Document:

Ex. 4.2 - 9.30.13

Foster Bankshares, Inc. as Company

INDENTURE  Dated as of July 8, 2005

LASALLE BANK NATIONAL  ASSOCIATION As Trustee

JUNIOR SUBORDINATED DEBT SECURITIES Due July 8, 2035

1

TABLE OF CONTENTS
	
					
	 
	 
	 
	 
	Page

	 
	 
	ARTICLE I
	 

	 
	 
	 DEFINITIONS
	 

	SECTION 1.01.
	Definitions
	1

	 
	Additional Interest
	 

	 
	Additional Provisions
	 

	 
	Authenticating Agent
	 

	 
	Bankruptcy Law
	 

	 
	Board of Directors
	 

	 
	Board Resolution
	 

	 
	Business Day
	 

	 
	Calculation Agent
	 

	 
	Capital Securities
	 

	 
	Capital Securities Guarantee
	 

	 
	Capital Treatment Event
	 

	 
	Certificate
	 

	 
	Common Securities
	 

	 
	Company
	 

	 
	Debt Security
	 

	 
	Debt Security Register
	 

	 
	Declaration
	 

	 
	Default
	 

	 
	Defaulted Interest
	 

	 
	Deferred Interest
	 

	 
	Event of Default
	 

	 
	Extension Period
	 

	 
	Federal Reserve
	 

	 
	Indenture
	 

	 
	Indenture
	 

	 
	Institutional Trustee
	 

	 
	Interest Payment Date
	 

	 
	Interest Rate
	 

	 
	Investment Company Event
	 

	 
	LIBOR
	 

	 
	LIBOR Banking Day
	 

	 
	LIBOR Business Day
	 

	 
	LIBOR Determination Date
	 

	 
	Liquidation Amount
	 

	 
	Maturity Date
	 

	 
	Notice
	 

	 
	Officers' Certificate
	 

i

TABLE OF CONTENTS
(CONTINUED)

	
					
	 
	 
	 
	 
	Page

	 
	Opinion of Counsel
	 

	 
	OTS
	 

	 
	Outstanding
	 

	 
	Paying Agent
	 

	 
	Person
	 

	 
	Predecessor Security
	 

	 
	Principal Office of the Trustee
	 

	 
	Redemption Date
	 

	 
	Redemption Price
	 

	 
	Responsible Officer
	 

	 
	Securityholder
	 

	 
	Senior Indebtedness
	 

	 
	Special Event
	 

	 
	Special Redemption Date
	 

	 
	Subsidiary
	 

	 
	Tax Event
	 

	 
	Trust
	 

	 
	Trust Indenture Act
	 

	 
	Trust Securities
	 

	 
	Trustee
	 

	 
	United States
	 

	 
	U.S. Person
	 

	 
	 
	 

	 
	ARTICLE II
	 

	 
	DEBT SECURITIES
	 

	SECTION 2.01.
	 
	Authentication and Dating
	7

	SECTION 2.02.
	 
	Form of Trustee's Certificate of Authentication
	8

	SECTION 2.03.
	 
	Form and Denomination  of Debt Securities
	8

	SECTION 2.04.
	 
	Execution of Debt Securities
	8

	SECTION 2.05.
	 
	Exchange and Registration of Transfer of Debt Securities
	9

	SECTION 2.06.
	 
	Mutilated, Destroyed, Lost or Stolen Debt Securities
	11

	SECTION 2.07.
	 
	Temporary Debt Securities
	12

	SECTION 2.08.
	 
	Payment of Interest
	12

	SECTION 2.09.
	 
	Cancellation of Debt Securities Paid, etc
	13

	SECTION 2.10.
	 
	Computation of Interest
	14

	SECTION 2.11.
	 
	Extension of Interest Payment Period
	16

ii

TABLE OF CONTENTS
(CONTINUED)

	
					
	 
	 
	 
	 
	Page

	SECTION 2.12.
	 
	CUSIP Numbers
	17

	SECTION 2.13.
	 
	Income Tax Certification
	17

	 
	 
	 
	 
	 

	 
	ARTICLE III
	 

	 
	PARTICULAR COVENANTS OF THE COMPANY
	 

	SECTION 3.01.
	 
	Payment of Principal, Premium and Interest; Agreed Treatment of the Debt Securities
	18

	SECTION 3.02.
	 
	Offices for Notices and Payments, etc
	18

	SECTION 3.03.
	 
	Appointments to Fill Vacancies in Trustee's Office
	19

	SECTION 3.04.
	 
	Provision as to Paying Agent
	19

	SECTION 3.05.
	 
	Certificate to Trustee
	20

	SECTION 3.06.
	 
	Additional Interest
	20

	SECTION 3.07.
	 
	Compliance with Consolidation Provisions
	20

	SECTION 3.08.
	 
	Limitation on Dividends
	20

	SECTION 3.09.
	 
	Covenants as to the Trust
	21

	 
	 
	 
	 

	 
	ARTICLE IV
	 

	 
	LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 

	SECTION 4.01.
	 
	Securityholders' Lists
	21

	SECTION 4.02.
	 
	Preservation and Disclosure of Lists
	22

	 
	 
	 
	 

	 
	ARTICLEV
	 

	 
	REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS  UPON AN EVENT OF DEFAULT
	 

	SECTION 5.01.
	 
	Events of Default
	24

	SECTION 5.02.
	 
	Payment of Debt Securities on Default; Suit Therefor
	26

	SECTION 5.03.
	 
	Application of Moneys Collected by Trustee
	27

	SECTION 5.04.
	 
	Proceedings by Securityholders
	27

	SECTION 5.05.
	 
	Proceedings by Trustee
	28

	SECTION 5.06.
	 
	Remedies Cumulative and Continuing
	28

	SECTION 5.07.
	 
	Direction of Proceedings and Waiver ofDefaults by Majority of
Securityholders
	28

	SECTION 5.08.
	 
	Notice of Defaults
	29

iii

TABLE OF CONTENTS
(CONTINUED)

	
					
	 
	 
	 
	 
	Page

	SECTION 5.09.
	 
	Undertaking to Pay Costs
	29

	 
	 
	 
	 
	 

	 
	ARTICLE VI
	 

	 
	CONCERNING THE TRUSTEE
	 

	SECTION 6.01.
	 
	Duties and Responsibilities of Trustee
	29

	SECTION 6.02.
	 
	Reliance on Documents, Opinions, etc
	31

	SECTION 6.03.
	 
	No Responsibility for Recitals, etc
	32

	SECTION 6.04.
	 
	Trustee, Authenticating  Agent, Paying Agents, Transfer Agents or
Registrar May Own Debt Securities
	32

	SECTION 6.05.
	 
	Moneys to be Held in Trust
	32

	SECTION 6.06.
	 
	Compensation and Expenses of Trustee
	32

	SECTION 6.07.
	 
	Officers' Certificate as Evidence
	33

	SECTION 6.08.
	 
	Eligibility of Trustee
	33

	SECTION 6.09.
	 
	Resignation or Removal of Trustee, Calculation Agent, Paying
Agent or Debt Security Registrar
	34

	SECTION 6.10.
	 
	Acceptance by Successor
	35

	SECTION 6.11.
	 
	Succession by Merger, etc
	36

	SECTION 6.12.
	 
	Authenticating Agents
	36

	 
	 
	 
	 
	 

	 
	ARTICLE VII
	 

	 
	CONCERNING THE SECURITYHOLDERS
	 

	SECTION 7.01.
	 
	Action by Securityholders
	37

	SECTION 7.02.
	 
	Proof of Execution by Securityholders
	38

	SECTION 7.03.
	 
	Who Are Deemed Absolute Owners
	38

	SECTION 7.04.
	 
	Debt Securities Owned by Company Deemed Not Outstanding
	38

	SECTION 7.05.
	 
	Revocation of Consents; Future Securityholders  Bound
	39

	 
	 
	 
	 
	 

	 
	ARTICLE VIII
	 

	 
	SECURITYHOLDERS' MEETINGS
	 

	SECTION 8.01.
	 
	Purposes of Meetings
	39

	SECTION 8.02.
	 
	Call of Meetings by Trustee
	40

	SECTION 8.03.
	 
	Call of Meetings by Company or Securityholders
	40

	SECTION 8.04.
	 
	Qualifications for Voting
	40

iv

TABLE OF CONTENTS
(CONTINUED)

	
					
	 
	 
	 
	 
	Page

	SECTION 8.05.
	 
	Regulations
	42

	SECTION 8.06.
	 
	Voting
	43

	SECTION 8.07.
	 
	Quorum; Actions
	43

	SECTION 8.08.
	 
	Written Consent Without a Meeting
	44

	 
	 
	 
	 
	 

	 
	ARTICLE IX
	 

	 
	SUPPLEMENTAL INDENTURES
	 

	SECTION 9.01.
	 
	Supplemental Indentures without Consent of Securityholders
	44

	SECTION 9.02.
	 
	Supplemental Indentures with Consent of Securityholders
	45

	SECTION 9.03.
	 
	Effect of Supplemental Indentures
	46

	SECTION 9.04.
	 
	Notation on Debt Securities
	46

	SECTION 9.05.
	 
	Evidence of Compliance of Supplemental Indenture to be
furnished to Trustee
	46

	 
	 
	 
	 
	 

	 
	ARTICLE X
	 

	 
	REDEMPTION OF SECURITIES
	 

	SECTION 10.01.
	 
	Optional Redemption
	47

	SECTION 10.02.
	 
	Special Event Redemption
	47

	SECTION 10.03.
	 
	Notice of Redemption; Selection of Debt Securities
	47

	SECTION 10.04.
	 
	Payment of Debt Securities Called for Redemption
	48

	 
	 
	 
	 
	 

	 
	ARTICLE XI
	 

	 
	CONSOLIDATION,  MERGER, SALE, CONVEYANCE AND LEASE
	 

	SECTION 11.01.
	 
	Company May Consolidate, etc., on Certain Terms
	48

	SECTION 11.02.
	 
	Successor Entity to be Substituted
	49

	SECTION 11.03.
	 
	Opinion of Counsel to be Given to Trustee
	49

	 
	 
	 
	 
	 

	 
	ARTICLE XII
	 

	 
	SATISFACTION AND DISCHARGE  OF INDENTURE
	 

	SECTION 12.01.
	 
	Discharge of Indenture
	50

	SECTION 12.02.
	 
	Deposited Moneys to be Held in Trust by Trustee
	50

	SECTION 12.03.
	 
	Paying Agent to Repay Moneys Held
	50

	SECTION 12.04.
	 
	Return of Unclaimed  Moneys
	51

	 
	 
	 
	 
	 

	 
	ARTICLE XIII
	 

	 
	IMMUNITY  OF INCORPORATORS, STOCKHOLDERS, OFFICERS  AND DIRECTORS
	 

	SECTION 13.01.
	 
	Indenture and Debt Securities Solely Corporate Obligations
	51

	 
	 
	 
	 
	 

	 
	ARTICLE XIV
	 

	 
	MISCELLANEOUS PROVISIONS
	 

	SECTION 14.01.
	 
	Successors
	51

	SECTION 14.02.
	 
	Official Acts by Successor  Entity
	51

	SECTION 14.03.
	 
	Surrender of Company Powers
	51

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TABLE OF CONTENTS
(CONTINUED)

	
					
	 
	 
	 
	 
	Page

	SECTION 14.04.
	 
	Addresses for Notices, etc
	52

	SECTION 14.05.
	 
	Governing Law
	52

	SECTION 14.06.
	 
	Evidence of Compliance  with Conditions  Precedent
	52

	SECTION 14.07.
	 
	Non-Business  Days
	53

	SECTION 14.08.
	 
	Table of Contents, Headings, etc
	53

	SECTION 14.09.
	 
	Execution in Counterparts
	54

	SECTION 14.10.
	 
	Severability
	54

	SECTION 14.11.
	 
	Assignment
	54

	SECTION 14.12.
	 
	Acknowledgment of Rights
	54

	 
	 
	 
	 
	 

	 
	ARTICLE XV
	 

	 
	SUBORDINATION OF DEBT SECURITIES
	 

	SECTION 15.01.
	 
	Agreement to Subordinate
	55

	SECTION 15.02.
	 
	Default on Senior Indebtedness
	55

	SECTION 15.03.
	 
	Liquidation; Dissolution; Bankruptcy
	56

	SECTION 15.04.
	 
	Subrogation
	57

	SECTION 15.05.
	 
	Trustee to Effectuate Subordination
	58

	SECTION 15.06.
	 
	Trustee to Effectuate Subordination
	58

	SECTION 15.07.
	 
	Rights of the Trustee, Holders of Senior Indebtedness
	59

	SECTION 15.08.
	 
	Subordination May Not Be Impaired
	59

	 
	 
	 
	 
	 

	EXHIBITS
	 
	 
	 
	 

	EXHIBIT A
	 
	FORM OF DEBT SECURITY
	A-1

vi

THIS INDENTURE, dated as of July 8, 2005, between Foster Bankshares, Inc., a bank holding company incorporated in Delaware (hereinafter sometimes called the "Company"), and LaSalle Bank National Association as trustee (hereinafter sometimes called the "Trustee").

W I TN E S S E T H:

WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance of its Junior Subordinated Debt Securities due July 8, 2035 (the "Debt Securities") under this Indenture and to provide, among other things, for the execution and authentication, delivery and administration thereof, the Company has duly authorized the execution of this Indenture.

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

ARTICLE I 

DEFINITIONS

SECTION 1.01.  Definitions.

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

"Additional Interest" shall have the meaning set forth in Section 3.06. "Additional Provisions" shall have the meaning set forth in Section 15.01.
"Authenticating Agent" means any agent or agents of the Trustee which at the time shall be appointed and acting pursuant to Section 6.12.

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

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

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

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

1

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

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

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

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

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

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

2

"Company" means Foster Bankshares, Inc., a bank holding company incorporated in Delaware, and, subject to the provisions of Article XI, shall include its. successors and assigns.
this Indenture.
 
"Debt Security" or "Debt Securities"  has the meaning stated in the first recital of

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

"Declaration" means the Amended and Restated Declaration of Trust of the Trust dated as of July 8, 2005, as amended or supplemented from time to time.

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

"Defaulted Interest" has the meaning set forth in Section 2.08. "Deferred Interest" has the meaning set forth in Section 2.11.
"Event  of  Default"   means  any  event  specified   in  Section   5.01,  which  has continued  for  the  period  of  time,  if  any,  and  after  the  giving  of  the  notice,  if  any,  therein designated.

"Extension Period" has the meaning set forth in Section 2.11.
"Federal Reserve" means the Board of Governors ofthe Federal Reserve System. "Indenture"  means  this  instrument   as  originally  execttted  or,  if  amended  or
supplemented as herein provided, as so amended or supplemented, or both.

"Initial Purchaser" means the initial purchaser of the Capital Securities. "Institutional Trustee" has the meaning set forth in the Declaration.
"Interest Payment Date" means March 15, June 15, September  15 and December
15 of each year, commencing on September 15,2005, during the term of this Indenture.
"Interest  Payment  Period"   means  the  period  from  and  including  an  Interest Payment Date, or in the case of the first Interest Payment Period, the original date of issuance of the Debt Securities, to, but excluding, the next succeeding Interest Payment Date or, in the case of the last Interest Payment Period, the Redemption Date, Special Redemption  Date or Maturity Date, as the case may be.

"Interest  Rate" means,  with respect  to any Interest  Period,  a per annum  rate of interest,  equal  to LIBOR,  as determined  on the LIBOR  Determination  Date for such  Interest Payment Date, plus 1.70%; provided,  however, that the Interest Rate for any Interest Payment Period  may  not  exceed  the  highest  rate  permitted  by  New  York  law,  as  the  same  may  be modified by United States law of general application.

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

3

"LIBOR"  means the London  Interbank Offered Rate for U.S. Dollar deposits  in
Europe as determined by the Calculation Agent according to Section 2.1O(b).

"LIBOR Banking Day" has the meaning set forth in Section 2.10(b)(1). "LIBOR Business Day" has the meaning set forth in Section 2.1O(b)(1). "LIBOR Determination Date" has the meaning set forth in Section 2.1O(b).
"Liquidation Amount" means the liquidation amount of$1,000 per Trust Security. "Maturity Date" means July 8, 2035.
"Notice" has the meaning set forth in Section 2.11.

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

"Opinion of Counsel" means an opinion in writing signed  by legal counsel, who may  be  an  employee  of  or  counsel  to  the  Company,  or  may  be  other  counsel  reasonably satisfactory  to  the  Trustee.  Each  such  opinion  shall  include  the  statements  provided  for  in Section 14.06 if and to the extent required by the provisions of such Section.
"OTS" means the Office of Thrift Supervision  and any successor federal agency that is primarily responsible for regulating the activities of savings and loan holding companies.

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

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

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

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

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

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

4

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

"Principal Office of the Trustee" means the office of the Trustee, at which at any particular time its corporate trust business shall be principally  administered,  which at all times shall be located within the United States and at the time of the execution of this Indenture shall be 135 S. LaSalle Street, Suite 1511, Chicago, Illinois 60603, Attn: CDO Trust Services Group­ Foster Capital Trust I

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

"Redemption  Price" means 100% of the principal amot111t of the Debt Securities being redeemed  plus accrued  and  unpaid  interest  on such Debt  Securities  to the Redemption Date.

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

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

"Senior Indebtedness" means, with respect to the Company, (i) the principal, premium, if any, and interest in respect of (A) indebtedness of the Company for money borrowed and  (B)  indebtedness  evidenced  by  securities,  debentures,  notes, · bonds  or  other  similar instruments issued by the Company; (ii) all capital lease obligations of the Company; (iii) all obligations of the Company issued or assumed as the deferred purchase price of property, all conditional sale obligations of the Company and all obligations of the Company under any title retention agreement (but excluding trade accounts payable arising in the ordinary course of business); (iv) all obligations of the Company for the reimbursement of any letter of credit, any banker's acceptance, any security purchase facility, any repurchase agreement or similar arrangement, any  interest  rate swap, any  other  hedging arrangement, any  obligation  under options or any similar credit or other transaction; (v) all obligations of the type referred to in clauses (i) through (iv) above of other Persons for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise; and (vi) all obligations of the type referred to in clauses (i) through (v) above of other Persons secured by any lien on any property or asset of the Company (whether or not such obligation is assumed by the Company), whether incurred on or prior to the date of this Indenture or thereafter incurred, unless, with the prior approval of the Federal Reserve if not otherwise generally approved, 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 or are pari passu in right of payment to the Debt Securities; provided, however, that Senior Indebtedness shall not include (A) any debt securities issued to any trust other than the Trust (or a trustee of such trust) that is a financing vehicle of the Company (a "financing entity"), in connection with the issuance by such financing entity of equity or other securities in transactions substantially similar in structure to the transactions 

5

contemplated hereunder and in the Declaration, (B) any guarantees of the Company in respect of the equity or other securities of any financing entity referred to in clause (A) above or (C) any other instruments classified as subordinated or pari passu to the Debt Securities by the Federal Reserve.

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

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

"Special Redemption Price" means, with respect to the redemption of any Debt Security  following  a  Special  Event,  an  amount  in  cash  equal  to  103.525%  of  the  principal amount of Debt Securities  to be redeemed prior to September 15, 2006 and thereafter equal to the percentage  of the  principal  amount  of the Debt  Securities  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 15 
	Percentage of Principal Amount

	2006 
	103.14%

	2007 
	102.355%

	2008 
	101.57%

	2009 
	100.785%

	2010 and thereafter
	100%

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

"Tax Event" means the receipt by the Company  and the Trust of an Opinion  of Counsel experienced in such matters to the effect that, as a result of any amendment to or change (including any announced  prospective change) in the laws or any reguhltions thereunder of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative  pronouncement  (including any private letter ruling, technical  advice memorandum,  regulatory  procedure,  notice or announcement  (an "Administrative  Action")) or judicial decision interpreting  or applying  such laws or regulations,  regardless  of whether such Administrative  Action  or  judicial  decision  is  issued  to  or  in  connection  with  a  proceeding involving  the Company  or the  Trust  and  whether  or  not  subject  to  review  or  appeal,  which amendment, clarification, change, Administrative  Action or decision is enacted, promulgated or announced, in each case on or after the date of original issuance of the Debt Securities, there is more than an insubstantial risk that: (i) the Trust is, or will be within 90 days of the date of such opinion, 

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subject to United States federal income tax with respect to income received or accrued on the Debt Securities;  (ii) interest  payable  by the Company  on the Debt Securities  is not, or within 90 days of the date of such opinion, will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes; or (iii) the Trust is, or will be within 90 days of the date of such opinion, subject to or otherwise required to pay, or required to withhold from distributions  to holders of Trust Securities, more than a de minimis amount of other taxes (including withholding taxes), duties, assessments or other governmental.charges.

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

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

"Trust  Securities"  means  Common  Securities  and  Capital  Securities  of  Foster
Capital Trust I.

"Trustee" means the Person identified as "Trustee" in the first paragraph hereof, and, subject to the provisions of Article VI hereof, shall also include its successors and assigns as Trustee hereunder.
"United States" means the United States of America and the District of Columbia. "U.S.  Person"  has  the  meaning  given  to  United  States  Person  as  set  forth  in
Section 7701(a)(30) ofthe Internal Revenue Code of 1986, as amended.

ARTICLE II
 
DEBT SECURITIES

SECTION 2.01.  Authentication and Dating.

Upon the execution and delivery ofthis Indenture, or from time to time thereafter, Debt Securities in an aggregate principal amount not in excess of $15,464,000  may be executed and delivered by the Company to the Trustee for authentication,  and the Trustee shall thereupon authenticate and make available for delivery said Debt Securities to or upon the written order of the Company, signed  by its Chairman of the Board of Directors,  Vice Chairman,  President  or Chief Financial Officer or one of its Vice Presidents, without any further action by the Company hereunder.  In authenticating  such Debt Securities,  and accepting  the additional  responsibilities under this Indenture in relation to such Debt Securities, the Trustee shall be entitled to receive, and  (subject  to  Section  6.01)  shall  be fully  protected  in  relying  upon  a copy  of  any  Board Resolution or Board Resolutions relating thereto and, if applicable, an appropriate record of any action taken pursuant to such resolution, in each case certified  by the Secretary or an Assistant Secretary or other officers with appropriate delegated authority of the Company as the case may be.

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The Trustee shall have the right to decline to authenticate and deliver any Debt Securities under this Section if the Trustee, being advised by counsel, determines that such action may not lawfully be taken or if a Responsible Officer of the Trustee in good faith shall determine that such action would expose the Trustee to personal liability to existing Securityholders.   The Trustee shall also be entitled to receive an opinion of counsel to the effect that (1) all conditions precedent  to the execution,  delivery  and authentication  of the Securities  have  been complied with; (2) the Securities are not required to be registered under the Securities Act; and (3) the
Indenture is not required to be qualified under the Trust Indenture Act.

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

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

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

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

LaSalle Bank National Association, not in its individual capacity but solely as Trustee

	
				
	 
	By.
	 
	 

	 
	 
	Authorized Signator
	 

SECTION 2.03.  Form and Denomination of Debt Securities.

The Debt Securities shall be substantially in the form of Exhibit A hereto. The Debt Securities shall be in registered, certificated form without coupons and in minimum denominations of $100,000 and any multiple of $1,000 in excess thereof. The Debt Securities shall be numbered, lettered, or otherwise distinguished in such manner or in accordance with such plans as the officers executing the same may determine with the approval of the Trustee as evidenced by the execution and authentication thereof.

SECTION 2.04.  Execution of Debt Securities.

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

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

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

SECTION 2.05.  Exchange and Registration of Transfer ofDebt Securities.
  
The Company shall cause to be kept, at the office or agency maintained for the purpose of registration of transfer and for exchange as provided in Section 3.02, a register (the "Debt Security Register") for the Debt Securities issued hereunder in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration and transfer of all Debt Securities as provided in this Article II. Such register shall be in written form or in any other form capable of being converted into written form within a reasonable time.

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

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

Neither the Trustee nor the Debt Security Registrar shall be responsible for ascertaining whether any transfer hereunder complies with the registration provisions of or any exemptions from the Securities Act (under and as defined in the Declaration), applicable state securities laws or the applicable laws of any other jurisdiction, ERISA, the United States Internal Revenue Code of 1986, as amended, or the Investment Company Act (under and as defined in the Declaration).

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

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

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

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

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

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE  HEREOF ALSO AGREES, REPRESENTS  AND WARRANTS THAT IT IS NOT AN EMPLOYEE  BENEFIT, INDIVIDUAL  RETIREMENT  ACCOUNT  OR OTHER  PLAN  OR  ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT  INCOME SECURITY ACT OF 1974,  AS  AMENDED  ("ERISA"),  OR  SECTION  4975  OF  THE  INTERNAL  REVENUE CODE  OF  1986,  AS  AMENDED  (THE  "CODE"),  (EACH  A  "PLAN"),  OR  AN  ENTITY WHOSE  UNDERLYING   ASSETS  INCLUDE  "PLAN  ASSETS"  BY  REASON   

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OF  ANY PLAN'S INVESTMENT  IN THE ENTITY AND NO PERSON INVESTING  "PLAN ASSETS" OF  ANY  PLAN  MAY  ACQUIRE   OR  HOLD  THIS  SECURITY   OR  ANY  INTEREST THEREIN,  UNLESS  SUCH  PURCHASER  OR HOLDER  IS  ELIGIBLE  FOR  THE EXEMPTIVE  RELIEF  AVAILABLE  UNDER  U.S.  DEPARTMENT   OF  LABOR PROHIBITED  TRANSACTION  CLASS  EXEMPTION  96-23,  95-60,  91-38,  90-1  OR 84-14 OR ANOTHER APPLICABLE EXEMPTION  OR ITS PURCHASE  AND HOLDING OF THIS SECURITY  IS NOT  PROHIBITED  BY SECTION  406 OF ERISA  OR SECTION  4975  OF THE CODE  WITH RESPECT  TO SUCH  PURCHASE  OR HOLDING.  ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED  BY ITS PURCHASE  AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE  BENEFIT PLAN WITHIN THE MEANING  OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE  OR  OTHER  PERSON  ACTING  ON  BEHALF  OF  AN  EMPLOYEE  BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE  WILL NOT RESULT IN A PROHIBITED  TRANSACTION  UNDER SECTION 406   OF  ERISA   OR   SECTION   4975   OF   THE   CODE   FOR   WHICH   THERE   IS  NO APPLICABLE STATUTORY OR ADMINISTRATIVE  EXEMPTION.

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

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

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

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

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

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

Every substituted  Debt Security issued pursuant to the provisions of this Section
2.06 by virtue of the fact that any such Debt Security is destroyed, lost or stolen shall constitute an additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Debt Security shall be found at any time, and shall be entitled to all the benefits of this Indenture equally  and proportionately  with any and all other Debt Securities  duly issued hereunder.  All Debt Securities shall be held and owned upon the express condition that, to the extent permitted by applicable  law, the foregoing  provisions  are exclusive  with  respect  to the replacement  or payment of mutilated,  destroyed,  lost or stolen Debt Securities  and shall preclude any and all other rights or remedies notwithstanding  any law or statute existing or ·hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

SECTION 2.07.  Temporary Debt Securities.

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

SECTION 2.08.  Payment of Interest.

Each Debt Security will bear interest at the then applicable Interest Rate from and including each  Interest Payment  Date or, in the case of the first  Interest  Payment  Period,  the original date of issuance of such Debt Security to, but excluding, the next succeeding Interest Payment Date or, in the case of the last Interest Payment Period, the Redemption  Date, Special Redemption  Date  or  Maturity  Date,  as  applicable,  on  the  

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principal  thereof,  on  any  overdue principal and (to the extent that payment of such interest is enforceable under applicable law) on Deferred  Interest  and  on  any  overdue  installment  of  interest  (including  Defaulted  Interest), payable (subject to the provisions of Article XII) on each Interest Payment Date commencing  on September 15, 2005. Interest and any Deferred Interest on any Debt Security that is payable, and is punctually paid or duly provided for by the Company, on any Interest Payment Date shall be paid to the Person in whose name said Debt Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment, except that interest and any Deferred Interest payable on the Maturity Date shall. be paid to the Person to whom  principal  is paid.  In the  event  that  any  Debt  Security  or  portion  thereof  is called  for redemption and the redemption  date is subsequent  to a regular record date with respect to any Interest Payment Date and either on or prior to such Interest Payment Date, interest on such Debt Security will be paid upon presentation and surrender of such Debt Security.

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

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

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

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

SECTION 2.09.  Cancellation of Debt Securities Paid, etc.

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

SECTION 2.10. Computation of Interest.

(a)       The amount of interest payable for any Interest Payment Period will be computed on the basis of a 360-day year and the actual number of days elapsed in the relevant interest period; provided, however, that upon the occurrence of a Special Event Redemption pursuant to Section 10.02 the amounts payable pursuant to this Indenture shall be calculated as set forth in the definition of Special Redemption Price.

(b)       LIBOR, for  any  Interest  Payment Period,  shall  be determined  by  the
Calculation Agent in accordance with the following provisions:

(1)       On the second LIBOR Business Day (provided, that on such day commercial banks are open for business (including dealings in foreign currency deposits) in London (a "LIBOR Banking Day"), and otherwise the next preceding LIBOR Business Day that is also a LIBOR Banking Day) prior to March 15, June 15, September 15 and December 15 (or, with respect to the first Interest Payment Period, on July 6, 2005)  (each such day, a "LIBOR Determination Date" for the following Interest Payment Period), the Calculation Agent shall obtain the rate for three-month U.S. Dollar deposits in Europe, which appears on Telerate Page 3750 (as defined in the International Swaps and Derivatives Association, Inc. 2000 Interest Rate and Currency Exchange Definitions) or such other page as may replace such Telerate Page 3750 on the Moneyline Telerate, Inc. service (or such other service or services as may be nominated by the British Banker's Association as the information vendor for the purpose of displaying London Interbank offered rates for U.S. dollar deposits), as of 11:00 a.m. (London time) on such LIBOR Determination Date, and the rate so obtained shall be LIBOR for such Interest Payment Period.   "LIBOR Business Day" means any day that is not a Saturday, Sunday or other day on which commercial banking institutions in The City of New York or Wilmington, Delaware are authorized or obligated by law or executive order to be closed. If such rate is superseded on Telerate Page 3750 by a corrected rate before  12:00 noon (London time) on the same LIBOR Determination Date, the corrected rate as so substituted will be LIBOR for that Interest Payment Period.

(2)       If, on any LIBOR Determination Date, such rate does not appear on Telerate Page 3750 or such other page as may replace such Telerate Page 3750 on the Moneyline Telerate, Inc. service (or such other service or services as may be nominated by the British Banker's Association as the information vendor for the purpose of displaying London Interbank offered rates for U.S. dollar deposits), the  Calculation  Agent  shall  determine  the  arithmetic  mean  of  the  offered quotations of the Reference Banks (as defined below) to leading banks in the London Interbank market for three-month U.S. Dollar deposits in Europe (in an amount 

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determined by the Calculation Agent) by reference to requests for quotations as of approximately 11:00 a.m. (London time) on the LIBOR Determination Date made by the Calculation Agent to the Reference Banks. If, on any LIBOR Determination Date, at least two of the Reference Banks provide such quotations, LIBOR shall equal the arithmetic mean of such quotations. If, on any LIBOR Determination Date, only one or none of the Reference Banks provide such a quotation, LIBOR shall be deemed to be the arithmetic mean of the offered quotations that at least two leading banks in the City of New York (as selected by the Calculation Agent) are quoting on the relevant LIBOR Determination Date for three-month U.S. Dollar deposits in Europe at approximately 11:00 a.m. (London time)  (in  an  amount  determined  by  the  Calculation   Agent).  As  used  herein, "Reference  Banks"  means  four  major  banks  in  the  London  Interbank  market selected by the Calculation Agent.

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

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

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

SECTION 2.11.  Extension of Interest Payment Period.

As long as it is acting in good faith, and so long as no Event of Default pursuant to paragraphs (c), (e) or (f) of Secti,on 5.01 of the Indenture has occurred  and is continuing  the Company shall have the right, from time to time and without causing  an Event of Default, to defer payments of interest on the Debt Securities by extending the interest distribution period on the Debt Securities at any time and from time to time during the term of the Debt Securities, for up to twenty consecutive quarterly periods (each such extended interest distribution period, an "Extension Period"), during which Extension Period no interest shall be due and payable (except any Additional Interest that may be due and payable). No Extension  Period may end on a date other than an Interest Payment Date or extend beyond the Maturity Date, any Redemption  Date or any Special Redemption Date, as the case may be. During any Extension Period, interest will continue to accrue on the Debt Securities,  and interest on such accrued  interest (such accrued interest and interest thereon referred  to herein as "Deferred Interest")  will accrue at an annual rate equal to the Interest Rate applicable during such Extension  Period, compounded  quarterly from the date such  Deferred  Interest  would  have been payable  were  it not for the Extension Period, to the extent permitted by law. No interest or Deferred Interest shall be due and payable during an Extension 

15

Period, except at the end thereof. At the end of any such Extension Period the Company  shall  pay all Deferred  Interest then accrued  and unpaid on the Debt Securities; provided,  however,  that  no  Extension  Period  may  extend  beyond  the  Maturity  Date;  and provided further, however, that during any such Extension Period, the Company shall be subject to the restrictions set forth in Section 3.08 of this Indenture. Prior to the termination of any Extension Period, the Company may further extend such period, provided, that such period together with all such  previous and further consecutive extensions thereof shall not exceed twenty consecutive quarterly periods, or extend beyond the Maturity Date. Upon the termination of any Extension Period and upon the payment of all Deferred Interest, the Company may commence a new Extension Period, subject to the foregoing requirements. The Company must give the Trustee notice of its election to begin such Extension Period ("Notice") not later than the related regular record date.  The Notice shall describe, in reasonable detail, why the Company has elected to begin an Extension Period.   The Notice shall acknowledge and affirm the Company's understanding that it is prohibited from issuing dividends and other distributions during the Extension Period.   Upon receipt of the Notice, an Initial Purchaser shall have the right, at its sole discretion, to disclose the name of the Company, the fact that the Company has elected to begin an Extension Period and other information that such Initial Purchaser, at its sole discretion, deems relevant to the Company's election to begin an Extension Period.  The Trustee shall give notice of the Company's election to begin a new Extension Period to the Securityholders.

SECTION 2.12.  CUSIP Numbers.

The Company in issuing the Debt Securities may use a "CUSIP" number (if then generally in use), and, if so, the Trustee shall use a "CUSIP" number in notices of redemption as a convenience to Securityholders; provided, that any such notice may state that no representation is made as to the correctness of such number either as printed on the Debt Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Debt Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee in writing of any change in the CUSIP number.

SECTION 2.13. Income Tax Certification.

As  a  condition to  the  payment  of  any  principal  of  or  interest  on  the  Debt Securities without the imposition of withholding tax, the Trustee sh13.ll require the previous delivery of properly completed and signed applicable U.S. federal income tax certifications (generally, an Internal Revenue Service Form W-9 (or applicable successor form) in the case of a person that is a "United States person" within the meaning of Section 7701 (a)(30) of the Code (under  and  as  defined  in  the  Declaration) or  an  Internal  Revenue  Service  Form  W-8 (or applicable successor form) in the case of a person that is not a "United States person" within the meaning of Section 7701(a)(30) of the Code, and any other certification acceptable to it to enable the Trustee or any Paying Agent to determine their respective duties and liabilities with respect to any taxes or other charges that they may be required to pay, deduct Qr withhold in respect of such Debt Securities.

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ARTICLE III

PARTICULAR COVENANTS OF THE COMPANY

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

(a)       The Company covenants and agrees that it will duly and punctually pay or cause to be paid all payments due on the Debt Securities at the place, at the respective times and in the manner provided in this Indenture and the Debt Securities. At the -option of the Company, each installment of interest on the Debt Securities may be paid (i) by mailing checks for such interest payable to the order of the holders of Debt Securities entitled thereto as they appear on the Debt Security Register or (ii) by wire transfer to any account with a banking institution located in the United States designated by such holders to the Paying Agent no later than the related record date. Notwithstanding anything to the contrary contained in this Indenture or any Debt Security, if the Trust or the Trustee of the Trust is the holder of any Debt Security, then all payments in respect of such Debt Security shall be made by the Company in immediately available funds when due.

(b)       The Company will  treat  the  Debt Securities as  indebtedness,  and  the interest payable in respect of such Debt Securities as interest, for all U.S. federal income tax purposes. As a condition to the payment of any principal of or interest on any Debt Security without the imposition of withholding tax, the Company shall require the previous delivery of properly completed and signed applicable U.S. federal income tax certifications (generally, an Internal Revenue Service Form W-9 (or applicable successor form) in the case of a Person that is a U.S. Person or an Internal Revenue Service Form W-8 (or applicable successor form) in the case of a Person that is not a U.S. Person and any other certification acceptable to it to enable the Company and the Trustee to determine their respective duties and liabilities with respect to any taxes or other charges that they may be required to pay or withhold in respect of such Debt Security or the holder of such Debt Security under any present or future law or regulation of the United States or any political subdivision thereof or taxing authority therein or to comply with any reporting or other requirements under any such law or regulation.

(c)       As of the date of this Indenture, the Company represents that it has no intention to exercise its right under Section 2.11 to defer payments of interest on the Debt Securities by commencing an Extension Period.

SECTION 3.02.  Offices for Notices and Payments, etc.

So long as any of the Debt Securities remain outstanding, the Company will maintain in an office or agency where the Debt Securities may be presented for payment, an office or agency where the Debt Securities may be presented for registration of transfer and for exchange as provided in this Indenture. The Company hereby appoints the Trustee at LaSalle Bank National Association, CDO Trust Services Group, Attn: Greg Myers, 135 South LaSalle, Suite 1511, Chicago, Illinois 60603- Foster Capital Trust I as such office or agency.  In case the Company shall fail to maintain any such office or shall fail to give such notice of the location or of any change in the location thereof, presentations and demands may be made and notices may be served at the Principal Office of the Trustee.

In addition to any such office or agency, the Company may from time to time designate one or more other offices or agencies where the Debt Securities may be presented for registration of transfer and 

18

for exchange in the manner provided in this Indenture, and the Company may from time to time rescind such designation, as the Company may deem desirable or expedient; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain any such office or agency for the purposes above mentioned. The Company will give to the Trustee prompt written notice of any such designation or rescission thereof.

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

The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 6.09, a Trustee, so that there shall at all times be a Trustee hereunder.

SECTION 3.04.  Provision as to Paying Agent.

(a)       If the Company shall appoint a Paying Agent other than the Trustee, it will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provision of this Section 3.04:

(1)       that it will hold all sums held by it as such agent for the payment of all payments due on the Debt Securities (whether such sums have been paid to it by the Company or by any other obligor on the Debt Securities) in trust for the benefit of the holders of the Debt Securities;

(2)       that it will give the Trustee prompt written notice of any failure by the  Company (or  by any other obligor on  the  Debt Securities) to make any payment on the Debt Securities when the same shall be due and payable; and

(3)       that it will, at any time during the continuance of any Event of Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

(b)       If the Company shall act as its own Paying Agent, it will, on or before each due date of the payments due on the Debt Securities, set aside, segregate and hold in trust for the benefit of the holders of the Debt Securities a sum sufficient to pay such payments so becoming due and will notify the Trustee in writing of any failure to take such action and of any failure by the Company (or by any other obligor under the Debt Securities) to make any payment on the Debt Securities when the same shall become due and payable.

Whenever the Company shall have one or more Paying Agents for the Debt Securities, it will, on or prior to each due date of the payments on the Debt Securities, deposit with a Paying Agent a sum sufficient to pay all payments so becoming due, such sum to be held in trust for the benefit of the Persons entitled thereto and (unless such Paying Agent is the
Trustee) the Company shall promptly notify the Trustee in writing of its action or failure to act.

(c)       Anything  in  this  Section  3.04  to  the  contrary  notwithstanding,  the Company may, at any time, for the purpose of obtaining a satisfaction and discharge with respect to the Debt Securities, or for any other reason, pay, or direct any Paying Agent to pay to the Trustee all sums held in trust by the Company or any such Paying Agent, such sums to be held by the Trustee upon the same terms and conditions herein contained.

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(d)       Anything  in  this  Section  3.04  to  the  contrary  notwithstanding,  the agreement to hold sums in trust as provided in this Section 3.04 is subject to Sections 12.03 and
12.04.

(e)     The Company hereby initially appoints the Trustee to act as Paying Agent
(the "Paying Agent").

SECTION 3.05.  Certificate to Trustee.

The Company will deliver to the Trustee on or before 120 days after the end of each fiscal year, so long as Debt Securities are outstanding hereunder, a Certificate stating that in the course of the performance by the signers of their duties as officers of the Company they would normally have knowledge of any default by the Company in the performance of any covenants of the Company contained herein, stating whether or not they have knowledge of any such default and, if so, specifying each such default of which the signers have knowledge and the nature thereof.

SECTION 3.06.   Additional Interest.

If and for so long as the Trust is the holder of all Debt Securities and is subject to or otherwise required to pay, or is required to withhold from distributions to holders of Trust Securities, any additional taxes (including withholding taxes), duties, assessments or other governmental charges as a result of a Tax Event, the Company will pay such additional amounts (the "Additional Interest") on the Debt Securities as shall be required so that the net amounts received and retained by the Trust for distribution to holders of Trust Securities after paying all taxes (including withholding taxes), duties, assessments or other governmental charges will be equal to the amounts the Trust would have received and retained for distribution to holders of Trust Securities after paying all taxes (including withholding taxes on distributions to holders of Trust Securities), duties, assessments or other governmental charges if rio such additional taxes, duties,  assessments  or  other  governmental  charges  had  been  imposed.  Whenever  in  this Indenture or the Debt Securities there is a reference in any context to the payment of principal of or premium, if any, or interest on the Debt Securities, such mention shall be deemed to include mention of payments of the Additional Interest provided for in this paragraph to the extent that, in such context, Additional Interest is, was or would be payable in respect thereof pursuant to the provisions of this paragraph and express mention of the payment of Additional Interest (if applicable) in any provisions hereof shall not be construed as excluding Additional Interest in those provisions hereof where such express mention is not made; provided, however, that, notwithstanding anything to the contrary contained in this Indenture or any Debt Security, the deferral of the payment of interest during an Extension Period pursuant to Section 2.11 shall not defer the payment of any Additional Interest that may be due and payable.

SECTION 3.07.  Compliance with Consolidation Provisions.

The Company will not, while any of the Debt Securities remain outstanding, consolidate with, or merge into any other Person, or merge into itself, or sell, convey, transfer or otherwise dispose of all or substantially  all of its property or capital stock to any other Person unless the provisions of Article XI hereof are complied with.

SECTION 3.08.  Limitation on Dividends.

If Debt Securities are initially issued to the Trust or a trustee of such Trust in connection  with  the  issuance  of  Trust  Securities  by  the  Trust  (regardless  of  whether  Debt Securities continue to be held by 

20

such Trust) and (i) there shall have occurred and be continuing an Event of Default,  (ii) the Company  shall  be in default  with respect to its payment  of any obligations  under the Capital Securities Guarantee or (iii) the Company shall have given notice of its election to defer payments of interest on the Debt Securities by extending the interest distribution period as provided herein and such period, or any extension thereof, shall have commenced and be continuing, then the Company may not (A) declare or pay any dividends or distributions  on, or redeem,  purchase,  acquire, or make a liquidation  payment  with respect to, any  of the  Company's  capital  stock  or  (B)  make  any  payment  of  principal  of  or  interest  or premium, if any, on or repay, repurchase or redeem any debt securities of the Company that rank pari passu in all  respects  with  or  junior  in  interest  to  the Debt  Securities  or (C)  make  any payment under any guarantees of the Company that rank pari passu in all respects with or junior in interest to the Capital Securities Guarantee (other than (a) repurchases,  redemptions or other acquisitions of shares of capital stock of the Company (I) in connection with any employment contract,  benefit  plan  or  other  similar  arrangement  with  or  for  the  benefit  of  one  or  more employees, officers, directors or consultants,  (II) in connection  with a dividend reinvestment or stockholder stock purchase plan or (III) in connection with the issuance of capital stock of the Company (or securities convertible into or exercisable for such capital stock), as consideration in an acquisition transaction  entered into prior to the occurrence of (i), (ii) or (iii) above, (b) as a result of any exchange, reclassification,  combination  or conversion of any class or series of the Company's  capital stock (or any capital stock of a subsidiary of the Company) for any class or series of the Company's capital stock or of any class or series of the Company's indebtedness for any class or series of the  Company's  capital  stock,  (c) the  purchase  of fractional  interests  in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (d) any declaration of a dividend in connection with any stockholder's  rights plan, or the issuance of rights, stock or other property under any stockholder's  rights plan, or the redemption or repurchase of rights pursuant thereto, (e) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend  is being paid or ranks pari passu with or junior to such stock), or (f) cash  distributions  to its shareholders,  in an amount  not to exceed  40%  of the  Company's taxable   income   (as  determined   annually   on  the   Company's   tax  return),   to  enable   such shareholders to pay federal and state income taxes associated with their distributive shares of the Company's taxable income.

SECTION 3.09.  Covenants as to the Trust.

For so long as such Trust Securities remain outstanding, the Company shall maintain 100% ownership of the Common Securities; provided, however, that any permitted successor of the Company under this Indenture that is a U.S. Person may succeed to the Company's ownership of such Common Securities. The Company, as owner of the Common Securities, shall use commercially reasonable efforts to cause the Trust (a) to remain a statutory trust, except in connection with a distribution of Debt Securities to the holders of Trust Securities in liquidation of the Trust, the redemption of all of the Trust Securities or certain mergers, consolidations or amalgamations, each as permitted by the Declaration, (b) to otherwise continue to be classified as a grantor trust for United States federal income tax purposes and (c) to cause each holder of Trust Securities to be treated as owning an undivided beneficial interest in the Debt Securities.

ARTICLE IV

LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE 

SECTION 4.01.  Securityholders' Lists.

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The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee:
(a)       on each regular record date for an Interest Payment Date, a list, in such form as the Trustee may reasonably require, ofthe  names and addresses ofthe  Securityholders of the Debt Securities as of such record date; and

(b)       at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished, except that no such lists need be furnished under this Section 4.01 so long as the Trustee is in possession thereof by reason of its acting as Debt Security registrar.

SECTION 4.02.  Preservation and Disclosure of Lists.

(a)       The  Trustee  shall  preserve,  in  as  current  a  form  as  is  reasonably practicable, all information as to the names and addresses of the holders of Debt Securities (1) contained in the most recent list furnished to it as provided in Section 4.01 or (2) received by it in the capacity of Debt Securities registrar (if so acting) hereunder. The Trustee may destroy any list furnished to it as provided in Section 4.01 upon receipt of a new list so furnished.

(b)       In case three or more holders of Debt Securities (hereinafter referred to as "applicants") apply in writing to the Trustee and furnish to the Trustee reasonable proof that each such applicant has owned a Debt Security for a period of at least six months preceding the date of such application, and such application states that the applicants desire to communicate with other holders of Debt Securities with respect to their rights under this Indenture or under such Debt Securities and is accompanied by a copy of the form of proxy or other communication which such applicants propose to transmit, then the Trustee shall within five Business Days after the receipt of such application, at the election of the Company, either:

(1)       afford such applicants access to the information preserved at the time by the Trustee in accordance with the provisions of subsection (a) of this Section 4.02, or

(2)       inform such applicants as to the approximate number of holders of Debt Securities whose names and addresses appear in the information preserved at the time by the Trustee in accordance with the provisions of subsection (a) of this   Section  4.02,   and   as  to   the   approximate  cost   of   mailing  to   such Securityholders the form of proxy or other communication, if any, specified in such application.

If  the  Company  shall  elect  not  to  afford  such  applicants  access  to  such information, the Trustee shall, upon the written request of such applicants, mail to each Securityholder of Debt Securities whose name and address appear in the information preserved at the time by the Trustee in accordance with the provisions of subsection (a) of this Section 4.02 a  copy of the form of proxy or other communication which is specified in such request with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of mailing, unless within five days after such tender, the Trustee shall mail to such applicants together with a copy of the material to be mailed, a written statement of the Company to the effect that such mailing would be contrary to the best interests of the holders of all Debt Securities, as the case may be, or would be in violation of applicable law. Such written statement shall specify the basis of such opinion. If said Commission, as permitted or required by applicable law, after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an order refusing to sustain any of such objections or if, after the entry of an order sustaining 

22

one or more of such objections, said Commission shall find, after notice and opportunity for hearing, that all the objections so sustained have been met and shall enter an order so declaring, the Trustee shall mail copies of such material to all such Securityholders with reasonable promptness after the entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved of any obligation or duty to such applicants respecting their application.

(c)       Each and every holder of Debt Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any Paying Agent shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the holders of Debt Securities in accordance with the provisions of subsection (b) of this Section 4.02, regardless of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under said subsection (b).

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ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

SECTION 5.01.  Events ofDefault.
The following events shall be "Events of Default" with respect to Debt Securities: (a)     the  Company  defaults  in  the  payment  of  any  interest  upon  any  Debt
Security  when  it becomes  due  and  payable  (unless  the Company  has elected  and  may  defer
interest payments pursuant to Section 2.11), and continuance of such default for a period of 30 days; for the avoidance of doubt, an extension of any interest distribution period by the Company in accordance with Section 2.11 of this Indenture shall not constitute a default under this clause
5.01(a); or

(b)       the Company defaults in the payment of all or any part of the principal of (or premium, if any, on) any Debt Securities as and when the same shall become due and payable either at maturity,  upon redemption,  by declaration  of acceleration  pursuant  to Section  5.01 of this Indenture or otherwise; or

(c)       the  Company  defaults  in  the  payment  of  any  interest  upon  any  Debt Security when it becomes due and payable following the nonpayment of any such interest for 20 or  more  consecutive   quarterly  periods  following  the  Company's  election  to  defer  interest payments pursuant to Section 2.11; or

(d)       the  Company  defaults  in  the  performance  of,  or  breaches,  any  of  its covenants  or  agreements  in Sections  3.06,  3.07,  3.08  or 3.09  of this  Indenture  (other  than  a covenant  or agreement  a default  in whose  performance  or whose  breach  is elsewhere  in this Section specifically dealt with), and continuance of such default or breach for a period of 90 days after there has been given, by registered or certified mail, to the Company  by the Trustee or to the Company and the Trustee by the holders of not less than 25% in aggregate principal amount of  the  outstanding  Debt  Securities,  a  written  notice  specifying  such  default  or  breach  and requiring it to be remedied and stating that such notice is a "Notice of Default" hereunder; or

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

(f)        the  Company  shall  commence  a  voluntary  case  under  any  applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of  an  order  for  relief  in  an  involuntary  case  under  any  such  law, or  shall  consent  to  the appointment  of  or  taking  possession  by  a  receiver,  liquidator,  assignee,  trustee,  custodian, sequestrator (or other similar official) of the Company or of any substantial  part of its property, or shall make any general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due; or

(g)       the  Trust  shall  have  voluntarily  or  involuntarily   liquidated,  dissolved, wound-up its business or otherwise terminated its existence except in connection with (1) the distribution  of  the  Debt  Securities  to  holders  of  the  Trust  Securities  in  liquidation  of  their interests in the Trust, (2) the redemption of all of 

24

the outstanding  Trust Securities or (3) certain mergers, consolidations or amalgamations, each as permitted by the Declaration.

If an Event of Default specified under clause (c) of this Section 5.01 occurs and is continuing with respect to the Debt Securities, then, and in each and every such case, unless the principal of the Debt Securities shall have already become due and payable, either the Trustee or the holders  of  not  less  than  25%  in  aggregate  principal  amount  of  the  Debt  Securities  then outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by Securityholders),  may declare the entire principal of the Debt Securities and any premium and interest accrued, but unpaid, thereon, if any, to be due and payable immediately,  and upon any such declaration the same shall become immediately due and payable.. If an Event of Default specified under clause (e) or (f) of this Section 5.01 occurs, then, in each and every such case, the entire principal amount of the Debt Securities and any premium and interest accrued, but unpaid, thereon shall ipso facto become immediately  due and payable without  further action. Notwithstanding  anything to the contrary in this Section 5.01, if at any time during the period in which this Indenture remains in force and effect, the Company ceases or elects to cease to be subject  to  the  supervision  and  regulations  of  the  Federal  Reserve,  OTS,  OCC  or  similar regulatory authority overseeing  bank, thrift, savings and loan or financial  holding companies or similar institutions  requiring specifications  for the treatment  of capital.similar in nature to the capital  adequacy  guidelines  under  the  Federal  Reserve  rules  and  regulations,  then  the  first sentence of this paragraph shall be deemed to include clauses (a), (b) and (d) under this Section
5.01 as an Event of Default resulting in an acceleration of payment of the Debt Securities to the
same extent as provided herein for clause (c).

With respect to clause (d) of this Section  5.01, the Company  agrees that in the event of a breach by the Company of its covenants or agreements mentioned therein, any remedy at law or in damages may prove inadequate and therefore the Company agrees that the Trustee shall be entitled to injunctive relief against the Company in the event of any breach or threatened breach  by the Company,  in addition  to any other  relief  (including  damages)  available  to the Trustee under this Indenture or under law.

The foregoing provisions, however, are subject to the condition that if, at any time after the principal of the Debt Securities shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as  hereinafter  provided,  (i)  the  Company  shall  pay  or  shall  deposit  with  the  Trustee  a sum sufficient  to  pay  all  matured  installments  of  interest  upon  all  the  Debt  Securities  and  all payments on the Debt Securities  which shall have become due otherwise  than by acceleration (with interest upon all such payments and Deferred Interest, to the extent permitted by law) and such amount as shall be sufficient to cover reasonable compensation to the Trustee and each predecessor Trustee, their respective agents, attorneys and counsel, and all other amounts due to the Trustee pursuant to Section 6.06, if any, and (ii) all Events of Default under this Indenture, other than the non-payment  of the payments on Debt Securities which shall have become due by acceleration,  shall  have been cured,  waived or otherwise  remedied  as provided  herein, and in each and every such case the holders of a majority in aggregate principal amount of the Debt Securities then outstanding,  by written notice to the Company and to the Trustee, may waive all defaults  and rescind  and annul  such declaration  and  its consequences,  but no such  waiver  or rescission and annulment  shall extend to or shall affect any subsequent  default or shall impair any right consequent thereon; provided, however, that if the Debt Securities are held by the Trust or a trustee of the Trust, such waiver or rescission and annulment shall not be effective until the holders of a majority in aggregate liquidation amount of the outstanding Capital Securities of the Trust shall have consented to such waiver or rescission and annulment.

In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other 

25

reason or shall have been determined adversely to the Trustee, then and in every such case the Company, the Trustee and the holders of the Debt Securities shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Company,  the Trustee and the holders  of the Debt Securities  shall  continue  as though no such proceeding had been taken.

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

The Company covenants that upon the occurrence of an Event of Default pursuant to clause 5.0l(a), 5.0l(b) or 5.0l(c), and upon demand of the Trustee, the Company  will pay to the Trustee, for the benefit of the holders of the Debt Securities, the whole amount that then shall have become due and payable on all Debt Securities  including Deferred Interest accrued on the Debt Securities; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including a reasonable compensation  to the Trustee, its agents, attorneys and counsel, and any other amounts due to the Trustee under Section 6.06. In case the Company  shall fail forthwith  to pay such amounts  upon such demand,  the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any actions or proceedings  at law or in equity for the collection  of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or any other obligor on such Debt Securities and collect in the manner provided by law out of the property of the Company or any other obligor on such Debt Securities wherever situated the moneys adjudged or decreed to be payable.

In  case  there  shall  be  pending   proceedings   for  the  bankruptcy   or  for  the reorganization  of the Company  or any other obligor on the Debt Securities  under Bankruptcy Law, or in case a receiver or trustee shall have been appointed for the property of the Company or such other  obligor,  or in the case of any other  similar  judicial  proceedings  relative  to the Company  or  other  obligor  upon  the  Debt  Securities,  or  to  the  creditors  or  property  of  the Company or such other obligor, the Trustee, irrespective of whether the principal of the Debt Securities shall then be due and payable as therein expressed or by declaration of acceleration or otherwise and irrespective  of whether the Trustee shall have made any ·demand  pursuant to the provisions  of  this  Section  5.02,  shall  be  entitled  and  empowered,   by  intervention  in  such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal and interest  owing  and  unpaid  in respect  of the  Debt Securities  and, in  case  of any judicial proceedings, to file such proofs of claim and other papers or documents as may be necessary or advisable  in  order  to  have  the  claims  of  the  Trustee  (including  any  claim  for  reasonable compensation to the Trustee and each predecessor Trustee, and their respective agents, attorneys and counsel, and for reimbursement  of all other amounts due to the Trustee under Section 6.06) and of the Securityholders  allowed in such judicial proceedings relative to the Company or any other obligor on the Debt Securities, or to the creditors or property of the Company or such other obligor, unless prohibited by applicable law and regulations, to vote on·behalf of the holders of the  Debt   Securities   in  any   election   of  a  trustee   or  a  standby   trustee   in  arrangement, reorganization, liquidation or other bankruptcy or insolvency proceedings  or Person performing similar functions  in comparable  proceedings,  and to collect  and receive  any moneys  or other property payable or deliverable on any such claims, and to distribute the same after the deduction of its charges and expenses; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the Securityholders  to make such payments to the Trustee, and, in  the  event  that  the  Trustee  shall  consent  to  the  making  of  such  p yments   directly  to  the Securityholders, to pay to the Trustee such amounts as shall be sufficient to cover reasonable compensation to the Trustee, each predecessor Trustee and their respective agents, attorneys and counsel, and all other amounts due to the Trustee under Section 6.06.

Nothing herein contained shall be construed to authorize the Trustee to authorize or consent  to or accept  or adopt on  behalf of any Securityholder  any plan of reorganization, arrangement, adjustment or 

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composition affecting the Debt Securities or the rights of any holder thereof or to authorize  the Trustee to vote in respect of the claim of ay Securityholder  in any such proceeding.

All rights of action and of asserting claims under this Indenture, or under any of the Debt Securities,  may be enforced by the Trustee without the possession of any of the Debt Securities,  or the production  thereof at any trial or other  proceeding  relative  thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall be for the ratable benefit of the holders of the Debt Securities.

In any proceedings  brought by the Trustee (and also any proceedings  involving the interpretation  of any provision  of this Indenture to which the Trustee shall be a party) the Trustee  shall  be held  to  represent  all the holders  of the  Debt  Securities,  and  it shall  not  be necessary to make any holders of the Debt Securities parties to any such proceedings.

SECTION 5.03.  Application of Moneys Collected by Trustee.

Any moneys collected  by the Trustee shall be applied in the following  order, at the date or dates specified pursuant hereto for the distribution of such moneys, upon presentation of the several  Debt Securities  in respect of which moneys  have been collected,  and stamping thereon the payment, if only partially paid, and upon surrender thereof if fully paid:

First: To the payment of costs and expenses incurred by, and reasonable fees of, the Trustee, its agents, attorneys and counsel, and of all other amounts due to the Trustee under Section 6.06; Second: To the payment of all Senior Indebtedness of the Company if and to the extent required by Article XV;

Third: To the payment of the amounts then due and unpaid upon Debt Securities, in respect of which or for the benefit of which money has been collected, ratably, without preference or priority of any kind, according to the amounts due on such Debt Securities; and

Fourth: The balance, if any, to the Company.
SECTION 5.04.  Proceedings by Securityholders.
No holder of any Debt Security shall have any right to institute any suit, action or proceeding for any remedy hereunder, unless such holder previously shall have given to the Trustee written notice of an Event of Default with respect to the Debt Securities and unless the holders  of  not  less  than  25%  in  aggregate  principal  amount  of  the  Debt  Securities  then outstanding shall have given the Trustee a written request to institute such action, suit or proceeding and shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred thereby, and the Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have failed to institute any such action, suit or proceeding; provided, that no holder of Debt Securities shall have any right to prejudice the rights of any other holder of Debt Securities, obtain priority or preference over any other such holder or enforce any right under this Indenture except in the manner herein provided and for the equal, ratable and common benefit of all holders of Debt Securities.

Notwithstanding any other provisions in this Indenture, however, the right of any holder of any Debt Security to receive payment of the principal of, premium, if any, and interest on such Debt Security when due, or to institute suit for the enforcement of any such payment, shall not be impaired or affected 

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without the consent of such holder. For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

SECTION 5.05.  Proceedings by Trustee.

In case of an Event of Default hereunder the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

SECTION 5.06.  Remedies Cumulative and Continuing.

Except as otherwise provided in Section 2.06, all powers and remedies given by this Article V to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Debt Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to the Debt Securities, and no delay or omission of the Trustee or of any holder of any of the Debt Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or an acquiescence therein; and, subject to the provisions of Section 5.04, every power and remedy given by this Article V or by law to the Trustee or to the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.

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

The holders of a majority in aggregate principal amount of the Debt Securities affected (voting as one class) at the time outstanding and, if the Debt Securities are held by the Trust or a trustee of the Trust, the holders of a majority in aggregate liquidation amount of the outstanding Capital Securities of the Trust shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to such Debt Securities; provided, however, that if the Debt Securities are held by the Trust or a trustee of the Trust, such time, method and place or such exercise, as the case may be, may not be so directed until the holders of a majority in aggregate liquidation amount of the outstanding Capital Securities ·of the Trust shall have directed such time, method and place or such exercise, as the case may be; provided, further, that (subject to the provisions of Section 6.01) the Trustee shall have the right to decline to follow any such direction if the Trustee being advised by counsel shall determine that the action so directed would be unjustly prejudicial to the holders not taking part in such direction or if the Trustee being advised by counsel determines that the action or proceeding so directed may not lawfully be taken or if a Responsible Officer of the Trustee shall determine that the action or proceedings so directed would involve the Trustee in personal liability. Prior to any declaration of acceleration, or ipso facto acceleration, of the maturity of the Debt Securities, the holders of a majority in aggregate principal amount of the Debt Securities at the time outstanding may on behalf of the holders of all of the Debt Securities waive (or modify any previously granted waiver of) any past default or Event of Default and its consequences, except a default (a) in the payment of principal of, premium, if any, or interest on any of the Debt Securities, (b) in respect of covenants or provisions hereof which cannot be modified or amended without the consent of the holder of each Debt Security affected, or 

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(c) in respect of the covenants contained in Section 3.09; provided, however, that ifthe  Debt Securities are held by the Trust or a trustee ofthe  Trust, such waiver or modification to such waiver shall not be effective until the holders of a majority in Liquidation Amount of the Trust Securities of the Trust shall have consented to such waiver or modification to such waiver; provided, further, that if the consent of the holder of each outstanding Debt Security is required, such waiver or modification to such waiver shall not be effective until each holder of the outstanding Capital Securities of the Trust shall have consented to such waiver or modification to such waiver. Upon any such waiver or modification to such waiver, the Default or Event of Default covered thereby shall be deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the holders of the Debt Securities shall be restored to their former positions and rights hereunder, respectively; but no such waiver or modification to such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall have been waived as permitted by this Section 5.07, said Default or Event of Default shall for all purposes of the Debt Securities and this Indenture be deemed to have been cured and to be not continuing.

SECTION 5.08.  Notice ofDefaults.

The Trustee shall, within 90 days after a Responsible Officer of the Trustee shall have actual knowledge or received written notice of the occurrence of a Default with respect to the Debt Securities, mail to all Securityholders, as the names and addresses of such holders appear upon the Debt Security Register, notice of all Defaults with respect to the Debt Securities actually known to the Trustee, unless such defaults shall have been cured before the giving of such notice (the term "defaults" for the purpose of this Section 5.08 being hereby defined to be the events specified in subsections (a), (b), (c), (d), (e) and (f)  of Section 5.01, not including periods of grace, if any, provided for therein); provided, that, except in the case of default in the payment of the principal of, premium, if any, or interest on any of the Debt Securities, the Trustee shall be protected in withholding such notice if and so long as    Responsible Officer of the Trustee in good faith determines that the withholding of such notice is in the interests of the Securityholders.

SECTION 5.09.  Undertaking to Pay Costs.

All parties to this Indenture agree, and each holder of any Debt Security by such holder's acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this·Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 5.09 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding in the aggregate more than 10% in principal amount of the Debt Securities (or, if such Debt Securities are held by the Trust or a trustee·of the Trust, more than 10% in liquidation amount of the outstanding Capital Securities), to any suit instituted by any Securityholder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Debt Security against the Company on or after the same shall have become due and payable, or to any suit instituted in accordance with Section 14.12.

ARTICLE VI 

CONCERNING THE TRUSTEE

SECTION 6.01. Duties and Responsibilities of Trustee.

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With respect to the holders of Debt Securities issued hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the Debt Securities and after the curing or waiving of all Events of Default which may have occurred, with respect to the Debt Securities, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default with respect to the Debt Securities has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture,  and use the same degree  of care and skill in their  exercise,  as a prudent person  would  exercise  or  use  under  the  circumstances  in the  conduct  of  such  person's  own affairs.

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

(a)     prior to the occurrence  of an Event of Default  with respect to the Debt Securities and after the curing or waiving of all Events of Default which may have occurred

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

(2)       in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions  expressed  therein,  upon  any  certificates  or  opinions  furnished  to  the Trustee and conforming  to the requirements  of this Indenture; but, in the case of any such certificates or opinions which by any provision hereof are specifically required  to  be  furnished  to  the  Trustee,  the  Trustee  shall  be  under  a  duty  to examine the same to determine whether or not they conform on their face to the requirements of this Indenture;

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

(c)       the Trustee shall not be liable with respect to any. action taken or omitted to be taken by it in good faith, in accordance with the direction of the Securityholders pursuant to Section  5.07,  relating  to  the  time,  method  and  place  of  conducting  any  proceeding  for  any remedy available  to the Trustee, or exercising  any trust or power conferred  upon the Trustee, under this Indenture;

(d)       the Trustee shall not be charged with knowledge  of any Default or Event of Default with respect to the Debt Securities unless either (1) a Responsible  Officer shall have actual knowledge  of such Default  or Event of Default or (2) written  n tice  of such Default  or Event of Default shall have been given to the Trustee by the Company or any other obligor on the Debt Securities  or by any holder of the Debt Securities, except with respect to an Event of Default pursuant to Sections  5.01(a), 5.01(b) or 5.0l(c) hereof (other than an Event of Default resulting from the default in the payment of Additional Interest or premium, if any, if the Trustee does  not have actual  knowledge  or written  notice  that such  payment  is due and payable),  of which the Trustee shall be deemed to have knowledge; and (e)       in the absence of bad faith on the part of the Trustee, the Trustee may seek and rely on reasonable instructions from the Company.

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None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers.

SECTION 6.02.  Reliance on Documents, Opinions, etc.

Except as otherwise provided in Section 6.01:

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

(b)       any request, direction, order or demand of the Company mentioned herein shall  be sufficiently evidenced by an Officers' Certificate (unless  other evidence in  respect thereof be herein specifically prescribed); and any Board Resolution may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Company;

(c)       the Trustee may consult with counsel of its selection and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

(d)       the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders, pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which may be incurred therein or thereby;

(e)       the Trustee shall not be liable for any action taken or omitted by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect to the Debt Securities (that has not been cured or waived) to exercise with respect to the Debt Securities such of the rights and powers vested in it by this Indenture, and to use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs;

(f)        the Trustee shall not be bound to make any investigation into the facts or matters  stated  in  any  resolution,  certificate,  statement,  instrument,  ppinion,  report,  notice, request, consent, order, approval, bond, debenture, coupon or other paper or document, unless requested in writing to do so by the holders of not less than a majority in aggregate principal amount of the outstanding Debt Securities affected thereby; provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such expense or liability as a condition to so proceeding; and

(g)       the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or  by or through agents (including any  Authenticating Agent) or attorneys, and the Trustee shall not be responsible for any misconduct or negligence on the part of any such agent or attorney appointed by it with due care.

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SECTION 6.03.  No Responsibility for Recitals, etc.

The recitals contained herein and in the Debt Securities (except in the certificate of authentication of the Trustee or the Authenticating Agent) shall be taken as the statements of the Company and the Trustee and the Authenticating Agent assume no responsibility for the correctness of the same. The Trustee and the Authenticating Agent make no representations as to the validity or sufficiency of this Indenture or of the Debt Securities. The Trustee and the Authenticating Agent shall not be accountable for the use or application by the Company of any Debt Securities or the proceeds of any Debt Securities authenticated and delivered by the Trustee or the Authenticating Agent in conformity with the provisions of this Indenture.

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

The Trustee or any Authenticating Agent or any Paying Agent or any transfer agent or any Debt Security registrar, in its individual or any other capacity, may become the owner or pledgee of Debt Securities with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, transfer agent or Debt Security registrar.

SECTION 6.05. Moneys to be Held in Trust.

Subject to the provisions of Section 12.04, all moneys received by the Trustee or any Paying Agent shall, until used or applied as herein provided, be held in trust for the purpose for which they were received, but need not be segregated from other funds except to the extent required by law. The Company shall have the power to instruct the Trustee and Paying Agent to invest such amounts and the desired investment. The Trustee and any Paying Agent shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Company. So long as  no Event of Default shaH have occurred and be continuing, all interest allowed on any such moneys, if any, shall be paid from time to time to the Company upon the written order of the Company, signed by the Chairman of the Board of Directors, the President, the Chief Operating Officer, a Vice President, the Treasurer or an Assistant Treasurer of the Company.

SECTION 6.06.  Compensation and Expenses of Trustee.

Other than as provided in the Fee Agreement of even . date herewith between Cohen Bros. & Company, the Trustee, the Company and Delaware Trustee (as defined in the Declaration), the Company covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, such compensation as shall be agreed to in writing between the Company and the Trustee (which shall not be limited by any provision of law in regard to the compensation  of a trustee  of  an  express  trust),  and  the  Company  will  pay  or  reimburse  the Trustee  upon  its  written  request  for  all documented  reasonable  expenses,  disbursements  and advances  incurred  or  made  by  the Trustee  in  accordance  with  any  of the  provisions  of  this Indenture  (including  the  reasonable  compensation  and  the  reasonable  expenses  and disbursements  of its counsel  and  of all Persons  not regularly  in its employ)  except  any such expense,  disbursement  or advance  that  arises  from  its  negligence,  willful  misconduct  or  bad faith. The Company also covenants  to indemnify each of the Trustee (including in its individual capacity) and any predecessor Trustee (and its officers, agents, directors and employees) for, and to hold it harmless against, any and all loss, damage, claim, liability or expense including taxes (other than taxes based on the income of the Trustee),  except to the extent such loss, damage, claim, liability or expense results from the negligence, willful misconduct or bad faith of such 

32

indemnitee, arising out of or in connection with the acceptance or administration of this Trust, including the costs and expenses of defending itself against any claim or liability in the premises. The  obligations  of  the  Company  under  this  Section  6.06  to  compensate  and  indemnify  the Trustee  and  to  pay  or  reimburse  the  Trustee  for  documented  expenses,  disbursements   and advances shall constitute  additional  indebtedness  hereunder. Such additional  indebtedness  shall be secured by (and the Company hereby grants and pledges to the Trustee) a lien prior to that of the Debt Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Debt Securities.

Without  prejudice  to any other rights available  to the Trustee  under  applicable law, when the Trustee incurs expenses or renders services in connection with an Event of Default specified  in subsections  (e), (f) or (g) of Section 5.01, the expenses  (including  the reasonable charges  and  expenses  of  its  counsel)  and  the  compensation  for  the  services  are  intended  to constitute   expenses   of   administration   under  any   applicable   federal   or   state   bankruptcy, insolvency or other similar law.

The  provisions  of this  Section  shall  survive  the  resignation  or  removal  of  the
Trustee and the defeasance or other termination of this Indenture.

Notwithstanding  anything in this Indenture or any Debt Security to the contrary, the Trustee  shall  have no obligation  whatsoever  to advance  funds  to pay any principal  of or interest on or other amounts with respect to the Debt Securities or otherwise advance funds to or on behalf of the Company.

SECTION 6.07.  Officers' Certificate as Evidence.

Except as otherwise  provided in Sections 6.01 and ·6.02, whenever  in the administration  of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter  be proved or established  prior to taking  or omitting  any action  hereunder,  such matter (unless  other evidence  in respect thereof  be herein  specifically  prescribed)  may, in the absence of negligence, willful misconduct  or bad faith on the part of the Trustee, be deemed to be conclusively  proved and established  by an Officers' Certificate delivered to the Trustee, and such certificate, in the absence of negligence,  willful misconduct or bad faith on the part of the Trustee,  shall  be full  warrant  to  the Trustee  for  any action  taken  or  omitted  by it under  the provisions of this Indenture upon the faith thereof.

SECTION 6.08.  Eligibility of Trustee.

The Trustee hereunder shall at all times be a U.S. Person that is a banking corporation or national banking 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 banking association publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 6.08 the combined capital and surplus of such corporation or national association shall be deemed to be its combined capital and surplus as set forth in its most recent records of condition so published.

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The Company may not, nor may any Person directly or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee, notwithstanding that such corporation or national banking association shall be otherwise eligible and qualified under this Article.

In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 6.08, the Trustee shall resign immediately in the manner and with the effect specified in Section 6.09.

If the Trustee has or shall acquire any "conflicting interest" within the meaning of
§ 31O(b) of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to this Indenture.

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

(a)    The Trustee, or any trustee or trustees hereafter appointed, the Calculation Agent, the Paying Agent and any Debt Security Registrar may at any time resign by giving written  notice  of  such  resignation to  the  Company  and  by  mailing  notice  thereof,  at  the Company's expense, to the holders of the Debt Securities at their addresses as they shall appear on the Debt Security Register. Upon receiving such notice of resignation, the Company shall promptly appoint a successor or successors by written instrument, in duplicate, executed by order of its Board of Directors, one copy of which instrument shall be delivered to the resigning party and one copy to the successor. If no successor shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice of resignation to the affected Securityholders, the resigning party may petition any court of competent jurisdiction for the appointment of a successor, or any Securityholder who has been a bo11a fide holder of a Debt Security or Debt Securities for at least six months may, subject to the provisions of Section 5.09, on behalf of himself or herself and all others similarly situated, petition any such court for the appointment of a successor. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor.

(b)     In case at any time any of the following shall occur:

(1)       the  Trustee  shall  fail  to  comply  with  the  provisions  of  the  last paragraph of Section 6.08 after written request therefor by the Company or by any Securityholder   who  has  been  a  bona  fide  holder  of  a  Debt  Security  or  Debt Securities for at least six months,

(2)       the  Trustee  shall  cease  to  be  eligible  in  accordance   with  the provisions of Section 6.08 and shall fail to resign after written request therefor by the Company or by any such Securityholder, or

(3)       the Trustee shall become incapable of acting, or shall be adjudged bankrupt  or  insolvent,  or  a receiver  of  the  Trustee  or  of  its  property  shall  be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,

then, in any such case, the Company  may remove the Trustee  and appoint  a successor Trustee  by written  instrument,  in duplicate,  executed  by order of the Board  of Directors,  one copy of  which  instrument  shall  be delivered  to the Trustee  so  removed  and one copy  to the successor Trustee, or, subject to the provisions of Section 5.09, if no successor Trustee shall have been so appointed and have accepted appointment within 30 days 

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of the occurrence of any of(l), (2) or (3) above, any Securityholder who has been a bona fide holder of a Debt Security or Debt Securities  for at least six months may, on behalf of himself or herself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment  of a successor  Trustee. Such court may thereupon,  after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor Trustee.

(c)       Upon prior written notice to the Company and the Trustee, the holders of a majority in aggregate principal amount of the Debt Securities at the time outstanding may at any time remove the Trustee and nominate a successor Trustee, which shall be deemed appointed as successor Trustee unless within ten Business Days after such nomination the Company objects thereto, in which case or in the case of a failure by such holders to nominate a successor Trustee, the Trustee so removed or any Securityholder, upon the terms and conditions and otherwise as in subsection (a) of this Section 6.09 provided, may petition any court of competent jurisdiction for an appointment of a successor.

(d)       Any  resignation  or  removal  of  the  Trustee,  the  Calculation  Agent,  the Paying Agent and any Debt Security Registrar and appointment of a successor pursuant to any of the provisions of this Section 6.09 shall become effective upon acceptance of appointment by the successor as provided in Section 6.10.

SECTION 6.10.  Acceptance by Successor.

Any  successor   Trustee,   Calculation   Agent,  Paying   Agent  or  Debt  Security Registrar appointed as provided in Section 6.09 shall execute, acknowledge and deliver to the Company  and  to  its  predecessor  an  instrument  accepting  such  appointment  hereunder,  and thereupon  the  resignation  or  removal  of  the  retiring  party  shall  become  effective  and  such successor, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations  with respect to the Debt Securities of its predecessor hereunder, with like effect as if originally  named  herein;  but, nevertheless,  on the written  request of the Company or of the successor, the party ceasing to act shall, upon paym_ent of the amounts then due it pursuant to the provisions of Section 6.06, execute and deliver an instrument transferring to such successor all the rights and powers of the party so ceasing to act and shall duly assign, transfer  and  deliver  to  such  successor  all  property  and  money  held  by  such  retiring  party hereunder. Upon reasonable request of any such successor, the Company shall execute any and all  instruments  in  writing  for  more  fully  and  certainly  vesting  in  and  confirming  to  such successor all such rights and powers. Any party ceasing to act shall, nevertheless, retain a lien upon all property or funds held or collected to secure any amounts then due it pursuant to the provisions of Section 6.06.

If a successor  Trustee  is appointed,  the Company,  the retiring  Trustee  and the successor Trustee shall execute and deliver an indenture supplemental  hereto which shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts  and  duties  of  the  retiring  Trustee  with  respect  to  the  Debt  Securities  as to  which  the predecessor  Trustee  is not retiring  shall continue  to be vested in the predecessor  Trustee, and shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or  facilitate  the  administration  of  the  Trust  hereunder  by  more  thaone Trustee,  it  being understood that nothing herein or in such supplemental  indenture shall constitute  such Trustees co-trustees  of the same  trust and that  each  such  Trustee  shall  be Trustee  of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered  by any other such Trustee.

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No successor  Trustee  shall accept appointment  as provided  in this Section 6.10 unless at the time of such acceptance such successor Trustee shall be eligible and qualified under the provisions of Section 6.08.

In no event  shall  a retiring  Trustee,  Calculation  Agent,  Paying  Agent  or Debt
Security Registrar be liable for the acts or omissions of any successor hereunder.

Upon  acceptance  of  appointment   by  a  successor  Trustee,  Calculation  Agent, Paying Agent  or Debt Security Registrar  as provided  in this Section  6.10, the Company  shall mail notice of the succession  to the holders of Debt Securities  at their addresses as they shall appear  on  the  Debt  Security  Register.  If  the  Company  fails  to  mail  such  notice  within  ten Business Days after the acceptance of appointment  by the successor,  the successor shall cause such notice to be mailed at the expense of the Company.

SECTION 6.11.  Succession by Merger, etc.

Any Person into which the Trustee may be merged or converted or with which it may be consolidated,  or any Person resulting from any merger,  conversion  or consolidation  to which the Trustee shall be a party, or any Person  succeeding  to all or substantially  all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided, that such Person shall be otherwise eligible and qualified under this Article.
In case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture any of the Debt Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor Trustee, and deliver such Debt Securities so authenticated; and in case at that time any of the Debt Securities shall not have been authenticated, any successor to the Trustee may authenticate such Debt Securities either in the name of any predecessor hereunder or in the name of the successor Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Debt Securities or in this Indenture provided that the certificate of the Trustee shall have; provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee or authenticate Debt Securities in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

SECTION 6.12.  Authenticating Agents.

There may be one or more Authenticating Agents appointed by the Trustee upon the request of the Company with power to act on its behalf and subject to its direction in the authentication and delivery of Debt Securities issued upon exchange or registration of transfer thereof as fully to all intents and purposes as though any such Authenticating Agent had been expressly authorized to authenticate and deliver Debt Securities; provided, that the Trustee shall have no liability to the Company for any acts or omissions of the Authenticating Agent with respect to the authentication and delivery of Debt Securities. Any such Authenticating Agent shall at all times be a Person organized and doing business under the laws of the United States or of any state or territory thereof or of the District of Columbia authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of at least $50,000,000 and being subject to supervision or examination by federal, state, territorial or District of Columbia authority. If such Person publishes reports of condition at least annually pursuant to law or the requirements of such authority, then for the purposes of this Section 6.12 the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time 

36

an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect herein specified in this Section.

Any Person into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, consolidation or conversion to which any Authenticating Agent shall be a party, or any Person succeeding to all or substantially all of the corporate trust business of any Authenticating Agent, shall be the successor of such Authenticating Agent hereunder, if such successor Person is otherwise eligible under this Section 6.12 without the execution or filing of any paper or any further act on the part of the parties hereto or such Authenticating Agent.

Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of any Authenticating Agent with respect to the Debt Securities by giving written notice of termination to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time any Authenticating Agent shall cease to be eligible under this Section 6.12, the Trustee may, and upon the request of the Company shall, promptly appoint a successor Authenticating Agent eligible under this Section 6.12, shall give written notice of such appointment to the Company and shall mail notice of such appointment to all holders of Debt Securities as the names and addresses of such holders appear on the Debt Security Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all rights, powers, duties and responsibilities with respect to the Debt Securities of its predecessor hereunder, with like effect as if originally named as Authenticating Agent herein.

Other than as provided in the Fee Agreement of even date herewith between Cohen Bros. & Company, the Company, the Trustee and Delaware Trustee (as defined in the Declaration), the Company agrees to pay to any Authenticating Agent from time to time reasonable compensation for its services. Any Authenticating Agent shall have no responsibility or liability for any action taken by it as such in accordance with the directions of the Trustee and shall receive such reasonable indemnity as it may require against the costs, expenses and liabilities incurred in furtherance of its duties under this Section 6.12.

ARTICLE VII 

CONCERNING THE SECURITYHOLDERS

SECTION 7.01.  Action by Securityholders.

Whenever  in  this  Indenture  it  is  provided  that  the  holders  of  a  specified percentage in  aggregate  principal  amount  of  the  Debt  Securities  or  aggregate  Liquidation Amount of the Capital Securities may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of an:y other action), the fact that at the time of taking any such action the holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by such Securityholders or holders of Capital Securities, as the case may be, in person or by agent or proxy appointed in writing, or (b) by the record of such holders of Debt Securities voting in favor thereof at any meeting of such Securityholders duly called and held in accordance with the provisions of Article VIII or of such holders of Capital Securities duly called and held in accordance with the provisions of the Declaration, or (c) by a combination of such instrument or instruments and any such record of such a meeting of such Securityholders or holders of Capital Securities, as the case may be, or (d) by any other method the Trustee deems satisfactory.

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If the Company shall solicit from the Securityholders any request, demand, authorization, direction, notice, consent, waiver or other action or revocation of the same, the Company may, at its option, as evidenced by an Officers' Certificate, fix in advance a record date for such Debt Securities for the determination of Securityholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action or revocation of the same, but the Company shall have no obligation to do so. If such a re·cord  date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action or revocation of the same may be given before or after the record date, but only the Securityholders of record at the close of business on the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of outstanding Debt Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action or revocation of the same, and for that purpose the outstanding Debt Securities shall be computed as of the record date; provided, however, that no such authorization, agreement or consent by such Securityholders  on the record date shall be deemed effective unless it shall become effective  pursuant  to the provisions  of this Indenture not later than six months after the record date.

SECTION 7.02.  Proof of Execution by Securityholders.

Subject to the provisions of Sections 6.01, 6.02 and 8.05, proof of the execution of any instrument by a Securityholder or such Securityholder's  agent or proxy shall be sufficient if made in accordance  with such reasonable  rules and regulations as m_ay  be prescribed  by the Trustee  or  in  such  manner  as  shall  be  satisfactory  to  the  Trustee.  The  ownership  of  Debt Securities shall be proved by the Debt Security Register or by a certificate of the Debt Security Registrar. The Trustee may require such additional proof of any matter referred to in this Section as it shall deem necessary.

The  record  of  any  Securityholders'   meeting  shall  be  proved  m  the  manner provided in Section 8.06.

SECTION 7.03.  Who Are Deemed Absolute Owners.

Prior to due presentment for registration of transfer of any Debt Security, the Company, the Trustee, any Authenticating  Agent, any Paying Agent, any transfer agent and any Debt  Security  registrar  may  deem  the  Person  in  whose  name  such  Debt  Security  shall  be registered  upon the Debt Security  Register  to be, and may treat  such Person  as, the absolute owner  of  such  Debt  Security  (whether  or  not  such  Debt  Security  shall  be overdue)  for  the purpose of receiving payment of or on account of the principal of, premium, if any, and interest on such Debt Security and for all other purposes; and neither the Company nor the Trustee nor any Authenticating  Agent nor any Paying  Agent nor any transfer  agent nor any Debt Security registrar shall be affected by any notice to the contrary. All such payments so made to any holder for the time being or upon such holder's order shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Debt Security.

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

In determining whether the holders of the requisite aggregate principal amount of Debt Securities have concurred in any direction, consent or waiver under this Indenture, Debt Securities which are owned by the Company or any other obligor on the Debt Securities or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company (other than the Trust) or any other obligor on the Debt Securities shall be disregarded and deemed not to be outstanding for the purpose of any such determination; provided, that for the purposes of determining whether the Trustee shall be protected in relying

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on any such direction, consent or waiver, only Debt Securities  which a: Responsible  Officer of
the Trustee  actually  knows  are so owned  shall  be so disregarded.  Debt  Securities  so owned which have been pledged in good faith may be regarded as outstanding  for the purposes of this Section 7.04 if the pledgee shall establish to the satisfaction of the Trustee the pledgee's right to vote such Debt Securities and that the pledgee is not the Company or any such other obligor or Person  directly  or indirectly  controlling  or controlled  by or under  direct  or indirect  common control with the Company or any such other obligor. In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.

SECTION 7.05.  Revocation of Consents; Future Securityholders  Bound.

At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 7.01, ofthe taking of any action by the holders ofthe percentage  in aggregate principal amount of the Debt Securities  specified  in this Indenture  in connection  with such action, any holder (in cases where no record date has been set pursuant to Section 7.01) or any holder as of an applicable record date (in cases where a record date has been set pursuant to Section 7.01) of a Debt Security  (or any Debt Security  issued  in whole or in part in exchange  or substitution therefor)  the  serial  number  of  which  is  shown  by the  evidence  to  be  included  in  the  Debt Securities the holders of which have consented to such action may, by filing written notice with the Trustee  at the Principal  Office  of the Trustee  and upon  proof  of  holding  as  provided  in Section 7.02, revoke such action so far as concerns such Debt Security (or so far as concerns the principal  amount  represented   by  any  exchanged   or  substituted   Debt  Security).  Except  as aforesaid  any  such  action  taken  by the  holder  of  any Debt  Security  shall  be conclusive  and binding upon such holder and upon all future holders and owners of such Debt Security, and of any  Debt  Security  issued  in  exchange  or  substitution  therefor  or  on  registration  of  transfer thereof, irrespective  of whether or not any notation  in regard thereto  is made upon such Debt Security or any Debt Security issued in exchange or substitution therefor.

ARTICLE VIII 

SECURITYHOLDERS' MEETINGS

SECTION 8.01.  Purposes ofMeetings.

A meeting of Securityholders may be called at any time and from time to time pursuant to the provisions of this Article VIII for any of the following purposes:

(a)       to  give  any  notice  to  the  Company  or  to  the  Trustee,  or  to  give  any directions  to  the  Trustee,  or  to  consent  to  the  waiving  of  any  default  hereunder  and  its consequences, or to take any other action authorized to be taken by Securityholders  pursuant to any of the provisions of Article V;

(b)      to remove the Trustee and nominate a successor trustee pursuant to the provisions of Article VI;

(c)       to consent  to the  execution  of an  indenture  or  indentures  supplemental hereto pursuant to the provisions of Section 9.02; or

(d)       to take  any other  action  authorized  to be taken  by or  on  behalf of  the holders  of any specified  aggregate  principal  amount  of such Debt  Securities  under any other provision of this Indenture or under applicable law.

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SECTION 8.02.  Call of Meetings by Trustee.

The Trustee may at any time call a meeting of Securityholders to take any action specified in Section 8.01, to be held at such time and at such place in Chicago, Illinois as the Trustee shall determine. Notice of every meeting of the Securityholders, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be mailed to holders of Debt Securities affected at their. addresses as they shall appear on the Debt Securities Register. Such notice shall be mailed not less than 20 nor more than 180 days prior to the date fixed for the meeting.

SECTION 8.03.  Call of Meetings by Company or Securityholders.

In case at any time the Company pursuant to a Board Resolution, or the holders of at least 10% in aggregate principal amount of the Debt Securities, as the case may be, then outstanding, shall have requested the Trustee to call a meeting of Securityholders, by written request setting forth in reasonable detail the action proposed to be takeri at the meeting, and the Trustee shall not have mailed the notice of such meeting within 20 days after receipt of such request, then the Company or such Securityholders may determine the time and the place in for such meeting and may call such meeting to take any action authorized in Section 8.01, by mailing notice thereof as provided in Section 8.02.

SECTION 8.04. Qualifications for Voting.

To be entitled to vote at any meeting of Securityholders· a Person shall be (a) a holder of one or more Debt Securities with respect to which the meeting is being held or (b) a Person appointed by an instrument in writing as proxy by a holder of one or more such Debt Securities. The only Persons who shall be entitled to be present or to speak at any meeting of Securityholders shall be the Persons entitled to vote at such meeting and their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel.

SECTION 8.05.  Regulations.

Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Securityholders, in regard to proof of the holding of Debt Securities and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate.

The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Securityholders as provided in Section 8.03, in which case the Company or the Securityholders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by majority vote at the meeting.

Subject to the provisions of Section 7.04, at any meeting each holder of Debt
Securities with respect to which such meeting is being held or proxy therefor shall be entitled to one vote for each $1,000 principal amount ofDebt Securities held or represented by such holder; provided, however, that no vote shall be cast or counted at any meeting in respect of any Debt Security challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of Debt Securities held by such chairman or instruments in writing as 

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aforesaid duly designating such chairman  as  the  Person  to   vote   on   behalf  of  other   Securityholders.   Any  meeting   of Securityholders duly called pursuant to the provisions of Section 8.02 or 8.03 may be adjourned from time to time by a majority of those present, whether or not constituting a quorum, and the meeting may be held as so adjourned without further notice.

SECTION 8.06.  Voting.

The  vote  upon  any  resolution  submitted  to  any  meeting  of  holders  of  Debt Securities with respect to which such meeting is being held shall be by written ballots on which shall be subscribed the signatures of such holders or of their representatives by proxy and the serial number or numbers of the Debt Securities held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in triplicate of all votes cast at the meeting. A record in duplicate  of  the  proceedings  of  each  meeting  of  Securityholders  shall  be  prepared  by  the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided in Section 8.02. The record shall show the serial numbers of the Debt Securities voting in favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.  Any record so signed and verified shall be conclusive evidence of the matters therein stated.

SECTION 8.07.  Quorum; Actions.

The Persons entitled to vote a majority in outstanding principal amount of the Debt Securities shall constitute a quorum for a meeting of Securityholders; provided, however, that if any action is to be taken at such meeting with respect to a consent, waiver, request, demand, notice, authorization, direction or other action which may be given by the holders of not less than a specified percentage in outstanding principal amount of the Debt  Securities, the Persons holding or representing such specified percentage in outstanding principal amount of the Debt Securities will constitute a quorum. In the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the request of Securityholders, be dissolved. In any other case the meeting may be adjourned for a period of not less  than  10  days  as  determined  by  the  permanent  chairman  of  the  meeting  prior  to  the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days as determined by the permanent chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 8.02, except that such notice need be given only once not less than five days prior to the date on which the meeting is scheduled  to be reconvened.  Notice of the reconvening  of an adjourned  meeting shall state expressly  the percentage, as provided  above, of the outstanding  principal  amount of the Debt Securities which shall constitute a quorum.

Except  as  limited  by  the  proviso  in  the  first  paragraph  of  Section  9.02,  any resolution  presented to a meeting or adjourned  meeting duly reconvened  at which a quorum is present as aforesaid  may be adopted  by the affirmative  vote of the holders  of not less than a majority in outstanding principal amount of the Debt Securities; provided, however, that, except as limited by the proviso in the first paragraph of Section 9.02, any resolution with respect to any consent,  waiver,  request,  demand,  notice,  authorization,   direction  or  other  action  that  this Indenture expressly provides may be given by the holders of not less than a specified percentage in  outstanding  principal  amount  of  the  Debt  Securities  may  be  adopted  at  a  meeting  or  an 

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adjourned meeting duly reconvened  and at which a quorum is present as aforesaid only by the affirmative vote of the holders of not less than such specified percentage in outstanding principal amount of the Debt Securities.

Any  resolution  passed  or  decision  taken  at  any  meeting  of  holders  of  Debt Securities duly held in accordance with this Section shall be binding on all the Securityholders, whether or not present or represented at the meeting.

SECTION 8.08.  Written Consent Without a Meeting.

Whenever under this Indenture, Securityholders  are required or permitted to take any action by vote, such action may be taken without a meeting on written consent, setting forth the action so taken, signed by the Securityholders  of all outstanding Debt Securities entitled to vote thereon.   No consent shall be effective to take the action referred to therein unless, within sixty days of the earliest dated consent delivered in the manner required by this paragraph to the Trustee,  written  consents  signed  by a sufficient  number  of Securityho_lders  to take action  are delivered  to the Trustee  at its Principal  Office.   Delivery  made to the Trustee  at its Principal Office, shall be by hand or by certificated  or registered mail, return receipt requested.   Written consent  thus  given  by  the  Securityholders  of  such  number  of  Debt  Securities  as  is  required hereunder, shall have the same effect as a valid vote of Securityholders  of such number of Debt Securities.

ARTICLE IX 

SUPPLEMENTAL  INDENTURES

SECTION 9.01.  Supplemental Indentures without Consent of Securityholders.

The Company, when authorized by a Board Resolution, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental  hereto, without the consent of the Securityholders, for one or more of the following purposes:

(a)        to ·   evidence   the   succession   of  another   Person   to  the  Company,   or successive successions, and the assumption by the successor Person of the covenants, agreements and obligations of the Company, pursuant to Article XI hereof;

(b)       to   add   to  the   covenants   of   the   Company   such   further   covenants, restrictions  or conditions  for the  protection  of the holders of Debt  Securities  as the Board  of Directors shall consider  to be for the protection  of the holders of such Debt Securities,  and to make the occurrence, or the occurrence  and continuance, of a Default in any of such additional covenants, restrictions or conditions a Default or an Event of Default permitting the enforcement of all or any of the several  remedies  provided  in this Indenture  as herein  set forth;  provided, however,   that  in  respect  of  any  such  additional   covenant,   restriction   or  condition   such supplemental  indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults)  or may provide for an immediate  enforcement  upon  such default  or may limit  the remedies  available  to the Trustee upon such default;

(c)       to cure any ambiguity or to correct or supplement  any provision contained herein or in any supplemental  indenture  which may be defective or inconsistent  with any other provision contained herein or in any supplemental indenture, or to make or amend such other provisions in regard to matters or questions arising under this Indenture; provided, that any such action shall not adversely affect the interests of the holders of the Debt Securities;

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(d)       to add to, delete from, or revise the terms of Debt Securities,  including, without limitation, any terms relating to the issuance, exchange, registration  or transfer of Debt Securities,  including  to provide for transfer procedures  and restrictions  substantially  similar to those applicable to the Capital Securities, as required by Section 2.05 (for purposes of assuring that no registration of Debt Securities is required under the Securities Act of 1933, as amended); provided, that any such action shall not adversely affect the interests of the holders of the Debt Securities  then  outstanding  (it  being  understood,  for  purposes  of  this  proviso,  that  transfer restrictions on Debt Securities substantially similar to those applicable to Capital Securities shall not be deemed to adversely affect the holders of the Debt Securities);

(e)       to evidence and provide for the acceptance of appointment  hereunder by a successor  Trustee  with  respect  to  the  Debt  Securities  and  to  add  to  or  change  any  of  the provisions of this Indenture as shall be necessary to provide for or facilitate the administration  of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 6.10;

(f)     to make any change (other than as elsewhere  provided in this paragraph)
that does not adversely affect the rights of any Securityholder in any material respect; or

(g)       to  provide  for  the  issuance  of  and  establish  the  form  and  terms  and conditions  of  the  Debt  Securities,  to  establish  the  form  of  any  certifications  required  to  be furnished pursuant to the terms of this Indenture or the Debt Securities, 9r to add to the rights of the holders of Debt Securities.

The Trustee is hereby authorized  to join with the Company  in the execution  of any such supplemental  indenture, to make any further appropriate  agreements  and stipulations which may be therein contained and to accept the conveyance, transfer and assignment of any property thereunder, but the Trustee shall not be obligated to, but may in its discretion, enter into any such supplemental  indenture  which affects the Trustee's  own  rights, duties or immunities under this Indenture or otherwise.

Any supplemental indenture authorized by the provisions of this Section 9.01 may be executed  by the Company and the Trustee without the consent of the holders of any of the Debt Securities at the time outstanding, notwithstanding any of the provisions of Section 9.02.

SECTION 9.02.  Supplemental Indentures with Consent of Securityholders.

With the consent  (evidenced  as provided  in Section  7.01) of the holders of not less than a majority in aggregate principal amount of the Debt Securities at the time outstanding affected by such supplemental  indenture, the Company, when authorized by a Board Resolution, and the Trustee  may from time to time and at any time enter into an ·indenture or indentures supplemental  hereto (which shall conform  to the provisions of the Trust Indenture Act, then in effect, applicable to indentures qualified thereunder) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental  indenture  or of modifying  in any  manner the  rights  of the holders  of the Debt Securities; provided, however, that no such supplemental indenture shall without such consent of the holders of each Debt Security then outstanding and affected thereby (i) change the Maturity Date of any Debt Security, or reduce the principal amount thereof or any premium thereon, or reduce the rate (or manner of calculation  of the rate) or extend the time of payment of interest thereon, or reduce (other than as a result of the maturity or earlier redemption  of any such Debt Security in accordance  with the terms of this Indenture and such Debt Security) or increase the aggregate principal amount of Debt Securities then outstanding, or change any of the redemption provisions, or make the principal thereof or any interest or premium thereon payable in any coin or currency other than United States 

Dollars, or impair or affect the right of any Securityholder to institute suit for payment thereof or impair the right of repayment,  if any, at the option of the holder,  or  (ii)  reduce  the  aforesaid  percentage  of  Debt  Securities  the  holders  of  which  are required to consent to any such supplemental  indenture; and provided, "further, that if the Debt Securities are held by the Trust or a trustee of such trust, such supplemental  indenture shall not be effective until the holders of a majority in Liquidation Amount of the outstanding Capital Securities  shall  have consented  to such  supplemental  indenture;  provided,  further,  that  if the consent of the Securityholder  of each outstanding Debt Security is required, such supplemental indenture shall not be effective until each holder of the outstanding Capital Securities shall have consented to such supplemental indenture.

Upon   the   request   of   the   Company   accompanied   by   a   Board   Resolution authorizing  the  execution  of  any  such  supplemental  indenture,  and  upon  the  filing  with  the Trustee  of  evidence  of  the  consent  of  Securityholders  (and  holders  of  Capital  Securities,  if required)  as  aforesaid,  the  Trustee  shall  join  with  the  Company  in  the  execution  of  such supplemental  indenture  unless  such  supplemental  indenture  affects  the  Trustee's  own  rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture.

Promptly   after   the   execution   by   the   Company   and   the   Trustee   of   any supplemental  indenture pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class  postage  prepaid,  a notice,  prepared  by the Company,  setting  forth  in general terms the substance of such supplemental indenture, to the Securityholders as their names and addresses appear upon the Debt Security Register. Any failure of the Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

It shall not be necessary for the consent of the Securityholders  under this Section
9.02  to  approve  the  particular  form  of  any  proposed  supplemental  indenture,  but  it  shall  be sufficient if such consent shall approve the substance thereof.

SECTION 9.03.  Effect of Supplemental Indentures.

Upon the execution  of any supplemental  indenture  pursuant to the provisions of this Article IX, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Debt Securities shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

SECTION 9.04.  Notation on Debt Securities.

Debt  Securities  authenticated  and  delivered  after  the  execution  of any supplemental  indenture  pursuant to the provisions  of this Article IX may bear a notation as to any matter provided for in such supplemental  indenture. If the Company or the Trustee shall so determine,  new  Debt  Securities  so  modified  as  to  conform,  in  the  opinion  of  the  Board  of Directors  of  the  Company,  to  any  modification   of  this  Indenture  contained   in  any  such supplemental  indenture  may be prepared  and executed  by the Company,  authenticated  by the Trustee or the Authenticating Agent and delivered in exchange for the Debt Securities then outstanding.

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

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The Trustee, subject to the provisions of Sections 6.01 and 6.02, shall, in addition to the documents required by Section 14.06, receive an Officers' Certificate and an Opinion of Counsel  as  conclusive  evidence  that  any  supplemental   indenture  executed  pursuant  hereto complies  with  the  requirements  of  this  Article  IX.  The  Trustee  shall. receive  an  Opinion  of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article IX is authorized  or permitted  by, and conforms  to, the terms of this Article  IX and that  it is proper for the Trustee under the provisions of this Article IX to join in the execution thereof.

ARTICLE X 

REDEMPTION OF SECURITIES

SECTION 10.01.  Optional Redemption.

At any time the Company shall have the right, subject to payment to the Trustee of amounts owing to it and subject to the receipt by the Company of prior approval from any regulatory authority with jurisdiction over the Company if such approval is then required under applicable capital guidelines or policies of such regulatory authority, to redeem the Debt Securities, in whole or (provided that all accrued and unpaid interest has been paid on all Debt Securities for all Interest Periods terminating on or prior to such date) from time to time in part, on any March 15, June 15, September 15 or December 15 on or after September 15, 2010 (the "Redemption Date"), at the Redemption Price.

SECTION 10.02.  Special Event Redemption.

If a Special Event shall occur and be continuing, the Company shall have the right, subject to the receipt by the Company of prior approval from any regulatory authority with jurisdiction  over  the  Company  if  such  approval  is  then  required  under  applicable  capital guidelines or policies of such regulatory authority, to redeem the Debt Securities, in whole or in part, at any time within 90 days following the occurrence of such Special Event (the "Special Redemption Date"), at the Special Redemption Price.
SECTION 10.03.  Notice ofRedemption; Selection ofDebt Securities.

In case the Company shall desire to exercise the right to redeem all, or, as the case may be, any part of the Debt Securities, it shall fix a date for redemption and shall mail, or cause the Trustee to mail (at the expense of the Company) a notice of such redemption at least 30 and not more than 60 days prior to the date fixed for redemption to the holders of Debt Securities so to be redeemed as a whole or in part at their last addresses as the same appear on the Debt Security Register. Such mailing shall be by first class mail. The notice if mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the holder receives such notice. In any case, failure to give such notice by mail or any defect in the notice to the holder of any Debt Security designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Debt Security.

Each such notice of redemption shall specify the CUSIP number, if any, of the Debt Securities to be redeemed, the date fixed for redemption, the redemption price (or manner of calculation of the price) at which Debt Securities are to be redeemed, the place or places of payment, that payment will be made upon presentation and surrender of such Debt Securities, that interest accrued to the date fixed for redemption will be paid as specified in said notice, and that on and after said date interest thereon or on the portions thereof to be redeemed will cease to accrue. If less than all the Debt Securities are to be redeemed the notice of redemption shall specify the numbers of the Debt Securities to be redeemed. In case the Debt Securities are to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof 

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to be redeemed and shall state that on and after the date fixed for redemption, upon surrender of such Debt Security, a new Debt Security or Debt Securities in principal amount equal to the unredeemed portion thereof will be issued.

On the Business Day prior to the Redemption Date or the Special Redemption Date specified in the notice of redemption given as provided in this Section, the Company will deposit with the Trustee or with one or more Paying Agents an amount of money sufficient to redeem on the redemption date all the Debt Securities so called for redemption at the appropriate redemption price, together with unpaid interest accrued to such date.

The Company will give the Trustee notice not less than 45 nor more than 60 days prior to the Redemption Date as to the Redemption Price at which the Debt Securities are to be redeemed and the aggregate principal amount of Debt Securities to be redeemed and the Trustee shall select, in such manner as in its sole discretion it shall deem appropriate and fair, the Debt Securities or portions thereof (in integral multiples of $1,000) to be redeemed.

SECTION 10.04.  Payment of Debt Securities Called for Redemption.

If notice of redemption has been given as provided in Section 10.03, the Debt Securities or portions of Debt Securities with respect to which such notice has been given shall become due and payable on the Redemption Date or the Special Redemption Date (as the case may be) and at the place or places stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption, and on and after said Redemption Date or the Special Redemption Date (unless the Company shall default in the payment of such Debt Securities at the redemption price, together with unpaid interest _accrued thereon to said date) interest on the Debt Securities or portions of Debt Securities so called for redemption shall cease to accrue. On presentation and surrender of such Debt Securities at a place of payment specified in said notice, such Debt Securities or the specified portions thereof shall be paid and redeemed by the Company at the applicable redemption price, together with unpaid interest accrued thereon to the Redemption Date or the Special Redemption Date (as the case may be).

Upon presentation of any Debt Security redeemed in part only, the Company shall execute and the Trustee shall authenticate and make available for delive_ry to the holder thereof, at the expense of the Company, a new Debt Security or Debt Securities of authorized denominations in principal amount equal to the unredeemed portion of the Debt Security so presented.

ARTICLE XI

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE 

SECTION 11.01.  Company May Consolidate, etc., on Certain Terins.

Nothing contained in this Indenture or in the Debt Securities shall prevent any consolidation or merger of the Company with or into any other corporation or corporations (whether or not affiliated with the Company) or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of all or substantially all of the property or capital stock of the Company or its successor or successors to any other corporation (whether or not affiliated with the Company, or its successor or successors) authorized to acquire 

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and operate the same; provided, however, that the Company hereby covenants and agrees that, (i) upon any such consolidation, merger (where the Company is not the surviving corporation), sale, conveyance, transfer or other disposition, the successor entity shall be a corporation organized and existing under the laws of the United States or any state thereof or the District of Columbia (unless such corporation has (1) agreed to make all payments due in respect of the Debt Securities or, if outstanding, the Capital Securities and Capital Securities Guarantee without withholding or deduction for, or on account of, any taxes, duties, assessments or other governmental charges under the laws or regulations ofthe jurisdiction of organization or residence (for tax purposes) of such  corporation  or  any  political  subdivision or  taxing  authority  thereof  or  therein  unless required by applicable law, in which case such corporation shall have agreed to pay such additional amounts as shall be required so that the net amounts received and retained by the holders of such Debt Securities or Capital Securities, as the case may be, after payment of all taxes (including withholding taxes), duties, assessments or other governmental charges, will be equal to the amounts that such holders would have received and retained had no such taxes (including withholding taxes), duties, assessments or other governmental charges been imposed, (2) irrevocably and unconditionally consented and submitted to the jurisdiction of any United States federal court or New York state court, in each case located in The City of New York, Borough of Manhattan, in respect of any action, suit or proceeding against it arising out of or in connection with this Indenture, the Debt Securities, the Capital Securities Guarantee or the Declaration and irrevocably and unconditionally waived, to the fullest extent permitted by law, any objection to the laying of venue in any such court or that any such action, suit or proceeding has been brought in an inconvenient forum and (3) irrevocably appointed an agent in The City of New York for service of process in any action, suit or proceeding referred to in clause (2) above) and such corporation expressly assumes all of the obligations of the Company under the Debt Securities, this Indenture, the Capital Securities Guarantee and the Declaration and (ii) after giving effect to any such consolidation, merger, sale, conveyance, transfer or other disposition, no Default or Event of Default shall have occurred and be continuing.

SECTION 11.02.  Successor Entity to be Substituted.

In case of any such consolidation, merger, sale, conveyance, transfer or other disposition contemplated in Section 11.01 and upon the assumption by the successor entity, by supplemental indenture, executed and delivered to the Trustee and reasonably satisfactory in form to the Trustee, of the due and punctual payment of the principal of and premium, if any, and interest on all of the Debt Securities and the due and punctual performance and observance of all of the covenants and conditions of this Indenture to be performed or observed by the Company, such successor entity shall succeed to and be substituted for the Company, with the same effect as if it had been named herein as the Company, and thereupon the predecessor entity shall be relieved of any further liability or obligation hereunder or upon the Debt Securities. Such successor entity thereupon may cause to be signed, and may issue either in its own name or in the name ofthe  Company, any or all of the Debt Securities issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee or the Authenticating Agent; and, upon the order of such successor entity instead of the Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee or the Authenticating Agent shall authenticate and deliver any Debt Securities which previously shall have been signed and delivered by the officers of the Company, to the Trustee or the Authenticating Agent for authentication, and any Debt Securities which such successor entity thereafter shall cause to be signed and delivered to the Trustee or the Authenticating Agent for that purpose. All the Debt Securities so issued shall in all respects have the same legal rank and benefit under this Indenture as the Debt Securities theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Debt Securities had been issued at the date of the execution hereof.

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

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The Trustee, subject to the provisions of Sections 6.01 and 6.02, shall receive, in addition  to  the  Opinion  of  Counsel  required  by  Section  9.05,  an  Opinion  of  Counsel  as conclusive  evidence  that  any  consolidation,  merger,  sale,  conveyance,  transfer  or  other disposition, and any assumption, permitted or required by the terms of this Article XI complies with the provisions of this Article XI.

ARTICLE XII

SATISFACTION AND DISCHARGE OF INDENTURE 
SECTION 12.01.  Discharge oflndenture.

When (a) the Company shall deliver to the Trustee for cancellation all Debt Securities theretofore authenticated (other than any Debt Securities which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.06) and not theretofore canceled, or (b) all the Debt Securities not theretofore canceled or delivered to the Trustee for cancellation  shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit with the Trustee, in trust, funds, which shall be immediately due and payable, sufficient to pay at maturity or upon redemption all of the Debt Securities (other than any Debt Securities which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.06) not theretofore canceled or delivered to the Trustee for cancellation, including principal and premium, if any, and interest due or to become due to such date of maturity or redemption date, as the case may be, but excluding, however, the amount of any moneys for the  payment of  principal of,  and premium,  if any, or  interest  on the Debt Securities (1) theretofore repaid to the Company in accordance with tlie provisions of Section 12.04, or (2) paid to any state or to the District of Columbia pursuant to its unclaimed property or similar laws, and if in the case of either clause (a) or clause (b) the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect except for the provisions of Sections 2.05, 2.06, 3.01, 3.02, 3.04, 6.06, 6.09 and 12.04 hereof, which shall survive until such Debt Securities shall mature or are redeemed, as the case may be, and are paid in full. Thereafter, Sections 6.06, 6.09 and 12.04 shall  survive,  and  the  Trustee,  on  demand  of  the  Company  accompanied  by  an  Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with, and at the  cost  and  expense  of  the  Company,  shall  execute  proper  instruments  acknowledging satisfaction of and discharging this Indenture, the Company, however, hereby agreeing to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by the Trustee in connection with this Indenture or the Debt Securities.

SECTION 12.02.  Deposited Moneys to be Held in Trust by Trust e.

Subject to the provisions of Section 12.04, all moneys deposited with the Trustee pursuant to Section 12.01 shall be held in trust and applied by it to the payment, either directly or through any Paying  Agent (including  the Company  if acting as its own Paying  Agent), to the holders  of  the  particular  Debt  Securities  for  the  payment  of  which  such  moneys  have  been deposited  with  the  Trustee,  of  all  sums  due  and  to  become  due  thereon  for  principal,  and premium, if any, and interest.

SECTION 12.03.  Paying Agent to Repay Moneys Held.

Upon the satisfaction and discharge of this Indenture, all moneys then held by any Paying  Agent  of  the  Debt  Securities  (other  than  the  Trustee)  shall,  upon  demand  of  the Company, be repaid to the 

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Company or paid to the Trustee, and thereupon  such Paying Agent shall be released from all further liability with respect to such moneys.

SECTION 12.04.  Return of Unclaimed Moneys.

Any  moneys  deposited  with  or  paid  to  the  Trustee  or  any  Paying  Agent  for payment of the principal of, and premium, if any, or interest on Debt Securities and not applied but remaining  unclaimed  by the holders  of Debt  Securities  for two  years after the date  upon which the principal of, and premium, if any, or interest on such Debt Securities, as the case may be, shall have become due and payable, shall be repaid to the Company  by the Trustee or such Paying Agent on written demand; and the holder of any of the Debt Securities  shall thereafter look only to the Company for any payment which such holder may be entitled to collect and all liability of the Trustee or such Paying Agent with respect to such moneyshall thereupon cease.

ARTICLE XIII

IMMUNITY OF INCORPORATORS,  STOCKHOLDERS, OFFICERS AND DIRECTORS 

SECTION 13.01.  Indenture and Debt Securities Solely Corporate Obligations.

No recourse for the payment of the principal of or premium, if any, or interest on any  Debt  Security,  or  for  any  claim  based  thereon  or  otherwise  in  respect  thereof,  and  no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental indenture, or in any such Debt Security, or because of the creation of any indebtedness  represented  thereby,  shall  be had  against  any  incorporator,  stockholder,  officer, director,  employee  or  agent,  as  such,  past,  present  or  future,  of  the  Company  or  of  any predecessor or successor corporation of the Company, either directly or through the Company or any successor corporation of the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of the Debt Securities.

ARTICLE XIV 

MISCELLANEOUS PROVISIONS

SECTION 14.01.  Successors.

All  the  covenants,   stipulations,   promises   and  agreements   of  the  Company contained in this Indenture shall bind its successors and assigns whether so expressed or not.

SECTION 14.02.  Official Acts by Successor Entity.

Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the like board, committee, officer or other authorized Person of any entity that shall at the time be the lawful successor of the Company.

SECTION 14.03.  Surrender of Company Powers.

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The Company by instrument in writing executed by authority of 2/3 (two-thirds) of its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to  the  Company  and  thereupon  such  power  so  surrendered  shall  terminate  both  as  to  the Company and as to any permitted successor.

SECTION 14.04.  Addresses for Notices, etc.

Any notice or demand which by any provision of this Indenture is required or permitted to be given or served by the. Trustee or by the Securityholders on the Company may be given or served in writing, duly signed by the party giving such notice, and shall be delivered by facsimile  (which  facsimile  shall  be  confirmed  by  fax  confirmation  and  followed  by  notice delivered or mailed by first class mail) or mailed by first class mail to the Company at:

Foster Bankshares, Inc.
5225 N. Kedzie Avenue
Chicago, Illinois 60625
Attention:  Kurt C. Felde

Any notice, direction, request or demand by any Securityholder  or the Company to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the office of LaSalle Bank National Association at:

135 S. LaSalle Street, Suite 1511
Chicago, Illinois 60603
Attn: CDO Trust Services Group- Foster Capital Trust I

SECTION 14.05.  Governing Law.

This Indenture and the Debt Securities shall each be governed by, and construed in accordance with, the laws of the State of New York, without regard to conflict of laws principles of said State other than Section 5-1401 of the New York General Obligations Law.

SECTION 14.06.  Evidence of Compliance with Conditions Precedent.

Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate stating that in the opinion of the signers all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with (except that no such Opinion of Counsel is required to be furnished to the Trustee in connection with the authentication and issuance of Debt Securities issued on the date ofthis  Indenture).

Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture (except certificates delivered pursuant to Section 3.05) shall include (a) a statement that the person making such certificate or opinion has read such covenant or condition and the definitions relating  thereto;  (b)  a  brief  statement  as  to  the  nature  and  scope  of  the  examination  or investigation upon which the statements or opinions contained in such certificate or opinion are based; (c) a statement that, in the opinion of such person, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether 

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or not such covenant or condition has been complied with; and (d) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

SECTION 14.07.  Non-Business Days.

Notwithstanding  anything  to  the  contrary  contained  herein,  if  any  Interest Payment Date, other than on the Maturity Date, any Redemption Date or the Special Redemption Date, falls on a day that is not a Business Day, then any interest payable will be paid on, and such Interest Payment Date will be moved to, the next succeeding Business Day, and additional interest will accrue for each day that such payment is delayed as a result thereof.  If the Maturity Date, any Redemption Date or the Special Redemption Date falls on a day that is not a Business Day, then the principal, premium, if any, and/or interest payable on such date will be paid on the next succeeding Business Day, and no additional interest will accrue in respect of such payment made on such next succeeding Business Day.

SECTION 14.08.  Table of Contents, Headings, etc.

The table of contents and the titles and headings of the articles and sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

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SECTION 14.09.  Execution in Counterparts.

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

SECTION 14.10.  Severability.

In case any one or more of the provisions contained in this Indenture or in the Debt Securities shall for any reason be held to be invalid, illegal or unenforceable in any respect, such  invalidity,  illegality  or  unenforceability  shall  not  affect  any  other  provisions  of  this Indenture  or of  such  Debt  Securities,  but  this  Indenture  and  such  Debt  Securities  shall  be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

SECTION 14.11.  Assignment.

Subject to Article XI, the Company will have the right at all times to assign any of its rights or obligations under this Indenture and the Debt Securities to a direct or indirect wholly owned Subsidiary of the Company; provided, however, that, in the event of any such assignment, the Company will remain liable for all such obligations. Subject to the foregoing, this Indenture is binding upon and inures to the benefit of the parties hereto and their r spective successors and assigns. This Indenture may not otherwise be assigned by the parties thereto.

SECTION 14.12.  Acknowledgment ofRights.

The Company acknowledges that, with respect to any Debt Securities held by the Trust or the Institutional Trustee of the Trust, if the Institutional Trustee of the Trust fails to enforce its rights under this Indenture as the holder of Debt Securities held as the assets of the Trust after the holders of a majority in Liquidation Amount of the Capital Securities of the Trust have  so  directed  in  writing  such  Institutional  Trustee,  a  holder  of  record  of  such  Capital Securities may to the fullest extent permitted by law institute legal proceedings directly against the Company to enforce such Institutional Trustee's rights under this Indenture without first instituting any legal proceedings against such Institutional Trustee or any other Person. Notwithstanding the foregoing, if an Event of Default has occurred and is continuing and such event is attributable to the failure  of  the Company  to  pay interest  (or  premium,  if any) or principal on the Debt Securities on the date such interest (or premium, if any) or principal is otherwise due and payable (or in the case of redemption, on the redemption date), the Company acknowledges that a holder of record of Capital Securities of the Trust. may directly institute a proceeding against the Company for enforcement of payment to such holder directly of the principal of (or premium, if any) or interest on the Debt Securities having an aggregate principal amount equal to the aggregate Liquidation Amount of the Capital Securities of such holder on or after the respective due date specified in the Debt Securities.

ARTICLE XV 

SUBORDINATION  OF DEBT SECURITIES

SECTION 15.01.  Agreement to Subordinate.

The Company covenants and agrees, and each holder of Debt Securities issued hereunder  and under any supplemental  indenture  (the "Additional· Provisions")  by such Securityholder's  acceptance thereof likewise covenants and agrees, that all Debt Securities shall be issued  subject  to  the  provisions  of this  Article  XV;  and  each  holder  of  a Debt  Security, whether  upon original  issue or upon transfer  or assignment  thereof,  accepts  and agrees  to be bound by such provisions.

The payment by the Company of the payments due on all Debt Securities issued hereunder and under any Additional Provisions shall, to the extent and in the manner hereinafter set forth, be subordinated and junior in right of payment to the prior payment in full of all Senior Indebtedness  of the Company,  whether  outstanding  at the date of this Indenture  or thereafter incurred.

No provision of this Article XV shall prevent the occurrence  of any Default or
Event of Default hereunder.

SECTION 15.02.  Default on Senior Indebtedness.

In the event and during the continuation of any default by the Company in the payment of principal, premium, interest or any other payment due on any Senior Indebtedness of the Company  following  any applicable  grace period,  or in the event that the maturity  of any Senior  Indebtedness  of  the  Company  has  been  accelerated  because  of  a  default,  and  such acceleration has not been rescinded or canceled and such Senior Indebtedness has not been paid in full,  then, in either  case,  no  payment  shall  be made  by the Company  with  respect  to the payments due on the Debt Securities.

In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee when such payment is prohibited by the preceding paragraph of this Section 15.02, such payment shall, subject to Section 15.06, be held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior Indebtedness  or their respective representatives,  or to the trustee or trustees  under any indenture pursuant to which any of such Senior Indebtedness may have been issued, as their respective interests may appear, but only to the extent that the holders of the Senior Indebtedness (or their representative or representatives  or a trustee) notify the Trustee in writing within 90 days of such payment of the amounts then due and owing on the Senior Indebtedness and only the amounts specified in such notice to the Trustee shall be paid to the holders of Senior Indebtedness.

SECTION 15.03.  Liquidation; Dissolution; Bankruptcy.

Upon any payment by the Company or distribution  of assets of the Company of any kind or character, whether in cash, property or securities, to creditors upon any dissolution or winding-up or liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings, all amounts due upon all Senior Indebtedness  of  the Company  shall  first  be paid  in full,  or  payment ·thereof provided  for  in money in accordance  with its terms, before any payment is made by the Company on the Debt Securities;  and upon any such dissolution  or winding-up  or liquidation  or reorganization,  any payment  by the Company,  or distribution  of assets  of the Company  of any kind or character, whether in cash,  property or securities,  to which  the Securityholders  or the Trustee  would be entitled to receive from the 

55

Company, except for the provisions of this Article XV, shall be paid by the Company,  or by any receiver,  trustee in bankruptcy,  liquidating  trustee,  agent or other Person making such payment or distribution,  or by the Securityholders .or by the Trustee under this Indenture  if received  by them or it, directly to the holders of Senior  Indebtedness  of the Company (pro rata to such holders on the basis of the respective amounts of Senior Indebtedness held by such holders, as calculated by the Company) or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing such Senior Indebtedness may have been issued, as their respective interests may appear, to the extent necessary to pay such Senior Indebtedness in full, in money or money's worth, after giving effect to any concurrent  payment  or distribution  to or for the holders  of such  Senior  Indebtedness, before any payment or distribution is made to the Securityholders.

In the event that, notwithstanding  the foregoing,  any payment  or distribution  of assets  of  the  Company  of  any  kind  or  character,  whether  in  cash,  property  or  securities, prohibited by the foregoing,  shall be received by the Trustee before all Senior Indebtedness  of the Company is paid in full, or provision is made for such payment in money in accordance with its terms, such payment or distribution  shall be held in trust for the benefit of and shall be paid over  or  delivered   to  the  holders  of  such  Senior   Indebtedness   or  their  representative   or representatives,   or  to  the  trustee  or  trustees  under  any  indenture   pursuant  to  which  any instruments  evidencing  such  Senior  Indebtedness  may  have  been  issued,  as  their  respective interests may appear, as calculated by the Company, for application to the payment of all Senior Indebtedness of the Company remaining unpaid to the extent necessary to pay such Senior Indebtedness in full in money in accordance with its terms, after giving effect to any concurrent payment or distribution to or for the benefit of the holders of such Senior Indebtedness.

For purposes of this Article XV, the words "cash, property or securities" shall not be deemed to include shares of stock of the Company as reorganized or.readjusted,  or securities of  the  Company   or  any  other  corporation   provided   for  by  a  plan  of  reorganization   or readjustment, the payment of which is subordinated at least to the extent provided in this Article XV  with  respect  to  the  Debt  Securities  to  the  payment  of  all  Senior  Indebtedness  of  the Company, that may at the time be outstanding,  provided, that (a) such Senior Indebtedness  is assumed by the new corporation, if any, resulting from any such reorganization  or readjustment, and (b) the rights of the holders of such Senior Indebtedness are not, without the consent of such holders, altered by such reorganization  or readjustment. The consolidation of the Company with, or the merger of the Company into, another corporation  or the liquidat on or dissolution  of the Company following the conveyance, transfer or other disposition of its property as an entirety, or substantially as an entirety, to another corporation upon the terms and conditions provided for in Article XI  of  this  Indenture  shall  not  be  deemed  a  dissolution,  winding-up,  liquidation  or reorganization for the purposes of this Section 15.03 if such other corporation shall, as a part of such  consolidation,   merger,  conveyance  or  transfer,  comply  with  the  conditions  stated  in Article XI of this Indenture. Nothing in Section 15.02 or in this Section 15.03 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 6.06 of this Indenture.

SECTION 15.04.  Subrogation.

Subject to the payment in full of all Senior Indebtedness of the Company, the Securityholders shall be subrogated to the rights of the holders of such Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company applicable to such Senior Indebtedness until all payments due on the Debt Securities shall be paid in full; and, for the purposes of such subrogation, no payments or distributions to the holders of such Senior Indebtedness of any cash, property or securities to which the Securityholders or the Trustee would be entitled except for the provisions of this Article XV, and no payment over pursuant to the provisions of this Article XV to or for the benefit of the holders of such Senior Indebtedness 

57

by Securityholders or the Trustee, shall, as between the Company, its creditors other than holders of Senior Indebtedness of the Company, and the holders of the Debt Securities be deemed to be a payment or distribution by the Company to or on account of such Senior Indebtedness. It is understood that the provisions of this Article XV are and are intended solely for the purposes of defining the relative rights of the holders of the Debt Securities, on the one hand, and the holders of such Senior Indebtedness, on the other hand.

Nothing contained in this Article XV or elsewhere in this Indenture, any Additional Provisions or in the Debt Securities is intended to or shall impair, as between the Company, its creditors other than the holders of Senior Indebtedness of the Company, and the holders of the Debt Securities, the obligation of the Company, which is absolute and unconditional, to pay to the holders of the Debt Securities all payments on the Debt Securities as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the holders of the Debt Securities and creditors of the Company, other than the holders of Senior Indebtedness of the Company, nor shall anything herein or therein prevent the Trustee or the holder of any Debt Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article XV of the holders of such Senior Indebtedness in respect of cash, property or securities ofthe  Company received upon the exercise of any such remedy.

Upon any payment or distribution of assets of the Company referred to in this Article XV, the Trustee, subject to the provisions of Article VI of this Indenture, and the Securityholders shall be entitled to conclusively rely upon any order or decree made by any court of competent jurisdiction in which such dissolution, winding-up, liquidation or reorganization proceedings are  pending, or  a  certificate of  the  receiver, trustee in  bankruptcy, liquidation trustee, agent or other Person making such payment or distribution, delivered to the Trustee or to the Securityholders, for the purposes of ascertaining the Persons entitled to participate in such distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XV.

SECTION 15.05.  Trustee to Effectuate Subordination.

Each Securityholder by such Securityholder's acceptance thereof authorizes and directs the Trustee on such Securityholder's behalf to take such action as may be necessary or appropriate to effectuate the subordination provided in this Article XV and appoints the Trustee such Securityholder's attorney-in-fact for any and all such purposes.

SECTION 15.06.  Notice by the Company.

The Company shall give prompt written notice to a Responsible Officer of the Trustee at the Principal Office of the Trustee of any fact known to the Company that would prohibit the making of any payment of moneys to or by the Trustee in respect of the Debt Securities pursuant to the provisions of this Article XV. Notwithstanding the provisions of this Article XV or any other provision of this Indenture or any Additional· Provisions, the Trustee shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment of moneys to or by the Trustee in respect of the Debt Securities pursuant to the provisions of this Article XV, unless and until a Responsible Officer of the Trustee at the Principal Office of the Trustee shall have received written notice thereof from the Company or a holder or holders of Senior Indebtedness or from any trustee therefor; and before the receipt of any such written notice, the Trustee, subject to the provisions of Article VI of this Indenture, shall be entitled in all respects to assume that no such facts exist; provided, however, that if the Trustee shall not have received the notice provided for 

58

in this Section 15:06 at least two Business Days prior to the date upon which by the terms hereof any money may become payable for any purpose (including, without limitation, the payment of the principal of (or premium, if any) or interest on any Debt Security), then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such money and to apply the same to the purposes for which they were received, and shall not be affected by any notice to the contrary that may be received by it within two Business Days prior to such date.

The Trustee, subject to the provisions of Article VI of -this Indenture, shall be entitled to conclusively rely on the delivery to it of a written notice by a Person representing himself or herself to be a holder of Senior Indebtedness of the Company (or a trustee or representative on behalf of such holder) to establish that such notice has been given by a holder of such Senior Indebtedness or a trustee or representative on  behalf of any such holder or holders. In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any Person as a holder of such Senior Indebtedness to participate in any payment or distribution pursuant to this Article XV, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the· amount of such Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article XV, and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment.

SECTION 15.07. Rights ofthe Trustee, Holders of Senior Indebtedness.

The Trustee in its individual capacity shall be entitled to all the rights set forth in this Article XV in respect of any Senior Indebtedness at any time held by it, to the same extent as any other  holder  of  Senior  Indebtedness, and  nothing in  this  Indenture or  any  Additional
Provisions shall deprive the Trustee of any of its rights as such holder.

With respect to the holders of Senior Indebtedness of the Company, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this Article XV, and no implied covenants or obligations with respect to the holders of such Senior Indebtedness shall be read into this Indenture or any Additional Provisions against the Trustee. The Trustee shall not owe or be deemed to owe any fiduciary duty to the holders of such Senior Indebtedness and, subject to the provisions of Article VI of this Indenture, the Trustee shall not be liable to any holder of such Senior Indebtedness if it shall pay over or deliver to Securityholders, the Company or any other Person money or assets to which any holder of such Senior Indebtedness shall be entitled by virtue of this Article XV or otherwise.

Nothing in this Article XV shall apply to claims of, or payments to, the Trustee under or pursuant to Section 6.06.

SECTION 15.08.  Subordination May Not Be Impaired.

No right of any present or future holder of any Senior Indebtedness of the Company to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company, or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company, with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof that any such holder may have or otherwise be charged with.

59

Without in any way limiting the generality of the foregoing paragraph, the holders of Senior Indebtedness of the Company may, at any time and from time to time, without the consent of or notice to the Trustee or the Securityholders, without incurring responsibility to the Securityholders and without impairing or releasing the subordination provided in this Article XV or the obligations hereunder of the holders of the Debt Securities to the holders of such Senior Indebtedness, do any one or more of the following: (a) change the manner, place or terms of payment or extend the time of payment of, or renew or alter, such Senior Indebtedness, or otherwise amend or supplement in any manner such Senior Indebtedness or any instrument evidencing the same or any agreement under which such Senior Indebtedness is outstanding; (b) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing such Senior Indebtedness; (c) release any Person liable in any manner for the collection of such Senior Indebtedness; and (d) exercise or refrain from exercising any rights against the Company, and any other Person.

LaSalle Bank National Association, in its capacity as Trustee, hereby accepts the trusts in this Indenture declared and provided, upon the terms and conditions herein above set forth.

60

IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this  Indenture  to be duly executed by their respective  officers thereunto  duly authorized,  as of the day and year first above written.

	
		
	 
	

61

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed by their respective officers thereunto duly authorized, as of the day and year first above written.

	
		
	 
	

62

EXHIBIT A

FORM OF JUNIOR SUBORDINATED DEBT SECURITY DUE2035

[FORM OF FACE OF SECURITY]

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

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

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

A-1

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

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

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

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

A-2

Form of Junior Subordinated Debt Security due 2035 of
Foster Bankshares, Inc.

Foster Bankshares, Inc., a bank holding company incorporated in Delaware (the "Company"), for value received promises to pay to LaSalle Bank National Association, not in its individual capacity but solely as Institutional Trustee for Foster Capital Trust I, a Delaware statutory trust (the "Holder"), or registered assigns, the principal sum of Fifteen Million Four Hundred Sixty Four Thousand Dollars on July 8, 2035 and to pay interest on said principal sum from July 8, 2005, or from the most recent interest payment date (each such date, an "Interest Payment Date") to which interest has been paid or duly provided for, quarterly (subject to deferral as set forth herein) in arrears on March 15, June 15, September 15 and December 15 of each year commencing September 15, 2005, at a variable per annum rate equal to LIBOR (as defined in the Indenture) plus 1.70% (the "Interest Rate") (provided, however, that the Interest Rate for any Interest Payment Period may not exceed the highest rate permitted by New York law, as the same may be modified by United States law of general applicability) until the principal hereof shall have become due and payable, and on any overdue principal and (without duplication and to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest at an annual rate equal to the Interest Rate in effect for each such Extension Period compounded quarterly. The amount of  interest payable on any Interest Payment Date shall be computed on the basis of a 360-day year and the actual number of days elapsed in the relevant interest period.  Notwithstanding anything to the contrary contained herein, if any Interest Payment Date, other than on the Maturity Date, any Redemption Date or the Special Redemption Date, falls on a day that is not a Business Day, then any interest payable will be paid on, and such Interest Payment Date will be moved to, the next succeeding Business Day, and additional interest will accrue for each day that such payment is delayed as a result thereof.  If the Maturity Date, any Redemption Date or the Special Redemption Date falls on a day that is not a Business Day, then the principal, premium, if any, and/or interest payable on such date will be paid on the next succeeding Business Day, and no additional interest will accrue in respect of such payment made on such next succeeding Business Day.  The interest installment so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Debt Security (or one or more Predecessor Securities, as defined in said Indenture) is registered at the close of business on the regular record date for such interest installment, except that interest and any Deferred Interest payable on the Maturity Date shall be paid to the Person to whom principal is paid. Any such interest installment not punctually paid or duly provided for shall forthwith cease to be payable to the registered holders on such regular record date and may be paid to the Person in whose name this Debt Security (or one or more Predecessor Debt Securities) is registered at the close of business on a special record date to be fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be given to the registered holders of the Debt Securities not less than  10 days prior to such special record date, all as  more fully provided in the Indenture. The principal of and interest on this Debt Security shall be payable at the office or agency of the Trustee (or other Paying Agent appointed by the Company) maintained for that purpose in any coin or currency of the United States of America that at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Company by check mailed to the registered holder at such address 

A-3

as shall appear in the Debt Security Register or by wire transfer or immediately available funds  to  an  account  appropriately  designated  by  the  holder  hereof.  Notwithstanding  the foregoing, so long as the holder of this Debt Security is the Institutional.Trustee, payment of the principal of and premium, if any, and interest on this Debt Security shall be made in immediately available funds when due at such place and to such account as may be designated by the Institutional Trustee. All payments in respect of this Debt Security shall be payable in any coin or currency of the United States of America that at the time of payment is legal tender for payment of public and private debts.

Upon submission ofNotice (as defined in the Indenture) and so long as it is acting in good faith, and so long as no Event of Default pursuant to paragraphs (c), (e) or (f)  of Section 5.01 of the Indenture has occurred and is continuing the Company shall have the right, from time to time and without causing an Event of Default, to defer payments of interest on the Debt Securities by extending the interest distribution period on the Debt Securities at any time and from time to time during the term of the Debt Securities, for up to 20 consecutive quarterly periods (each such extended interest distribution period, an "Extension Period"), during which Extension Period no interest shall be due and payable (except any Additional Interest that may be due and payable). During any Extension Period, interest will continue to accrue on the Debt Securities, and interest on such  accrued interest (such accrued interest and interest thereon referred to herein as "Deferred Interest") will accrue at an annual rate equal to the Interest Rate applicable during such Extension Period, compounded quarterly from the date such Deferred Interest would have been payable were it not for the Extension Period, to the extent permitted by law. No Extension Period may end on a date other than an Interest Payment Date. At the end of any such Extension Period the Company shall pay all Deferred Interest then accrued and unpaid on the Debt Securities; provided, however, that no Extension Period may extend beyond the Maturity Date; and provided, further, however, during any such Extension Period, the Company may not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's capital stock or (ii) make any payment of principal of or premium, if any, or interest on or repay, repurchase or redeem any debt securities of the Company that rank pari passu in all respects with or junior in interest to the Debt Securities or (iii) make any payment under any guarantees of the Company that rank in all respects pari passu with or junior in respect to the Capital Securities Guarantee (other than (a) repurchases, redemptions or other acquisitions of shares of capital stock of the Company (A) in connection with any employment contract, benefit plan or other similar .arrangement with or for the benefit of one or more employees, officers, directors or consultants, (B) in connection with a dividend reinvestment or stockholder stock purchase plan or (C) in connection with the issuance of capital stock of the Company (or securities convertible into or exercisable for such capital stock),  as  consideration  in  an  acquisition  transaction  entered  into  prior  to  the  applicable Extension Period, (b) as a result of any exchange, reclassification, combination or conversion of any class or series of the Company's capital stock (or any capital stock of a subsidiary of the Company) for any class or series of the Company's capital stock or of any class or series of the Company's indebtedness for any class or series of the Company's capitastock, (c) the purchase of  fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (d) any declaration of a dividend in connection with any stockholder's rights plan, or the issuance of rights, stock  or  other  property  under  any  stockholder's  rights  plan,  or  the  redemption  or repurchase of rights pursuant thereto, (e) any dividend in the form of stock, warrants, options or other  

A-4

rights  where  the  dividend  stock  or the  stock  issuable  upon  exercise  of  such  warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such stock), or (f) cash distributions to its shareholders, in an amount not to exceed 40% of the Company's taxable income (as determined annually on the Company's tax return), to enable such shareholders  to pay federal and state income taxes associated  with their distributive shares of the Company's taxable income.  Prior to the termination  of any Extension Period, the Company  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, or extend beyond the Maturity Date. Upon the termination  of any  Extension  Period  and  upon  the  payment  of  all  Deferred  Interest,  the Company  may commence  a new Extension  Period, subject to the foregoing  requirements.  No interest or Deferred Interest shall be due and payable during an Extension  Period, except at the end  thereof,  but  Deferred  Interest  shall  accrue  upon  each  installment  of  interest  that  would otherwise have been due and payable during such Extension Period until such installment is paid. The Company must give the Trustee notice of its election to begin or extend an Extension Period at least one  Business  Day  prior  to the  regular  record  date  applicable  to the  next  succeeding Interest Payment Date on which interest on the Debt Securities would have been payable except for the election to begin such Extension Period.

The  indebtedness  evidenced  by  this  Debt  Security  is,  to  the  extent  provided  in  the Indenture, subordinate  and junior in right of payment  to the prior payment  in full of all Senior Indebtedness,  and this Debt Security  is issued subject  to the provisions  of the Indenture  with respect thereto. Each holder of this Debt Security, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes  and directs the Trustee on such holder's  behalf to take  such  action   as  may  be  necessary   or  appropriate   to  acknowledge   or  effectuate   the subordination so provided and (c) appoints the Trustee such holder's attorney-in-fact for any and all such  purposes.  Each  holder hereof,  by such  holder's  acceptance  hereof, hereby  waives  all notice of the acceptance of the subordination  provisions contained herein and in the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such holder upon said provisions.

The   Company   waives .    diligence,   presentment,    demand   for   payment,   notice   of nonpayment, notice of protest, and all other demands and notices.

This Debt Security  shall  not be entitled  to any benefit  under the Indenture  hereinafter referred to and shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by or on behalf of the Trust  e.

The provisions of this Debt Security are continued on the reverse side hereof and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.

A-5

IN WITNESS WHEREOF, the Company has duly executed this certificate.

	
				
	 
	Foster Bankshares, Inc.

	 
	 
	 
	 

	 
	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

	 
	 
	 
	 

	Dated:                                 , 2005
	 
	 

CERTIFICATE OF AUTHENTICATION

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

	
				
	 
	 
	LaSalle Bank National Association, not in its individual capacity but solely as Trustee

	 
	 
	 
	 

	 
	 
	By:
	 

	 
	 
	 
	Authorized Signatory

	Dated:                                 , 2005
	 
	 

A-6

[FORM OF REVERSE OF SECURITY]

This Debt Security is one of a duly authorized series of Debt Securities of the Company, all issued or to be issued pursuant to an Indenture (the "Indenture"), dated as of July 8, 2005, duly executed and delivered between the Company and LaSalle Bank National Association, as Trustee (the "Trustee"), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Debt Securities (referred to herein as the "Debt Securities") of which this Debt Security is a part. The summary of the terms of this Debt Security contained herein does not purport to be complete and is qualified by reference to the Indenture.

Upon the occurrence and continuation of a Tax Event, an Investment Company Event or a Capital Treatment Event (each a "Special Event"), this Debt Security may become due and payable, in whole or in part, at any time, within 90 days following the occurrence of such Tax Event, Investment Company Event or Capital Treatment Event (the "Special Redemption Date"), as the case may be, at the Special Redemption Price.

The Company shall also have the right to redeem this Debt Security at the option of the Company, in whole or in part, on any March 15, June 15, September 15 or December 15 on or after September 15, 2010 (a "Redemption Date"), at the Redemption Price.

Any redemption pursuant to the preceding paragraph will be made, subject to the receipt by the Company of prior approval from any regulatory authority with jurisdiction over the Company if such approval is then required under applicable capital guidelines or policies of such regulatory authority, upon not less than 30 days' nor more than 60 days' notice. If the Debt Securities are only partially redeemed by the Company, the Debt Securities will be redeemed pro rata or by lot or by any other method utilized by the Trustee.

"Redemption Price" means 100% of the principal amount of the Debt Securities being redeemed plus accrued and unpaid interest on such Debt Securities to the Redemption Date.

"Special Redemption Price" means, with respect to the redemption of any Debt Security following a Special Event, an amount in cash equal to 103.525% of the principal amount of Debt Securities to be redeemed prior to September 15, 2006 and thereafter equal to the percentage of the principal amount of the Debt Securities 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 15 
	Percentage of Principal Amount

	2006
	103.14%

	2007
	102.355%

	2008
	101.57%

	2009
	100.785%

	2010 and thereafter
	100%

In the event of redemption of this Debt Security in part only, a new Debt Security or Debt Securities for the unredeemed portion hereof will be issued in the name of the holder hereof upon the cancellation hereof.

A-7

In  certain  cases  where  an  Event  of Default,  as  defined  in  the  Indenture,  shall  have occurred and be continuing, the principal of all of the Debt Securities may be declared, and, in certain  cases,  shall  ipso  facto  become,  due  and  payable,  and  upon  such  declaration  of acceleration shall become due and payable, in each case, in the manner, with the effect and subject to the conditions provided in the Indenture.

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the Debt Securities at the time outstanding affected thereby, as specified in the Indenture, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or of modifying in any manner the rights of the holders of the Debt Securities; provided, however, that no such supplemental indenture shall, among other things, without the consent of the holders of each Debt Security then outstanding and affected thereby (i) change the Maturity Date of any Debt Security, or reduce the principal amount thereof or any premium thereon, or reduce the rate (or manner of calculation of the rate) or extend the time of payment of interest thereon, or reduce (other than  as  a result  of  the  maturity or  earlier  redemption  of any· such  Debt  Security  in accordance with the terms of the Indenture and such Debt Security) or increase the aggregate principal  amount  of  Debt  Securities  then  outstanding,  or  change  any  of  the  redemption provisions, or make the principal thereof or any interest or premium thereon payable in any coin or currency other than United States Dollars, or impair or affect the right of any holder of Debt Securities to institute suit for the payment thereof, or (ii) reduce the aforesaid percentage of Debt Securities, the holders of which are required to consent to any such supplemental indenture. The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount of the Debt Securities at the time outstanding, on behalf of all of the holders of the Debt Securities, to waive any past default in the performance of any of the covenants contained in the Indenture, or established pursuant to the Indenture, and its consequences, except (a) a default in payments due in respect of any of the Debt Securities, (b) in respect of covenants or provisions of the Indenture which cannot be modified or amended without the consent of the holder of each Debt  Security  affected,  or  (c)  in  respect  of  the  covenants  of  the  Company  relating  to  its ownership of Common Securities of the Trust. Any such consent or waiver by the registered holder of this Debt Security (unless revoked as provided in the Indent"!lre) shall be conclusive and binding upon such holder and upon all future holders and owners of this Debt Security and of any Debt Security issued in exchange herefor or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made upon this Debt Security.

No reference herein to the Indenture and no provision of this Debt Security or of the Indenture  shall  alter  or  impair  the  obligation  of  the  Company,  which  is  absolute  and unconditional, to pay all payments due on this Debt Security at the time nd place and at the rate and in the money herein prescribed.

As provided in the Indenture and subject to certain limitations herein and therein set forth, this Debt Security is transferable by the registered holder hereof on the Debt Security Register of the Company, upon surrender of this Debt Security for registration of transfer at the office or agency of the Trustee in Houston, Texas accompanied by a written instrument or instruments of transfer in form satisfactory to the Company or the Trustee duly executed by the registered holder hereof or such holder's attorney duly authorized in writing, and thereupon one or more new Debt Securities of authorized denominations and for the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be made for any such registration of transfer, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in relation thereto.

Prior to due presentment for registration of transfer of this Debt Security, the Company, the  Trustee, any  Authenticating Agent, any Paying  Agent, any transfer  agent  and the Debt Security registrar may deem 

A-8

and treat the registered holder hereof as the absolute owner hereof (whether or not this Debt Security shall be overdue and notwithstanding any notice of ownership or writing hereon) for the purpose of receiving payment of the principal of and premium, if any, and interest on this Debt Security and for all other purposes, and neither the Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor any transfer agent nor any Debt Security registrar shall be affected by any notice to the contrary.

No recourse shall be had for the payment of the principal of or the interest on this Debt Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture, against any incorporator, stockholder, officer or director, past, present or future, as such, of the Company or of any predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

The Debt Securities are issuable only in registered certificated form without coupons. As provided in the Indenture and subject to certain limitations herein and therein set forth, Debt Securities  are  exchangeable  for  a  like  aggregate  principal  amount  of  Debt  Securities  of  a different authorized denomination, as requested by the holder surrendering the same.

All terms used in this Debt Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture.

THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND   THE   DEBT   SECURITIES,   WITHOUT   REGARD   TO   CONFLICT   OF   LAWS PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

A-9Ex. 4.3 - 9.30.13

GUARANTEE AGREEMENT

Foster Bankshares, Inc. 

Dated as of July 8, 2005

	
				
	TABLE OF CONTENTS

	 
	 
	 
	 

	 
	 
	 
	Page

	 
	ARTICLE I
	 

	DEFINITIONS  AND INTERPRETATION
	 

	SECTION 1.1.
	Definitions and Interpretation
	4

	 
	 
	 
	 

	 
	ARTICLE II
	 

	 
	POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE
	 

	SECTION 2.1.
	Powers and Duties of the Guarantee Trustee
	6

	SECTION 2.2.
	Certain Rights of the Guarantee Trustee
	8

	SECTION 2.3.
	Not Responsible for Recitals of Issuance of Guarantee
	10

	SECTION 2.4.
	Events of Default; Waiver
	10

	SECTION 2.5.
	Events of Default: Notice
	10

	 
	 
	 
	 

	 
	ARTICLE III
	 

	 
	THE GUARANTEE TRUSTEE
	 

	SECTION 3.1.
	The Guarantee Trustee; Eligibility
	10

	SECTION 3.2.
	Appointment, Removal and Resignation of the Guarantee Trustee
	11

	 
	 
	 
	 

	 
	ARTICLE IV
	 

	 
	GUARANTEE
	 

	SECTION 4.1.
	Guarantee
	12

	SECTION 4.2.
	Waiver of Notice and Demand
	12

	SECTION 4.3.
	Obligation Not Affected
	12

	SECTION 4.4.
	Rights of Holders
	13

	SECTION 4.5.
	Guarantee of Payment
	13

	SECTION 4.6.
	Subrogation
	14

	SECTION 4.7.
	Independent Obligations
	15

	SECTION 4.8.
	Enforcement
	15

	 
	 
	 
	 

	
				
	TABLE OF CONTENTS

	 
	 
	 
	 

	 
	 
	 
	Page

	 
	ARTICLE V
	 

	 
	LIMITATION OF TRANSACTIONS; SUBORDINATION
	 

	SECTION 5.1.
	Limitation of Transactions
	 
	15

	SECTION 5.2.
	Ranking
	 
	16

	 
	 
	 
	 

	 
	ARTICLE VI
	 

	 
	TERMINATION
	 

	SECTION 6.1.
	Termination
	16

	 
	 
	 
	 

	 
	ARTICLE VII
	 

	 
	INDEMNIFICATION
	 

	SECTION 7.1.
	Exculpation
	16

	SECTION 7.2.
	Indemnification
	17

	SECTION 7.3.
	Compensation, Reimbursment of Expenses
	18

	 
	 
	 
	 

	 
	ARTICLE VIII
	 

	 
	MISCELLANEOUS
	 

	SECTION 8.1.
	Successors and Assigns
	18

	SECTION 8.2.
	Amendments
	18

	SECTION 8.3.
	Notices
	18

	SECTION 8.4.
	Benefit
	19

	SECTION 8.5.
	Governing Law
	19

	SECTION 8.6.
	Counterparts
	19

GUARANTEE AGREEMENT

This GUARANTEE  AGREEMENT  (the "Guarantee"),  dated as of July 8, 2005, is   executed   and   delivered   by   Foster   Bankshares,   Inc.,   incorporated    in   Delaware   (the "Guarantor"), and LaSalle  Bank National Association, as trustee (the "Guarantee Trustee"), for the benefit of the Holders  (as defined  herein)  from time to time of the Capital  Securities  (as defined herein) of Foster Capital Trust I, a Delaware statutory trust (the "Issuer").

WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the "Declaration"), dated as of July 8, 2005, among the trustees named therein of the Issuer, Foster Bankshares, Inc., as sponsor, and the Holders from time to time of undivided beneficial interests in the assets of the Issuer, the Issuer is issuing on the date hereof securities, having an aggregate liquidation amount of up to $15,000,000, designated the TP Securities (the "Capital Securities"); and

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

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

ARTICLE I
DEFINITIONS  AND INTERPRETATION 
SECTION 1.1.  Definitions and Interpretation.

In this Guarantee, unless the context otherwise requires:
		
	(a)
	capitalized terms used in this Guarantee  but not defined in the preamble above have the respective meanings assigned to them in this Section 1.1;

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

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

		
	(d)
	all references in this Guarantee to Articles and Sections are to Articles and

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

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

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

"Corporate Trust Office" means the office of the Guarantee Trustee at which the corporate trust business of the Guarantee Trustee shaH, at any particular time, be principally administered.

"Covered Person" means any Holder of Capital Securities.

"Debentures" means the junior  subordinated debentures  of  Foster Bankshares, Inc., designated  the Junior Subordinated Debt Securities due 2035, held  by the  Institutional Trustee (as defined in the Declaration) of the Issuer.

"Event of Default" has the meaning set forth in Section 2.4.

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

"Guarantee Trustee" means LaSalle Bank National Association, until a Successor Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of this Guarantee and thereafter means each such Successor Guarantee Trustee.

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

"Indemnified Person" means the Guarantee Trustee (including in its individual capacity),  any  Affiliate  of  the  Guarantee  Trustee,  or  any  officers,  directors,  shareholders, members, partners, employees, representatives, nominees, custodians or agents of the Guarantee Trustee.

"Indenture" means the Indenture, dated as of July 8, 2005, between the Guarantor and LaSalle Bank National Association, not in its individual capacity but solely as trustee, and any indenture supplemental thereto pursuant to which the Debentures are to be issued to the Institutional Trustee of the Issuer.

"Liquidation  Distribution"  has  the  meaning  set  forth  in  the  definition   of
"Guarantee Payments" herein.

"Majority in liquidation amount of the Capital Securities" means Holder(s) of outstanding Capital Securities, voting together as a class, but separately from the holders of Common Securities, of more than 50% 

of the aggregate liquidation amount (including the stated amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions to, but excluding, the date upon which the voting percentages are determined) of all Capital Securities then outstanding.

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

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

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

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

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

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

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

"Responsible Officer" means, with respect to the Guarantee Trustee, any officer within the CDO Trust Services Group of the Corporate Trust Office of the Guarantee Trustee with  direct  responsibility  for  the  administration  of  any  matters  relating  to  this  Guarantee, 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 Guarantee 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.

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

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

ARTICLE II
POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE 
SECTION 2.1. Powers and Duties of the Guarantee Trustee.

(a)     This Guarantee shall be held by the Guarantee Trustee for the benefit of the Holders of the Capital Securities, and the Guarantee Trustee shall not transfer this Guarantee to any Person except a 

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

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

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

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

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

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

(B)       in the absence  of  bad faith  on  the part of the Guarantee Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee and conforming to  the  requirements   of  this  Guarantee;  but  in  the  case  of  any  such certificates or opinions furnished to the Guarantee Trustee, the Guarantee Trustee shall be under a duty to examine the same to determine whether or not on their face they conform to the requirements of this Guarantee;

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

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

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

SECTION 2.2.   Certain Rights ofthe Guarantee Trustee.

(a)     Subject to the provisions of Section 2.1:

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

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

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

(iv)      The Guarantee  Trustee shall have no duty to see to any recording, filing  or  registration   of  any  instrument  or  other  writing  (or  any  rerecording, refiling or reregistration thereof).

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

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

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

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

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

(x)       Whenever  in the administration  of  this Guarantee  the Guarantee Trustee  shall deem  it desirable  to receive instructions  with respect to enforcing any remedy or right or taking any other action hereunder, the Guarantee Trustee (A) may request instructions from the Holders of a Majority in liquidation amount of the Capital 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   conclusively   relying   on   or   acting   in   accordance   with   such instructions.

(xi)      The  Guarantee  Trustee  shall  not  be liable  for  any  action  taken, suffered, or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Guarantee.

(b)       No  provision of this Guarantee  shall  be deemed  to impose  any duty  or obligation  on the Guarantee  Trustee  to perform any  act or acts  or exercise  any right, power, duty or obligation 

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

SECTION 2.3.  Not Responsible for Recitals or Issuance of Guarantee.

The recitals contained in this Guarantee shall be taken as the statements of the Guarantor, and the Guarantee Trustee does not assume any responsibility  for their correctness. The  Guarantee   Trustee  makes  no  representation   as  to  the  validity  or  sufficiency   of  this Guarantee.

SECTION 2.4.  Events of Default; Waiver.

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

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

SECTION 2.5. Events of Default; Notice.

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

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

ARTICLE III
THE GUARANTEE TRUSTEE
SECTION 3.1.  The 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  or  national  association  organized  and  doing business under the laws of the United States of America or any state or territory thereof or of the District of Columbia, or Person authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least Fifty Million U.S. Dollars ($50,000,000), and subject to supervision or examination by federal, state, territorial or District of Columbia authority. If such corporation  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 3.l (a)(ii), 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 Guarantee Trustee shall cease to be eligible to so act under Section 3.1 (a), the Guarantee Trustee shall immediately resign in the manner and with the effect set forth in Section 3.2(c).

(c)       If the Guarantee Trustee has or shall  acquire any "conflicting interest' within the meaning of Section 31O(b) of the Trust Indenture Act, the Guarantee Trustee shall either eliminate such interest or resign to the extent and in the manner provided by, and subject to, this Guarantee.

SECTION 3.2. Appointment, Removal and Resignation of the Guarantee Trustee.

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

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

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

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

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

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

ARTICLE IV 
GUARANTEE
SECTION 4.1. Guarantee.

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

(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.

SECTION 4.2.  Waiver ofNotice and Demand.

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

SECTION 4.3. Obligations Not Affected.

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

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

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

payment period on the Debentures or any extension of the maturity date of the Debentures permitted by the Indenture);

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

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

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

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

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

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

SECTION 4.4.  Rights of Holders.

(a)       The Holders of a Majority in liquidation amount of the Capital Securities have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of this Guarantee or to direct the exercise  of  any  trust  or  power  conferred  upon  the  Guarantee  Trustee  under  this Guarantee;  provided, however, that  (subject  to Sections  2.1  and  2.2)  the Guarantee Trustee shall  have the right to decline to follow any such  direction if the Guarantee Trustee shall determine that the actions so directed would be unjustly prejudicial to the Holders not taking part in such direction or if the Guarantee Trustee being advised by legal counsel determines that the action or proceeding so directed may not lawfully be taken or if the Guarantee Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of directors or trustees and/or Responsible Officers shall determine that the action or proceeding so directed would involve the Guarantee Trustee in personal liability.

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

SECTION 4.5.  Guarantee of Payment.

This Guarantee creates a guarantee of payment and not of collection. 

SECTION 4.6.  Subrogation.

The Guarantor shal1 be subrogated to all (if any) rights of the Holders of Capital
Securities against the Issuer in respect of any amounts paid to such Holders by the Guarantor under this Guarantee; provided, however, that the Guarantor shall  not (except  to the extent required by applicable provisions of law) be entitled to enforce or exercise any right that it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Guarantee, if, after giving effect to any such payment, any amounts are due and unpaid under this Guarantee. If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to the Holders.

 SECTION 4.7.  Independent Obligations.

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

SECTION 4.8.  Enforcement.

A  Beneficiary  may  enforce  the  Obligations  of  the  Guarantor  contained  in Section 4.1(b) directly against the Guarantor, and the Guarantor waives any right or remedy to require that  any  action  be  brought against  the  Issuer or  any  other  person  or  entity  before proceeding against the Guarantor.

The Guarantor shall be subrogated to all rights (if any) of any Beneficiary against the Issuer in respect of any amounts paid to the Beneficiaries by the Guarantor under this Guarantee; provided, however, that the Guarantor shall not (except  to the extent required by applicable provisions of law) be entitled to enforce or exercise any rights that it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Guarantee, if, after giving effect to such payment, any amounts are due and unpaid under this Guarantee.

ARTICLE V
LIMITATION OF TRANSACTIONS; SUBORDINATION 
SECTION 5.1.  Limitation of Transactions.

So  long  as any  Capital Securities  remain outstanding,  if (a)  there shall  have occurred and be continuing an Event of Default or (b) the Guarantor shall have selected an Extension Period as provided in the Declaration and such period, or any extension thereof, shall have  commenced  and  be  continuing,  then  the  Guarantor  may  not  (x)  declare  or  pay  any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Guarantor's capital stock or (y) make any payment of  principal of or interest or  premium,  if  any, on  or  repay,  repurchase or  redeem  any  debt securities  of  the Guarantor that rank pari passu in all respects with or junior in interest to the Debentures (other than (i) payments under this Guarantee, (ii) repurchases, redemptions or other acquisitions of shares of capital stock of the Guarantor (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 Guarantor  (or securities  convertible  into  or  exercisable  for  such  capital  stock),  as  consideration  in  an acquisition  transaction entered  into  prior  to  the occurrence  of the  Event  of  Default or  the applicable Extension Period, (iii) as a result of any exchange, reclassification, combination or conversion of  any class or series of  the Guarantor's capital stock (or any capital stock of a subsidiary ofthe Guarantor) for any class or series of the Guarantor's capital stock or of any class or series of the Guarantor's  indebtedness for any class or series of the Guarantor's capital stock, (iv) 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, (v) 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,  (vi)  any  dividend  in the form  of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend  is being paid  or  ranks  pari passu with  or  junior  to  such  stock),  or  (vii)  cash  distri butions  to  its shareholders,  in an amount not to exceed 40% of the Guarantor's taxable income (as determined annually  on the  Guarantor's  tax  return), to enable such  

shareholders  to  pay federal  and state income taxes associated with their distributive shares of the Guarantor's taxable income.

SECTION 5.2.  Ranking.

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

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

ARTICLE VI 
TERMINATION
SECTION 6.1.  Termination.

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

ARTICLE VII 
INDEMNIFICATION
SECTION 7.1. Exculpation.

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

(b)       An Indemnified Person shall be fully protected in relying in good faith upon the records of the Issuer or the Guarantor and upon such information, opinions, reports or statements presented to the Issuer or the Guarantor by any Person as to matters the Indemnified Person reasonably believes are 

within such other Person's professional or expert competence and who, if selected by such Indemnified Person, has been selected with  reasonable care  by  such  Indemnified  Person,  including  information,  opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and amount of assets from which Distributions to Holders of Capital Securities might properly be paid.

SECTION 7.2. Indemnification.

(a)       The Guarantor agrees to indemnify each Indemnified Person for, and to hold each Indemnified Person harmless against, any and all loss, liability, damage, claim or expense incurred without negligence or willful misconduct on the part of the Indemnified Person, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder, including but not limited to the costs and expenses (including reasonable legal fees and expenses) of the Indemnified Person defending itself against, or investigating, any claim or liability in connection with the exercise or performance  of  any  of  the  Indemnified  Person's  powers  or  duties  hereunder. The obligation to indemnify as set forth in this Section 7.2 shall survive the resignation or removal of the Guarantee Trustee and the termination of this Guarantee.

(b)       Promptly after receipt by an Indemnified Person under this Section 7.2 of notice of the commencement of any action, such Indemnified Person will, if a claim in respect thereof is to be made against the Guarantor under this Section 7.2, notify the Guarantor in writing of the commencement thereof; but the failure so to notify the Guarantor (i) will not relieve the Guarantor from liability under paragraph (a) above unless and to the extent that the Guarantor did not otherwise learn of such action and such failure results in the forfeiture by the Guarantor of substantial rights and defenses and (ii) will not, in any event, relieve the Guarantor from any obligations to any Indemnified Person other than the indemnification obligation provided in paragraph (a) above. The Guarantor shall be entitled to appoint counsel of the Guarantor's choice at the Guarantor's expense to represent the Indemnified Person in any action for which indemnification is sought (in which case the Guarantor shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the Indemnified Person or Persons except as set forth below); provided, however, that such counsel shall be satisfactory to the Indemnified Person. Notwithstanding the Guarantor's election to appoint counsel to represent the Indemnified Person in any action, the Indemnified Person shall have the right to employ separate counsel (including local counsel), and the Guarantor shall bear the reasonable fees, costs and expenses of such separate counsel (and local counsel), if (i) the use of counsel chosen by the Guarantor to represent the Indemnified Person would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the Indemnified Person and the Guarantor and the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it and/or other Indemnified Persons which are different from or additional to those available to the Guarantor, (iii) the Guarantor shall not have employed counsel satisfactory to the Indemnified Person to represent the Indemnified Person within a reasonable time after notice of the institution of such action or (iv) the Guarantor shall authorize the Indemnified Person to employ separate counsel at the expense of the Guarantor. The Guarantor will not, without the prior written consent of the Indemnified Persons, settle or compromise or consent to the entry of any judgment with respect to any pending   or   threatened   claim,   action,   suit   or   proceeding   in   respect   of   which indemnification or contribution may be sought hereunder (whether or not the Indemnified Persons are actual or potential  parties to such claim or 

action) unless such settlement, compromise or consent includes an unconditional release of each Indemnified Person from all liability arising out of such claim, action, suit or proceeding.

SECTION 7.3.  Compensation; Reimbursement of Expenses.

Other than  as provided in the Fee Agreement of even date  herewith  between Cohen Bros. & Company,  the  Guarantee Trustee  and  Delaware  Trustee  (as  defined  in the Declaration), the Guarantor agrees:

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

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

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

ARTICLE VIII 
MISCELLANEOUS
SECTION 8.1.  Successors and Assigns.

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

SECTION 8.2.  Amendments.

Except with  respect to any  changes that do  not adversely affect the rights of Holders of the Capital Securities in any material respect (in which case no consent of Holders will be required), this Guarantee may be amended only with the prior approval of the Holders of not less than a Majority in liquidation amount of the Capital Securities. The provisions of the Declaration with respect to amendments thereof shall apply equally with respect to amendments of the Guarantee.

SECTION 8.3. Notices.

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

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

LaSalle Bank National Association
135 S. LaSalle Street, Suite 1511
Chicago, Illinois 60603
Attention: COO Trust Services Group
Foster Capital Trust I Telecopy: (312) 904-0524
Telephone: (312) 904-0283

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

Foster Bankshares, Inc.
5225 N. Kedzie Avenue
Chicago, Illinois 60625
Attention: Kurt C. Felde
Telecopy: (773) 588-2370
Telephone: (773) 279-4950

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

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

SECTION 8.4.  Benefit.

This Guarantee is solely for the benefit of the Holders of the Capital Securities and, subject to Section 2.l(a), is not separately transferable from the Capital Securities.

SECTION 8.5.  Governing Law.

THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

SECTION 8.6. Counterparts.

This Guarantee may contain more than one counterpart of the signature page and this Guarantee  may be executed  by the  affixing of  the signature  of  the Guarantor  and  the Guarantee Trustee 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.

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

	
		
	 
	Foster Bankshares, Inc.,

	 
	as Guarantor

	 
	 

	 
	

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

	
		
	 
	Foster Bankshares, Inc.,

	 
	as Guarantor

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