceeds
                    thereof,
                    together with the proceeds from the issuance of the Issuer's
                    Common Securities
                    (as defined below), will be used to purchase the Notes (as defined
                    in the Trust
                    Agreement) of the Guarantor; and

                   

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

                   

                  NOW,
                    THEREFORE, in
                    consideration of the purchase by each Holder of Preferred Securities,
                    which
                    purchase the Guarantor hereby agrees shall benefit the Guarantor,
                    the Guarantor
                    executes and delivers this Guarantee Agreement to provide as
                    follows for the
                    benefit of the Holders from time to time of the Preferred
                    Securities:

                   

                  
                    
                      
                        
                        

                      

                      
                         

                        
                        

                      

                      
                        
                        

                      

                    

                  

                   

                  ARTICLE
                    I

                   

                  INTERPRETATION
                    AND DEFINITIONS

                

              

            

          

        

      

       

      SECTION
        1.1   Interpretation.

       

      In
        this
        Guarantee Agreement, unless the context otherwise requires:

       

      (a)   capitalized
        terms used in this Guarantee Agreement but not defined in the preamble hereof
        have the respective meanings assigned to them in Section
        1.2;

       

      (b)   the
        words
        "include," "includes" and "including" shall be deemed to be followed by the
        phrase "without limitation";

       

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

       

      (d)   all
        references in this Guarantee Agreement to Articles and Sections are to Articles
        and Sections of this Guarantee Agreement unless otherwise
        specified;

       

      (e)   the
        words
        "hereby," "herein," "hereof" and "hereunder" and other words of similar import
        refer to this Guarantee Agreement as a whole and not to any particular Article,
        Section or other subdivision;

       

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

       

      (g)   a
        reference to the masculine, feminine or neuter gender herein shall include
        all
        of the masculine, feminine and neuter genders.

       

      SECTION
        1.2   Definitions.

       

      As
        used
        in this Guarantee Agreement, the terms set forth below shall, unless the
        context
        otherwise requires, have the following meanings:

       

      "Affiliate"
        of any
        specified Person means any other Person directly or indirectly controlling
        or
        controlled by or under direct or indirect common control with such specified
        Person; provided,
        that
        the Issuer shall not be deemed to be an Affiliate of the Guarantor. For the
        purposes of this definition, "control"
        when
        used with respect to any specified Person means the power to direct the
        management and policies of such Person, directly or indirectly, whether through
        the ownership of voting securities, by contract or otherwise; and the terms
        "controlling"
        and
"controlled"
        have
        meanings correlative to the foregoing.

       

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

      
        
          
          

        

        
          2

          
          

        

        
          
          

        

      

       

      "Board
        of Directors"
        means
        either the board of directors of the Guarantor or any duly authorized committee
        of that board.

       

      "Common
        Securities"
        means
        the securities representing common undivided beneficial interests in the
        assets
        of the Issuer.

       

      "Debt"
        means
        with respect to any Person, whether recourse is to all or a portion of the
        assets of such Person, whether currently existing or hereafter incurred,
        and
        whether or not contingent and without duplication, (i) every obligation of
        such
        Person for money borrowed; (ii) every obligation of such Person evidenced
        by
        bonds, debentures, notes or other similar instruments, including obligations
        incurred in connection with the acquisition of property, assets or businesses;
        (iii) every reimbursement obligation of such Person with respect to letters
        of
        credit, bankers' acceptances or similar facilities issued for the account
        of
        such Person; (iv) every obligation of such Person issued or assumed as the
        deferred purchase price of property or services (but excluding trade accounts
        payable arising in the ordinary course of business); (v) every capital lease
        obligation of such Person; (vi) all indebtedness of such Person, whether
        incurred on or prior to the date of this Guarantee Agreement or thereafter
        incurred, for claims in respect of derivative products, including interest
        rate,
        foreign exchange rate and commodity forward contracts, options, swaps and
        similar arrangements; (vii) every obligation of the type referred to in clauses
        (i) through (vi) of another Person and all dividends of another Person the
        payment of which, in either case, such Person has guaranteed or is responsible
        or liable for, directly or indirectly, as obligor or otherwise; and (viii)
        any
        renewals, extensions, refundings, amendments or modifications of any obligation
        of the type referred to in clauses (i) through (vii).

       

      "Event
        of Default"
        means a
        default by the Guarantor on any of its payment or other obligations under
        this
        Guarantee Agreement; provided, that except with respect to a default in payment
        of any Guarantee Payments, the Guarantor shall have received notice of default
        from the Guarantee Trustee and shall not have cured such default within thirty
        (30) days after receipt of such notice.

       

      "Guarantee
        Payments"
        means
        the following payments or distributions, without duplication, with respect
        to
        the Preferred Securities, to the extent not paid or made by or on behalf
        of the
        Issuer: (i) any accumulated and unpaid Distributions (as defined in the Trust
        Agreement) required to be paid on the Preferred Securities, to the extent
        the
        Issuer shall have funds on hand available therefor at such time, (ii) the
        Redemption Price (as defined in the Trust Agreement) with respect to any
        Preferred Securities to the extent the Issuer shall have funds on hand available
        therefor at such time, and (iii) upon a voluntary or involuntary termination,
        winding up or liquidation of the Issuer, unless Notes are distributed to
        the
        Holders, the lesser of (a) the aggregate of the Liquidation Amount of $1,000
        per
        Preferred Security plus accumulated and unpaid Distributions on the Preferred
        Securities to the date of payment, to the extent that the Issuer shall have
        funds available therefor at such time and (b) the amount of assets of the
        Issuer
        remaining available for distribution to Holders in liquidation of the Issuer
        after satisfaction of liabilities to creditors of the Issuer in accordance
        with
        applicable law (in either case, the "Liquidation
        Distribution").

       

      
        
          
            
            

          

          
            3

            
            

          

          
            
            

          

        

      

       

      "Guarantee
        Trustee"
        means
        Wilmington Trust Company, until a Successor Guarantee Trustee, as defined
        below,
        has been appointed and has accepted such appointment pursuant to the terms
        of
        this Guarantee Agreement, and thereafter means each such Successor Guarantee
        Trustee.

       

      "Holder"
        means
        any holder, as registered on the books and records of the Issuer, of any
        Preferred Securities; provided,
        that,
        in determining whether the holders of the requisite percentage of Preferred
        Securities have given any request, notice, consent or waiver hereunder, "Holder"
        shall not include the Guarantor, the Guarantee Trustee or any Affiliate of
        the
        Guarantor or the Guarantee Trustee.

       

      "Indenture"
        means
        the Junior Subordinated Indenture, dated as of the date hereof, as supplemented
        and amended, between the Guarantor and Wilmington Trust Company, as
        trustee.

       

      "List
        of Holders"
        has the
        meaning specified in Section
        2.1.

       

      "Majority
        in Liquidation Amount of the Preferred Securities"
        means a
        vote by the Holder(s), voting separately as a class, of more than fifty percent
        (50%) of the aggregate Liquidation Amount of all then outstanding Preferred
        Securities issued by the Issuer.

       

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

       

      "Officers'
        Certificate"
        means,
        with respect to any Person, a certificate signed by the Chief Executive Officer,
        Chief Financial Officer, President or a Vice President of such Person, and
        by
        the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary
        of such Person, and delivered to the Guarantee Trustee. Any Officers'
        Certificate delivered with respect to compliance with a condition or covenant
        provided for in this Guarantee Agreement (other than the certificate provided
        pursuant to Section
        2.4)
        shall
        include:

       

      (a)   a
        statement that each officer 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 officer in rendering the Officers' Certificate;

       

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

       

      
        
          
            
            

          

          
            4

            
            

          

          
            
            

          

        

      

       

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

       

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

       

      "Responsible
        Officer"
        means,
        with respect to the Guarantee Trustee, any Senior Vice President, any Vice
        President, any Assistant Vice President, the Secretary, any Assistant Secretary,
        the Treasurer, any Assistant Treasurer, any Financial Services Officer or
        Assistant Financial Services Officer or any other officer of the Corporate
        Trust
        Department of the Guarantee Trustee 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.

       

      "Senior
        Debt"
        means
        the principal of and any premium and interest on (including interest accruing
        on
        or after the filing of any petition in bankruptcy or for reorganization relating
        to the Guarantor whether or not such claim for post-petition interest is
        allowed
        in such proceeding) all Debt of the Guarantor, whether incurred on or prior
        to
        the date of the Indenture or thereafter incurred, unless it is provided in
        the
        instrument creating or evidencing the same or pursuant to which the same
        is
        outstanding, that such obligations are not superior in right of payment to
        the
        Preferred Securities; provided,
        however,
        that if
        the Guarantor is subject to the regulation and supervision of an "appropriate
        Federal banking agency" within the meaning of 12 U.S.C. 1813(q), the Guarantor
        shall have received the approval of such appropriate Federal banking agency
        prior to issuing any such obligation if not otherwise generally approved;
        provided
        further,
        that
        Senior Debt shall not include any other debt securities, and guarantees in
        respect of such debt securities, issued to any trust other than the Issuer
        (or a
        trustee of such trust), partnership or other entity affiliated with the
        Guarantor that is a financing vehicle of the Guarantor (a "financing entity"),
        in connection with the issuance by such financing entity of equity securities
        or
        other securities that are treated as equity capital for regulatory capital
        purposes guaranteed by the Guarantor pursuant to an instrument that ranks
        pari
        passu
        with or
        junior in right of payment to this Guarantee Agreement.

       

      "Successor
        Guarantee Trustee"
        means a
        successor Guarantee Trustee possessing the qualifications to act as Guarantee
        Trustee under Section 4.1.

       

      "Trust
        Indenture Act"
        means
        the Trust Indenture Act of 1939, as amended and as in effect on the date
        of this
        Guarantee Agreement.

       

      
        
          
            
            

          

          
            5

            
            

          

          
            
            

          

        

      

       

      Capitalized
        or otherwise defined terms used but not otherwise defined herein shall have
        the
        meanings assigned to such terms in the Trust Agreement as in effect on the
        date
        hereof.

       

      ARTICLE
        II

       

      REPORTS

       

      SECTION
        2.1   List
        of Holders.

       

      The
        Guarantor shall furnish or cause to be furnished to the Guarantee Trustee
        at
        such times as the Guarantee Trustee may request in writing, within thirty
        (30)
        days after the receipt by the Guarantor of any such request, a list, in such
        form as the Guarantee Trustee may reasonably require, of the names and addresses
        of the Holders (the "List
        of Holders")
        as of a
        date not more than fifteen (15) days prior to the time such list is furnished,
        in each case to the extent such information is in the possession or control
        of
        the Guarantor and is not identical to a previously supplied list of Holders
        or
        has not otherwise been received by the Guarantee Trustee in its capacity
        as
        such. The Guarantee Trustee may destroy any List of Holders previously given
        to
        it on receipt of a new List of Holders.

       

      SECTION
        2.2   Periodic
        Reports to the Guarantee Trustee.

       

      The
        Guarantor shall deliver to the Guarantee Trustee, within one hundred and
        twenty
        (120) days after the end of each fiscal year of the Guarantor ending after
        the
        date of this Guarantee Agreement, an Officers' Certificate covering the
        preceding fiscal year, stating whether or not to the knowledge of the signers
        thereof the Guarantor is in default in the performance or observance of any
        of
        the terms or provisions or any of the conditions of this Guarantee Agreement
        (without regard to any period of grace or requirement of notice provided
        hereunder) and, if the Guarantor shall be in default thereof, specifying
        all
        such defaults and the nature and status thereof of which they have
        knowledge.

       

      SECTION
        2.3   Event
        of Default; Waiver.

       

      The
        Holders of a Majority in Liquidation Amount of the Preferred Securities may,
        on
        behalf of the Holders, waive any past Event of Default and its consequences.
        Upon such waiver, any such Event of Default shall cease to exist, and any
        Event
        of Default arising therefrom shall be deemed to have been cured, for every
        purpose of this Guarantee Agreement, but no such waiver shall extend to any
        subsequent or other default or Event of Default or impair any right consequent
        therefrom.

       

      SECTION
        2.4   Event
        of Default; Notice.

       

      (a)   The
        Guarantee Trustee shall, within ninety (90) days after the occurrence of
        a
        default, transmit to the Holders notices of all defaults actually known to
        the
        Guarantee Trustee, unless such defaults have been cured or waived before
        the
        giving of such notice, provided,
        that,
        except in the case of a default in the payment of a Guarantee Payment, the
        Guarantee Trustee shall be protected in withholding such notice if and so
        long
        as the Board of Directors, the executive committee or a trust committee of
        directors and/or Responsible Officers of the Guarantee Trustee in good faith
        determine that the withholding of such notice is in the interests of the
        Holders. For the purpose of this Section
        2.4,
        the
        term "default"
        means
        any event that is, or after notice or lapse of time or both would become,
        an
        Event of Default.

      
        
          
          

        

        
          6

          
          

        

        
          
          

        

      

       

      (b)   The
        Guarantee Trustee shall not be deemed to have knowledge of any Event of Default
        unless the Guarantee Trustee shall have received written notice, or a
        Responsible Officer charged with the administration of this Guarantee Agreement
        shall have obtained written notice, of such Event of Default from the Guarantor
        or a Holder.

       

      ARTICLE
        III

       

      POWERS,
        DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

       

      SECTION
        3.1   Powers
        and Duties of the Guarantee Trustee.

       

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

       

      (b)   The
        rights, immunities, duties and responsibilities of the Guarantee Trustee
        shall
        be as provided by this Guarantee Agreement and there shall be no other duties
        or
        obligations, express or implied, of the Guarantee Trustee. Notwithstanding
        the
        foregoing, no provisions of this Guarantee Agreement shall require the Guarantee
        Trustee 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 against such
        risk
        or liability is not reasonably assured to it. Whether or not herein expressly
        so
        provided, every provision of this Guarantee Agreement relating to the conduct
        or
        affecting the liability of or affording protection to the Guarantee Trustee
        shall be subject to the provisions of this Section
        3.1.
        To the
        extent that, at law or in equity, the Guarantee Trustee has duties and
        liabilities relating to the Guarantor or the Holders, the Guarantee Trustee
        shall not be liable to any Holder for the Guarantee Trustee's good faith
        reliance on the provisions of this Guarantee Agreement. The provisions of
        this
        Guarantee Agreement, to the extent that they restrict the duties and liabilities
        of the Guarantee Trustee otherwise existing at law or in equity, are agreed
        by
        the Guarantor and the Holders to replace such other duties and liabilities
        of
        the Guarantee Trustee.

       

      
        
          
            
            

          

          
            7

            
            

          

          
            
            

          

        

      

       

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

       

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

       

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

       

      SECTION
        3.2   Certain
        Rights of the Guarantee Trustee.

       

      (a)   Subject
        to the provisions of Section
        3.1:

       

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

       

      (ii)   any
        direction or act of the Guarantor contemplated by this Guarantee Agreement
        shall
        be sufficiently evidenced by an Officers' Certificate unless otherwise
        prescribed herein;

       

      (iii)   the
        Guarantee Trustee may consult with counsel, and the advice of such counsel
        shall
        be full and complete authorization and protection in respect of any action
        taken, suffered or omitted to be taken by it hereunder in good faith and
        in
        reliance thereon and in accordance with such advice. Such counsel may be
        counsel
        to the Guarantee Trustee, the Guarantor or any of its Affiliates and may
        be one
        of its employees. The Guarantee Trustee shall have the right at any time
        to seek
        instructions concerning the administration of this Guarantee Agreement from
        any
        court of competent jurisdiction;

      
        
          
          

        

        
          8

          
          

        

        
          
          

        

      

       

      (iv)   the
        Guarantee Trustee shall be under no obligation to exercise any of the rights
        or
        powers vested in it by this Guarantee Agreement at the request or direction
        of
        any Holder, unless such Holder shall have provided to the Guarantee Trustee
        reasonable security or indemnity against the costs, expenses (including
        reasonable attorneys' fees and expenses) and liabilities that might be incurred
        by it in complying with such request or direction, including such reasonable
        advances as may be requested by the Guarantee Trustee; provided,
        that,
        nothing contained in this Section 3.2(a)(iv)
        shall be
        taken to relieve the Guarantee Trustee, upon the occurrence of an Event of
        Default, of its obligation to exercise the rights and powers vested in it
        by
        this Guarantee Agreement;

       

      (v)   the
        Guarantee Trustee shall not be bound to make any investigation into the facts
        or
        matters stated in any resolution, certificate, statement, instrument, opinion,
        report, notice, request, direction, consent, order, bond, debenture, note,
        other
        evidence of indebtedness or other paper or document, but the Guarantee Trustee,
        in its discretion, may make such further inquiry or investigation into such
        facts or matters as it may see fit, and if the Guarantee Trustee shall determine
        to make such inquiry or investigation, it shall be entitled to examine the
        books, records and premises of the Guarantor, personally or by agent or
        attorney;

       

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

       

      (vii)   whenever
        in the administration of this Guarantee Agreement the Guarantee Trustee shall
        deem it desirable to receive instructions with respect to enforcing any remedy
        or right hereunder, the Guarantee Trustee (A) may request instructions from
        the
        Holders of a Majority in Liquidation Amount of the Preferred Securities,
        (B) may
        refrain from enforcing such remedy or right or taking such other action until
        such instructions are received and (C) shall be protected in acting in
        accordance with such instructions;

       

      (viii)   except
        as
        otherwise expressly provided by this Guarantee Agreement, the Guarantee Trustee
        shall not be under any obligation to take any action that is discretionary
        under
        the provisions of this Guarantee Agreement; and

       

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

      
        
          
          

        

        
          9

          
          

        

        
          
          

        

      

       

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

       

      SECTION
        3.3   Compensation.

       

      The
        Guarantor agrees to pay to the Guarantee Trustee from time to time reasonable
        compensation for all services rendered by it hereunder (which compensation
        shall
        not be limited by any provisions of law in regard to the compensation of
        a
        trustee of an express trust) and to reimburse the Guarantee Trustee upon
        request
        for all reasonable expenses, disbursements and advances (including the
        reasonable fees and expenses of its attorneys and agents) incurred or made
        by
        the Guarantee Trustee in accordance with any provisions of this Guarantee
        Agreement.

       

      SECTION
        3.4   Indemnity.

       

      The
        Guarantor agrees to indemnify and hold harmless the Guarantee Trustee and
        any of
        its Affiliates and any of their officers, directors, shareholders, employees,
        representatives or agents from and against any loss, damage, liability, tax
        (other than income, franchise or other taxes imposed on amounts paid pursuant
        to
Section
        3.3),
        penalty, expense or claim of any kind or nature whatsoever incurred without
        negligence, bad faith or willful misconduct on its part, arising out of or
        in
        connection with the acceptance or administration of this Guarantee Agreement,
        including the costs and expenses of defending itself against any claim or
        liability in connection with the exercise or performance of any of its powers
        or
        duties hereunder. The Guarantee Trustee will not claim or exact any lien
        or
        charge on any Guarantee Payments as a result of any amount due to it under
        this
        Guarantee Agreement. This indemnity shall survive the termination of this
        Agreement or the resignation or removal of the Guarantee Trustee.

       

      In
        no
        event shall the Guarantee Trustee be liable for any indirect, special, punitive
        or consequential loss or damage of any kind whatsoever, including, but not
        limited to, lost profits, even if the Guarantee Trustee has been advised
        of the
        likelihood of such loss or damage and regardless of the form of
        action.

       

      In
        no
        event shall the Guarantee Trustee be liable for any failure or delay in the
        performance of its obligations hereunder because of circumstances beyond
        its
        control, including, but not limited to, acts of God, flood, war (declared
        or
        undeclared), terrorism, fire, riot, embargo or government action, including
        any
        laws, ordinances, regulations, governmental action or the like which delay,
        restrict or prohibit the providing of the services contemplated by this
        Guarantee Agreement.

      
        
          
          

        

        
          10

          
          

        

        
          
          

        

      

       

      SECTION
        3.5   Securities.

       

      The
        Guarantee Trustee or any other agent of the Guarantee Trustee, in its individual
        or any other capacity, may become the owner or pledgee of Common or Preferred
        Securities.

       

      ARTICLE
        IV

       

      GUARANTEE
        TRUSTEE

       

      SECTION
        4.1   Guarantee
        Trustee; Eligibility.

       

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

       

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

       

      (ii)   be
        a
        corporation organized and doing business under the laws of the United States
        or
        of any State thereof, authorized to exercise corporate trust powers, having
        a
        combined capital and surplus of at least fifty million dollars ($50,000,000),
        subject to supervision or examination by Federal or State authority and having
        an office within the United States. If such corporation publishes reports
        of
        condition at least annually, pursuant to law or to the requirements of such
        supervising or examining authority, then, for the purposes of this Section
        4.1,
        the
        combined capital and surplus of such corporation shall be deemed to be its
        combined capital and surplus as set forth in its most recent report of condition
        so published.

       

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

       

      (c)   If
        the
        Guarantee Trustee has or shall acquire any "conflicting interest" within
        the
        meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee
        shall either eliminate such interest or resign in the manner and with the
        effect
        set out in Section
        4.2(c).

       

      SECTION
        4.2   Appointment,
        Removal and Resignation of the Guarantee Trustee.

       

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

       

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

       

      
        
          
            
            

          

          
            11

            
            

          

          
            
            

          

        

      

       

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

       

      (d)   If
        no
        Successor Guarantee Trustee shall have been appointed and accepted appointment
        as provided in this Section
        4.2
        within
        thirty (30) days after delivery to the Guarantor of an instrument of
        resignation, the resigning Guarantee Trustee may petition, at the expense
        of the
        Guarantor, any court of competent jurisdiction for appointment of a Successor
        Guarantee Trustee. Such court may thereupon, after prescribing such notice,
        if
        any, as it may deem proper, appoint a Successor Guarantee Trustee. 

       

      ARTICLE
        V

       

      GUARANTEE

       

      SECTION
        5.1   Guarantee.

       

      (a)   The
        Guarantor irrevocably and unconditionally agrees to pay in full to the Holders
        the Guarantee Payments (without duplication of amounts theretofore paid by
        or on
        behalf of the Issuer), as and when due, regardless of any defense (except
        for
        the defense of payment by the Issuer), right of set-off or counterclaim which
        the Issuer may have or assert. The Guarantor's obligation to make a Guarantee
        Payment may be satisfied by direct payment of the required amounts by the
        Guarantor to the Holders or by causing the Issuer to pay such amounts to
        the
        Holders. The Guarantor shall give prompt written notice to the Guarantee
        Trustee
        in the event it makes any direct payment to the Holders hereunder.

       

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

      
        
          
          

        

        
          12

          
          

        

        
          
          

        

      

       

      SECTION
        5.2   Waiver
        of Notice and Demand.

       

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

       

      SECTION
        5.3   Obligations
        Not Affected.

       

      The
        obligations, covenants, agreements and duties of the Guarantor under this
        Guarantee Agreement shall in no way be affected or impaired by reason of
        the
        happening from time to time of any of the following:

       

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

       

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

       

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

       

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

       

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

       

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

       

      (g)   any
        other
        circumstance whatsoever that might otherwise constitute a legal or equitable
        discharge or defense of a guarantor, it being the intent of this Section
        5.3
        that the
        obligations of the Guarantor hereunder shall be absolute and unconditional
        under
        any and all circumstances.

      
        
          
          

        

        
          13

          
          

        

        
          
          

        

      

       

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

       

      SECTION
        5.4   Rights
        of Holders.

       

      The
        Guarantor expressly acknowledges that: (a) this Guarantee Agreement will
        be
        deposited with the Guarantee Trustee to be held for the benefit of the Holders;
        (b) the Guarantee Trustee has the right to enforce this Guarantee Agreement
        on
        behalf of the Holders; (c) the Holders of a Majority in Liquidation Amount
        of
        the Preferred Securities have the right to direct the time, method and place
        of
        conducting any proceeding for any remedy available to the Guarantee Trustee
        in
        respect of this Guarantee Agreement or exercising any trust or power conferred
        upon the Guarantee Trustee under this Guarantee Agreement; and (d) any Holder
        may institute a legal proceeding directly against the Guarantor to enforce
        its
        rights under this Guarantee Agreement, without first instituting a legal
        proceeding against the Guarantee Trustee, the Issuer or any other
        Person.

       

      SECTION
        5.5   Guarantee
        of Payment.

       

      This
        Guarantee Agreement creates a guarantee of payment and not of collection.
        This
        Guarantee Agreement will not be discharged except by payment of the Guarantee
        Payments in full (without duplication of amounts theretofore paid by the
        Issuer)
        or upon distribution of Notes to Holders as provided in the Trust
        Agreement.

       

      SECTION
        5.6   Subrogation.

       

      The
        Guarantor shall be subrogated to all (if any) rights of the Holders against
        the
        Issuer in respect of any amounts paid to the Holders by the Guarantor under
        this
        Guarantee Agreement and shall have the right to waive payment by the Issuer
        pursuant to Section
        5.1;
        provided,
        that,
        the Guarantor shall not (except to the extent required by mandatory provisions
        of law) be entitled to enforce or exercise any rights it may acquire by way
        of
        subrogation or any indemnity, reimbursement or other agreement, in all cases
        as
        a result of payment under this Guarantee Agreement, if, at the time of any
        such
        payment, any amounts are due and unpaid under this Guarantee Agreement. If
        any
        amount shall be paid to the Guarantor in violation of the preceding sentence,
        the Guarantor agrees to hold such amount in trust for the Holders and to
        pay
        over such amount to the Holders.

       

      SECTION
        5.7   Independent
        Obligations.

       

      The
        Guarantor acknowledges that its obligations hereunder are independent of
        the
        obligations of the Issuer with respect to the Preferred Securities and that
        the
        Guarantor shall be liable as principal and as debtor hereunder to make Guarantee
        Payments pursuant to the terms of this Guarantee Agreement notwithstanding
        the
        occurrence of any event referred to in subsections (a) through (g), inclusive,
        of Section
        5.3.

       

      
        
          
            
            

          

          
            14

            
            

          

          
            
            

          

        

      

       

      SECTION
        5.8   Enforcement.

       

      A
        Beneficiary may enforce the Obligations of the Guarantor contained in
Section
        5.1(b)
        directly
        against the Guarantor, and the Guarantor waives any right or remedy to require
        that any action be brought against the Issuer or any other person or entity
        before proceeding against the Guarantor.

       

      ARTICLE
        VI

       

      COVENANTS
        AND SUBORDINATION

       

      SECTION
        6.1   Dividends,
        Distributions and Payments.

       

      So
        long
        as any Preferred Securities remain outstanding, if there shall have occurred
        and
        be continuing an Event of Default or the Guarantor shall have entered into
        an
        Extension Period as provided for in the Indenture and such period, or any
        extension thereof, shall have commenced and be continuing, then the Guarantor
        may not (a) declare or pay any dividends or distributions on, or redeem,
        purchase, acquire or make liquidation payment with respect to, any of the
        Guarantor's capital stock or (b) make any payment of principal of or any
        interest or premium on or repay, repurchase or redeem any debt securities
        of the
        Guarantor that rank pari passu in all respects with or junior in interest
        to the
        Notes issued pursuant to the Indenture (other than (i) repurchases, redemptions
        or other acquisitions of shares of capital stock of the Guarantor in connection
        with any employment contract, benefit plan or other similar arrangement with
        or
        for the benefit of any one or more employees, officers, directors or
        consultants, in connection with a dividend reinvestment or stockholder stock
        purchase plan or in connection with the issuance of capital stock of the
        Guarantor (or securities convertible into or exercisable for such capital
        stock)
        as consideration in an acquisition transaction entered into prior to the
        occurrence of such Event of Default or the applicable Extension Period, (ii)
        as
        a result of a reclassification of the Guarantor's capital stock or the exchange
        or conversion of any class or series of the Guarantor's capital stock (or
        any
        capital stock of a subsidiary of the Guarantor) for any class or series of
        the
        Guarantor's capital stock or any class or series of the Guarantor's indebtedness
        for any class or series of the Guarantor's capital stock, (iii) the purchase
        of
        fractional interests in shares of the Guarantor's capital stock pursuant
        to the
        conversion or exchange provisions of such capital stock or the security being
        converted or exchanged, (iv) any declaration of a dividend in connection
        with
        any rights plan, the issuance of rights, stock or other property under any
        rights plan or the redemption or repurchase of rights pursuant thereto, or
        (v)
        any dividend or distribution in the form of stock, warrants, options or other
        rights where the dividend or distribution stock or the stock issuable upon
        exercise of such warrants, options or other rights is the same stock as that
        on
        which the dividend or distribution is being paid or ranks pari passu with
        or
        junior to such stock) or dividends or distributions in shares of, or options
        warrants, rights to subscribe for or purchase shares of, common stock of
        the
        Guarantor.

       

      SECTION
        6.2   Subordination.

       

      The
        obligations of the Guarantor under this Guarantee Agreement will constitute
        unsecured obligations of the Guarantor and will rank subordinate and junior
        in
        right of payment to all Senior Debt of the Guarantor to the extent and in
        the
        same manner that the Notes are subordinated to Senior Debt pursuant to the
        Indenture, it being understood that the terms of Article XII of the Indenture
        shall apply to the obligations of the Guarantor under this Guarantee Agreement
        as if such provisions were set forth in full herein.

       

      
        
          
            
            

          

          
            15

            
            

          

          
            
            

          

        

      

       

      SECTION
        6.3   Pari
        Passu Guarantees.

       

      (a)   The
        obligations of the Guarantor under this Guarantee Agreement shall rank
pari
        passu
        with the
        obligations of the Guarantor under any similar guarantee agreements issued
        by
        the Guarantor with respect to preferred securities (if any) similar to the
        Preferred Securities, issued by trusts other than the Issuer established
        or to
        be established by the Guarantor (if any), in each case similar to the
        Issuer.

       

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

       

      ARTICLE
        VII

       

      TERMINATION

       

      SECTION
        7.1   Termination.

       

      This
        Guarantee Agreement shall terminate and be of no further force and effect
        upon
        (a) full payment of the Redemption Price of all Preferred Securities, (b)
        the
        distribution of Notes to the Holders in exchange for all of the Preferred
        Securities or (c) full payment of the amounts payable in accordance with
        the
        Trust Agreement upon liquidation of the Issuer. Notwithstanding the foregoing,
        this Guarantee Agreement will continue to be effective or will be reinstated,
        as
        the case may be, if at any time any Holder must restore payment of any sums
        paid
        with respect to Preferred Securities or this Guarantee Agreement. The
        obligations of the Guarantor under Sections
        3.3
        and
3.4
        shall
        survive any such termination or the resignation and removal of the Guarantee
        Trustee.

       

      
        
          
            
            

          

          
            16

            
            

          

          
            
            

          

        

      

       

      ARTICLE
        VIII

       

      MISCELLANEOUS

       

       

      SECTION
        8.1   Successors
        and Assigns.

       

      All
        guarantees and agreements contained in this Guarantee Agreement shall bind
        the
        successors, assigns, receivers, trustees and representatives of the Guarantor
        and shall inure to the benefit of the Holders of the Preferred Securities
        then
        outstanding. Except in connection with a consolidation, merger or sale involving
        the Guarantor that is permitted under Article VIII of the Indenture and pursuant
        to which the successor or assignee agrees in writing to perform the Guarantor's
        obligations hereunder, the Guarantor shall not assign its rights or delegate
        its
        obligations hereunder without the prior approval of the Holders of a Majority
        in
        Liquidation Amount of the Preferred Securities.

       

      SECTION
        8.2   Amendments.

       

      Except
        with respect to any changes that do not adversely affect the rights of the
        Holders in any material respect (in which case no consent of the Holders
        will be
        required), this Guarantee Agreement may only be amended with the prior approval
        of the Guarantor, the Guarantee Trustee and the Holders of not less than
        a
        Majority in Liquidation Amount of the Preferred Securities. The provisions
        of
        Article VI of the Trust Agreement concerning meetings or consents of the
        Holders
        shall apply to the giving of such approval.

       

      SECTION
        8.3   Notices.

       

      Any
        notice, request or other communication required or permitted to be given
        hereunder shall be in writing, duly signed by the party giving such notice,
        and
        delivered, telecopied or mailed by first class mail as follows:

       

      (a)   if
        given
        to the Guarantor, to the address or facsimile number set forth below or such
        other address, facsimile number or to the attention of such other Person
        as the
        Guarantor may give by notice to the Guarantee Trustee and the
        Holders:

       

      Trustmark
        Preferred Capital Trust I

      248
        E.
        Capitol Street

      Jackson,
        Mississippi 39201

      Facsimile
        No.: (601) 208-7966

      Attention:
        Chief Financial Officer

       

      (b)   if
        given
        to the Issuer, at the Issuer's address or facsimile number set forth below
        or
        such other address, facsimile number or to the attention of such other Person
        as
        the Issuer may give by notice to the Guarantee Trustee and the
        Holders:

       

      Trustmark
        Preferred Capital Trust I

      c/o
        Trustmark Corporation

      248
        E.
        Capitol Street

      Jackson,
        Mississippi 39201

      Facsimile
        No.: (601) 208-7966

      Attention:
        Administrative Trustee

      
        
          
          

        

        
          17

          
          

        

        
          
          

        

      

      

      (c)   if
        given
        to the Guarantee Trustee, at the address or facsimile number set forth below
        or
        such other address, facsimile number or to the attention of such other Person
        as
        the Guarantee Trustee may give by notice to the Guarantor and the
        Holders:

       

      Wilmington
        Trust Company

      Rodney
        Square North

      1100
        North Market St.

      Wilmington,
        Delaware 19890-1600

      Facsimile
        No.: (302) 636-4140

      Attention:
        Corporate Trust Administration

      

      (d)   if
        given
        to any Holder, at the address set forth on the books and records of the
        Issuer.

       

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

       

      SECTION
        8.4   Benefit.

       

      This
        Guarantee Agreement is solely for the benefit of the Holders and is not
        separately transferable from the Preferred Securities.

       

      SECTION
        8.5   Governing
        Law.

       

      This
        Guarantee Agreement and the rights and obligations of each party hereto,
        shall
        be construed and enforced in accordance with and governed by the laws of
        the
        State of New York without reference to its conflict of laws provisions (other
        than Section 5-1401 of the General Obligations Law).

       

      SECTION
        8.6   Submission
        to Jurisdiction.

       

      ANY
        LEGAL
        ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR
        ARISING OUT OF THIS GUARANTEE AGREEMENT MAY BE BROUGHT IN OR REMOVED TO THE
        COURTS OF THE STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF
        THE
        UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE
        SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS
        GUARANTEE AGREEMENT, EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS
        PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
        COURTS (AND COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT
        OF OR
        IN CONNECTION WITH THIS GUARANTEE AGREEMENT.

       

      
        
          
            
            

          

          
            18

            
            

          

          
            
            

          

        

      

       

      SECTION
        8.7   Counterparts.

       

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

       

      [THE
        NEXT
        PAGE IS THE SIGNATURE PAGE]

      
         

        
          
            
              
              

            

            
              19

              
              

            

            
              
              

            

          

        

         

      

      IN
        WITNESS WHEREOF,
        the
        undersigned have executed this Guarantee Agreement as of the date first above
        written.

       

      
        	 	
                TRUSTMARK
                  CORPORATION

              
	 	 
	 	
                By:
                  

              	/s/
                Zach Wasson
	 	 	
                Name:
                  Zach Wasson

              
	 	 	
                Title:
                  Treasurer and Chief Financial Officer

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

              
	 	 
	 	
                By:
                  

              	/s/
                W. Thomas Morris, II
	 	 	
                Name:
                  W. Thomas Morris, II

              
	 	 	
                Title:
                  Assistant Vice PresidentAVALON INTERNATIONAL GROUP
                          45 WEST 21ST STREET, SUITE 3C
                               NEW YORK, NY 10010
                                  212-242-2600

                         MANAGEMENT CONSULTING AGREEMENT

This  Consulting  Agreement  (the "Agreement") is to be effective as of the 21th
day  of  November,  2005 by and between Dermisonics, Inc., having its' principal
place  of  business  at,  Four  Tower  Bridge,  200  Bar  Harbor  Drive,  West
Conshohocken,  PA  19428-2977  of  Dermisonics,  Inc.,  (the  "Company"  or
"Corporation")  and  Avalon  International  Group, (the "Consultant")having its'
principal  place  of  business  at  45  West  21st  Street,  New York, NY 10010.

                          The parties agree as follows:

1.   Dermisonics,  Inc., hereby engages the Consultant and the Consultant hereby
     agrees  to  render  services  to  the  Company  as a management consultant,
     strategic  planner  and  corporate  finance  advisor.

2.   Duties:  During the term of this Agreement, Consultant shall provide advice
     to,  undertake  for,  and  consult  with  the  Company concerning strategic
     planning, and corporate development on connection with the operation of the
     business of the Company. Consultant agrees to provide on a timely basis the
     following  enumerated  services  plus  any additional services contemplated
     thereby:

          (a)  The  implementation  of  short  range  and  long  term  strategic
               planning  to  fully  develop  and  enhance  the Company's assets,
               resources,  products  and  services;
          (b)  The  implementation  of a marketing program to assist the Company
               in  broadening  the  markets  for  its  business and services and
               promote  the  image of the Company and its business and services;
          (c)  The implementation  of  all  corporate  development  enhancements
               in  a  timely  manner;
          (d)  Advise  and recommend to the Company additional services relating
               to  the present business and services provided by the Company, as
               well  as  new  products  and services that may be provided by the
               Company.
          (e)  Identify  financing  sources and investors for a capital infusion
               into  the  Company  which  is contemplated to be approximately $6
               million.  The  capital  raise will be conducted on a best efforts
               basis  by  the  Consultant  and  the  Consultant  will  advise on
               structuring,  pricing  and  all investment banking aspects of the
               proposed  transaction.

Initial:
          -----

Initial:
          -----

<PAGE>
3.   Term: The  term  of this Agreement shall be for 1 year period commencing on
     the  date  here  of  and  will  continue  on  a  month to month bases until
     terminated  by the Consultant or the Company with thirty (30) day notice by
     either  certified  or  registered  mail.

4.   Compensation: See Attachment "A".

5.   Expenses:  Consultant shall be entitled for reimbursement by the Company of
     such  reasonable  out  of  pocket  expenses  as  Consultant  may  incur  in
     performing  services  under this Agreement. Any expenses over $500.00 shall
     be  approved  in  advance  with  the  Company.

6.   Confidentiality:  Consultant will not disclose to any other person, firm or
     corporation,  nor use for its own benefit, during or after the term of this
     Agreement,  any  trade  secrets  or  other  information  designated  as
     confidential  by  the  Company  which  is acquired by the Consultant in the
     course  of  performing  services  hereunder.

7.   Indemnification:  Dermisonics,  Inc., its agents or assigns hereby agree to
     indemnify and hold Consultant harmless from and against all losses, claims,
     damages,  liabilities,  costs or expenses (including, reasonable attorney's
     fees  (collectively  the  "Liabilities")  joint and several, arising of the
     performance  of  Consulting Agreement, whether or not Consultant is a party
     to  such  dispute.  This indemnity shall not apply, however, and Consultant
     shall  indemnify  and  hold  the  Company, its affiliates, control persons,
     officers,  employees  and agents harmless from and against all liabilities,
     where a court of competent jurisdiction has made a final determination that
     Consultant  engaged  in  gross  recklessness  and willful misconduct in the
     performance of its services hereunder which gave rise to the losses, claim,
     damage,  liability,  cost or expense sought to be recovered hereunder (butt
     pending any such final determination, the indemnification and reimbursement
     provisions  of this Agreement shall apply and the Company shall perform its
     obligations  thereunder  to  reimburse  Consultant  for  its expenses.) The
     provisions of this paragraph 7 shall survive the termination and expiration
     of  this  Agreement.

8.   Independent  Contractor: Consultant and the Company hereby acknowledge that
     Consultant  is  an independent contractor. Consultant shall not hold itself
     out  as, nor shall it take any action from which others might infer that it
     is  an  agent  of  or  a  joint  venture  of  the  Company.

Initial:
         -----

Initial:
         -----

<PAGE>
9.   Miscellaneous:  This  Agreement  sets forth the entire understanding of the
     parties  relating  to the subject matter hereof, and supersedes and cancels
     any  prior  communications,  understandings  and  agreements  between  the
     parties.  This  Agreement cannot be modified or changed, nor can any of its
     provisions  be  waived,  except by written agreement signed by all parties.
     The  laws  of  the  State  of  New  York  shall  govern  this  agreement.

The  foregoing  correctly sets forth our understanding by signing this Agreement
where  provided.

Accepted and Agreed to as of the 21th day of November, 2005.

-------------------------------        -------------------------------
David Baker, Managing Partner          Bruce H. Haglund, Chairman
Avalon International Group.            Dermisonics, Inc.

<PAGE>
ATTACHMENT "A"

For services rendered by the Consultant under this Agreement, the Company agrees
it  will  pay  to  Consultant  the  following  fees:

     a)   The Company  will  pay  the  Consultant  a  10%  cash fee of the gross
          proceeds  the  Company receives on any successful equity financing. In
          addition, the Company will pay the Consultant warrants to purchase the
          Company's  common  stock  equal  to  10%  of  the  gross proceeds on a
          successful  equity  financing.  For  example,  based upon a $5 million
          financing  the Consultant would receive 694,444 warrants calculated as
          follows:  $5,000,000  (Gross Proceeds received by the Company) X .10 =
          $500,000/.72  per  share exercise price = 694,444.) The Company agrees
          to  register  shares  immediately upon exercise of the warrants by the
          Consultant.  The  terms  of  the  warrants  will  be:

                         (i)     2 year term
                         (ii)    Exercise price at .72 per share
                         (iii)   Piggy Back rights and full racket
                                 protection.

     b)   The  Consultant  agrees to waive its customary monthly cash consulting
          fee in exchange for the Company providing the Consultant 50,000 shares
          of  the  Company's common stock. These shares will be registered under
          144  and  be  free  trading  one  year after the date of issuance. The
          Company  agrees  to  deliver  these  shares  in a timely manner to the
          Consultant  upon  execution  of  this  contract.

     c)   The Consultant  at  its  option,  and  upon  agreement of the Company,
          may elect to receive fully registered free trading shares (in whole or
          in  part)  or  144  stock of the Company's common stock in lieu of the
          warrants  noted  in  paragraphs  a).

     d)   The Company  and  Consultant  may  enter  into additional compensation
          agreements  for  work  that  it  not  contemplated  in this Agreement.

The  above Agreement is for a one year period commencing on the date herein. The
Agreement will continue thereafter on a month-to-month basis until terminated by
either  Consultant  or  the  Company  with 30 days notice by either certified or
registered  mail.

-------------------------------           -----------------------------
David Baker, Managing Partner             Bruce H. Haglund, Chairman
Avalon International Group.               Dermisonics, Inc.

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