Document:

<PAGE>
                                                                     EXHIBIT 4.5

                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                          NARA BANCORP CAPITAL TRUST I

                                       OF

                               NARA BANCORP, INC.

                           Dated as of March 28, 2001

<PAGE>
                                   TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           PAGE

<S>                                                                                        <C>
ARTICLE I INTERPRETATION AND DEFINITIONS ..................................................  2

         SECTION 1.1 Definitions ..........................................................  2

ARTICLE II TRUST INDENTURE ACT ............................................................  8

         SECTION 2.1 Trust Indenture Act; Application .....................................  8
         SECTION 2.2 Lists of Holders of Securities .......................................  8
         SECTION 2.3 Reports by the Property Trustee . ....................................  9
         SECTION 2.4 Periodic Reports to Property Trustee .................................  9
         SECTION 2.5 Evidence of Compliance with Conditions Precedent .....................  9
         SECTION 2.6 Events of Default; Waiver . ..........................................  9
         SECTION 2.7 Default; Notice ...................................................... 11

ARTICLE III ORGANIZATION .................................................................. 12

         SECTION 3.1 Name ................................................................. 12
         SECTION 3.2 Office................................................................ 12
         SECTION 3.3 Purpose .............................................................. 12
         SECTION 3.4 Authority............................................................. 12
         SECTION 3.5 Title to Property of the Trust........................................ 12
         SECTION 3.6 Powers and Duties of the Administrative Trustees ..................... 13
         SECTION 3.7 Prohibition of Actions by the Trust and the Trustees ................. 15
         SECTION 3.8 Powers and Duties of the Property Trustee ............................ 16
         SECTION 3.9 Certain Duties and Responsibilities of the Property Trustee .......... 18
         SECTION 3.10 Certain Rights of Property Trustee . ................................ 20
         SECTION 3.11 Delaware Trustee . .................................................. 22
         SECTION 3.12 Execution of Documents .............................................. 22
         SECTION 3.13 Not Responsible for Recitals or Issuance of Securities .............. 23
         SECTION 3.14 Duration of Trust ................................................... 23
         SECTION 3.15 Mergers. ............................................................ 23

ARTICLE IV SPONSOR ........................................................................ 25

         SECTION 4.1  Sponsor's Purchase of Common Securities ............................. 25
         SECTION 4.2  Responsibilities of the Sponsor...................................... 25
         SECTION 4.3  Right to Proceed .................................................... 25
         SECTION 4.4  Right to Dissolve Trust . ........................................... 26

ARTICLE V TRUSTEES ........................................................................ 26

        SECTION 5.1   Number of Trustees; Appointment of Co-Trustee ....................... 26
        SECTION 5.2   Delaware Trustee .................................................... 26
</TABLE>

                                       i

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<TABLE>
<S>                                                                                         <C>
        SECTION 5.3   Property Trustee; Eligibility........................................ 27
        SECTION 5.4   Certain Qualifications of Administrative Trustees and Delaware
                      Trustee Generally ................................................... 28
        SECTION 5.5   Administrative Trustees ............................................. 28
        SECTION 5.6   Appointment, Removal and Resignation of Trustees .................... 29
        SECTION 5.7   Vacancies Among Trustees ............................................ 30
        SECTION 5.8   Effect of Vacancies ................................................. 31
        SECTION 5.9   Meetings............................................................. 31
        SECTION 5.10  Delegation of Power ................................................  31
        SECTION 5.11  Merger, Conversion, Consolidation or Succession to Business: .......  32

ARTICLE VI DISTRIBUTIONS .................................................................. 32

        SECTION 6.1 Distributions ......................................................... 32

ARTICLE VII ISSUANCE OF SECURITIES ........................................................ 32

        SECTION 7.1   General Provisions Regarding Securities ............................. 32
        SECTION 7.2   Execution and Authentication ........................................ 33
        SECTION 7.3   Form and Dating ..................................................... 33
        SECTION 7.4   Registrar, Paying Agent and Exchange Agent .......................... 34
        SECTION 7.5   Paying Agent to Hold Money in Trust.................................. 35
        SECTION 7.6   Replacement Securities .............................................. 35
        SECTION 7.7   Outstanding Capital Securities ...................................... 35
        SECTION 7.8   Capital Securities in Treasury ...................................... 35
        SECTION 7.9   Temporary Securities ................................................ 36
        SECTION 7.10  Cancellation .......................................................  36
        SECTION 7.11  CUSIP Numbers.......................................................  36

ARTICLE VIII DISSOLUTION OF TRUST ......................................................... 36

        SECTION 8.1   Dissolution of Trust ................................................ 36

ARTICLE IX TRANSFER OF INTERESTS .........................................................  37

        SECTION 9.1   Transfer of Securities .............................................. 37
        SECTION 9.2   Transfer Procedures and Restrictions ................................ 38
        SECTION 9.3   Deemed Security Holders ............................................. 44

ARTICLE X LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR
        OTHERS ...........................................................................  44

        SECTION 10.1  Liability............................................................ 44
        SECTION 10.2  Exculpation ......................................................... 44
        SECTION 10.3  Fiduciary Duty ...................................................... 45
        SECTION 10.4  Indemnification ..................................................... 46
        SECTION 10.5  Outside Businesses .................................................. 48
</TABLE>

                                       ii
<PAGE>
<TABLE>
<S>                                                                                         <C>
ARTICLE XI ACCOUNTING ..................................................................... 49

        SECTION 11.1 Fiscal Year. ......................................................... 49
        SECTION 11.2 Certain Accounting Matters............................................ 49
        SECTION 11.3 Banking............................................................... 49
        SECTION 11.4 Withholding . ........................................................ 50

ARTICLE XII AMENDMENTS AND MEETINGS ....................................................... 50

        SECTION 12.1 Amendments............................................................ 50
        SECTION 12.2 Meetings of the Holders; Action by Written Consent ................... 52

ARTICLE XIII REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE
        TRUSTEE ........................................................................... 53

        SECTION 13.1 Representations and Warranties of Property Trustee ................... 53
        SECTION 13.2 Representations and Warranties of Delaware Trustee ................... 54

ARTICLE XIV MISCELLANEOUS ................................................................. 55

        SECTION 14.1 Notices. ............................................................. 55
        SECTION 14.2 Governing Law ........................................................ 56
        SECTION 14.3 Intention of the Parties.............................................. 56
        SECTION 14.4 Headings.............................................................. 56
        SECTION 14.5 Successors and Assigns ............................................... 56
        SECTION 14.6 Partial Enforceability................................................ 57
        SECTION 14.7 Counterparts.......................................................... 57

ANNEX I

TERMS OF

         10.18% MMCapS(SM)
         10.18% COMMON SECURITIES ........................................................ A-1

EXHIBIT A-1

        FORM OF CAPITAL SECURITY CERTIFICATE .............................................Al-1

EXHIBIT A-2

        FORM OF COMMON SECURITY CERTIFICATE ..............................................A2-1

ANNEX II

        TRANSFEREE LETTER ................................................................ B-1
</TABLE>

                                       iii

<PAGE>
                             CROSS-REFERENCE TABLE*

<TABLE>
<CAPTION>
     Section of
   Trust Indenture
   Act of 1939, as                                                                      Section of
       amended                                                                         Declaration
   ---------------                                                                     ------------
<S>                                                                                    <C>
       310(a)    ....................................................................        5.3

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

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

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

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

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

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

       314(a)    ....................................................................   2.4, 2.7(c);
                                                                                           3.6(j)

       314(c)    ....................................................................        2.5

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

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

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

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

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

       316(c)    ....................................................................      3.6(e)

       317(a)    ....................................................................  3.8(e); 3.8(h)

       317(b)    ....................................................................    3.8(i); 7.5

       318       ....................................................................        2.1
</TABLE>

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

                                       iv

<PAGE>
                              AMENDED AND RESTATED

                              DECLARATION OF TRUST

                                       OF

                          NARA BANCORP CAPITAL TRUST I

                           Dated as of March 28, 2001

                 AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration") dated
and effective as of March 28, 2001, by and among the Trustees (as defined
herein), the Sponsor (as defined herein) and the Holders (as defined herein),
from time to time, of undivided beneficial interests in the assets of the Trust
to be issued pursuant to this Declaration;

                 WHEREAS, the Delaware Trustee (as defined herein) and the
Sponsor established Nara Bancorp Capital Trust I (the "Trust"), a trust created
under the Delaware Business Trust Act pursuant to a Declaration of Trust dated
as of March 6, 2011 (the "Original Declaration"), and a Certificate of Trust
filed with the Secretary of State of the State of Delaware on March 15, 2001,
for the sole purpose of issuing and selling certain securities representing
undivided beneficial interests in the assets of the Trust, investing the
proceeds thereof in certain Debentures of the Debenture Issuer (each as
hereinafter defined), and engaging in only those activities necessary, advisable
or incidental thereto; and

                 WHEREAS, all of the Trustees (as defined herein) and the
Sponsor, by this Declaration, amend and restate each and every term and
provision of the Original Declaration;

                 WHEREAS, all of the Trustees and the Sponsor, by this
Declaration, ratify the actions of each Trustee taken prior to the date hereof;

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

<PAGE>
                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

SECTION 1.1    Definitions.

               Unless the context otherwise requires:

               (a) capitalized terms used in this Declaration but not defined in
the preamble above or elsewhere herein have the respective meanings assigned to
them in this Section 1.1;

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

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

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

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

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

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

               "Administrative Trustee" has the meaning set forth in Section
5.1.

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

               "Agent" means any Paying Agent, Registrar or Exchange Agent.

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

               "Business Day" means any day other than a Saturday, a Sunday, or
a day on which banking institutions in Wilmington, Delaware, Los Angeles,
California or New York, New York are authorized or required by law or executive
order to remain closed.

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

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

                                       2
<PAGE>
               "Capital Securities Guarantee" means the Capital Securities
Guarantee Agreement, dated as of the Closing Time, entered into by Nara Bancorp,
Inc. with respect to the Capital Securities.

               "Capital Security Certificate" has the meaning set forth in
Section 7.3.

               "Closing Time" means the "Closing Time" as defined in the
Purchase Agreement.

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

               "Commission" means the United States Securities and Exchange
Commission as from time to time constituted, or if at any time after the
execution of this Declaration such Commission is not existing and performing the
duties now assigned to it under applicable federal securities laws, then the
body performing such duties at such time.

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

               "Common Security Certificate" means a certificate evidencing
ownership of Common Securities, substantially in the form attached as Exhibit
A-2.

               "Common Securities Guarantee" means the Common Securities
Guarantee Agreement, dated as of the Closing Time, entered into by Nara Bancorp,
Inc., with respect to the Common Securities.

               "Common Securities Subscription Agreement" means the Common
Securities Subscription Agreement, dated as of the Closing Time, between the
Trust Nara Bancorp, Inc. relating to the Common Securities.

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

               "Corporate Trust Office" means the office of the Property Trustee
at which the corporate trust business of the Property Trustee shall, at any
particular time, be principally administered, which office at the date of
execution of this Declaration is located at Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust
Administration.

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

               "Debenture Issuer" means Nara Bancorp, Inc., a Delaware
corporation, or any successor entity resulting from any consolidation,
amalgamation, merger or other business combination, in its capacity as issuer of
the Debentures under the Indenture.

                                       3
<PAGE>
               "Debenture Subscription Agreement" means the Debenture
Subscription Agreement, dated as of the Closing Time, between the Debenture
Issuer and the Trust in respect of the Debentures.

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

               "Debentures" means the 10.18% Junior Subordinated Deferrable
Interest Debentures due June 8, 2031, of the Debenture Issuer issued pursuant to
the Indenture.

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

               "Definitive Capital Securities" has the meaning set forth in
Section 7.3.

               "Delaware Trustee" has the meaning set forth in Section 5.1.

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

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

               "Event of Default" with respect to the Securities means an Event
of Default (as defined in the Indenture) that has occurred and is continuing
with respect to the Debentures.

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

               "Exchange Agent" has the meaning set forth in Section 7.4.

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

               "Fiduciary Indemnified Person" has the meaning set forth in
Section 10.4(b).

               "Fiscal Year" has the meaning set forth in Section 11.1.

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

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

               "Indenture" means the Indenture, dated as of the Closing Time,
between the Debenture Issuer and the Debenture Trustee, as amended from time to
time.

                                       4
<PAGE>
               "Initial Optional Redemption Date" has the meaning set forth in
Section 4(b) of Annex I hereto.

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

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

               "Investment Company Event" has the meaning set forth in Section
4(c) of Annex I hereto.

               "Legal Action" has the meaning set forth in Section 3.6(g).

               "Like Amount" has the meaning set forth in Section 3 of Annex I
hereto.

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

               "Majority in Liquidation Amount" means, with respect to the Trust
Securities, except as otherwise provided in the terms of the Capital Securities
or by the Trust Indenture Act, Holders of outstanding Trust Securities voting
together as a single class or, as the context may require, Holders of
outstanding Capital Securities or Holders of outstanding Common Securities
voting separately as a class, excluding the Trust and the Debenture Issuer and
any Affiliate thereof, who are the record owners of more than 50% of the
aggregate liquidation amount (including the amount that would be paid on
redemption, liquidation or otherwise, plus accumulated and unpaid Distributions
to but excluding the date upon which the voting percentages are determined) of
all outstanding Securities of the relevant class.

               "Officers' Certificate" means, with respect to any Person, a
certificate signed by an Authorized Officer of such Person. Any Officers'
Certificate delivered by the Trust shall be signed by at least one
Administrative Trustee. Any Officers' Certificate delivered with respect to
compliance with a condition or covenant provided for in this Declaration shall
include:

                (a) a statement that each officer signing the Certificate has
        read the covenants or conditions 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
        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 or not, in the opinion of each
        such officer, such condition or covenant has been complied with.

                                       5
<PAGE>
               "Opinion of Counsel" means a written opinion of counsel, who may
be an employee of the Sponsor, and who shall be acceptable to the Property
Trustee.

               "Paying Agent" has the meaning specified in Section 7.4.

               "Payment Amount" has the meaning specified in Section 6.1.

               "Placement Agency Agreement" means the Placement Agency
Agreement, dated March 21, 2001, by and among the Sponsor, the Trust and the
Placement Agent named therein.

               "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.

               "Property Trustee" has the meaning set forth in Section 5.3(a).

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

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

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

               "Registrar" has the meaning set forth in Section 7.4.

               "Regulatory Capital Event" has the meaning set forth in Section
4(c) of Annex I hereto.

               "Related Party" means, with respect to the Sponsor, any direct or
indirect wholly owned subsidiary of the Sponsor or any other Person that owns,
directly or indirectly, 100% of the outstanding voting securities of the
Sponsor.

               "Responsible Officer" means any officer within the Corporate
Trust Office of the Property Trustee with direct responsibility for the
administration of this Declaration and also means, with respect to a particular
corporate trust matter, any other officer of the Property Trustee to whom such
matter is referred because of such officer's knowledge of and familiarity with
the particular subject.

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

               "Restricted Definitive Capital Securities" has the meaning set
forth in Section 7.3.

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

                                       6
<PAGE>
               "Rule 3a-5" means Rule 3a-5 under the Investment Company Act, or
any successor rule or regulation.

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

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

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

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

               "Securities Guarantees" means the Common Securities Guarantee and
the Capital Securities Guarantee.

               "Special Event" has the meaning set forth in Section 4(c) of
Annex I hereto.

               "Special Event Redemption Price" has the meaning set forth in
Section 4(c) of Annex I hereto.

               "Sponsor" means Nara Bancorp, Inc., a Delaware corporation, or
any successor entity resulting from any merger, consolidation, amalgamation or
other business combination, in its capacity as sponsor of the Trust.

               "Subscription Agreement" means the Capital Securities
Subscription Agreement relating to the Capital Securities, dated March 21, 2001,
by and among the Trust, the Debenture Issuer and MMCapS(SM) Funding 1, Ltd.

               "Successor Delaware Trustee" has the meaning set forth in Section
5.6(b)(ii).

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

               "Successor Property Trustee" has the meaning set forth in Section
3.8(f)(ii).

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

               "Super Majority" has the meaning set forth in Section
2.6(a) (ii).

               "Tax Event" has the meaning set forth in Section 4(c) of Annex I
hereto.

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

                                       7
<PAGE>
               "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended from time to time, or any successor legislation.

               "Trust Property" means (a) the Debentures, (b) any cash on
deposit in or owing to the Property Trustee Account and (c) all proceeds and
rights in respect of the foregoing and any other property and assets for the
time being held or deemed to be held by the Property Trustee pursuant to this
Declaration.

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

               "20% in Liquidation Amount" means, with respect to the Trust
Securities, except as otherwise provided in the terms of the Capital Securities
or by the Trust Indenture Act, Holders of outstanding Trust Securities voting
together as a single class or, as the context may require, Holders of
outstanding Capital Securities or Holders of outstanding Common Securities
voting separately as a class, excluding the Trust and the Debenture Issuer and
any Affiliate thereof, who are the record owners of 20% or more of the aggregate
liquidation amount (including the amount that would be paid on redemption,
liquidation or otherwise, plus accumulated and unpaid Distributions to but
excluding the date upon which the voting percentages are determined) of all
outstanding Securities of the relevant class.

                                   ARTICLE II
                               TRUST INDENTURE ACT

SECTION 2.1 Trust Indenture Act; Application.

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

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

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

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

SECTION 2.2 Lists of Holders of Securities.

        (a) Each of the Sponsor and the Administrative Trustees on behalf of the
Trust shall provide the Property Trustee, unless the Property Trustee is
Registrar for the Securities, (i)

                                       8
<PAGE>
within 14 days after each record date for payment of Distributions, a list, in
such form as the Property Trustee may reasonably require, of the names and
addresses of the Holders ("List of Holders") as of such record date, provided,
that neither the Sponsor nor the Administrative Trustees on behalf of the Trust
shall be obligated to provide such List of Holders at any time that the List of
Holders does not differ from the most recent List of Holders given to the
Property Trustee by the Sponsor and the Administrative Trustees on behalf of the
Trust, and (ii) at any other time, within 30 days of receipt by the Trust of a
written request for a List of Holders as of a date no more than 14 days before
such List of Holders is given to the Property Trustee. The Property Trustee
shall preserve, in as current a form as is reasonably practicable, all
information contained in Lists of Holders given to it or which it receives in
the capacity as Paying Agent (if acting in such capacity), provided, that the
Property Trustee may destroy any List of Holders previously given to it on
receipt of a new List of Holders.

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

SECTION 2.3 Reports by the Property Trustee.

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

SECTION 2.4 Periodic Reports to Property Trustee.

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

SECTION 2.5 Evidence of Compliance with Conditions Precedent.

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

SECTION 2.6 Events of Default; Waiver.

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

                                       9
<PAGE>
                        (i) is not waivable under the Indenture, the Event of
                Default under the Declaration shall also not be waivable; or

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

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

        (b) The Holders of a Majority in Liquidation Amount of the Common
Securities may, by vote, on behalf of the Holders of all of the Common
Securities, waive any past Event of Default with respect to the Common
Securities and its consequences, provided, that if the underlying Event of
Default under the Indenture:

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

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

provided further, each Holder of Common Securities will be deemed to have waived
any such Event of Default and all Events of Default with respect to the Common
Securities and their consequences if all Events of Default with respect to the
Capital Securities have been cured, waived or otherwise eliminated, and until
such Events of Default have been so cured, waived or otherwise eliminated, the
Property Trustee will be deemed to be acting solely on behalf of the

                                       10
<PAGE>
Holders of the Capital Securities and only the Holders of the Capital Securities
will have the right to direct the Property Trustee in accordance with the terms
of the Securities. The foregoing provisions of this Section 2.6(b) shall be in
lieu of Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act
and such Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture
Act are hereby expressly excluded from this Declaration and the Securities, as
permitted by the Trust Indenture Act. Subject to the foregoing provisions of
this Section 2.6(b), upon such waiver, any such Default shall cease to exist and
any Event of Default with respect to the Common Securities arising therefrom
shall be deemed to have been cured for every purpose of this Declaration, but no
such waiver shall extend to any subsequent or other Default or Event of Default
with respect to the Common Securities or impair any right consequent thereon.

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

SECTION 2.7 Default; Notice.

        (a) The Property Trustee shall, within 90 days after the Property
Trustee has knowledge of the occurrence of a Default with respect to the
Securities, transmit by mail, first class postage prepaid, to the Holders,
notices of all such Defaults, unless such Defaults have been cured before the
giving of such notice or previously waived; provided, however, that except in
the case of a Default arising from the nonpayment of principal of (or premium,
if any) or interest (including Compounded Interest and Additional Sums (as such
terms are defined in the Indenture), if any) on any of the Debentures, the
Property Trustee shall be protected in withholding such notice if and so long as
a Responsible Officer in good faith determines that the withholding of such
notice is in the interests of the Holders.

        (b) The Property Trustee shall not be deemed to have knowledge of any
Default or Event of Default except:

                        (i) a Default or Event of Default under Section 5.01(a)
                (other than the payment or nonpayment of Compounded Interest,
                Additional Sums and interest on any Other Debentures) or 5.01(b)
                (other than payment or nonpayment of principal of any Other
                Debentures) of the Indenture; or

                        (ii) any Default or Event of Default as to which the
                Property Trustee shall have received written notice or of which
                a Responsible Officer charged with the administration of the
                Declaration shall have actual knowledge.

        (c) Within ten Business Days after the Property Trustee has knowledge of
the occurrence of any Event of Default, the Property Trustee shall transmit
notice of such Event of Default to the Holders of the Capital Securities, the
Administrative Trustees and the Sponsor, unless such Event of Default shall have
been cured or waived. The Sponsor and the Administrative Trustees shall file
annually with the Property Trustee a certification as to whether

                                       11
<PAGE>
or not they are in compliance with all the conditions and covenants applicable
to them under this Declaration.

                                   ARTICLE III
                                  ORGANIZATION

SECTION 3.1 Name.

               The Trust is named Nara Bancorp Capital Trust I as such name may
be modified from time to time by the Administrative Trustees following written
notice to the Delaware Trustee, the Property Trustee and the Holders. The
Trust's activities may be conducted under the name of the Trust or any other
name deemed advisable by the Administrative Trustees.

SECTION 3.2 Office.

               The address of the principal office of the Trust is c/o Nara
Bancorp, Inc., 3701 Wilshire Boulevard, Suite 220, Los Angeles, California
90010. On ten Business Days' prior written notice to the Delaware Trustee, the
Property Trustee and the Holders of Securities, the Administrative Trustees may
designate another principal office.

SECTION 3.3 Purpose.

               The exclusive purposes and functions of the Trust are (a) to
issue and sell Securities, (b) use the proceeds from the sale of the Securities
to acquire the Debentures, and (c) except as otherwise limited herein, to engage
in only those other activities necessary, advisable or incidental thereto,
including without limitation, those activities specified in Sections 3.6, 3.8,
3.9, 3.10, 3.11 and/or 3.12. The Trust shall not borrow money, issue debt or
reinvest proceeds derived from investments, mortgage or pledge any of its
assets, or otherwise undertake (or permit to be undertaken) any activity that
would cause the Trust not to be classified for United States federal income tax
purposes as a grantor trust.

SECTION 3.4 Authority.

               Subject to the limitations provided in this Declaration and to
the specific duties of the Property Trustee, the Administrative Trustees shall
have exclusive and complete authority to carry out the purposes of the Trust. An
action taken by one or more of the Administrative Trustees in accordance with
their powers shall constitute the act of and serve to bind the Trust and an
action taken by the Property Trustee on behalf of the Trust in accordance with
its powers shall constitute the act of and serve to bind the Trust. In dealing
with the Trustees acting on behalf of the Trust, no Person shall be required to
inquire into the authority of the Trustees to bind the Trust. Persons dealing
with the Trust are entitled to rely conclusively on the power and authority of
the Trustees as set forth in this Declaration.

SECTION 3.5 Title to Property of the Trust.

               Except as provided in Section 3.8 with respect to the Debentures
and the Property Trustee Account or as otherwise provided in this Declaration,
legal title to all assets of

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<PAGE>
the Trust shall be vested in the Trust. The Holders shall not have legal title
to any part of the assets of the Trust, but shall have an undivided beneficial
interest in the assets of the Trust.

SECTION 3.6 Powers and Duties of the Administrative Trustees.

               Subject to Section 5.5, the Administrative Trustees acting
individually or together shall have the exclusive right, power, duty and
authority, and are hereby authorized and directed, to cause the Trust to engage
in the following activities:

        (a) to execute, enter into and deliver the Common Securities
Subscription Agreement and to execute, deliver, issue and sell the Securities in
accordance with this Declaration; provided, however, that (i) the Trust may
issue no more than one series of Capital Securities and no more than one series
of Common Securities, (ii) there shall be no interests in the Trust other than
the Securities, and (iii) the issuance of Securities shall be limited to a
simultaneous issuance of both Capital Securities and Common Securities at the
Closing Time;

        (b) in connection with the issue and sale of the Capital Securities, at
the direction of the Sponsor, to:

                        (i) execute and file any documents prepared by the
                Sponsor, or take any acts as determined by the Sponsor to be
                necessary in order to qualify or register all or part of the
                Capital Securities in any State in which the Sponsor has
                determined to qualify or register such Capital Securities for
                sale;

                        (ii) execute, enter into, deliver and perform the
                Subscription Agreement, the Placement Agent Agreement and
                letters, instruments, agreements or documents relating to the
                Capital Securities.

        (c) to execute, enter into, deliver and perform the Debenture
Subscription Agreement, to acquire the Debentures with the proceeds of the sale
of the Capital Securities and the Common Securities; provided, however, that the
Administrative Trustees shall cause legal title to the Debentures to be held of
record in the name of the Property Trustee for the benefit of the Holders;

        (d) to give the Sponsor and the Property Trustee prompt written notice
of the occurrence of a Special Event;

        (e) to establish a record date with respect to all actions to be taken
hereunder that require a record date to be established, including and with
respect to, for the purposes of Section 316(c) of the Trust Indenture Act,
Distributions, voting rights, redemptions and exchanges, and to issue relevant
notices to the Holders with respect to such actions and applicable record dates;

        (f) to take all actions and perform such duties as may be required of
the Administrative Trustees pursuant to the terms of the Securities;

        (g) to the fullest extent permitted by law, to bring or defend, pay,
collect, compromise, arbitrate, resort to legal action, or otherwise adjust
claims or demands of or against

                                       13
<PAGE>
the Trust ("Legal Actions"), unless pursuant to Section 3.8(e), the Property
Trustee has the exclusive power to bring such Legal Action;

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

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

        (j) to give the certificate required by Section 314(a)(4) of the Trust
Indenture Act to the Property Trustee, which certificate may be executed by any
Administrative Trustee;

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

        (l) to act as, or appoint another Person to act as, Registrar and
Exchange Agent for the Securities or to appoint a Paying Agent for the
Securities as provided in Section 7.4 except for such time as such power to
appoint a Paying Agent is vested in the Property Trustee;

        (m) to give prompt written notice to the Property Trustee and to the
Holders of any notice received from the Debenture Issuer of its election to
defer payments of interest on the Debentures by extending the interest payment
period under the Indenture;

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

        (o) to take any action, not inconsistent with this Declaration or with
applicable law, that the Administrative Trustees determine in their discretion
to be necessary or desirable in carrying out the activities of the Trust as set
out in this Section 3.6, including, but not limited to:

                (i) causing the Trust not to be deemed to be an Investment
        Company required to be registered under the Investment Company Act;

                (ii) causing the Trust to continue to be classified for United
        States federal income tax purposes as a grantor trust; and

                (iii) cooperating with the Debenture Issuer to ensure that the
        Debentures will be treated as indebtedness of the Debenture Issuer for
        United States federal income tax purposes;

        (p) to take all action necessary to cause all applicable tax returns and
tax information reports that are required to be filed with respect to the Trust
to be duly prepared and filed by the Administrative Trustees, on behalf of the
Trust; and

                                       14
<PAGE>
        (q) to execute and deliver all documents, agreements, certificates and
instruments, exercise all rights and powers, perform all duties and do all
things for and on behalf of the Trust in all matters necessary, advisable or
incidental to the foregoing or the transactions contemplated thereby.

               The Administrative Trustees must exercise the powers set forth in
this Section 3.6 in a manner that is consistent with the purposes and functions
of the Trust set out in Section 3.3, and the Administrative Trustees shall not
take any action that is inconsistent with the purposes and functions of the
Trust set forth in Section 3.3.

               Subject to this Section 3.6, the Administrative Trustees shall
have none of the powers or the authority of the Property Trustee set forth in
Section 3.8.

               Any expenses incurred by the Administrative Trustees pursuant to
this Section 3.6 shall be reimbursed by the Debenture Issuer.

SECTION 3.7 Prohibition of Actions by the Trust and the Trustees.

               The Trust shall not, and the Trustees (including the Property
Trustee and the Delaware Trustee) shall not, and the Administrative Trustees
shall cause the Trust not to, engage in any activity other than as required or
authorized by this Declaration. Notwithstanding any provision in this
Declaration to the contrary, the Trust shall not:

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

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

                        (iii) possess Trust Property for other than a Trust
                purpose or execute any mortgage in respect of, or pledge, any
                Trust Property;

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

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

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

                        (vii) other than as provided in this Declaration or
                Annex I hereto, (A) direct the time, method and place of
                conducting any proceeding with respect to any remedy available
                to the Debenture Trustee, or exercising any trust or power
                conferred upon the Debenture Trustee with respect to the
                Debentures, (B) waive any past default that is waivable under
                the Indenture, or (C) exercise any right to rescind or annul any
                declaration that the principal of all the Debentures shall be
                due and payable; or

                                       15
<PAGE>
                        (viii) consent to any amendment, modification or
                termination of the Indenture or the Debentures where such
                consent shall be required unless the Trust shall have received
                an opinion of independent tax counsel experienced in such
                matters to the effect that such amendment, modification or
                termination will not cause more than an insubstantial risk that
                the Trust will not be classified as a grantor trust for United
                States federal income tax purposes.

SECTION 3.8 Powers and Duties of the Property Trustee.

        (a) The legal title to the Debentures shall be owned by and held of
record in the name of the Property Trustee in trust for the benefit of the Trust
and the Holders. The right, title and interest of the Property Trustee to the
Debentures shall vest automatically in each Person who may hereafter be
appointed as Property Trustee in accordance with Section 5.6. Such vesting and
cessation of title shall be effective whether or not conveyancing documents with
regard to the Debentures have been executed and delivered.

        (b) The Property Trustee shall not transfer its right, title and
interest in the Debentures to the Administrative Trustees or to the Delaware
Trustee (if the Property Trustee does not also act as Delaware Trustee).

        (c) The Property Trustee shall:

                        (i) establish and maintain a segregated non-interest
                bearing trust account (the "Property Trustee Account") in the
                name of and under the exclusive control of the Property Trustee
                on behalf of the Holders and, upon the receipt of payments of
                funds made in respect of the Debentures held by the Property
                Trustee, deposit such funds into the Property Trustee Account
                and make payments or cause the Paying Agent to make payments to
                the Holders from the Property Trustee Account in accordance with
                Section 6.1; funds in the Property Trustee Account shall be held
                uninvested until disbursed in accordance with this Declaration;
                and the Property Trustee Account shall be an account that is
                maintained with a banking institution the rating on whose
                long-term unsecured indebtedness by a "nationally recognized
                statistical rating organization," as that term is defined for
                purposes of Rule 436(g)(2) under the Securities Act, is at least
                equal to the rating assigned to the Capital Securities, unless
                the Capital Securities are not rated, in which case the banking
                institution's long term unsecured indebtedness shall be rated at
                least investment grade by a "nationally recognized statistical
                rating organization;

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

                        (iii) upon written notice of distribution issued by the
                Administrative Trustees in accordance with the terms of the
                Securities, engage in such

                                       16
<PAGE>
                ministerial activities as shall be necessary or appropriate to
                effect the distribution of the Debentures to Holders upon the
                occurrence of certain events.

        (d) The Property Trustee shall take all actions and perform such duties
as may be specifically required of the Property Trustee pursuant to the terms of
this Declaration and the Securities.

        (e) Subject to Section 3.9(a), the Property Trustee shall take any Legal
Action which arises out of or in connection with an Event of Default of which a
Responsible Officer has actual knowledge or the Property Trustee's duties and
obligations under this Declaration or the Trust Indenture Act; and if the
Property Trustee shall have failed to take such Legal Action following a written
request from the Holders, the Holders of the Capital Securities may, to the
fullest extent permitted by law, take such Legal Action, to the same extent as
if such Holders of Capital Securities held an aggregate principal amount of
Debentures equal to the aggregate liquidation amount of such Capital Securities,
without first proceeding against the Property Trustee or the Trust; provided,
however, that if an Event of Default has occurred and is continuing and such
event is attributable to the failure of the Debenture Issuer to pay the
principal of or premium, if any, or interest (including Compounded Interest and
Additional Sums, if any) on the Debentures on the date such principal, premium,
if any, or interest (including Compounded Interest and Additional Sums, if any)
is otherwise payable (or in the case of redemption, on the redemption date),
then a Holder of Capital Securities may directly institute a proceeding for
enforcement of payment to such Holder of the principal of or premium, if any, or
interest (including Compounded Interest and Additional Sums, if any) on the
Debentures having a principal amount equal to the aggregate liquidation amount
of the Capital Securities of such Holder (a "Direct Action") on or after the
respective due date specified in the Debentures. In connection with such Direct
Action, the Holders of the Common Securities will be subrogated to the rights of
such Holder of Capital Securities to the extent of any payment made by the
Debenture Issuer to such Holder of Capital Securities in such Direct Action.
Except as provided in the preceding sentences, the Holders of Capital Securities
will not be able to exercise directly any other remedy available to the holders
of the Debentures.

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

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

                        (ii) a successor Property Trustee has been appointed and
                has accepted that appointment in accordance with Section 5.6 (a
                "Successor Property Trustee").

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

                                       17
<PAGE>
        (h) The Property Trustee shall be authorized to undertake any actions
set forth in Section 317(a) of the Trust Indenture Act.

        (i) For such time as the Property Trustee is the Paying Agent, the
Property Trustee may authorize one or more Persons to act as additional Paying
Agents and to pay Distributions, redemption payments or liquidation payments on
behalf of the Trust with respect to all Securities and any such Paying Agent
shall comply with Section 317(b) of the Trust Indenture Act. Any such additional
Paying Agent may be removed by the Property Trustee at any time the Property
Trustee remains as Paying Agent and a successor Paying Agent or additional
Paying Agents may be (but are not required to be) appointed at any time by the
Property Trustee while the Property Trustee is acting as Paying Agent.

        (j) Subject to this Section 3.8, the Property Trustee shall have none of
the duties, liabilities, powers or the authority of the Administrative Trustees
set forth in Section 3.6.

               Notwithstanding anything expressed or implied to the contrary in
this Declaration or any Annex or Exhibit hereto, (i) the Property Trustee must
exercise the powers set forth in this Section 3.8 in a manner that is consistent
with the purposes and functions of the Trust set out in Section 3.3, and (ii)
the Property Trustee shall not take any action that is inconsistent with the
purposes and functions of the Trust set out in Section 3.3.

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

SECTION 3.9 Certain Duties and Responsibilities of the Property Trustee.

        (a) The Property Trustee, before the occurrence of any Event of Default
(of which, other than in the case of Events of Default under Sections 5.01(a)
and 5.01(b) of the Indenture, which the Property Trustee is deemed to have
knowledge of as provided in Section 2.7(b) hereof, a Responsible Officer of the
Property Trustee has actual knowledge) and after the curing or waiving of all
such Events of Default that may have occurred, shall undertake to perform only
such duties as are specifically set forth in this Declaration and in the
Securities and no implied covenants shall be read into this Declaration against
the Property Trustee. In case an Event of Default has occurred (that has not
been cured or waived pursuant to Section 2.6) of which a Responsible Officer has
actual knowledge, the Property Trustee shall exercise such of the rights and
powers vested in it by this Declaration, and use the same degree of care and
skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

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

                                       18
<PAGE>

                        (i) prior to the occurrence of an Event of Default (of
                which, other than in the case of Events of Default under
                Sections 5.01 (a) and 5.01(b) of the Indenture, which the
                Property Trustee is deemed to have knowledge of as provided in
                Section 2.7(b) hereof, a Responsible Officer of the Property
                Trustee has actual knowledge) and after the curing or waiving of
                all such Events of Default that may have occurred:

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

                        (B) in the absence of bad faith on the part of the
                        Property Trustee, the Property 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 Property
                        Trustee and conforming to the requirements of this
                        Declaration; provided, however, that in the case of any
                        such certificates or opinions that by any provision
                        hereof are specifically required to be furnished to the
                        Property Trustee, the Property 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
                        Declaration;

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

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

                        (iv) no provision of this Declaration shall require the
                Property 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;

                        (v) the Property Trustee's sole duty with respect to the
                custody, safekeeping and physical preservation of the Debentures
                and the Property Trustee Account shall be to deal with such
                property in a similar manner as the Property Trustee deals with
                similar property for its own account, subject

                                       19
<PAGE>

                to the protections and limitations on liability afforded to the
                Property Trustee under this Declaration and the Trust Indenture
                Act;

                        (vi) the Property Trustee shall have no duty or
                liability for or with respect to the value, genuineness,
                existence or sufficiency of the Debentures or the payment of any
                taxes or assessments levied thereon or in connection therewith;

                        (vii) the Property Trustee shall not be liable for any
                interest on any money received by it except as it may otherwise
                agree in writing with the Sponsor. Money held by the Property
                Trustee need not be segregated from other funds held by it
                except in relation to the Property Trustee Account maintained by
                the Property Trustee pursuant to Section 3.8(c)(i) and except to
                the extent otherwise required by law; and

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

SECTION 3.10    Certain Rights of Property Trustee.

        (a)     Subject to the provisions of Section 3.9:

                        (i) the Property 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 Sponsor or the
                Administrative Trustees contemplated by this Declaration may be
                sufficiently evidenced by an Officers' Certificate;

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

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

                                       20
<PAGE>

                        (v) the Property Trustee may consult with counsel or
                other experts of its selection, and the advice or opinion of
                such counsel and experts with respect to legal matters or advice
                within the scope of such experts' area of expertise 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 Sponsor or any of its Affiliates, and may
                include any of its employees; and the Property Trustee shall
                have the right at any time to seek instructions concerning the
                administration of this Declaration from any court of competent
                jurisdiction;

                        (vi) the Property Trustee shall be under no obligation
                to exercise any of the rights or powers vested in it by this
                Declaration at the request or direction of any Holder, unless
                such Holder shall have provided to the Property Trustee security
                and indemnity, reasonably satisfactory to the Property Trustee,
                against the costs, expenses (including reasonable attorneys'
                fees and expenses and the expenses of the Property 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
                Property Trustee; provided, however, that, nothing contained in
                this Section 3.10(a)(vi) shall be taken to relieve the Property
                Trustee, upon the occurrence of an Event of Default (of which,
                other than in the case of Events of Default under Sections
                5.01(a) and 5.01(b) of the Indenture, which the Property Trustee
                is deemed to have knowledge of as provided in Section 2.7(b)
                hereof, a Responsible Officer of the Property Trustee has actual
                knowledge), of its obligation to exercise the rights and powers
                vested in it by this Declaration;

                        (vii) the Property 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 Property Trustee, in its discretion, may make such
                further inquiry or investigation into such facts or matters as
                it may see fit;

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

                        (ix) any action taken by the Property Trustee or its
                agents hereunder shall bind the Trust and the Holders, and the
                signature of the Property Trustee or its agents alone shall be
                sufficient and effective to perform any such action and no third
                party shall be required to inquire as to the authority of the
                Property Trustee to so act or as to its compliance with any of
                the terms and

                                       21
<PAGE>
                provisions of this Declaration, both of which shall be
                conclusively evidenced by the Property Trustee's or its agent's
                taking such action;

                        (x) whenever in the administration of this Declaration
                the Property Trustee shall deem it desirable to receive
                instructions with respect to enforcing any remedy or right or
                taking any other action hereunder, the Property Trustee (i) may
                request instructions from the Holders which instructions may
                only be given by the Holders of the same proportion in
                liquidation amount of the Securities as would be entitled to
                direct the Property Trustee under the terms of the Securities in
                respect of such remedy, right or action, (ii) may refrain from
                enforcing such remedy or right or taking such other action until
                such instructions are received, and (iii) shall be protected in
                conclusively relying on or acting in accordance with such
                instructions;

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

                        (xii) the Property Trustee shall not be liable for any
                action taken, suffered, or omitted to be taken by it in good
                faith, without negligence or willful misconduct, and reasonably
                believed by it to be authorized or within the discretion or
                rights or powers conferred upon it by this Declaration.

        (b) No provision of this Declaration shall be deemed to impose any duty
or obligation on the Property 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 Property 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 Property Trustee shall be
construed to be a duty.

SECTION 3.11 Delaware Trustee.

               Notwithstanding any other provision of this Declaration other
than Section 5.2, the Delaware Trustee shall not be entitled to exercise any
powers, nor shall the Delaware Trustee have any of the duties and
responsibilities of the Trustees described in this Declaration (except as
required under the Business Trust Act). Except as set forth in Section 5.2, the
Delaware Trustee shall be a Trustee for the sole and limited purpose of
fulfilling the requirements of Section 3807 of the Business Trust Act. In the
event the Delaware Trustee shall at any time be required to take any action or
perform any duty hereunder, the Delaware Trustee shall be entitled to the
benefits of Section 3.9(b)(ii) to (viii), inclusive, and Section 3.10. No
implied covenants or obligations shall be read into this Declaration against the
Delaware Trustee.

SECTION 3.12 Execution of Documents.

               Unless otherwise required by applicable law, each Administrative
Trustee, individually, is authorized to execute and deliver on behalf of the
Trust any documents,

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<PAGE>
agreements, instruments or certificates that the Administrative Trustees have
the power and authority to execute pursuant to Section 3.6.

SECTION 3.13 Not Responsible for Recitals or Issuance of Securities

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

SECTION 3.14 Duration of Trust.

               The Trust, unless earlier dissolved pursuant to the provisions of
Article VIII hereof, shall dissolve on June 8, 2036.

SECTION 3.15 Mergers.

        (a) The Trust may not merge with or into, consolidate, amalgamate, or be
replaced by, or convey, transfer or lease its properties and assets as an
entirety or substantially as an entirety to any Person, except as described in
Section 3.15(b) and (c) and except with respect to the distribution of
Debentures to Holders pursuant to Section 8.1(a)(iii) of this Declaration or
Section 3 of Annex 1.

        (b) The Trust may, at the request of the Sponsor, with the consent of
the Administrative Trustees or, if there are more than two, a majority of the
Administrative Trustees and without the consent of the Holders, the Delaware
Trustee or the Property Trustee, merge with or into, consolidate, amalgamate, or
be replaced by, or convey, transfer or lease its properties and assets as an
entirety or substantially as an entirety to, a trust organized as such under the
laws of any State; provided, that:

                        (i)   such successor entity (the "Successor Entity")
                either:

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

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

                        (ii)  the Sponsor expressly appoints a trustee of the
                Successor Entity that possesses the same powers and duties as
                the Property Trustee with respect to the Debentures;

                        (iii) the Successor Securities (excluding any securities
                substituted for the Common Securities) are listed, quoted or
                included for trading, or any

                                       23
<PAGE>

                Successor Securities WILL be listed, quoted or included for
                trading upon notification of issuance, on any national
                securities exchange or with any other organization on which the
                Capital Securities are then listed, quoted or included;

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

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

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

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

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

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

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

                        (viii) the Sponsor or any permitted successor or
                assignee of the Sponsor owns all of the common securities of the
                Successor Entity and guarantees the obligations of the Successor
                Entity under the Successor Securities at least to the extent
                provided by the Securities Guarantees; and

                                       24
<PAGE>

                        (ix) there shall have been furnished to the Property
                Trustee an Officers' Certificate and an Opinion of Counsel, each
                to the effect that all conditions precedent in this Declaration
                to such transaction have been satisfied.

        (c)     Notwithstanding Section 3.15(b), the Trust shall not, except
with the consent of Holders of 100% in aggregate liquidation amount of the
Securities, consolidate, amalgamate, merge with or into, or be replaced by, or
convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to, any other Person or permit any other Person to
consolidate, amalgamate, merge with or into, or replace it if such
consolidation, amalgamation, merger, replacement, conveyance, transfer or lease
would cause the Trust or the Successor Entity not to be classified as a grantor
trust for United States federal income tax purposes.

                                   ARTICLE IV
                                    SPONSOR

SECTION 4.1 Sponsor's Purchase of Common Securities.

               At the Closing Time, pursuant to the Common Securities
Subscription Agreement, the Sponsor will purchase all of the Common Securities
then issued by the Trust, in an amount equal to at least 3% of the total capital
of the Trust, at the same time as the Capital Securities are issued and sold.

SECTION 4.2 Responsibilities of the Sponsor.

               In connection with the issue and sale of the Capital Securities,
the Sponsor shall have the exclusive right and responsibility to engage in, or
direct the Administrative Trustees to engage in, the following activities:

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

        (b) to negotiate the terms of, execute, enter into and deliver the
Subscription Agreement and the Placement Agent Agreement.

SECTION 4.3 Right to Proceed.

               The Sponsor acknowledges the rights of the Holders of Capital
Securities, in the event that a failure of the Trust to make any payments in
respect of the Capital Securities is attributable to the failure of the
Debenture Issuer to pay the principal of or premium (if any) or interest on the
Debentures, to institute a proceeding directly against the Debenture Issuer for
enforcement of its payment obligations in respect of the Debentures.

                                       25
<PAGE>
SECTION 4.4 Right to Dissolve Trust.

                The Sponsor will have the right at any time to dissolve the
Trust and, after satisfaction of liabilities to creditors of the Trust as
required by applicable law, to cause the Debentures to be distributed to the
Holders in liquidation of the Trust. Such right is subject to the Sponsor's
having received (i) an Opinion of Counsel to the effect that such distribution
will not cause the Holders of Capital Securities to recognize gain or loss for
United States federal income tax purposes and (ii) all required regulatory
approvals.

                                    ARTICLE V
                                    TRUSTEES

SECTION 5.1 Number of Trustees; Appointment of Co-Trustee.

                The number of Trustees initially shall be five (5), and:

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

        (b)     after the issuance of any Securities, the number of Trustees may
be increased or decreased by vote of the Holders of a Majority in Liquidation
Amount of the Common Securities voting as a class at a meeting of the Holders of
the Common Securities;

provided, however, that, the number of Trustees shall in no event be less than
two (2); provided further, that (1) one Trustee, in the case of a natural
person, shall be a person who is a resident of the State of Delaware or that, if
not a natural person, is an entity which has its principal place of business in
the State of Delaware (the "Delaware Trustee"); (2) there shall be at least one
Trustee who is an employee or officer of, or is affiliated with, the Sponsor (an
"Administrative Trustee"); and (3) one Trustee shall be the Property Trustee for
so long as this Declaration is required to qualify as an indenture under the
Trust Indenture Act, and such Trustee may also serve as Delaware Trustee if it
meets the applicable requirements. Notwithstanding the above, unless an Event of
Default shall have occurred and be continuing, at any time or times, for the
purpose of meeting the legal requirements of the Trust Indenture Act or of any
jurisdiction in which any part of the Trust Property may at the time be located,
the Holders of a Majority in Liquidation Amount of the Common Securities acting
as a class at a meeting of the Holders of the Common Securities, and the
Administrative Trustees shall have power to appoint one or more Persons either
to act as a co-trustee, jointly with the Property Trustee, of all or any part of
the Trust Property, or to act as separate trustee of any such property, in
either case with such powers as may be provided in the instrument of
appointment, and to vest in such Person or Persons in such capacity any
property, title, right or power deemed necessary or desirable, subject to the
provisions of this Declaration. In case an Event of Default has occurred and is
continuing, the Property Trustee alone shall have power to make any such
appointment of a co-trustee.

SECTION 5.2 Delaware Trustee.

                For so long as required by the Business Trust Act, the Delaware
Trustee shall be:

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<PAGE>

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

        (b)     if not a natural person, an entity which has its principal place
of business in the State of Delaware, and otherwise meets the requirements of
applicable law,

provided, however, that, if the Property Trustee has its principal place of
business in the State of Delaware and otherwise meets the requirements of
applicable law, then the Property Trustee shall also be the Delaware Trustee and
Section 3.11 shall have no application.

                The initial Delaware Trustee shall be:

                Wilmington Trust Company
                Rodney Square North
                1100 North Market Street
                Wilmington, Delaware 19890-0001
                Telephone: (302) 651-1000
                Telecopier: (302) 651-8882

SECTION 5.3 Property Trustee; Eligibility.

        (a)     There shall at all times be one Trustee (the "Property Trustee")
which shall act as Property Trustee and which shall:

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

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

        (b)     If at any time the Property Trustee shall cease to be eligible
to so act under Section 5.3(a), the Property Trustee shall immediately resign in
the manner and with the effect set forth in Section 5.6(c).

        (c)     If the Property Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 330(b) of the Trust Indenture Act, the
Property Trustee and the Holder of the Common Securities (as if it were the
obligor referred to in Section 310(b) of the Trust Indenture Act) shall in all
respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

                                       27

<PAGE>

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

        (e)     The initial Property Trustee shall be:

                Wilmington Trust Company
                Rodney Square North
                1100 North Market Street
                Wilmington, Delaware 19890-0001
                Telephone: (302) 651-1000
                Telecopier: (302) 651-8882

SECTION 5.4     Certain Qualifications of Administrative Trustees and Delaware
                Trustee Generally.

                Each Administrative Trustee and the Delaware Trustee (unless the
Property Trustee also acts as Delaware Trustee) shall be either a natural person
who is at least 21 years of age or a legal entity that shall act through one or
more Authorized Officers.

SECTION 5.5 Administrative Trustees.

                The initial Administrative Trustees shall be:

                Bon T. Goo
                Timothy T. Chang
                Christine Y. Oh
                c/o Nara Bancorp, Inc.
                3701 Wilshire Boulevard, Suite 220
                Telephone: (213) 639-1700
                Telecopier: (213) 225-3033

        (a)     Except as otherwise expressly set forth in this Declaration and
except if a meeting of the Administrative Trustees is called with respect to any
matter over which the Administrative Trustees have power to act, any power of
the Administrative Trustees may be exercised by, or with the consent of, any one
such Administrative Trustee.

        (b)     Unless otherwise required by the Business Trust Act or other
applicable law, any Administrative Trustee acting alone is authorized to execute
on behalf of the Trust any documents which the Administrative Trustees have the
power and authority to cause the Trust to execute pursuant to Section 3.6.

        (c)     An Administrative Trustee may, by power of attorney consistent
with applicable law, delegate to any other natural person over the age of 21 his
or her power for the purposes of signing any documents which the Administrative
Trustees have power and authority to cause the Trust to execute pursuant to
Section 3.6.

                                       28

<PAGE>

SECTION 5.6 Appointment, Removal and Resignation of Trustees.

        (a)     Subject to Section 5.6(b) hereof and to Section 6(b) of Annex I
hereto, Trustees may be appointed or removed without cause at any time:

                (i) until the issuance of any Securities, by written instrument
        executed by the Sponsor;

                (ii) unless an Event of Default shall have occurred and be
        continuing after the issuance of any Securities, by vote of the Holders
        of a Majority in Liquidation Amount of the Common Securities voting as a
        class at a meeting of the Holders of the Common Securities; and

                (iii) if an Event of Default shall have occurred and be
        continuing after the issuance of the Securities, with respect to the
        Property Trustee or the Delaware Trustee, by vote of Holders of a
        Majority in Liquidation Amount of the Capital Securities voting as a
        class at a meeting of Holders of the Capital Securities, and with
        respect to the Administrative Trustees, in the manner set forth in
        Section 5.6(a)(ii) hereof.

                (b)(i) The Trustee that acts as Property Trustee shall not be
        removed in accordance with Section 5.6(a) until a Successor Property
        Trustee has been appointed and has accepted such appointment by written
        instrument executed by such Successor Property Trustee and delivered to
        the removed Property Trustee, the Administrative Trustees and the
        Sponsor; and

                (ii) the Trustee that acts as Delaware Trustee shall not be
        removed in accordance with this Section 5.6(a) until a successor Trustee
        possessing the qualifications to act as Delaware Trustee under Sections
        5.2 and 5.4 (a "Successor Delaware Trustee") has been appointed and has
        accepted such appointment by written instrument executed by such
        Successor Delaware Trustee and delivered to the removed Delaware
        Trustee, the Property Trustee (if the removed Delaware Trustee is not
        also the Property Trustee), the Administrative Trustees and the Sponsor.

        (c)     A Trustee appointed to office shall hold office until his
successor shall have been appointed or until his death, removal or resignation.
Any Trustee may resign from office (without need for prior or subsequent
accounting) by an instrument in writing signed by the Trustee and delivered to
the other Trustees, the Sponsor and the Trust, which resignation shall take
effect upon such delivery or upon such later date as is specified therein;
provided, however, that:

                (i) No such resignation of the Trustee that acts as the Property
        Trustee shall be effective:

                (A) until a Successor Property Trustee has been appointed and
                has accepted such appointment by instrument executed by such
                Successor Property Trustee and delivered to the Trust, the
                Sponsor, the Delaware

                                       29

<PAGE>

                Trustee (if the resigning Property Trustee is not also the
                Delaware Trustee) and the resigning Property Trustee; or

                (B) until the assets of the Trust have been completely
                liquidated and the proceeds thereof distributed to the Holders;
                and

                (ii) no such resignation of the Trustee that acts as the
        Delaware Trustee shall be effective until a Successor Delaware Trustee
        has been appointed and has accepted such appointment by instrument
        executed by such Successor Delaware Trustee and delivered to the Trust,
        the Property Trustee (if the resigning Delaware Trustee is not also the
        Property Trustee), the Sponsor and the resigning Delaware Trustee.

        (d)     The Holders of the Common Securities or, if an Event of Default
shall have occurred and be continuing after the issuance of the Securities, the
Holders of the Capital Securities shall use their best efforts to promptly
appoint a Successor Property Trustee or Successor Delaware Trustee, as the case
may be, if the Property Trustee or the Delaware Trustee delivers an instrument
of resignation in accordance with this Section 5.6.

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

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

        (g)     At the time of resignation or removal of the Property Trustee or
the Delaware Trustee, the Sponsor shall pay to such Trustee any amounts that may
be owed to such Trustee pursuant to Section 10.4.

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

SECTION 5.7 Vacancies Among Trustees.

                If a Trustee ceases to hold office for any reason and the number
of Trustees is not reduced pursuant to Section 5.1, or if the number of Trustees
is increased pursuant to Section 5.1, a vacancy shall occur. A resolution
certifying the existence of such vacancy by the Administrative Trustees or, if
there are more than two, a majority of the Administrative Trustees shall be
conclusive evidence of the existence of such vacancy. The vacancy shall be
filled with a Trustee appointed in accordance with Section 5.6.

                                       30

<PAGE>

SECTION 5.8 Effect of Vacancies.

                The death, resignation, retirement, removal, bankruptcy,
dissolution, liquidation, incompetence or incapacity to perform the duties of a
Trustee shall not operate to dissolve, liquidate or annul the Trust or to
terminate this Declaration. Whenever a vacancy in the number of Administrative
Trustees shall occur, until such vacancy is filled by the appointment of an
Administrative Trustee in accordance with Section 5.6, the Administrative
Trustees in office, regardless of their number, shall have all the powers
granted to the Administrative Trustees and shall discharge all the duties
imposed upon the Administrative Trustees by this Declaration.

SECTION 5.9 Meetings.

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

SECTION 5.10 Delegation of Power.

        (a)     Any Administrative Trustee may, by power of attorney consistent
with applicable law, delegate to any other natural person over the age of 21 his
or her power for the purpose of executing any documents contemplated in Section
3.6 or making any other governmental filing.

        (b)     The Administrative Trustees shall have power to delegate from
time to time to such of their number or to officers of the Trust the doing of
such things and the execution of such instruments either in the name of the
Trust or the names of the Administrative Trustees or otherwise as the
Administrative Trustees may deem expedient, to the extent such delegation is not
prohibited by applicable law or contrary to the provisions of this Declaration.

                                       31

<PAGE>

SECTION 5.11 Merger, Conversion, Consolidation or Succession to Business.

                Any Person into which the Property Trustee or the Delaware
Trustee or any Administrative Trustee that is not a natural person, as the case
may be, 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
Property Trustee or the Delaware Trustee, as the case may be, shall be a party,
or any Person succeeding to all or substantially all the corporate trust
business of the Property Trustee or the Delaware Trustee, as the case may be,
shall be the successor of the Property Trustee or the Delaware Trustee, as the
case may be, hereunder, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided such Person shall
be otherwise qualified and eligible under this Article and provided further that
such Person shall file an amendment to the Certificate of Trust with the
Delaware Secretary of State as contemplated in Section 5.6(h).

                                   ARTICLE VI
                                  DISTRIBUTIONS

SECTION 6.1 Distributions.

                Holders shall receive Distributions in accordance with the
applicable terms of the relevant Holder's Securities. If and to the extent that
the Debenture Issuer makes a payment of interest (including Compounded Interest
and Additional Sums), premium and/or principal on the Debentures held by the
Property Trustee (the amount of any such payment being a "Payment Amount"), the
Property Trustee shall and is directed, to the extent funds are available for
that purpose, to make a distribution (a "Distribution") of the Payment Amount to
Holders in accordance with the terms of the Securities.

                                   ARTICLE VII
                             ISSUANCE OF SECURITIES

SECTION 7.1 General Provisions Regarding Securities.

        (a) The Administrative Trustees shall, on behalf of the Trust, issue one
class of MMCapS(SM) representing undivided preferred beneficial interests in the
assets of the Trust having such terms as are set forth in Annex I (the "Capital
Securities") and one class of common securities representing undivided common
beneficial interests in the assets of the Trust having such terms as are set
forth in Annex I (the "Common Securities"). The Trust shall issue no securities
or other interests in the assets of the Trust other than the Capital Securities
and the Common Securities.

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

        (c)     Upon issuance of the Securities as provided in this Declaration,
the Securities so issued shall be deemed to be validly issued and, subject to
the terms of this Declaration, fully paid and nonassessable undivided beneficial
interests in the assets of the Trust and entitled to the

                                       32

<PAGE>

benefits of this Declaration, and the Holders thereof shall be entitled to the
benefits of this Declaration.

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

SECTION 7.2 Execution and Authentication.

        (a)     The Securities shall be signed on behalf of the Trust by an
Administrative Trustee. In case any Administrative Trustee of the Trust who
shall have signed any of the Securities shall cease to be such Administrative
Trustee before the Securities so signed shall be delivered by the Trust, such
Securities nevertheless may be delivered as though the Person who signed such
Securities had not ceased to be such Administrative Trustee; and any Securities
may be signed on behalf of the Trust by such persons who, at the actual date of
execution of such Security, shall be the Administrative Trustees of the Trust,
although at the date of the execution and delivery of this Declaration any such
person was not an Administrative Trustee.

        (b)     One Administrative Trustee shall sign the Capital Securities for
the Trust by manual or facsimile signature. Unless otherwise determined by an
Administrative Trustee on behalf of the Trust, an Administrative Trustee shall
sign the Common Securities for the Trust by manual signature.

                A Capital Security shall not be valid until authenticated by the
manual signature of an authorized signatory of the Property Trustee. The
signature shall be conclusive evidence that the Capital Security has been
authenticated under this Declaration. A Common Security shall be valid upon
execution by an Administrative Trustee without any act of the Property Trustee.

                Upon a written order of the Trust signed by one Administrative
Trustee, the Property Trustee shall authenticate the Capital Securities for
original issue. The aggregate number of Capital Securities outstanding at any
time shall not exceed the number set forth in Annex I hereto except as provided
in Section 7.6.

                The Property Trustee may appoint an authenticating agent
acceptable to the Trust to authenticate Capital Securities. An authenticating
agent may authenticate Capital Securities whenever the Property Trustee may do
so. Each reference in this Declaration to authentication by the Property Trustee
includes authentication by such agent. An authenticating agent has the same
rights as the Property Trustee hereunder with respect to the Sponsor or an
Affiliate.

SECTION 7.3 Form and Dating.

                The Capital Securities shall be evidenced by one or more
certificates substantially in the form of Exhibit A-1, and the Common Securities
shall be evidenced by one or more certificates substantially in the form of
Exhibit A-2. The Property Trustee's certificate of authentication shall be
substantially in the form set forth in Exhibit A-1. Certificates representing
the Securities may be printed, lithographed or engraved or may be produced in
any

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other manner as is reasonably acceptable to an Administrative Trustee, as
evidenced by the execution thereof. The Securities may have letters, "CUSIP" or
other numbers, notations or other marks of identification or designation and
such legends or endorsements required by law, stock exchange rule, agreements to
which the Trust is subject, if any, or usage, provided, that any such notation,
legend or endorsement is in a form acceptable to the Administrative Trustees, as
evidenced by their execution thereof. The Trust at the direction of the Sponsor,
shall furnish any such legend not contained in Exhibit A-1 to the Property
Trustee in writing. Each Capital Security shall be dated the date of its
authentication. The terms and provisions of the Securities set forth in Annex I
and the forms of Securities set forth in Exhibits A-l and A-2 are part of the
terms of this Declaration and, to the extent applicable, the Property Trustee
and the Sponsor, by their execution and delivery of this Declaration, expressly
agree to such terms and provisions and to be bound thereby.

                Purchasers of Capital Securities will be entitled to receive
physical delivery of certificated Capital Securities in the form of individual
certificates ("Capital Security Certificate") in definitive, fully registered
form ("Definitive Capital Securities") without distribution coupons and with the
Restricted Securities Legend set forth in Exhibit A-1 hereto ("Restricted
Definitive Capital Securities"). Restricted Definitive Capital Securities will
bear the Restricted Securities Legend set forth on Exhibit A-1 unless removed in
accordance with Section 9.2.

SECTION 7.4 Registrar, Paying Agent and Exchange Agent.

                The Trust shall maintain in Wilmington, Delaware (i) an office
or agency where Capital Securities may be presented for registration of transfer
("Registrar"), (ii) an office or agency where Capital Securities may be
presented for payment ("Paying Agent") and (iii) an office or agency where
Securities may be presented for exchange ("Exchange Agent"). The Registrar shall
keep a register of the Capital Securities and of their transfer. The Trust may
appoint the Registrar, the Paying Agent and the Exchange Agent and may appoint
one or more co-registrars, one or more additional paying agents and one or more
additional Exchange Agents in such other locations as it shall determine. The
term "Registrar" includes any additional registrar, the term "Paying Agent"
includes any additional paying agent and the term "Exchange Agent" includes any
additional Exchange Agent. The Trust may change any Paying Agent, Registrar,
co-registrar or Exchange Agent without prior notice to any Holder. The Paying
Agent shall be permitted to resign as Paying Agent upon 30 days' written notice
to the Property Trustee, the Administrative Trustees and the Sponsor. The Trust
shall notify the Property Trustee of the name and address of any Agent not a
party to this Declaration. If the Trust fails to appoint or maintain another
entity as Registrar, Paying Agent or Exchange Agent, the Property Trustee shall
act as such. The Trust or any of its Affiliates may act as Paying Agent,
Registrar, or Exchange Agent. The Trust shall act as Paying Agent, Registrar and
Exchange Agent for the Common Securities.

                The Trust initially appoints the Property Trustee as Registrar,
Paying Agent and Exchange Agent for the Capital Securities.

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SECTION 7.5 Paying Agent to Hold Money in Trust.

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

SECTION 7.6 Replacement Securities.

                If a Holder claims that a Security owned by it has been lost,
destroyed or wrongfully taken or if such Security is mutilated and is
surrendered to the Trust or in the case of the Capital Securities to the
Property Trustee, an Administrative Trustee shall execute and the Property
Trustee shall, upon receipt of written direction from an Administrative Trustee,
authenticate and make available for delivery a replacement Security if the
Property Trustee's requirements are met. An indemnity bond must be provided by
the Holder which, in the judgment of the Property Trustee, is sufficient to
protect the Trustees, the Sponsor, the Trust or any authenticating agent from
any loss which any of them may suffer if a Security is replaced. The Trust may
charge such Holder for its expenses in replacing a Security.

SECTION 7.7 Outstanding Capital Securities.

                The Capital Securities outstanding at any time are all the
Capital Securities authenticated by the Property Trustee except for those
canceled by it, those delivered to it for cancellation, and those described in
this Section as not outstanding.

                If a Capital Security is replaced, paid or purchased pursuant to
Section 7.6 hereof, it ceases to be outstanding unless the Property Trustee
receives proof satisfactory to it that the replaced, paid or purchased Capital
Security is held by a bona fide purchaser.

                If Capital Securities are considered paid in accordance with the
terms of this Declaration, they cease to be outstanding and Distributions on
them shall cease to accumulate.

                A Capital Security does not cease to be outstanding because one
of the Trust, the Sponsor or an Affiliate of the Sponsor holds the Security.

SECTION 7.8 Capital Securities in Treasury.

                In determining whether the Holders of the required amount of
Securities have concurred in any direction, waiver or consent, Capital
Securities owned by the Trust, the Sponsor or an Affiliate of the Sponsor, as
the case may be, shall be disregarded and deemed not to be outstanding, except
that for the purposes of determining whether the Property Trustee shall be

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<PAGE>

fully protected in relying on any such direction, waiver or consent, only
Securities which the Property Trustee actually knows are so owned shall be so
disregarded.

SECTION 709 Temporary Securities.

                Until Definitive Capital Securities are ready for delivery, the
Trust may prepare and, in the case of the Capital Securities, the Property
Trustee shall, upon receipt of written direction from an Administrative Trustee,
authenticate temporary Securities. Temporary Securities shall be substantially
in the form of Definitive Capital Securities but may have variations that the
Trust considers appropriate for temporary Securities. Without unreasonable
delay, the Trust shall prepare and, in the case of the Capital Securities, the
Property Trustee shall, upon receipt of a Corporation Order, authenticate
Definitive Capital Securities in exchange for temporary Securities.

SECTION 7.10 Cancellation.

                The Trust at any time may deliver Capital Securities to the
Property Trustee for cancellation. The Registrar, Paying Agent and Exchange
Agent shall forward to the Property Trustee any Capital Securities surrendered
to them for registration of transfer, redemption, exchange or payment. The
Property Trustee shall promptly cancel all Capital Securities surrendered for
registration of transfer, redemption, exchange, payment, replacement or
cancellation and shall dispose of canceled Capital Securities in accordance with
its customary procedures unless the Trust otherwise directs. The Trust may not
issue new Capital Securities to replace Capital Securities that it has paid or
that have been delivered to the Property Trustee for cancellation or that any
Holder has exchanged.

SECTION 7.11 CUSIP Numbers.

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

                                  ARTICLE VIII
                              DISSOLUTION OF TRUST

SECTION 8.1 Dissolution of Trust.

        (a)     The Trust shall automatically dissolve

                (i) upon the bankruptcy of the Sponsor;

                (ii) upon the filing of a certificate of dissolution or
        liquidation or its equivalent with respect to the Sponsor; or the
        revocation of the Sponsor's

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<PAGE>
        charter and the expiration of 90 days after the date of revocation
        without a reinstatement thereof;

                (iii) following the distribution of a Like Amount of the
        Debentures to the Holders, provided, that the Property Trustee has
        received written notice from the Sponsor directing the Property Trustee
        to dissolve the Trust (which direction is optional, and except as
        otherwise expressly provided below, within the discretion of the
        Sponsor), and provided further, that such direction and such
        distribution is conditioned on (a) the receipt by the Sponsor of any and
        all required regulatory approvals, and (b) the Sponsor's receipt and
        delivery to the Administrative Trustees of an opinion of independent tax
        counsel experienced in such matters, which opinion may rely on public or
        private rulings of the Internal Revenue Service, to the effect that the
        Holders of the Capital Securities will not recognize any gain or loss
        for United States federal income tax purposes as a result of the
        dissolution of the Trust and the distribution of Debentures;

                (iv) upon the entry of a decree of judicial dissolution of the
        Trust by a court of competent jurisdiction;

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

                (vi) upon the redemption or repayment of the Debentures or at
        such time as no Debentures are outstanding; or

                (vii) the expiration of the term of the Trust provided in
        Section 3.14.

        (b)     As soon as is practicable upon completion of winding up of the
Trust following the occurrence of an event referred to in Section 8.1 (a) and
the satisfaction of creditors of the Trust in accordance with applicable law,
the Administrative Trustees shall terminate the Trust by filing a certificate of
cancellation with the Secretary of State of the State of Delaware in accordance
with the Business Trust Act.

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

                                   ARTICLE IX
                              TRANSFER OF INTERESTS

SECTION 9.1 Transfer of Securities.

        (a)     Securities may only be transferred, in whole or in part, in
accordance with the terms and conditions set forth in this Declaration and in
accordance with the terms of the Securities. To the fullest extent permitted by
law, any transfer or purported transfer of any Security not made in accordance
with this Declaration shall be null and void.

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<PAGE>

        (b)     Subject to this Article IX, Capital Securities may only be
transferred, in whole or in part, in accordance with the terms and conditions
set forth in this Declaration. To the fullest extent permitted by law, any
transfer or purported transfer of any Security not made in accordance with this
Declaration shall be null and void.

        (c)     For so long as the Securities remain outstanding, the Sponsor
agrees (i) not to transfer ownership of the Common Securities of the Trust,
provided that any permitted successor of the Sponsor under the Indenture may
succeed to the Sponsor's ownership of the Common Securities, (ii) not to cause,
as Sponsor of the Trust, or to permit, as Holder of the Common Securities, the
dissolution, winding-up or liquidation of the Trust, except as provided in this
Declaration and (iii) to use its best efforts to cause the Trust (a) to remain a
business trust, except in connection with the distribution of Debentures to the
Holders in liquidation of the Trust, the redemption of all of the Securities, or
certain mergers, consolidations or amalgamations, each as permitted by this
Declaration, and (b) to otherwise continue to be classified as a grantor trust
for United States federal income tax purposes.

        (d)     The Registrar shall provide for the registration of Capital
Securities and of the transfer of Capital Securities, which will be effected
without charge but only upon payment (with such indemnity as the Registrar may
require) in respect of any tax or other governmental charges that may be imposed
in relation to it. Upon surrender for registration of transfer of any Capital
Securities, an Administrative Trustee shall cause one or more new Capital
Securities to be issued in the name of the designated transferee or transferees.
Every Capital Security surrendered for registration of transfer shall be
accompanied by a written instrument of transfer in form satisfactory to the
Registrar duly executed by the Holder or such Holder's attorney duly authorized
in writing. Each Capital Security surrendered for registration of transfer shall
be delivered to the Registrar and canceled in accordance with Section 7.10. A
transferee of a Capital Security shall be entitled to the rights and subject to
the obligations of a Holder hereunder upon the receipt by such transferee of a
Capital Security. By acceptance of a Capital Security or any interest therein,
each transferee shall be deemed to have agreed to be bound by this Declaration.

SECTION 9.2 Transfer Procedures and Restrictions.

        (a)     General. If Capital Securities are issued upon the transfer,
exchange or replacement of Capital Securities bearing the Restricted Securities
Legend set forth in Exhibit A-1 hereto, or if a request is made to remove such
Restricted Securities Legend on Capital Securities, the Capital Securities so
issued shall bear the Restricted Securities Legend, or the Restricted Securities
Legend shall not be removed, as the case may be, unless there is delivered to
the Trust and the Property Trustee such satisfactory evidence, which shall
include an Opinion of Counsel, as may be reasonably required by the Trust and
the Property Trustee, that neither the Restricted Securities Legend nor the
restrictions on transfer set forth therein are required to ensure that transfers
thereof are made pursuant to an exception from the registration requirements of
the Securities Act or, with respect to Restricted Capital Securities, that such
Securities are not "restricted" within the meaning of Rule 144. Upon provision
of such satisfactory evidence, the Property Trustee, at the written direction of
an Administrative Trustee on behalf of the Trust, shall authenticate and deliver
Capital Securities that do not bear the legend.

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<PAGE>

        (b)     Transfer and Exchange of Definitive Capital Securities. When
Definitive Capital Securities are presented to the Registrar or co-registrar:

                (x) to register the transfer of such Definitive Capital
        Securities; or

                (y) to exchange such Definitive Capital Securities which became
        mutilated, destroyed, defaced, stolen or lost, for an equal number of
        Definitive Capital Securities, the Registrar or co-registrar shall
        register the transfer or make the exchange as requested if its
        reasonable requirements for such transaction are met;

        provided, however, that the Definitive Capital Securities surrendered
        for registration of transfer or exchange:

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

                        (ii) in the case of Definitive Capital Securities that
                are Restricted Definitive Capital Securities:

                                (A) if such Restricted Capital Securities are
                        being delivered to the Registrar by a Holder for
                        registration in the name of such Holder, without
                        transfer, certification(s) from such Holder to that
                        effect; or

                                (B) if such Restricted Capital Securities are
                        being transferred: (i) certification(s) in a form
                        substantially similar to that attached hereto as the
                        form of "Assignment" in Exhibit A-1, and (ii) if the
                        Trust or Registrar so requests, evidence reasonably
                        satisfactory to them as to the compliance with the
                        restrictions set forth in the Restricted Securities
                        Legend.

        (c)     Legend.

                        (i) Except as permitted by the following paragraph (ii),
                each Capital Security Certificate evidencing each Definitive
                Capital Security and all Capital Securities issued in exchange
                thereof or substitution thereof shall bear a legend (the
                "Restricted Securities Legend") in substantially the following
                form:

                THIS CAPITAL SECURITY HAS NOT BEEN REGISTERED UNDER THE
                SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
                ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES
                LAW. NEITHER THIS CAPITAL SECURITY NOR ANY INTEREST OR
                PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
                TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
                ABSENCE OF

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<PAGE>

                SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR
                NOT SUBJECT TO, REGISTRATION.

                THE HOLDER OF THIS CAPITAL SECURITY BY ITS ACCEPTANCE HEREOF
                AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS CAPITAL
                SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION
                DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL
                ISSUANCE DATE HEREOF AND THE LAST DATE ON WHICH NARA BANCORP,
                INC. (THE "CORPORATION") OR ANY "AFFILIATE" OF THE CORPORATION
                WAS THE OWNER OF THIS CAPITAL SECURITY (OR ANY PREDECESSOR OF
                THIS CAPITAL SECURITY) ONLY (A) TO THE CORPORATION, (B) PURSUANT
                TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
                UNDER THE SECURITIES ACT, (C) SO LONG AS THIS CAPITAL SECURITY
                IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
                SECURITIES ACT ("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES
                IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A)
                THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
                QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
                TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) TO AN
                INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF
                SUBPARAGRAPH (a)(1), (2), (3), (7) OR (8) OF RULE 501 UNDER THE
                SECURITIES ACT THAT IS ACQUIRING THIS CAPITAL SECURITY FOR ITS
                OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
                ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES PURSUANT TO AN
                EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
                ACT 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 ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
                REQUIREMENTS UNDER THE SECURITIES ACT, SUBJECT TO THE RIGHT OF
                NARA BANCORP CAPITAL TRUST I (THE "TRUST") AND THE CORPORATION
                PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE
                (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
                CERTIFICATIONS AND/OR

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<PAGE>

                OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii)
                PURSUANT TO CLAUSE (D) TO REQUIRE THAT THE TRANSFEROR DELIVER TO
                THE TRUST A LETTER FROM THE TRANSFEREE SUBSTANTIALLY IN THE FORM
                OF ANNEX II TO THE DECLARATION. SUCH HOLDER FURTHER AGREES THAT
                IT WILL DELIVER TO EACH PERSON TO WHOM THIS CAPITAL SECURITY IS
                TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

                THE HOLDER OF THIS CAPITAL 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 THE CAPITAL SECURITIES 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 CAPITAL
                SECURITIES 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 THE CAPITAL SECURITIES 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

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<PAGE>

                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 all circumstances, each Capital Security Certificate shall bear the following
legend:

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

                        (ii) Upon any sale or transfer of a Restricted Capital
                Security pursuant to an effective registration statement under
                the Securities Act or pursuant to Rule 144 the Registrar shall
                permit the Holder thereof to exchange such Restricted Capital
                Security for a Definitive Capital Security that does not bear
                the Restricted Securities Legend and rescind any restriction on
                the transfer of such Restricted Capital Security.

        (d)     Obligations with Respect to Transfers and Exchanges of Capital
Securities.

                        (i) To permit registrations of transfers and exchanges,
                the Trust shall execute and the Property Trustee shall
                authenticate Definitive Capital Securities at the Registrar's or
                co-registrar's request in accordance with the terms of this
                Declaration.

                        (ii) Registrations of transfers or exchanges will be
                effected without charge, but only upon payment (with such
                indemnity as the Trust or the Sponsor may require) in respect of
                any tax or other governmental charge that may be imposed in
                relation to it.

                        (iii) The Registrar or co-registrar shall not be
                required to register the transfer of or exchange of (a) Capital
                Securities during a period beginning at the opening of business
                15 days before the day of mailing of a notice of

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<PAGE>

                redemption or any notice of selection of Capital Securities for
                redemption and ending at the close of business on the day of
                such mailing or (b) any Capital Security so selected for
                redemption in whole or in part, except the unredeemed portion of
                any Capital Security being redeemed in part.

                        (iv) Prior to the due presentation for registration of
                transfer of any Capital Security, the Trust, the Property
                Trustee, the Paying Agent, the Registrar or any co-registrar may
                deem and treat the person in whose name a capital security is
                registered as the absolute owner of such Capital Security for
                the purpose of receiving Distributions on such Capital Security
                and for all other purposes whatsoever, and none of the Trust,
                the Property Trustee, the Paying Agent, the Registrar or any
                co-registrar shall be affected by notice to the contrary.

                        (v) All Capital Securities issued upon any registration
                of transfer or exchange pursuant to the terms of this
                Declaration shall evidence the same security and shall be
                entitled to the same benefits under this Declaration as the
                Capital Securities surrendered upon such registration of
                transfer or exchange.

        (e)     No Obligation of the Property Trustee.

                        (i) The Property Trustee shall have no responsibility or
                obligation to any Person with respect to any ownership interest
                in the Capital Securities or with respect to the delivery to any
                beneficial owner or other Person of any notice (including any
                notice of redemption) or the payment of any amount, under or
                with respect to such Capital Securities. All notices and
                communications to be given to the Holders and all payments to be
                made to Holders under the Capital Securities shall be given or
                made only to or upon the order of the registered Holders.

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

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

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<PAGE>

such Capital Securities, and such purported transferee shall be deemed to have
no interest whatsoever in such Capital Securities.

SECTION 9.3 Deemed Security Holders.

                The Trustees may treat the Person in whose name any Security
shall be registered on the books and records of the Trust as the sole owner and
Holder of such Security for purposes of receiving Distributions and for all
other purposes whatsoever and, accordingly, shall not be bound to recognize any
equitable or other claim to or interest in such Security on the part of any
Person, whether or not the Trust shall have actual or other notice thereof.

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

SECTION 10.1 Liability.

        (a)     Except as expressly set forth in this Declaration, the
Securities Guarantees and the terms of the Securities, the Sponsor shall not be:

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

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

        (b)     The Sponsor shall be liable for all of the debts and obligations
of the Trust (other than in respect of the Securities).

        (c)     Pursuant to Section 3803(a) of the Business Trust Act, the
Holders shall be entitled to the same limitation of personal liability extended
to stockholders of private corporations for profit organized under the General
Corporation Law of the State of Delaware.

SECTION 10.2 Exculpation.

        (a)     No Indemnified Person shall be liable, responsible or
accountable in damages or otherwise to the Trust or any Covered Person for any
loss, damage or claim incurred by reason of any act or omission performed or
omitted by such Indemnified Person in good faith on behalf of the Trust and in a
manner such Indemnified Person reasonably believed to be within the scope of the
authority conferred on such Indemnified Person by this Declaration or by law,
except that an Indemnified Person shall be liable for any such loss, damage or
claim incurred by reason of such Indemnified Person's gross negligence (or in
the case of the Property Trustee or the Delaware Trustee, 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 Trust and upon such information, opinions,
reports or statements presented to the Trust by any Person as to matters the
Indemnified Person reasonably believes are within such

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<PAGE>

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

SECTION 10.3 Fiduciary Duty.

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

        (b)     Unless otherwise expressly provided herein:

                        (i) whenever a conflict of interest exists or arises
                between any Covered Person and any Indemnified Person, or

                        (ii) whenever this Declaration or any other agreement
                contemplated herein or therein provides that an Indemnified
                Person shall act in a manner that is, or provides terms that
                are, fair and reasonable to the Trust or any Holder of
                Securities,

the Indemnified Person shall resolve such conflict of interest, take such action
or provide such terms, considering in each case the relative interest of each
party (including its own interest) to such conflict, agreement, transaction or
situation and the benefits and burdens relating to such interests, any customary
or accepted industry practices, and any applicable generally accepted accounting
practices or principles. In the absence of bad faith by the Indemnified Person,
the resolution, action or term so made, taken or provided by the Indemnified
Person shall not constitute a breach of this Declaration or any other agreement
contemplated herein or of any duty or obligation of the Indemnified Person at
law or in equity or otherwise.

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

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

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

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<PAGE>

SECTION 10.4 Indemnification.

        (a)     (i) The Sponsor shall indemnify, to the full extent permitted by
law, any Company Indemnified Person who was or is a party or is threatened to be
made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action
by or in the right of the Trust) by reason of the fact that he is or was a
Company Indemnified Person, against expenses (including attorneys' fees and
expenses), judgments, fines and amounts paid in settlement actually and
reasonably incurred by him in connection with such action, suit or proceeding if
he acted in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Trust, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his conduct was
unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent,
shall not, of itself, create a presumption that the Company Indemnified Person
did not act in good faith and in a manner which he reasonably believed to be in
or not opposed to the best interests of the Trust, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that his conduct
was unlawful.

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

                (iii) To the extent that a Company Indemnified Person shall be
successful on the merits or otherwise (including dismissal of an action without
prejudice or the settlement of an action without admission of liability) in
defense of any action, suit or proceeding referred to in paragraphs (i) and (ii)
of this Section 10.4(a), or in defense of any claim, issue or matter therein, he
or she shall be indemnified, to the full extent permitted by law, against
expenses (including attorneys' fees) actually and reasonably incurred by him or
her in connection therewith.

                (iv) Any indemnification under paragraphs (i) and (ii) of this
Section 10.4(a) (unless ordered by a court) shall be made by the Sponsor only as
authorized in the specific case upon a determination that indemnification of the
Company Indemnified Person is proper in the circumstances because he or she has
met the applicable standard of conduct set forth in paragraphs (i) and (ii).
Such determination shall be made (1) by the Administrative Trustees by a
majority vote of a Quorum consisting of such Administrative Trustees who were

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<PAGE>

not parties to such action, suit or proceeding, (2) if such a Quorum is not
obtainable, or, even if obtainable, if a Quorum of disinterested Administrative
Trustees so directs, by independent legal counsel in a written opinion, or (3)
by the Common Security Holder of the Trust.

                (v) Expenses (including attorneys' fees and expenses) incurred
by a Company Indemnified Person in defending a civil, criminal, administrative
or investigative action, suit or proceeding referred to in paragraphs (i) and
(ii) of this Section 10.4(a) shall be paid by the Sponsor in advance of the
final disposition of such action, suit or proceeding upon receipt of an
undertaking by or on behalf of such Company Indemnified Person to repay such
amount if it shall ultimately be determined that he or she is not entitled to be
indemnified by the Sponsor as authorized in this Section 10.4(a).
Notwithstanding the foregoing, no advance shall be made by the Sponsor if a
determination is reasonably and promptly made (i) by the Administrative Trustees
by a majority vote of a Quorum of disinterested Administrative Trustees, (ii) if
such a Quorum is not obtainable, or, even if obtainable, if a Quorum of
disinterested Administrative Trustees so directs, by independent legal counsel
in a written opinion or (iii) by the Common Security Holder of the Trust, that,
based upon the facts known to the Administrative Trustees, counsel or the Common
Security Holder at the time such determination is made, such Company Indemnified
Person acted in bad faith or in a manner that the Common Security Holder did not
believe to be in, or believed was opposed to, the best interests of the Trust,
or, with respect to any criminal proceeding, that such Company Indemnified
Person believed or had reasonable cause to believe his or her conduct was
unlawful. In no event shall any advance be made in instances where the
Administrative Trustees, independent legal counsel or Common Security Holder
reasonably determine that a Company Indemnified Person deliberately breached his
or her duty to the Trust or its Common or Capital Security Holders.

                (vi) The indemnification and advancement of expenses provided
by, or granted pursuant to, the other paragraphs of this Section 10.4(a) shall
not be deemed exclusive of any other rights to which those seeking
indemnification and advancement of expenses may be entitled under any agreement,
vote of stockholders or disinterested directors of the Sponsor or Capital
Security Holders of the Trust or otherwise, both as to action in his official
capacity and as to action in another capacity while holding such office. All
rights to indemnification under this Section 10.4(a) shall be deemed to be
provided by a contract between the Sponsor and each Company Indemnified Person
who serves in such capacity at any time while this Section 10.4(a) is in effect.
Any repeal or modification of this Section 10.4(a) shall not affect any rights
or obligations then existing.

                (vii) The Sponsor or the Trust may purchase and maintain
insurance on behalf of any person who is or was a Company Indemnified Person
against any liability asserted against him or her and incurred by him or her in
any such capacity, or arising out of his or her status as such, whether or not
the Debenture Issuer would have the power to indemnify him or her against such
liability under the provisions of this Section 10.4(a).

                (viii) For purposes of this Section 10.4(a), references to "the
Trust" shall include, in addition to the resulting or surviving entity, any
constituent entity (including any constituent of a constituent) absorbed in a
consolidation or merger, so that any person who is or was a director, trustee,
officer or employee of such constituent entity, or is or was serving at the

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<PAGE>

request of such constituent entity as a director, trustee, officer, employee or
agent of another entity, shall stand in the same position under the provisions
of this Section 10.4(a) with respect to the resulting or surviving entity as he
or she would have with respect to such constituent entity if its separate
existence had continued.

                (ix) The indemnification and advancement of expenses provided
by, or granted pursuant to, this Section 10.4(a) shall, unless otherwise
provided when authorized or ratified, continue as to a Person who has ceased to
be a Company Indemnified Person and shall inure to the benefit of the heirs,
executors and administrators of such a Person.

        (b)     The Sponsor agrees to indemnify the (i) Property Trustee, (ii)
the Delaware Trustee, (iii) any Affiliate of the Property Trustee or the
Delaware Trustee, and (iv) any officers, directors, shareholders, members,
partners, employees, representatives, custodians, nominees or agents of the
Property Trustee or the Delaware Trustee (each of the Persons in (i) through
(iv), including the Property Trustee and the Delaware Trustee in their
respective individual capacities, being referred to as a "Fiduciary Indemnified
Person") for, and to hold each Fiduciary Indemnified Person harmless against,
any and all loss, liability, damage, action, suit, claim or expense including
taxes (other than taxes based on the income of such Fiduciary Indemnified
Person) of any kind and nature whatsoever incurred without negligence or bad
faith on the part of such Fiduciary Indemnified Person, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses (including reasonable legal fees and
expenses) of defending against or investigating any claim or liability in
connection with the exercise or performance of any of the powers or duties of
such Fiduciary Indemnified Person hereunder. The obligation to indemnify as set
forth in this Section 10.4(b) shall survive the resignation or removal of the
Property Trustee or the Delaware Trustee and the satisfaction and discharge of
this Declaration.

        (c)     The Sponsor agrees to pay the Property Trustee and the Delaware
Trustee, from time to time, such compensation for all services rendered by the
Property Trustee and the Delaware Trustee hereunder as may be mutually agreed
upon in writing by the Sponsor and the Property Trustee or the Delaware Trustee,
as the case may be, and, except as otherwise expressly provided herein, to
reimburse the Property Trustee and the Delaware Trustee upon its or their
request for all reasonable expenses (including legal fees and expenses),
disbursements and advances incurred or made by the Property Trustee or the
Delaware Trustee, as the case may be, in accordance with the provisions of this
Declaration, except any such expense, disbursement or advance as may be
attributable to its or their negligence or bad faith.

SECTION 10.5 Outside Businesses.

                Any Covered Person, the Sponsor, the Delaware Trustee and the
Property Trustee (subject to Section 5.3(c)) may engage in or possess an
interest in other business ventures of any nature or description, independently
or with others, similar or dissimilar to the business of the Trust, and the
Trust and the Holders shall have no rights by virtue of this Declaration in and
to such independent ventures or the income or profits derived therefrom, and the
pursuit of any such venture, even if competitive with the business of the Trust,
shall not be deemed wrongful or improper. No Covered Person, the Sponsor, the
Delaware Trustee, or the Property Trustee shall be obligated to present any
particular investment or other opportunity to

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<PAGE>

the Trust even if such opportunity is of a character that, if presented to the
Trust, could be taken by the Trust, and any Covered Person, the Sponsor, the
Delaware Trustee and the Property Trustee shall have the right to take for its
own account (individually or as a partner or fiduciary) or to recommend to
others any such particular investment or other opportunity. Any Covered Person,
the Delaware Trustee and the Property Trustee may engage or be interested in any
financial or other transaction with the Sponsor or any Affiliate of the Sponsor,
or may act as depositary for, trustee or agent for, or act on any committee or
body of holders of, securities or other obligations of the Sponsor or its
Affiliates.

                                   ARTICLE XI
                                   ACCOUNTING

SECTION 11.1 Fiscal Year.

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

SECTION 11.2 Certain Accounting Matters.

        (a)     At all times during the existence of the Trust, the
Administrative Trustees shall keep, or cause to be kept, full books of account,
records and supporting documents, which shall reflect in reasonable detail each
transaction of the Trust. The books of account shall be maintained on the
accrual method of accounting, in accordance with generally accepted accounting
principles, consistently applied. The Trust shall use the accrual method of
accounting for United States federal income tax purposes. The books of account
and the records of the Trust shall be examined by and reported upon as of the
end of each Fiscal Year of the Trust by a firm of independent certified public
accountants selected by the Administrative Trustees.

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

        (c)     The Administrative Trustees shall cause to be duly prepared and
filed with the appropriate taxing authority, an annual United States federal
income tax return, on a Form 1041 or such other form required by United States
federal income tax law, and any other annual income tax returns required to be
filed by the Administrative Trustees on behalf of the Trust with any state or
local taxing authority.

SECTION 11.3 Banking.

                The Trust may maintain one or more bank accounts in the name and
for the sole benefit of the Trust; provided, however, that all payments of funds
in respect of the Debentures held by the Property Trustee shall be made directly
to the Property Trustee Account and no other funds of the Trust shall be
deposited in the Property Trustee Account. The sole
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<PAGE>
signatories for such accounts shall be designated by the Administrative
Trustees; provided, however, that the Property Trustee shall designate the
signatories for the Property Trustee Account.

SECTION 11.4 Withholding.

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

                                   ARTICLE XII

                             AMENDMENTS AND MEETINGS

SECTION 12.1 Amendments.

        (a) Except as otherwise provided in this Declaration (including Section
7 of Annex I hereto) or by any applicable terms of the Securities, this
Declaration may only be amended by a written instrument approved and executed
by:

                (i) the Sponsor and the Administrative Trustees (or, if there
        are more than two Administrative Trustees, a majority of the
        Administrative Trustees);

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

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

        (b) No amendment shall be made, and any such purported amendment shall
be void and ineffective:

                (i) unless, in the case of any proposed amendment, the Property
        Trustee shall have first received an Officers` Certificate from each of
        the Trust and the Sponsor that such amendment is permitted by, and
        conforms to, the terms of this Declaration (including the terns of the
        Securities);

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<PAGE>

                (ii) unless, in the case of any proposed amendment which affects
        the rights, powers, duties, obligations or immunities of the Property
        Trustee, the Property Trustee shall have first received:

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

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

provided, however, that the Property Trustee shall not be required to sign any
such amendment; and

                (iii) to the extent the result of such amendment would be to:

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

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

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

        (c) At such time after the Trust has issued any Securities that remain
outstanding, any amendment that would adversely affect the rights, privileges or
preferences of any Holder (other than an amendment pursuant to (g) below) may be
effected only with such additional requirements as may be set forth in the terms
of such Securities;

        (d) Section 10.1(c) and this Section 12.1 shall not be amended without
the consent of all of the Holders;

        (e) Article Four shall not be amended without the consent of the Holders
of a Majority in Liquidation Amount of the Common Securities;

        (f) The rights of the Holders of the Common Securities under Article V
to increase or decrease the number of, and appoint and remove Trustees shall not
be amended without the consent of the Holders of a Majority in Liquidation
Amount of the Common Securities; and

        (g) Notwithstanding Section 12.1(c), this Declaration may be amended
without the consent of the Holders to:

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<PAGE>

                (i) cure any ambiguity, correct or supplement any provision in
        this Declaration that may be inconsistent with any other provision of
        this Declaration or to make any other provisions with respect to matters
        or questions arising under this Declaration which shall not be
        inconsistent with the other provisions of the Declaration; and

                (ii) to modify, eliminate or add to any provisions of the
        Declaration to such extent as shall be necessary to ensure that the
        Trust will be classified for United States federal income tax purposes
        as a grantor trust at all times that any Securities are outstanding or
        to ensure that the Trust will not be required to register as an
        Investment Company under the Investment Company Act;

provided, however, that in each clause above, such action shall not adversely
affect in any material respect the interests of the Holders, and any such
amendments of this Declaration shall become effective when notice thereof is
given to the Holders.

SECTION 12.2 Meetings of the Holders; Action by Written Consent.

        (a) Meetings of the Holders of any class of Securities may be called at
any time by the Administrative Trustees (or as provided in the terms of the
Securities) to consider and act on any matter on which Holders of such class of
Securities are entitled to act under the terms of this Declaration, the terms of
the Securities or the rules of any stock exchange on which the Capital
Securities are listed or admitted for trading. The Administrative Trustees shall
call a meeting of the Holders of such class if directed to do so by the Holders
of at least 20% in Liquidation Amount of such class of Securities. Such
direction shall be given by delivering to the Administrative Trustees one or
more notices in writing stating that the signing Holders wish to call a meeting
and indicating the general or specific purpose for which the meeting is to be
called. Any Holders calling a meeting shall specify in writing the Capital
Security Certificates held by the Holders exercising the right to call a meeting
and only those Securities specified shall be counted for purposes of determining
whether the required percentage set forth in the second sentence of this
paragraph has been met.

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

                (i) notice of any such meeting shall be given to all the Holders
        having a right to vote thereat at least seven days and not more than 60
        days before the date of such meeting. Whenever a vote, consent or
        approval of the Holders is permitted or required under this Declaration
        or the rules of any stock exchange on which the Capital Securities are
        listed or admitted for trading, such vote, consent or approval may be
        given at a meeting of the Holders; any action that may be taken at a
        meeting of the Holders may be taken without a meeting if a consent in
        writing setting forth the action so taken is signed by the Holders
        owning not less than the minimum amount of Securities in liquidation
        amount that would be necessary to authorize or take such action at a
        meeting at which all Holders having a right to vote thereon were present
        and voting; prompt notice of the taking of action without a

                                       52
<PAGE>

        meeting shall be given to the Holders entitled to vote who have not
        consented in writing; and the Administrative Trustees may specify that
        any written ballot submitted to the Security Holder for the purpose of
        taking any action without a meeting shall be returned to the Trust
        within the time specified by the Administrative Trustees;

                (ii) each Holder may authorize any Person to act for it by proxy
        on all matters in which a Holder is entitled to participate, including
        waiving notice of any meeting, or voting or participating at a meeting;
        no proxy shall be valid after the expiration of eleven months from the
        date thereof unless otherwise provided in the proxy; every proxy shall
        be revocable at the pleasure of the Holder executing it; and, except as
        otherwise provided herein, all matters relating to the giving, voting or
        validity of proxies shall be governed by the General Corporation Law of
        the State of Delaware relating to proxies, and judicial interpretations
        thereunder, as if the Trust were a Delaware corporation and the Holders
        were stockholders of a Delaware corporation;

                (iii) each meeting of the Holders shall be conducted by the
        Administrative Trustees or by such other Person that the Administrative
        Trustees may designate; and

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

                                  ARTICLE XIII
                       REPRESENTATIONS OF PROPERTY TRUSTEE
                              AND DELAWARE TRUSTEE

SECTION 13.1 Representations and Warranties of Property Trustee.

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

        (a) the Property Trustee is a Delaware banking corporation, a national
banking association or a bank or trust company, duly organized, validly existing
and in good standing under the laws of the United States or the State of
Delaware as the case may be, with corporate

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<PAGE>

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

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

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

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

SECTION 13.2 Representations and Warranties of Delaware Trustee.

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

        (a) the Delaware Trustee is a Delaware banking corporation, a national
banking association or a bank or trust company, duly organized, validly existing
and in good standing under the laws of the United States or the State of
Delaware, as the case may be, with corporate power and authority to execute and
deliver, and to carry out and perform its obligations under the terms of, this
Declaration;

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

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

                                       54
<PAGE>

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

        (e) the Delaware Trustee is a natural person who is a resident of the
State of Delaware or, if not a natural person, an entity which has its principal
place of business in the State of Delaware, and is a Person that satisfies for
the Trust Section 3807(a) of the Business Trust Act.

                                   ARTICLE XIV

                                 MISCELLANEOUS

SECTION 14.1 Notices.

        All notices provided for in this Declaration shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or
mailed by first class mail, overnight courier service or confirmed telecopy, as
follows:

        (a) if given to the Trust, in care of the Administrative Trustees at the
Trust's mailing address set forth below (or such other address as the Trust may
give notice of to the Property Trustee, the Delaware Trustee and the Holders):

                  Nara Bancorp Capital Trust I
                  c/o Nara Bancorp, Inc.
                  3701 Wilshire Boulevard, Suite 220
                  Los Angeles, California 90010
                  Telephone:  (213) 639-1700
                  Telecopier: (213) 225-3033

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

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

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

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<PAGE>

                  Wilmington Trust Company
                  Rodney Square North
                  1100 North Market Street
                  Wilmington, Delaware 19890-0001
                  Telephone:  (302) 651-1000
                  Telecopier: (302) 651-8882

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

                  Nara Bancorp, Inc.
                  3701 Wilshire Boulevard, Suite 220
                  Los Angeles, California 90010
                  Telephone:  (213) 639-1700
                  Telecopier: (213) 225-3033

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

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

SECTION 14.2 Governing Law.

        This Declaration and the rights of the parties hereunder shall be
governed by and construed in accordance with the laws of the State of Delaware
without regard to conflict of laws principles thereof.

SECTION 14.3 Intention of the Parties.

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

SECTION 14.4 Headings.

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

SECTION 14.5 Successors and Assigns.

        Whenever in this Declaration any of the parties hereto is named or
referred to, the successors and assigns of such party shall be deemed to be
included, and all covenants

                                       56
<PAGE>

and agreements in this Declaration by the Sponsor and the Trustees shall bind
and inure to the benefit of their respective successors and assigns, whether or
not so expressed.

SECTION 14.6 Partial Enforceability.

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

SECTION 14.7 Counterparts.

        This Declaration may contain more than one counterpart of the signature
page and this Declaration may be executed by the affixing of the signature of
each of the Trustees to one or more 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.

                                       57
<PAGE>

        IN WITNESS WHEREOF, the undersigned has caused these presents to be
executed as of the day and year first above written.

                                      /S/ BON T. GOO
                                      --------------------------------------
                                      Bon T. Goo
                                      Administrative Trustee

                                      /S/ TIMOTHY T. CHANG
                                      --------------------------------------
                                      Timothy T. Chang
                                      Administrative Trustee

                                      /S/ CHRISTINE Y. OH
                                      --------------------------------------
                                      Christine Y. Oh
                                      Administrative Trustee

                                      WILMINGTON TRUST COMPANY,
                                      as Delaware Trustee

                                      By: /S/  DONALD G. MACKELCAN
                                          ----------------------------------
                                          Name:  DONALD G. MACKELCAN
                                          Title: VICE PRESIDENT

                                      WILMINGTON TRUST COMPANY,
                                      as Property Trustee

                                      By: /S/ DONALD G. MACKELCAN
                                          ----------------------------------
                                      Name: DONALD G. MACKELCAN
                                      Title: VICE PRESIDENT

                                      NARA BANCORP, INC.,
                                      as Sponsor and Debenture Issuer

                                      By: /S/ BENJAMIN B. HONG
                                          ----------------------------------
                                          Benjamin B. Hong
                                          President and Chief Executive Officer

<PAGE>

                                     ANNEX I

                                    TERMS OF
                                10.18% MMCAPS(SM)
                            10.18% COMMON SECURITIES

           Pursuant to Section 7.1 of the Amended and Restated Declaration of
Trust of Nara Bancorp Capital Trust I dated as of March 28, 2001 (as amended
from time to time, the "Declaration"), the designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Securities are
set out below (each capitalized term used but not defined herein has the meaning
set forth in the Declaration or, if not defined in such Declaration, as defined
in the Indenture (as defined in the Declaration):

        1. Designation and Number.

        (a) Capital Securities. 10,000 MMCapS(SM) of the Trust (the "Capital
Securities") with an aggregate liquidation amount with respect to the assets of
the Trust of Ten Million Dollars ($10,000,000) and with a liquidation amount
with respect to the assets of the Trust of One Thousand Dollars ($1,000) (the
"Liquidation Amount") per security, are hereby designated for the purposes of
identification only as "10.18% Capital Securities." The certificates evidencing
the Capital Securities shall be substantially in the form of Exhibit A-1 to the
Declaration, with such changes and additions thereto or deletions therefrom as
may be required by ordinary usage, custom or practice or to conform to the rules
of any exchange or quotation system on or in which the Capital Securities are
listed, traded or quoted.

        (b) Common Securities. 400 Common Securities of the Trust with an
aggregate liquidation amount with respect to the assets of the Trust of Four
Hundred Thousand Dollars ($400,000) and a liquidation amount with respect to the
assets of the Trust of $1,000 per security, are hereby designated for the
purposes of identification only as "10.18% Common Securities" (the "Common
Securities"). The certificates evidencing the Common Securities shall be
substantially in the form of Exhibit A-2 to the Declaration, with such changes
and additions thereto or deletions therefrom as may be required by ordinary
usage, custom or practice.

        2. Distributions.

        (a) Distributions on each Security will be payable at a fixed rate per
annum of 10.18% (the "Coupon Rate") of the Liquidation Amount of $1,000 per
Security, such rate being the rate of interest payable on the Debentures to be
held by the Property Trustee. Distributions in arrears for more than one
semi-annual period will bear additional Distributions thereon compounded
semi-annually at the Coupon Rate (to the extent permitted by applicable law).
The term "Distributions" as used herein, includes distributions of any and all
such interest, if any, payable unless otherwise stated. A Distribution is
payable only to the extent that payments are made with respect to the Debentures
held by the Property Trustee and to the extent the Property Trustee has funds
legally available therefor.

        (b) Distributions on the Securities will be cumulative, will accumulate
from the most recent date to which Distributions have been paid or, if no
Distributions have been paid, from

                                   ANNEX I-1
<PAGE>

March 28, 2001 and will be payable semi-annually in arrears on June 8th and
December 8th of each year, commencing June 8, 2001 (each, a "Distribution
Date"), except as otherwise described below. Distributions will be computed on
the basis a 360-day year of twelve 30-day months. As long as no Event of Default
has occurred and is continuing under the Indenture, the Debenture Issuer has the
right under the Indenture to defer payments of interest by extending the
interest payment period at any time and from time to time on the Debentures for
a period not exceeding 10 consecutive semi-annual periods, including the first
such semi-annual period during such period (each an "Extension Period"), during
which Extension Period no interest shall be due and payable on the Debentures,
provided, that no Extension Period shall end on a date other than an Interest
Payment Date for the Debentures or extend beyond the Maturity Date of the
Debentures. As a consequence of such deferral, Distributions will also be
deferred. Notwithstanding such deferral, Distributions will continue to
accumulate with additional Distributions thereon (to the extent permitted by
applicable law but not at a rate greater than the rate at which interest is then
accruing on the Debentures) at the Coupon Rate compounded semi-annually during
any such Extension Period. Prior to the termination of any such Extension
Period, the Debenture Issuer may further defer payments of interest by further
extending such Extension Period, provided, that such extension does not cause
such Extension Period, together with all such previous and further extensions
within such Extension Period, to exceed 10 consecutive semi-annual periods,
including the first semi-annual period during such Extension Period, end on a
date other than an Interest Payment Date for the Debentures or extend beyond the
Maturity Date of the Debentures. Upon the termination of any Extension Period
and the payment of all amounts then due, the Debenture Issuer may commence a new
Extension Period, subject to the above requirements.

        (c) Distributions on the Securities will be payable to the Holders
thereof as they appear on the books and records of the Trust on the close of
business on the 15th day of the month immediately preceding the month in which
the relevant Distribution Date occurs, which Distribution Dates correspond to
the Interest Payment Dates for the Debentures. The relevant record dates for the
Common Securities shall be the same as the record dates for the Capital
Securities. Distributions payable on any Securities that are not punctually paid
on any Distribution Date, as a result of the Debenture Issuer having failed to
make a payment under the Debentures, will cease to be payable to the Holder on
the relevant record date, and such defaulted Distribution will instead be
payable to the Person in whose name such Securities are registered on the
special record date or other specified date determined in accordance with the
Indenture. If any date on which Distributions are payable on the Securities is
not a Business Day, then payment of the Distributions payable on such date will
be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay), except that if such
next succeeding Business Day falls in the next succeeding calendar year, such
payment shall be made on the immediately preceding Business Day with the same
force and effect as if made on such date.

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

        3. Liquidation Distribution Upon Dissolution.

                                   ANNEX I-2
<PAGE>

        In the event of any dissolution of the Trust, the Trust shall be
liquidated by the Administrative Trustees as expeditiously as the Administrative
Trustees determine to be possible by distributing to the Holders, after
satisfaction of liabilities to creditors of the Trust as provided by applicable
law, a Like Amount (as defined below) of the Debentures, unless such
distribution is determined by the Property Trustee not to be practicable, in
which event such Holders will be entitled to receive out of the assets of the
Trust legally available for distribution to Holders, after satisfaction of
liabilities to creditors of the Trust as provided by applicable law, an amount
equal to the aggregate of the Liquidation Amount of $1,000 per Security plus
accumulated and unpaid Distributions thereon to the date of payment (such amount
being the "Liquidation Distribution").

        "Like Amount" means (i) with respect to a redemption of the Securities,
Securities having a Liquidation Amount equal to the principal amount of
Debentures to be paid in accordance with their terms and (ii) with respect to a
distribution of Debentures upon the liquidation of the Trust, Debentures having
a principal amount equal to the Liquidation Amount of the Securities of the
Holder to whom such Debentures are distributed.

        If, upon any such liquidation, the Liquidation Distribution can be paid
only in part because the Trust has insufficient assets legally available to pay
in full the aggregate Liquidation Distribution, then the amounts payable
directly by the Trust with respect to the Securities shall be paid on a Pro Rata
basis.

        4. Redemption and Distribution.

        (a) Upon the repayment of the Debentures in whole or in part, at
maturity or otherwise (either at the option of the Debenture Issuer or pursuant
to a Special Event, as described below), the proceeds from such repayment shall
be simultaneously applied by the Property Trustee (subject to the Property
Trustee having received written notice no later than 45 days prior to such
repayment) to redeem a Like Amount of the Securities at a redemption price equal
to (i) in the case of the repayment of the Debentures on the Maturity Date, the
Maturity Redemption Price (as defined below), (ii) in the case of the optional
prepayment of the Debentures prior to the Initial Optional Redemption Date and
upon the occurrence and continuation of a Special Event, the Special Event
Redemption Price (as defined below) and (iii) in the case of the optional
prepayment of the Debentures on or after the Initial Optional Redemption Date,
the Optional Redemption Price (as defined below). The Maturity Redemption Price,
the Special Event Redemption Price and the Optional Redemption Price are
referred to collectively as the "Redemption Price." Holders will be given not
less than 30 nor more than 60 days prior written notice of such redemption.

        (b) (i) The "Maturity Redemption Price" shall mean an amount equal to
100% of the principal amount of the Debentures, plus any accrued and unpaid
interest thereon (including Compounded Interest and Additional Sums, if any) to
the Maturity Date thereof.

            (ii) The Debenture Issuer shall have the right (subject to the
conditions in the Indenture) to elect to prepay the Debentures, in whole or in
part, at any time on or after June 8, 2011 (the "Initial Optional Redemption
Date"), and, simultaneous with such prepayment, to cause a Like Amount of the
Securities to be redeemed by the Trust at the Optional Redemption Price on a Pro
Rata basis. "Optional Redemption Price" shall mean an amount equal to the

                                   ANNEX I-3
<PAGE>

applicable redemption price set forth below plus, accumulated and unpaid
Distributions thereon, if any, to the date of such redemption if redeemed during
the 12-month period beginning June 8, of the years indicated below:

<TABLE>
<CAPTION>
                                                                 Percentage of
                                                                  Liquidation
                    Year                                             Amount
                    ----                                         -------------
<S>                                                                <C>
                    2011                                           105.090%
                    2012                                           104.581%
                    2013                                           104.072%
                    2014                                           103.563%
                    2015                                           103.054%
                    2016                                           102.545%
                    2017                                           102.036%
                    2018                                           101.527%
                    2019                                           101.018%
                    2020                                           100.509%
            2021 and thereafter                                    100.000%
</TABLE>

        (c) If at any time an Investment Company Event, a Regulatory Capital
Event or a Tax Event (each as defined below, and each a "Special Event") occurs,
the Debenture Issuer shall have the right (subject to the conditions set forth
in the Indenture) at any time prior to the Initial Optional Redemption Date, to
prepay the Debentures in whole, but not in part, within the 90 days following
the occurrence of such Special Event (the "90 Day Period"), and, simultaneous
with such prepayment, to cause a Like Amount of the Securities to be redeemed by
the Trust at the Special Event Redemption Price on a Pro Rata basis.

           "Investment Company Event" shall mean the receipt by the Debenture
Issuer and the Trust of a written opinion of independent securities counsel
experienced in such matters to the effect that as a result of (a) any amendment
to, or change (including any announced prospective change) in, the laws or any
regulations thereunder of the United States or any rules, guidelines or policies
of any applicable regulatory authority for the Debenture Issuer or (b) any
official administrative pronouncement or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the date of original
issuance of the Securities, 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.

                                   ANNEX I-4
<PAGE>

        "Regulatory Capital Event" shall mean the receipt by the Debenture
Issuer and the Trust of a written opinion of independent bank regulatory counsel
experienced in such matters to the effect that as a result of (a) any amendment
to, or change (including any announced prospective change) in, the laws or any
regulations thereunder of the United States or any rules, guidelines or policies
of an applicable regulatory authority for the Debenture Issuer or (b) any
official administrative pronouncement or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the date of original
issuance of the Securities, the Capital Securities do not constitute, or within
90 days of the date of such opinion will not constitute, Tier 1 Capital (or its
then equivalent) if the Debenture Issuer is a bank holding company or if the
Debenture Issuer is a savings and loan holding company and is then subject to
similar capital adequacy requirements; provided, however, that the distribution
of the Debentures in connection with the liquidation of the Trust by the
Debenture Issuer shall not in and of itself constitute a Regulatory Capital
Event.

        "Special Event Redemption Price" shall mean, with respect to any
redemption of the Securities following a Special Event, an amount in cash equal
to (i) 106.09% of the principal amount of the Debentures, if the Special Event
occurs prior to June 8, 2011 and (ii) if the Special Event occurs on or after
June 8, 2011, the amount of the Optional Redemption Price (calculated as if the
Debenture Issuer had prepaid such Debentures on such date), plus, in the case of
(i) and (ii), any accrued and unpaid interest thereon (including Compounded
Interest and Additional Sums, if any) to the date of such redemption.

        A "Tax Event" shall occur upon receipt by the Debenture Issuer and the
Trust of a written opinion of independent tax counsel experienced in such
matters to the effect that, as a result of (a) any amendment to, or change
(including any announced prospective change) in, the laws or any regulations
thereunder of the United States or any political subdivision or taxing authority
thereof or therein, or (b) any official administrative pronouncement or judicial
decision interpreting or applying such laws or regulations, which amendment or
change is effective or which pronouncement or decision is announced on or after
the date of original issuance of the Securities, there is more than an
insubstantial risk that (i) the Trust is, or will be within 90 days of the date
of such opinion, subject to United States federal income tax with respect to
income received or accrued on the Debentures, (ii) the interest payable by the
Debenture Issuer on the Debentures is not, or within 90 days of the date of such
opinion will not be, deductible by the Debenture Issuer, in whole or in part,
for United States federal income tax purposes, or (iii) the Trust is, or will be
within 90 days of the date of such opinion, subject to more than a de minimis
amount of other taxes, duties or other governmental charges.

        (d) In the case of an optional redemption, if fewer than all the
outstanding Securities are to be so redeemed, the Common Securities and the
Capital Securities shall be redeemed Pro Rata and the Capital Securities to be
redeemed will be determined as described in Section 4(g)(ii) below. Upon the
entry of an order for the dissolution of the Trust by a court of competent
jurisdiction, the Debentures thereafter will be subject to optional redemption,
in whole, but not in part, on or after the Initial Optional Redemption Date.

        (e) On and from the date fixed by the Administrative Trustees for any
distribution of Debentures and liquidation of the Trust: (i) the Securities will
no longer be deemed to be

                                   ANNEX I-5
<PAGE>

outstanding and (ii) any certificates representing Securities will be deemed to
represent beneficial interests in a Like Amount of Debentures until such
certificates are presented to the Debenture Issuer or its agent for transfer or
reissue.

        (f) The Trust may not redeem fewer than all the outstanding Securities
unless all accumulated and unpaid Distributions have been paid on all Securities
for all semi-annual Distribution periods terminating on or before the date of
redemption.

        (g) The procedure with respect to redemptions or distributions of
Securities shall be as follows:

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

                (ii) In the event that fewer than all the outstanding Securities
        are to be redeemed, the particular Securities to be redeemed shall be
        selected on a Pro Rata basis (based upon Liquidation Amounts) not more
        than 60 nor less than 30 days prior to the date fixed for redemption
        from the outstanding Securities not previously called for redemption;
        provided, however, that with respect to Holders that would be required
        to hold less than 100 but more than zero Securities as a result of such
        redemption, the Trust shall redeem Securities of each such Holder so
        that after such redemption such Holder shall hold either 100 Securities
        or such Holder no longer holds any Securities, and shall use such method
        (including, without limitation, by lot) as the Trust shall deem fair and
        appropriate; provided further, that any such redemption may be made on
        the basis of the aggregate Liquidation Amount of Securities held by each
        Holder thereof and may be made by making such adjustments as the Trust
        deems fair and appropriate in order that fractional Securities shall not
        thereafter remain outstanding.

                (iii) If Securities are to be redeemed and the Trust gives a
        Redemption/Distribution Notice (which notice will be irrevocable),
        then, with respect to Definitive Capital Securities and Common
        Securities, provided that the Debenture Issuer has paid the Property
        Trustee a sufficient amount of cash in connection with the related
        redemption or maturity of the Debentures, the Property Trustee will
        irrevocably deposit with the paying agent for the Capital Securities (if
        other than the Property Trustee) funds sufficient to pay the applicable
        Redemption Price to the Holders by check mailed to the

                                   ANNEX I-6
<PAGE>

        address of the relevant Holder appearing on the books and records of the
        Trust on the redemption date, and provided further, that any such
        payment shall become due only upon surrender by the Holder of the
        related certificated Capital Securities. If a Redemption/Distribution
        Notice shall have been given and funds deposited as required, if
        applicable, then immediately prior to the close of business on the date
        of such deposit, or on the redemption date, as applicable, Distributions
        will cease to accumulate on the Securities so called for redemption and
        all rights of Holders so called for redemption will cease, except the
        right of the Holders of such Securities to receive the Redemption Price,
        but without interest on such Redemption Price, and such Securities shall
        cease to be outstanding.

                (iv) Payment of accumulated and unpaid Distributions on the
        Redemption Date of the Securities will be subject to the rights of
        Holders at the close of business on a regular record date in respect of
        a Distribution Date occurring on or prior to such Redemption Date.

           Neither the Administrative Trustees nor the Trust shall be required
to register or cause to be registered the transfer of (i) any Securities
beginning at the opening of business 15 days before the day of mailing of a
notice of redemption or any notice of selection of Securities for redemption or
(ii) any Securities selected for redemption, except the unredeemed portion of
any Security being redeemed. If any date fixed for redemption of Securities is
not a Business Day, then payment of the Redemption Price payable on such date
will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay). If payment of the
Redemption Price with respect to any Securities is improperly withheld or
refused and not paid either by the Property Trustee or by the Sponsor as
guarantor pursuant to the relevant Securities Guarantee, Distributions on such
Securities will continue to accumulate from the original redemption date to the
actual date of payment, in which case the actual payment date will be considered
the date fixed for redemption for purposes of calculating the Redemption Price.

                (v) Redemption/Distribution Notices shall be sent by the
        Property Trustee on behalf of the Trust to the Holders of the
        Securities.

                (vi) Subject to the foregoing and applicable law (including,
        without limitation, United States federal securities laws and banking
        laws), the Sponsor or any of its subsidiaries may at any time and from
        time to time purchase outstanding Capital Securities by tender, in the
        open market or by private agreement.

        5. Voting Rights - Capital Securities.

        (a) Except as provided under Sections 5(b), 6(b) and 7 and as otherwise
required by law and the Declaration, the Holders of the Capital Securities will
have no voting rights.

        (b) So long as any Debentures are held by the Property Trustee, the
Trustees shall not (i) direct the time, method and place of conducting any
proceeding for any remedy available to the Debenture Trustee or executing any
trust or power conferred on such Debenture Trustee with respect to the
Debentures, (ii) waive any past default that is waivable under Section 5.07 of
the

                                   ANNEX I-7
<PAGE>

Indenture, (iii) exercise any right to rescind or annul a declaration of
acceleration of the maturity of the principal of the Debentures or (iv) consent
to any amendment, modification or termination of the Indenture or the
Debentures, where such consent shall be required, without, in each case,
obtaining the prior approval of the Holders of a Majority in Liquidation Amount
of all outstanding capital securities; provided, however, that where a consent
under the Indenture would require the consent of each holder of Debentures
affected thereby, no such consent shall be given by the Property Trustee without
the prior approval of each Holder of the Capital Securities. The Trustees shall
not revoke any action previously authorized or approved by a vote of the Holders
of the Capital Securities except by subsequent vote of such Holders. The
Property Trustee shall notify each Holder of Capital Securities of any notice of
default with respect to the Debentures. In addition to obtaining the foregoing
approvals of such Holders of the Capital Securities, prior to taking any of the
foregoing actions, the Trustees shall obtain an opinion of counsel experienced
in such matters to the effect that the Trust will continue to be classified as a
grantor trust for United States federal income tax purposes after taking any
such action into account.

        If an Event of Default under the Declaration has occurred and is
continuing and such event is attributable to the failure of the Debenture Issuer
to pay principal of or premium, if any, or interest on the Debentures on the due
date (or, in the case of redemption, on the redemption date), then a Holder of
Capital Securities may institute a proceeding directly against the Debenture
Issuer for enforcement of payment to such Holder of the principal of or premium,
if any, or interest on a Like Amount of Debentures (a "Direct Action") on or
after the respective due date specified in the Debentures. In connection with
such Direct Action, the Common Securities Holder will be subrogated to the
rights of such Holder of Capital Securities to the extent of any payment made by
the Debenture Issuer to such Holder of Capital Securities in such Direct Action.
Except as provided in the second preceding sentence, or except as set forth in
the first sentence of Section 3.8(e) of the Declaration, the Holders of Capital
Securities will not be able to exercise directly any other remedy available to
the holders of the Debentures.

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

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

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

                                   ANNEX I-8
<PAGE>

        6. Voting Rights - Common Securities.

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

        (b) Unless a Debenture Event of Default shall have occurred and be
continuing, any Trustee may be removed at any time by the Holder of the Common
Securities. If a Debenture Event of Default has occurred and is continuing, the
Property Trustee and the Delaware Trustee may be removed at such time by the
Holders of a Majority in Liquidation Amount of the outstanding Capital
Securities. In no event will the Holders of the Capital Securities have the
right to vote to appoint, remove or replace the Administrative Trustees, which
voting rights are vested exclusively in the Sponsor as the Holder of the Common
Securities. No resignation or removal of a Trustee and no appointment of a
successor trustee shall be effective until the acceptance of appointment by the
successor trustee in accordance with the provisions of the Declaration.

        (c) So long as any Debentures are held by the Property Trustee, the
Trustees shall not (i) direct the time, method and place of conducting any
proceeding for any remedy available to the Debenture Trustee, or executing any
trust or power conferred on such Debenture Trustee with respect to the
Debentures, (ii) waive any past default that is waivable under Section 5.07 of
the Indenture, (iii) exercise any right to rescind or annul a declaration of
acceleration of the maturity of the principal of the Debentures or (iv) consent
to any amendment, modification or termination of the Indenture or the
Debentures, where such consent shall be required, without, in each case,
obtaining the prior approval of the Holders of a Majority in Liquidation Amount
of all outstanding Common Securities; provided, however, that where a consent
under the Indenture would require the consent of each holder of Debentures
affected thereby, no such consent shall be given by the Property Trustee without
the prior approval of each Holder of the Common Securities. The Trustees shall
not revoke any action previously authorized or approved by a vote of the Holders
of the Common Securities except by subsequent vote of such Holders. The Property
Trustee shall notify each Holder of Common Securities of any notice of default
with respect to the Debentures. In addition to obtaining the foregoing approvals
of such Holders of the Common Securities, prior to taking any of the foregoing
actions, the Trustees shall obtain an opinion of counsel experienced in such
matters to the effect that the Trust will continue to be classified as a grantor
trust for United States federal income tax purposes after taking any such action
into account.

        If an Event of Default under the Declaration has occurred and is
continuing and such event is attributable to the failure of the Debenture Issuer
to pay principal of or premium, if any, or interest on the Debentures on the due
date (or in the case of redemption, on the redemption date), then a Holder of
Common Securities may institute a Direct Action directly against the Debenture
Issuer for enforcement of payment to such Holder of the principal of or premium,
if any, or interest on a Like Amount of Debentures on or after the respective
due date specified in the Debentures. In connection with such Direct Action, the
rights of the Common Securities Holder will be subordinated to the rights of
Holders of Capital Securities in respect of any payment from the Debenture
Issuer in such Direct Action. Except as provided in the second preceding
sentence, the Holders of Common Securities will not be able to exercise directly
any other remedy available to the holders of the Debentures.

                                   ANNEX I-9
<PAGE>

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

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

        7. Amendments to Declaration.

        In addition to the requirements set out in Section 12.1 of the
Declaration, the Declaration may be amended from time to time by the Sponsor,
the Property Trustee and the Administrative Trustees without the consent of the
Holders to (i) cure any ambiguity, correct or supplement any provisions in the
Declaration that may be inconsistent with any other provisions, or make any
other provisions with respect to matters or questions arising under the
Declaration which shall not be inconsistent with the other provisions of the
Declaration or (ii) modify, eliminate or add to any provisions of the
Declaration to such extent as shall be necessary to ensure that the Trust will
be classified for United States federal income tax purposes as a grantor trust
at all times that any Securities are outstanding or to ensure that the Trust
will not be required to register as an Investment Company under the Investment
Company Act; provided, however, that in each case, such action shall not
adversely affect in any material respect the interests of any Holder, and any
such amendments of the Declaration shall become effective when notice thereof is
given to the Holders. The Declaration may also be amended by the Trustees and
the Sponsor with (i) the consent of Holders representing a Majority in
Liquidation Amount of all outstanding Securities, and (ii) receipt by the
Trustees of an Opinion of Counsel to the effect that such amendment or the
exercise of any power granted to the Trustees in accordance with such amendment
will not affect the Trust's status as a grantor trust for United States federal
income tax purposes or the Trust's exemption from status as an Investment
Company under the Investment Company Act; provided, however, that, without the
consent of each Holder of Securities, the Declaration may not be amended to (i)
change the amount or timing of any Distribution on, or the payment required to
be made in respect of, the Securities as of a specified date, increase the
number or aggregate Liquidation Amount of the Securities or change of any of the
redemption provisions or (ii) restrict the right of a Holder of Securities to
institute suit for the enforcement of any such payment on or after such date.

                                   ANNEX I-10
<PAGE>

        8. Pro Rata

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

        9. Ranking.

           The Capital Securities rank pari passu with the Common Securities and
payment thereon shall be made Pro Rata with the Common Securities, except that,
if an Event of Default under the Declaration occurs and is continuing, no
payments in respect of Distributions on, or payments upon liquidation,
redemption or otherwise with respect to, the Common Securities shall be made
until the Holders of the Capital Securities shall be paid in full the
Distributions, Redemption Price, Liquidation Distribution and any other payments
to which they are entitled at such time.

        10. Acceptance of Capital Securities Guarantee,. Common Securities
            Guarantee Indenture and Debentures.

            Each Holder of Capital Securities and Common Securities, by the
acceptance thereof, agrees to the provisions of the Capital Securities
Guarantee, the Common Securities Guarantee, the Indenture and the Debentures, as
applicable, including the subordination provisions therein.

        11. No Preemptive Rights.

            Neither the issuance of Capital Securities, nor the issuance of
Common Securities is subject to preemptive or other similar rights. The Holders
shall have no preemptive or similar rights to subscribe for any additional
securities.

        12. Miscellaneous.

            These terms constitute a part of the Declaration

            The Sponsor will provide a copy of the Declaration, the Capital
Securities Guarantee or the Common Securities Guarantee, as applicable, and the
Indenture (including any supplemental indenture) to a Holder without charge upon
written request to the Trust at its principal place of business.

                                   ANNEX I-11
<PAGE>

                                   EXHIBIT A-1

                      FORM OF CAPITAL SECURITY CERTIFICATE

                            [FORM OF FACE OF SECURITY

        THIS CAPITAL SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY
OTHER APPLICABLE SECURITIES LAW. NEITHER THIS CAPITAL SECURITY NOR ANY INTEREST
OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

        THE HOLDER OF THIS CAPITAL SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER THIS CAPITAL SECURITY, PRIOR TO THE DATE (THE
"RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUANCE DATE HEREOF AND THE LAST DATE ON WHICH NARA BANCORP, INC. (THE
"CORPORATION") OR ANY "AFFILIATE" OF THE CORPORATION WAS THE OWNER OF THIS
CAPITAL SECURITY (OR ANY PREDECESSOR OF THIS CAPITAL SECURITY) ONLY (A) TO THE
CORPORATION, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) SO LONG AS THIS CAPITAL SECURITY IS
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE
144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"
(AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) TO AN INSTITUTIONAL "ACCREDITED
INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (a)(1), (2), (3), (7) OR (8) OF
RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS CAPITAL SECURITY FOR
ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED
INVESTOR, FOR INVESTMENT PURPOSES PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT 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 ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
UNDER THE SECURITIES ACT, SUBJECT TO THE RIGHT OF NARA BANCORP CAPITAL TRUST I
(THE "TRUST") AND THE CORPORATION PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i)
PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii)
PURSUANT TO CLAUSE (D) TO REQUIRE THAT THE TRANSFEROR DELIVER TO THE TRUST A
LETTER FROM THE TRANSFEREE SUBSTANTIALLY IN THE FORM OF ANNEX II TO THE
DECLARATION. SUCH HOLDER FURTHER AGREES THAT IT WILL DELIVER TO EACH PERSON TO

                                 Exhibit A-1-1
<PAGE>

WHOM THIS CAPITAL SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND.

        THE HOLDER OF THIS CAPITAL 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 THE CAPITAL SECURITIES 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 CAPITAL SECURITIES 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 THE CAPITAL SECURITIES 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 all circumstances, each Capital Security Certificate shall bear the following
legend:

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

                                 Exhibit A-1-2
<PAGE>

Certificate Number:                               Aggregate Liquidation Amount:
                   -----------------              $
                                                   -------------------------

                    Certificate Evidencing Capital Securities

                                       of

                          Nara Bancorp Capital Trust I

                                10.18% MMCapS(SM)
                (liquidation amount $1,000 per Capital Security)

        Nara Bancorp Capital Trust I a statutory business trust created under
the laws of the State of Delaware (the "Trust"), hereby certifies that
_____________________________________________ (the "Holder") is the
registered owner of $ __________________ in aggregate liquidation amount of the
Capital Securities of the Trust representing undivided preferred beneficial
interests in the assets of the Trust designated the 10.18% MMCapS(SM)
(liquidation amount $1,000 per Capital Security) (the "Capital Securities"). The
Capital Securities are transferable on the books and records of the Trust, in
person or by a duly authorized attorney, upon surrender of this certificate duly
endorsed and in proper form for transfer. The designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Capital
Securities represented hereby are issued and shall in all respects be subject to
the provisions of the Amended and Restated Declaration of Trust, dated as of
March 28, 2001, as the same may be amended from time to time (the
"Declaration"), including the designation of the terms of the Capital Securities
as set forth in Annex I to the Declaration. Capitalized terms used but not
defined herein shall have the meaning given them in the Declaration. The Sponsor
will provide a copy of the Declaration, the Capital Securities Guarantee and the
Indenture (including any supplemental indenture) to a Holder without charge upon
written request to the Trust at its principal place of business.

        Upon receipt of this Certificate, the Holder is bound by the Declaration
and is entitled to the benefits thereunder and to the benefits of the Capital
Securities Guarantee to the extent provided therein.

        By acceptance hereof, the Holder agrees, for United States federal
income tax purposes, to treat the Debentures as indebtedness and the Capital
Securities as evidence of indirect beneficial ownership in the Debentures.

                                Exhibit A-1-3
<PAGE>

        IN WITNESS WHEREOF, the Trust has executed this certificate
this ______th day of March 28, 2001.

                                          NARA BANCORP CAPITAL TRUST I

                                          By:
                                              ---------------------------------
                                              Administrative Trustee

PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the 10.18% MMCapS(SM) of Nara Bancorp Capital Trust I
referred to in the within-mentioned Declaration.

Dated: _______________ , ______

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

                                             By:
                                                 ------------------------------
                                                 Authorized Signatory

                                 Exhibit A-1-4
<PAGE>
                          [FORM OF REVERSE OF SECURITY

        Distributions on each Capital Security will be payable at a fixed rate
per annum of 10.18% (the "Coupon Rate") of the liquidation amount of $1,000 per
Capital Security, such rate being the rate of interest payable on the Debentures
to be held by the Property Trustee. Distributions in arrears for more than one
semi-annual period will bear interest thereon compounded semi-annually at the
Coupon Rate (to the extent permitted by applicable law). The term
"Distribution," as used herein, includes such cash distributions and any and all
such interest, if any, payable unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debentures
held by the Property Trustee and to the extent the Property Trustee has funds
legally available therefor.

        Distributions on the Capital Securities will be cumulative, will
accumulate from the most recent date to which Distributions have been paid or,
if no Distributions have been paid, from March 28, 2001 and will be payable
semi-annually in arrears on June 8th and December 8th of each year, commencing
June 8, 2001 (each, a "Distribution Date"), except as otherwise described below.
Distributions will be computed on the basis of a 360-day year of twelve 30-day
months. As long as no Event of Default has occurred and is continuing under the
Indenture, the Debenture Issuer has the right under the Indenture to defer
payments of interest by extending the interest payment period at any time and
from time to time on the Debentures for a period not exceeding 10 consecutive
semi-annual calendar periods, including the first such semi-annual period during
such extension period (each an "Extension Period"), provided, that no Extension
Period shall end on a date other than an Interest Payment Date for the
Debentures or extend beyond the Maturity Date of the Debentures. As a
consequence of such deferral, Distributions will also be deferred.
Notwithstanding such deferral, semi-annual Distributions will continue to
accumulate with interest thereon (to the extent permitted by applicable law, but
not at a rate exceeding the rate of interest then accruing on the Debentures) at
the Coupon Rate compounded semi-annually during any such Extension Period. Prior
to the termination of any Extension Period, the Debenture Issuer may further
defer payments of interest by further extending such Extension Period; provided,
that such Extension Period, together with all such previous and further
extensions within such Extension Period, may not (i) exceed 10 consecutive
semi-annual periods, including the first semi-annual period during such
Extension Period, (ii) end on a date other than an Interest Payment Date for the
Debentures or (iii) extend beyond the Maturity Date of the Debentures. Payments
of accumulated Distributions will be payable to Holders as they appear on the
books and records of the Trust on the record date immediately preceding the end
of the Extension Period. Upon the termination of any Extension Period and the
payment of all amounts then due, the Debenture Issuer may commence a new
Extension Period, subject to the above requirements.

                                 Exhibit A-1-5

<PAGE>

        Subject to receipt by the Sponsor of any and all required regulatory
approvals and to certain other conditions set forth in the Declaration and the
Indenture, the Property Trustee may, at the direction of the Sponsor, at any
time dissolve the Trust and after satisfaction of liabilities to creditors of
the Trust as provided by applicable law, cause the Debentures to be distributed
to the Holders of the Securities in liquidation of the Trust or, simultaneously
with any redemption of the Debentures, cause a Like Amount of the Securities to
be redeemed by the Trust.

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

                                 Exhibit A-1-6

<PAGE>

        The following abbreviations, when used in the inscription on the face of
this Certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

        TEN CON - as tenants in common

        TEN ENT - as tenants in the entireties

        JT TEN - as joint tenants with right of survival

        UNIF GIFT MIN ACT - under Uniform Gift to Minors Act and not as tenants

        Additional abbreviations may also be used though not in the above list.

                                   ----------

                                   ASSIGNMENT

                                   ----------

FOR VALUE RECEIVED, the undersigned hereby assigns and transfers this Capital
Security Certificate to:

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

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

--------------------------------------------------------------------------------
            (Assignee's social security or tax identification number)

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

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

--------------------------------------------------------------------------------
                       (Address and zip code of assignee)

and irrevocably appoints

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

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

-------------------------------------------------------------------------- agent
to transfer this Capital Security Certificate on the books of the Trust. The
agent may substitute another to act for him or her.

Date:
      ----------------------

Signature:
           -----------------------------------------------------------

                                  Exhibit A-l-7

<PAGE>

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

Signature Guarantee:_________________________________________________________

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

                                  Exhibit A-1-8

<PAGE>

             [INCLUDE THE FOLLOWING IF THE CAPITAL SECURITY BEARS A
                          RESTRICTED SECURITIES LEGEND]

In connection with any transfer of any of the Capital Securities evidenced by
this Certificate, the undersigned confirms that such Capital Securities are
being:

CHECK ONE BOX BELOW

        (1)     exchanged for the undersigned's own account without transfer; or

        (2)     transferred pursuant to and in compliance with Rule 144A under
                the Securities Act of 1933, as amended; or

        (3)     transferred to an institutional "accredited investor" within the
                meaning of subparagraph (a)(1), (2), (3), (7) or (8) of Rule 501
                under the Securities Act of 1933 that is acquiring the Capital
                Securities for its own account, or for the account of such an
                institutional "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 of
                1933, as amended; or

        (4)     transferred pursuant to another available exemption from the
                registration requirements of the Securities Act of 1933, as
                amended; or

        (5)     transferred pursuant to an effective registration statement.

Unless one of the boxes is checked, the Registrar will refuse to register any of
the Capital Securities evidenced by this Certificate in the name of any Person
other than the Holder hereof; provided, however, that if box (3) or (4) is
checked, the Registrar may require, prior to registering any such transfer of
the Capital Securities, such legal opinions, certifications and other
information as the Trust has reasonably requested to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act of 1933, as amended, such as
the exemption provided by Rule 144 under such Act; provided further, that (i) if
box (2) is checked, by acceptance of this Certificate, the transferee shall be
deemed to have certified that it is a "qualified institutional buyer" (as
defined in Rule 144A) ("QIB") acquiring the Capital Securities for its own
account or for the account of another QIB over which it exercises sole
investment discretion and that it is aware that the Holder is relying upon the
exemption from registration afforded by Rule 144A in respect of the Holder's
transfer of Capital Securities to it or (ii) if box (3) is checked, the
transferee must also provide to the Registrar a Transferee Letter of
Representation in the form attached to the Declaration, provided further, that
after the date that a registration statement has been filed and so long as such
registration statement continues to be effective, only then may the Registrar
permit transfers for which box (5) has been checked.

                                        ----------------------------------------
                                                       Signature

                                  Exhibit A-1-9

<PAGE>

                                   EXHIBIT A-2

                       FORM OF COMMON SECURITY CERTIFICATE

        THIS COMMON 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 LAW. NEITHER THIS COMMON 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, REGISTRATION.

                                  Exhibit A-2-1

<PAGE>

This Certificate is not transferable except in compliance with Section 9.1(c)
of the Declaration.

                    Certificate Evidencing Common Securities

                                       of

                          Nara Bancorp Capital Trust I

                            10.18% Common Securities

                 (liquidation amount $1,000 per Common Security)

                Nara Bancorp Capital Trust I a statutory business trust created
under the laws of the State of Delaware (the "Trust"), hereby certifies that
Nara Bancorp, Inc. (the "Holder") is the registered owner of __________
common securities of the Trust representing undivided beneficial interests in
the assets of the Trust designated the 10.18% Common Securities (liquidation
amount $1,000 per Common Security) (the "Common Securities"). Subject to the
terms of Section 9.1(c) of the Declaration (as defined below), the Common
Securities are not transferable. The designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Common
Securities represented hereby are issued and shall in all respects be subject
to the provisions of the Amended and Restated Declaration of the Trust dated as
of March 28, 2001 as the same may be amended from time to time (the
"Declaration"), including the designation of the terms of the Common Securities
as set forth in Annex I to the Declaration. Capitalized terms used but not
defined herein shall have the meaning given them in the Declaration. The
Sponsor will provide a copy of the Declaration, the Common Securities Guarantee
and the Indenture (including any supplemental indenture) to a Holder without
charge upon written request to the Trust at its principal place of business.

                Upon receipt of this Certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder and to the benefits of
the Common Securities Guarantee to the extent provided therein.

                By acceptance hereof, the Holder agrees to treat, for United
States federal income tax purposes, the Debentures as indebtedness and the
Common Securities as evidence of indirect beneficial ownership in the
Debentures.

                IN WITNESS WHEREOF, the Trust has executed this certificate this
__th day of March, 2001.

                                        NARA BANCORP CAPITAL TRUST I

                                        By:
                                            ------------------------------------
                                            Administrative Trustee

                                  Exhibit A-2-2

<PAGE>

                          [FORM OF REVERSE OF SECURITY]

        Distributions on each Common Security will be payable at a rate of
10.18% per annum (the "Coupon Rate") of the liquidation amount of $1000 per
Common Security, such rate being the rate of interest payable on the Debentures
to be held by the Property Trustee. Distributions in arrears for more than one
semi-annual period will bear interest thereon compounded semi-annually at the
Coupon Rate (to the extent permitted by applicable law). The term
"Distributions," as used herein, includes such cash distributions and any and
all such interest, if any, payable unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debentures
held by the Property Trustee and to the extent the Property Trustee has funds
legally available therefor.

        Distributions on the Common Securities will be cumulative, will accrue
from the most recent date to which Distributions have been paid or, if no
Distributions have been paid, from March 28, 2001 and will be payable
semi-annually in arrears on June 8th and December 8th of each year, commencing
June 8, 2001 (each, a "Distribution Date"), except as otherwise described below.
Distributions will be computed on the basis of a 360-day year of twelve 30-day
months. As long as no Event of Default has occurred and is continuing under the
Indenture, the Debenture Issuer has the right under the Indenture to defer
payments of interest by extending the interest payment period at any time and
from time to time on the Debentures for a period not exceeding 10 consecutive
calendar semi-annual periods, including the first such semi-annual period during
such extension period (each an "Extension Period"), provided, that no Extension
Period shall end on a date other than an Interest Payment Date for the
Debentures or extend beyond the Maturity Date of the Debentures. As a
consequence of such deferral, Distributions will also be deferred.
Notwithstanding such deferral, semi-annual Distributions will continue to
accumulate with interest thereon (to the extent permitted by applicable law, but
not at a rate exceeding the rate of interest then accruing on the Debentures) at
the Coupon Rate compounded semi-annually during any such Extension Period. Prior
to the termination of any Extension Period, the Debenture Issuer may further
defer payments of interest by further extending such Extension Period; provided,
that such Extension Period, together with all such previous and further
extensions within such Extension Period, may not (i) exceed 10 consecutive
semi-annual periods, including the first semi-annual period during such
Extension Period, (ii) end on a date other than an Interest Payment Date for the
Debentures or (iii) extend beyond the Maturity Date of the Debentures. Payments
of accrued Distributions will be payable to Holders as they appear on the books
and records of the Trust on the record date immediately preceding the end of the
Extension Period. Upon the termination of any Extension Period and the payment
of all amounts then due, the Debenture Issuer may commence a new Extension
Period, subject to the above requirements.

        Subject to the receipt by the Sponsor of any and all required regulatory
approvals and to certain other conditions set forth in the Declaration and the
Indenture, the Property Trustee may, at the direction of the Sponsor, at any
time dissolve the Trust and cause the Debentures to be distributed to the
Holders of the Securities in liquidation of the Trust or, simultaneously with
any redemption of the Debentures, cause a Like Amount of the Securities to be
redeemed by the Trust.

        The Common Securities shall be redeemable as provided in the
Declaration.

                                  Exhibit A-2-3

<PAGE>

        Under certain circumstances, the rights of the holders of the Common
Securities shall be subordinate to the rights of the holders of the Capital
Securities, as provided in the Declaration.

                                  Exhibit A-2-4
<PAGE>

                                                                        ANNEX 11

                      TRANSFEREE LETTER OF REPRESENTATION

Nara Bancorp Capital Trust I
c/o Nara Bancorp, Inc.
3701 Wilshire Boulevard, Suite 220
Los Angeles, California 90010

Ladies and Gentlemen:

        In connection with the proposed transfer to us of 10.18% MMCapS(SM) (the
"capital securities") of Nara Bancorp Capital Trust I (the "Trust"), we confirm
that:

        1.      We understand that the capital securities have not been
registered under the Securities Act of 1933, as amended (the "Securities Act"),
or other applicable securities laws, and may not be offered, sold or otherwise
transferred except as permitted in the following sentence. We agree on our
behalf and on behalf of any investor account for which we are purchasing capital
securities to offer, sell or otherwise transfer such capital securities prior to
the date which is two years after the later of the date of original issue
thereof and the last date on which Nara Bancorp, Inc. (the "Corporation") or any
"affiliate" of the Corporation was the owner of such capital securities (or any
predecessor thereto) (the "Resale Restriction Termination Date") only (a) to the
Corporation, (b) pursuant to a registration statement which has been declared
effective under the Securities Act, (c) so long as the capital securities are
eligible for resale pursuant to Rule 144A under the Securities Act, to a person
we reasonably believe is a "qualified institutional buyer" (a "QIB") as defined
in Rule 144A under the Securities Act that purchases for its own account or for
the account of a QIB to whom notice is given that the transfer is being made in
reliance on Rule 144A, (d) to an institutional "accredited investor" (an
"Institutional Accredited Investor") within the meaning of subparagraph (a)(1),
(2), (7) or (8) of Rule 501 under the Securities Act that is acquiring the
capital securities for its own account or for the account of such an
Institutional Accredited Investor for investment purposes and not with a view
to, or for offer and sale in connection with, any distribution in violation of
the Securities Act or (e) pursuant to any other available exemption from the
registration requirements under the Securities Act, subject to the right of the
Trust and the Corporation prior to any such offer, sale or transfer (i) pursuant
to clause (d) or (e) above to require the delivery of an opinion of counsel,
certifications and/or other information satisfactory to each of them and (ii)
pursuant to clause (d) above to require that the transferor deliver to the Trust
a letter from the transferee substantially similar to this letter.

        2.      We are an Institutional Accredited Investor purchasing for our
own account or for the account of such an Institutional 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 any other
applicable securities laws and we have such knowledge and experience in
financial

                                   Annex II-1
<PAGE>

and business matters as to be capable of evaluating the merits and risks of our
investment in the capital securities, and we and any accounts for which we are
acting are each able to bear the economic risk of our or its investment for an
indefinite period.

        3.      We are acquiring the capital securities purchased by us for our
own account or for one or more accounts as to each of which we exercise sole
investment discretion.

        4.      You and the Corporation are entitled to rely upon this letter
and you are irrevocably authorized to produce this letter or a copy hereof to
any interested party in any administrative or legal proceeding or official
inquiry with respect to the matters covered hereby.

        5.      We are (1) not an employee benefit plan within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), or a plan to which Section 4975 of the Internal Revenue Code of 1986
("Code") is applicable, a trustee or other person acting on behalf of such
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 (2) 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. We make this representation to the trustees of the
Trust, Nara Bancorp, Inc. and MMCapS(SM) Funding I, Ltd.

        THIS LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

Very truly yours,

----------------------------------------
Name of Purchaser:
By:
Date:

        The capital securities will be registered in the name of the beneficial
owner as follows:

Name:
Address:

Taxpayer ID Number:

                                   Annex II-2<PAGE>
                                                                     EXHIBIT 4.6

================================================================================

                               NARA BANCORP, INC.

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

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

                                    INDENTURE

                           Dated as of March 28, 2001

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

                            WILMINGTON TRUST COMPANY,

                              as Debenture Trustee

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

               JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                            Page
                                                                                            ----
<S>                                                                                         <C>
ARTICLE I DEFINITIONS ......................................................................  1

        SECTION 1.01   Definitions .........................................................  1
        SECTION 1.02   Business Day Certificate ............................................  9

ARTICLE II SECURITIES ......................................................................  9

        SECTION 2.01   Forms Generally .....................................................  9
        SECTION 2.02   Execution and Authentication.........................................  9
        SECTION 2.03   Form and Payment .................................................... 10
        SECTION 2.04   Legends ............................................................. 10
        SECTION 2.05   Interest............................................................. 10
        SECTION 2.06   Transfer and Exchange................................................ 11
        SECTION 2.07   Replacement Securities .............................................. 12
        SECTION 2.08   Temporary Securities ................................................ 12
        SECTION 2.09   Cancellation ........................................................ 13
        SECTION 2.10   Defaulted Interest .................................................. 13
        SECTION 2.11   CUSIP Numbers ....................................................... 14

ARTICLE III PARTICULAR COVENANTS OF THE CORPORATION ........................................ 14

        SECTION 3.01   Payment of Principal and Interest ................................... 14
        SECTION 3.02   Offices for Notices and Payments, etc. .............................. 14
        SECTION 3.03   Appointments to Fill Vacancies in Debenture Trustee's Office ........ 15
        SECTION 3.04   Provision as to Paying Agent ........................................ 15
        SECTION 3.05   Certificate to Debenture Trustee .................................... 16
        SECTION 3.06   Compliance with Consolidation Provisions ............................ 16
        SECTION 3.07   Limitation on Dividends ............................................. 16
        SECTION 3.08   Covenants as to the Trust ........................................... 17
        SECTION 3.09   Payment of Expenses ................................................. 17
        SECTION 3.10   Payment Upon Resignation or Removal ................................. 18

ARTICLE IV LIST OF SECURITYHOLDERS AND REPORTS BY THE CORPORATION
        AND THE DEBENTURE TRUSTEE .......................................................... 18

        SECTION 4.01 List of Securityholders ............................................... 18
        SECTION 4.02 Preservation and Disclosure of Lists .................................. 18
        SECTION 4.03 Reports by the Corporation ............................................ 20
        SECTION 4.04 Reports by the Debenture Trustee ...................................... 21

ARTICLE V REMEDIES OF THE DEBENTURE TRUSTEE AND SECURITYHOLDERS UPON EVENT OF DEFAULT....... 21
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                         <C>
        SECTION 5.01   Events of Default ................................................... 21
        SECTION 5.02   Payment of Securities on Default; Suit Therefor ..................... 23
        SECTION 5.03   Application of Moneys Collected by Debenture Trustee ................ 24
        SECTION 5.04   Proceedings by Securityholders ...................................... 25
        SECTION 5.05   Proceedings by Debenture Trustee .................................... 26
        SECTION 5.06   Remedies Cumulative and Continuing .................................. 26
        SECTION 5.07   Direction of Proceedings and Waiver of Defaults by Majority
                       of Securityholders .................................................. 26
        SECTION 5.08   Notice of Defaults .................................................. 27
        SECTION 5.09   Undertaking to Pay Costs ............................................ 28

ARTICLE VI CONCERNING THE DEBENTURE TRUSTEE................................................. 28

        SECTION 6.01   Duties and Responsibilities of Debenture Trustee .................... 28
        SECTION 6.02   Reliance on Documents, Opinions, etc. ............................... 29
        SECTION 6.03   No Responsibility for Recitals, etc. ................................ 31
        SECTION 6.04   Debenture Trustee, Authenticating Agent, Paying Agents,
                       Transfer Agents and Registrar May Own Securities .................... 31
        SECTION 6.05   Moneys to be Held in Trust........................................... 31
        SECTION 6.06   Compensation and Expenses of Debenture Trustee ...................... 31
        SECTION 6.07   Officers' Certificate as Evidence ................................... 32
        SECTION 6.08   Conflicting Interest of Debenture Trustee ........................... 32
        SECTION 6.09   Eligibility of Debenture Trustee..................................... 33
        SECTION 6.10   Resignation or Removal of Debenture Trustee ......................... 33
        SECTION 6.11   Acceptance by Successor Debenture Trustee ........................... 34
        SECTION 6.12   Succession by Merger, etc. .......................................... 35
        SECTION 6.13   Limitation on Rights of Debenture Trustee as a Creditor ............. 35
        SECTION 6.14   Authenticating Agents................................................ 35

ARTICLE VII CONCERNING THE SECURITYHOLDERS.................................................. 37

        SECTION 7.01   Action by Securityholders ........................................... 37
        SECTION 7.02   Proof of Execution by Securityholders ............................... 37
        SECTION 7.03   Who Are Deemed Absolute Owners ...................................... 38
        SECTION 7.04   Securities Owned by Corporation Deemed Not Outstanding .............. 38
        SECTION 7.05   Revocation of Consents; Future Holders Bound ........................ 38

ARTICLE VIII MEETINGS OF SECURITYHOLDERS.................................................... 39

        SECTION 8.01   Purposes of Meetings ................................................ 39
        SECTION 8.02   Call of Meetings by Debenture Trustee ............................... 39
        SECTION 8.03   Call of Meetings by Corporation or Securityholders .................. 39
        SECTION 8.04   Qualifications for Voting ........................................... 40
        SECTION 8.05   Regulations.......................................................... 40
        SECTION 8.06   Voting............................................................... 40

ARTICLE IX AMENDMENTS....................................................................... 41
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                         <C>
        SECTION 9.01   Without Consent of Securityholders .................................. 41
        SECTION 9.02   With Consent of Securityholders ..................................... 42
        SECTION 9.03   Compliance with Trust Indenture Act; Effect of Supplemental
                       Indentures .......................................................... 43
        SECTION 9.04   Notation on Securities .............................................. 43
        SECTION 9.05   Evidence of Compliance of Supplemental Indenture to be
                       Furnished to Debenture Trustee ...................................... 44

ARTICLE X CONSOLIDATION, MERGER, SALE, CONVEYANCE, TRANSFER AND LEASE....................... 44

        SECTION 10.01  Corporation May Consolidate, etc., on Certain Terms . ............... 44
        SECTION 10.02  Successor Person to be Substituted for Corporation .................. 44
        SECTION 10.03  Opinion of Counsel to be Given Debenture Trustee .................... 45

ARTICLE XI SATISFACTION AND DISCHARGE OF INDENTURE ......................................... 45

        SECTION 11.01  Discharge of Indenture .............................................. 45
        SECTION 11.02  Deposited Moneys and U.S. Government Obligations to be
                       Held in Trust by Debenture Trustee .................................. 46
        SECTION 11.03  Paying Agent to Repay Moneys Held ................................... 46
        SECTION 11.04  Return of Unclaimed Moneys .......................................... 46
        SECTION 11.05  Defeasance Upon Deposit of Moneys or U.S. Government
                       Obligations ......................................................... 47

ARTICLE XII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS................. 48

        SECTION 12.01 Indenture and Securities Solely Corporate Obligations ................ 48

ARTICLE XIII MISCELLANEOUS PROVISIONS....................................................... 48

        SECTION 13.01 Successors ........................................................... 48
        SECTION 13.02 Official Acts by Successor Corporation ............................... 48
        SECTION 13.03 Surrender of Corporation Powers ...................................... 49
        SECTION 13.04 Addresses for Notices, etc ........................................... 49
        SECTION 13.05 Governing Law ........................................................ 49
        SECTION 13.06 Evidence of Compliance with Conditions Precedent ..................... 49
        SECTION 13.07 Business Days ........................................................ 50
        SECTION 13.08 Trust Indenture Act to Control ....................................... 50
        SECTION 13.09 Table of Contents, Headings, etc. .................................... 50
        SECTION 13.10 Execution in Counterparts ............................................ 50
        SECTION 13.11 Separability ......................................................... 50
        SECTION 13.13 Acknowledgment of Rights ............................................. 51

ARTICLE XIV PREPAYMENT OF SECURITIES ....................................................... 51
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>                                                                                         <C>
        SECTION 14.01 Special Event Prepayment ............................................. 51
        SECTION 14.02 Optional Prepayment by Corporation ................................... 51
        SECTION 14.03 No Sinking Fund ...................................................... 52
        SECTION 14.04 Notice of Prepayment; Selection of Securities ........................ 53
        SECTION 14.05 Payment of Securities Called for Prepayment .......................... 53

  ARTICLE XV SUBORDINATION OF SECURITIES ................................................... 54

        SECTION 15.01 Agreement to Subordinate ............................................. 54
        SECTION 15.02 Default on Senior Indebtedness ....................................... 54
        SECTION 15.03 Liquidation; Dissolution; Bankruptcy ................................. 55
        SECTION 15.04 Subrogation .......................................................... 56
        SECTION 15.05 Debenture Trustee to Effectuate Subordination ........................ 57
        SECTION 15.06 Notice by the Corporation ............................................ 57
        SECTION 15.07 Rights of the Debenture Trustee; Holders of Senior Indebtedness ...... 58
        SECTION 15.08 Subordination May Not Be Impaired .................................... 58

  ARTICLE XVI EXTENSION OF INTEREST PAYMENT PERIOD ......................................... 59

        SECTION 16.01 Extension of Interest Payment Period ................................. 59
        SECTION 16.02 Notice of Extension .................................................. 60
</TABLE>

TESTIMONIUM

SIGNATURES

EXHIBIT A

                                       iv

<PAGE>

        Tie Sheet of provisions of Trust Indenture Act of 1939 with Indenture
dated as of March 285 2001 between Nara Bancorp, Inc. and Wilmington Trust
Company, as Debenture Trustee

<TABLE>
<CAPTION>
      ACT SECTION                                                                       INDENTURE SECTION
<S>                    <C>                                                             <C>
       310(a)(1)       ..............................................................         6.09
        (a)(2)         ..............................................................   6.09, 6.10, 6.11
       310(a)(3)       ..............................................................         N/A
        (a)(4)         ..............................................................         N/A
       310(a)(5)       ..............................................................   6.09, 6.10, 6.11
        310(b)         ..............................................................         6.08
        310(c)         ..............................................................         N/A
        311(a)         ..............................................................         6.13
        311(b)         ..............................................................         6.13
        311(c)         ..............................................................         N/A
        312(a)         ..............................................................   4.01(a) and 4.02(a)
        312(b)         ..............................................................         4.02(b)
        312(c)         ..............................................................         4.02(c)
        313(a)         ..............................................................         4.04(a)
       313(b)(1)       ..............................................................         4.04(a)
       313(b)(2)       ..............................................................         4.04(a)
        313(c)         ..............................................................         4.04(a)
        313(d)         ..............................................................         4.04(b)
        314(a)         ..............................................................         3.05, 4.03
        314(b)         ..............................................................           N/A
       314(c)(1)       ..............................................................       6.07 and 13.06
       314(c)(2)       ..............................................................       6.07 and 13.06
       314(c)(3)       ..............................................................         N/A
        314(d)         ..............................................................         N/A
        314(e)         ..............................................................       6.07, 13.06
        314(f)         ..............................................................         N/A
   315(a)(c) and (d)   ..............................................................         6.01
        315(b)         ..............................................................         5.08
        315(e)         ..............................................................         5.09
       316(a)(1)       ..............................................................         5.07
       316(a)(2)       ..............................................................         N/A
 316(a) last sentence  ..............................................................         9.02
        316(b)         ..............................................................      5.07 and 9.02
        316(c)         ..............................................................      7.01 and 9.02
        317(a)         ..............................................................         5.05
        317(b)         ..............................................................         6.05
          318          ..............................................................        13.08
</TABLE>

----------
THIS TIE-SHEET IS NOT PART OF THE INDENTURE AS EXECUTED.

                                       v
<PAGE>

     THIS INDENTURE, dated as of March 28, 2001, between Nara Bancorp, Inc., a
Delaware corporation (hereinafter called the "Corporation"), and Wilmington
Trust Company, a Delaware banking corporation, as debenture trustee (hereinafter
sometimes called the "Debenture Trustee").

                                   WITNESSETH:

     In consideration of the premises, and the purchase of the Securities (as
defined below) by the holders thereof, the Corporation covenants and agrees with
the Debenture Trustee for the equal and proportionate benefit of the respective
holders from time to time of the 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 shall have the respective meanings specified in this Section
1.01. All other terms used in this Indenture which are defined in the Trust
Indenture Act of 1939, as amended (the "Trust Indenture Act"), or which are by
reference therein defined in the Securities Act of 1933, as amended (the
"Securities Act"), shall (except as herein otherwise expressly provided or
unless the context otherwise requires) have the meanings assigned to such terms
in said Trust Indenture Act and in said Securities Act as in force at the date
of this Indenture as originally executed. The following terms have the meanings
given to them in the Declaration (as defined below): (i) Delaware Trustee; (ii)
Property Trustee; (iii) Administrative Trustees; (iv) Capital Securities; (v)
Direct Action; (vi) Capital Securities Guarantee; (vii) Distributions; (viii)
Common Securities; and (ix) Common Securities Guarantee. 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 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. Headings are used for convenience of reference only and do not
affect interpretation. The singular includes the plural and vice versa.

     "Additional Sums" shall have the meaning set forth in Section 2.05(c).

     "Affiliate" shall have the meaning given to that term in Rule 405 under the
Securities Act or any successor rule thereunder.

     "Allocable Amounts," when used with respect to any Senior Indebtedness,
means all amounts due or to become due on such Senior Indebtedness less, if
applicable, any amount which would have been paid to, and retained by, the
holders of such Senior Indebtedness (whether as a result of the receipt of
payments by the holders of such Senior Indebtedness from the Corporation or any
other obligor thereon or from any holders of, or trustee in respect of, other
indebtedness that is subordinate and junior in right of payment to such Senior
Indebtedness

<PAGE>

pursuant to any provision of such indebtedness for the payment over of amounts
received on account of such indebtedness to the holders of such Senior
Indebtedness or otherwise) but for the fact that such Senior Indebtedness is
subordinate or junior in right of payment to (or subject to a requirement that
amounts received on such Senior Indebtedness be paid over to obligees on) trade
accounts payable or accrued liabilities arising in the ordinary course of
business.

     "Authenticating Agent" shall mean any agent or agents of the Debenture
Trustee which at the time shall be appointed and acting pursuant to Section
6.14.

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

     "Board of Directors" shall mean either the Board of Directors of the
Corporation or any duly authorized committee of that board.

     "Board Resolution" shall mean a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Corporation 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 Debenture Trustee.

     "Business Day" shall mean any day other than a Saturday, a Sunday or a day
on which banking institutions in Wilmington, Delaware, Los Angeles, California
or New York, New York are authorized or required by law or executive order to
remain closed.

     "Capital Securities" shall mean undivided beneficial interests in the
assets of the Trust which are designated as "MMCapS(SM)" and rank pari passu
with the Common Securities issued by the Trust; provided, however, that if an
Event of Default has occurred and is continuing, no payments in respect of
Distributions on, or payments upon liquidation, redemption or otherwise with
respect to, the Common Securities shall be made until the holders of the Capital
Securities shall be paid in full the Distributions and the liquidation,
redemption and other payments to which they are entitled.

     "Capital Securities Guarantee" shall mean any guarantee agreement that the
Corporation may enter into with Wilmington Trust Company or other Persons that
operates directly or indirectly for the benefit of holders of Capital
Securities.

     "Commission" shall mean the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act, or if at any time
after the execution of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties at such time.

     "Common Securities" shall mean undivided beneficial interests in the assets
of the Trust which are designated as "Common Securities" and rank pari passu
with Capital Securities issued by the Trust; provided, however, that if an Event
of Default has occurred and is continuing, no payments in respect of
Distributions on, or payments upon liquidation, redemption or otherwise with
respect to, the Common Securities shall be made until the holders of the Capital
Securities shall be paid in full the Distributions and the liquidation,
redemption and other payments to which they are then entitled.

                                       2
<PAGE>

     "Common Securities Guarantee" shall mean any guarantee that the Corporation
may enter into that operates directly or indirectly for the benefit of holders
of Common Securities.

     "Common Stock" shall mean the Common Stock, $0.001 par value per share, of
the Corporation or any other class of stock resulting from changes or
reclassifications of such Common Stock consisting solely of changes in par
value, or from par value to no par value, or from no par value to par value.

     "Compounded Interest" shall have the meaning set forth in Section 16.01.

     "Corporation" shall mean the person identified as "corporation" in the
preamble to this Indenture and, subject to the provisions of Article X, shall
also include its successors and assigns.

     "Corporation Request" or "Corporation Order" shall mean a written request
or order signed in the name of the Corporation by an Officer and delivered to
the Debenture Trustee.

     "Coupon Rate" shall have the meaning set forth in Section 2.05(a).

     "Custodian" shall mean any receiver, trustee, assignee, liquidator, or
similar official under any Bankruptcy Law.

     "Debenture Trustee" shall mean the Person identified as "Debenture Trustee"
in the preamble to this Indenture and, subject to the provisions of Article VI
hereof, shall also include its successors and assigns.

     "Declaration" shall mean the Amended and Restated Declaration of Trust of
the Trust, dated as of March 28, 2001, by and among the Trustees (as defined
therein), the Corporation, as sponsor, and the holders from time to time of
undivided beneficial interest in the assets of the Trust, as amended from time
to time.

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

     "Defaulted Interest" shall have the meaning set forth in Section 2.10.

     "Deferred Interest" shall have the meaning set forth in Section 16.01.

     "Dissolution Event" shall mean any event resulting in the dissolution of
the Trust pursuant to the Declaration, and the distribution of the Securities
held by the Property Trustee to the holders of the Trust Securities issued by
the Trust pro rata in accordance with the Declaration.

     "Event of Default" shall mean any event specified in Section 5.01,
continued for the period of time, if any, and after the giving of the notice, if
any, therein designated.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

                                       3
<PAGE>

     "Extended Interest Payment Period" shall have the meaning set forth in
Section 16.01.

     "Federal Reserve" shall mean the Board of Governors of the Federal Reserve
System.

     "Indebtedness" shall mean, whether recourse as to all or a portion of the
assets of the Corporation and whether or not contingent, (i) every obligation of
the Corporation for money borrowed; (ii) every obligation of the Corporation
evidenced by bonds, debentures, notes or other similar instruments, including
obligations incurred in connection with the acquisition of property, assets or
businesses; (iii) every reimbursement obligation of the Corporation with respect
to letters of credit, bankers' acceptances or similar facilities issued for the
account of the Corporation; (iv) every obligation of the Corporation issued or
assumed as the deferred purchase price of property or services (but excluding
trade accounts payable or accrued liabilities arising in the ordinary course of
business); (v) every capital lease obligation of the Corporation; (vi) all
indebtedness of the Corporation, whether incurred on or prior to the date of
this Indenture or hereafter incurred, for claims in respect of derivative
products, including interest rate, foreign exchange rate and commodity forward
contracts, options and swaps and similar arrangements; and (vii) every
obligation of the type referred to in clauses (i) through (vi) of another Person
and all dividends of another Person the payment of which, in either case, the
Corporation has guaranteed or is responsible or liable for directly or
indirectly, as obligor or otherwise.

     "Indebtedness Ranking on a Parity with the Securities" shall mean (i)
Indebtedness, whether outstanding on the date of execution of this Indenture or
hereafter created, assumed or incurred, to the extent such Indebtedness by its
terms ranks pari passu with and not junior to or prior or senior to the
Securities in the right of payment upon the happening of the dissolution,
winding-up, liquidation or reorganization of the Corporation, and (ii) all other
debt securities, and guarantees in respect of those debt securities, issued to
any trust other than the Trust, or a trustee of such trust, partnership or other
entity affiliated with the Corporation, that is a financing vehicle of the
Corporation (a "financing entity") in connection with the issuance by such
financing entity of equity securities or other securities guaranteed by the
Corporation pursuant to an instrument that ranks pari passu with or junior in
right of payment to the Capital Securities Guarantee. The securing of any
Indebtedness otherwise constituting Indebtedness Ranking on a Parity with the
Securities shall not be deemed to prevent such Indebtedness from constituting
Indebtedness Ranking on a Parity with the Securities with respect to any assets
of the Corporation not securing such Indebtedness.

        "Indebtedness Ranking Junior to the Securities" shall mean any
Indebtedness, whether outstanding on the date of execution of this Indenture or
hereafter created, assumed or incurred, to the extent such Indebtedness by its
terms ranks junior to and not pari passu with or prior or senior to the
Securities in right of payment upon the happening of the dissolution or
winding-up or liquidation or reorganization of the Corporation. The securing of
any Indebtedness otherwise constituting Indebtedness Ranking Junior to the
Securities shall not be deemed to prevent such Indebtedness from constituting
Indebtedness Ranking Junior to the Securities with respect to any assets of the
Corporation not securing such Indebtedness.

     "Indenture" shall mean this instrument as originally executed or, if
amended as herein provided, as so amended.

                                       4
<PAGE>

     "Initial Optional Prepayment Date" shall mean June 8, 2011.

     "Interest Payment Date" shall have the meaning set forth in Section
2.05(a).

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

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

     "Investment Company Event" shall mean the receipt by the Corporation and
the Trust of a written opinion of independent securities counsel experienced in
such matters to the effect that as a result of (a) any amendment to, or change
(including any announced prospective change) in, the laws or any regulations
thereunder of the United States or any rules, guidelines or policies of any
applicable regulatory authority for the Corporation or (b) any official
administrative pronouncement or judicial decision interpreting or applying such
laws or regulations, which amendment or change is effective or which
pronouncement or decision is announced on or after the date of original issuance
of the Securities, 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.

     "Like Amount" shall mean (i) with respect to a redemption of the Trust
Securities, Trust Securities having a liquidation amount equal to the principal
amount of Securities to be paid with their terms and (ii) with respect to a
distribution of Securities upon the liquidation of the Trust, Securities having
a principal amount equal to the liquidation amount of the Trust Securities of
the holder to whom Securities are distributed, pursuant to Section 2.06(c).

     "Maturity Date" shall mean June 8, 2031.

     "Officers" shall mean any of the Chairman, the Chief Executive Officer, the
President, an Executive or Senior Vice President, a Vice President, the Chief
Financial Officer, the Secretary or an Assistant Secretary of the Corporation.

     "Officers' Certificate" shall mean a certificate signed by
two Officers and delivered to the Debenture Trustee.

     "Opinion of Counsel" shall mean a written opinion of
counsel, who may be an employee of the Corporation, and who shall be reasonably
acceptable to the Debenture Trustee.

     "Optional Prepayment Price" shall have the meaning set forth in Section
14.02(a).

     "Other Debentures" shall mean all junior subordinated debentures other than
the Securities issued by the Corporation from time to time and sold to trusts
other than the Trust to be established by the Corporation (if any), in each case
similar to the Trust.

     "Other Guarantees" shall mean all guarantees other than the Capital
Securities Guarantee and the Common Securities Guarantee issued by the
Corporation with respect to preferred

                                       5
<PAGE>

beneficial interests (if any) issued to trusts other than the Trust to be
established by the Corporation (if any), in each case similar to the Trust.

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

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

     (b)  Securities, or portions thereof, for the payment or prepayment of
          which moneys in the necessary amount shall have been deposited in
          trust with the Debenture Trustee or with any paying agent (other than
          the Corporation) or shall have been set aside and segregated in trust
          by the Corporation (if the Corporation shall act as its own paying
          agent); provided that, if such Securities, or portions thereof, are to
          be prepaid prior to maturity thereof, notice of such prepayment shall
          have been given as set forth in Article XIV or provision satisfactory
          to the Debenture Trustee shall have been made for giving such notice;

     (c)  Securities in lieu of or in substitution for which other Securities
          shall have been authenticated and delivered pursuant to the terms of
          Section 2.07 unless proof satisfactory to the Corporation and the
          Debenture Trustee is presented that any such Securities are held by
          bona fide holders in due course and;

     (d)  Securities held by the Corporation, the Trust or any Affiliate
          thereof.

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

     "Placement Agent Agreement" shall mean the Placement Agent Agreement, dated
March 219 2001 by and among the Corporation, the Trust and the Placement Agent.

     "Placement Agent" shall mean Sandler O'Neill & Partners, L.P.

     "Predecessor Security" of any particular Security shall mean every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.07 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security.

     "Prepayment Price" shall mean the Special Event Prepayment Price or
Optional Prepayment Price, as the context requires.

     "Principal Office of the Debenture Trustee," or other similar term,
shall mean the office of the Debenture Trustee, at which at any particular time
its corporate trust business shall be administered.

                                       6
<PAGE>

     "Regulatory Capital Event" shall mean the receipt by the Corporation and
the Trust of a written opinion of independent bank regulatory counsel
experienced in such matters to the effect that as a result of (a) any amendment
to, or change (including any announced prospective change) in, the laws (or any
regulations thereunder) of the United States or any rules, guidelines or
policies of an applicable regulatory authority for the Corporation or (b) any
official administrative pronouncement or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the date of original
issuance of the Securities, the Capital Securities do not constitute, or within
90 days of the date of such opinion will not constitute, Tier 1 Capital (or its
then equivalent) if the Corporation is a bank holding company or if the
Corporation is a savings and loan holding company and is then subject to similar
capital adequacy requirements; provided, however, that the distribution of the
Securities in connection with the liquidation of the Trust by the Corporation
shall not in and of itself constitute a Regulatory Capital Event.

     "Responsible Officer" shall mean any officer of the Debenture Trustee's
Corporate Trust Administration department with direct responsibility for the
administration of the Indenture and also means, with respect to a particular
corporate trust matter, any other officer of the Debenture Trustee to whom such
matter is referred because of such officer's knowledge of and familiarity with
the particular subject.

     "Restricted Security" shall mean Securities that bear or are required to
bear the legends relating to transfer restrictions under the Securities Act set
forth in Exhibit A hereto.

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

     "Securities" shall mean the Corporation's 10.18% Junior Subordinated
Deferrable Interest Debentures due June 8, 2031, as authenticated and issued
under this Indenture.

     "Securities Act" shall mean the Securities Act of 1933, as amended.

     "Securityholder," "holder of Securities," or other similar terms, shall
mean any Person in whose name at the time a particular Security is registered in
the Security Register kept by the Corporation or the Debenture Trustee for that
purpose in accordance with the terms of this Indenture.

     "Security Register" shall mean (i) prior to a Dissolution Event, the list
of holders provided to the Debenture Trustee pursuant to Section 4.01, and (ii)
following a Dissolution Event, any security register maintained by a security
registrar for the Securities appointed by the Corporation following the
execution of a supplemental indenture providing for transfer procedures as
provided for in Section 2.06(a).

     "Senior Indebtedness" shall mean the principal of (and premium, if any) and
interest, if any (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Corporation whether
or not such claim for post petition interest is allowed in such proceedings), on
all Indebtedness, whether outstanding on the date of execution of this
Indenture, or hereafter created, assumed or incurred, except Indebtedness
Ranking on a

                                       7
<PAGE>

Parity with the Securities or Indebtedness Ranking Junior to the Securities, and
any deferrals, renewals or extensions of such Senior Indebtedness.

     "Special Event" shall mean an Investment Company Event, a Regulatory
Capital Event or a Tax Event, as the context requires.

     "Special Event Prepayment Price" shall mean, with respect to any prepayment
of the Securities following a Special Event, an amount in cash equal to (i)
106.09% of the principal amount of the Securities to be prepaid if the Special
Event occurs prior to June 8, 2011 and (ii) if the Special Event occurs on or
after June 8, 2011, the amount of the Optional Prepayment Price (calculated as
if the Corporation had prepaid such Securities on such date), plus, in the case
of (i) and (ii), any accrued and unpaid interest thereon (including Compounded
Interest and Additional Sums, if any) to the date of such prepayment.

     "Subscription Agreement" shall mean the Capital Securities Subscription
Agreement, dated March 21, 2001, by and among the Corporation, the Trust and the
Purchaser named therein.

     "Subsidiary" shall mean 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, limited liability company or similar entity, at least a majority of
whose outstanding partnership, membership or similar interests 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" shall mean the receipt by the Trust and the Corporation of a
written opinion of independent tax counsel experienced in such matters to the
effect that, as a result of any amendment to, or change (including any announced
prospective change) in, the laws or any regulations thereunder of the United
States or any political subdivision or taxing authority thereof or therein, or
as a result of any official administrative pronouncement or judicial decision
interpreting or applying such laws or regulations, which amendment or change is
effective or which pronouncement or decision is announced on or after the date
of original issuance of the Securities, there is more than an insubstantial risk
that (i) the Trust is, or will be within 90 days of the date of such opinion,
subject to United States federal income tax with respect to income received or
accrued on the Securities, (ii) the interest payable by the Corporation on the
Securities is not, or within 90 days of the date of such opinion will not be,
deductible by the Corporation, in whole or in part, for United States federal
income tax purposes or (iii) the Trust is, or will be within 90 days of the date
of such opinion, subject to more than a de minimis amount of other taxes, duties
or other governmental charges.

                                       8
<PAGE>

     "Trust" shall mean Nara Bancorp Capital Trust I, a Delaware business trust
created for the purpose of issuing its undivided beneficial interests in
connection with the issuance of Securities under this Indenture.

     "Trust Securities" shall mean, collectively, the Capital Securities and the
Common Securities.

     "U.S. Government Obligations" shall mean securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which, in either case under
clauses (i) or (ii), are not callable or prepayable at the option of the issuer
thereof, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government
Obligation held by such custodian for the account of the holder of a depository
receipt, provided that (except as required by law) such custodian is not
authorized to make any deduction with respect to the amount payable to the
holder of such depository receipt from any amount received by the custodian in
respect of the U.S. Government Obligation or the specific payment of interest on
or principal of the U.S. Government Obligation evidenced by such depository
receipt.

     SECTION 1.02 Business Day Certificate.

     On the date of execution and delivery of this Indenture (with respect to
the remainder of calendar year 2001) and within 15 days prior to the end of each
calendar year while this Indenture remains in effect (with respect to succeeding
calendar years), the Corporation shall deliver to the Debenture Trustee an
Officers' Certificate specifying the days on which banking institutions or trust
companies in Wilmington, Delaware, Los Angeles, California and New York, New
York are then authorized or obligated by law or executive order to remain
closed.

                                   ARTICLE II
                                   SECURITIES

     SECTION 2.01 Forms Generally.

     The Securities and the Debenture Trustee's certificate of authentication
shall be substantially in the form of Exhibit A hereto, the terms of which are
incorporated in and made a part of this Indenture. The Securities may have
notations, legends or endorsements required by law, stock exchange rule,
agreements to which the Corporation is subject or usage. Each Security shall be
dated the date of its authentication.

     SECTION 2.02 Execution and Authentication.

     An Officer shall sign the Securities for the Corporation by manual or
facsimile signature. If an Officer whose signature is on a Security no longer
holds that office at the time the Security is authenticated, the Security shall
nevertheless be valid.

                                       9
<PAGE>

     A Security shall not be valid until authenticated by the manual signature
of the Debenture Trustee. The signature of the Debenture Trustee shall be
conclusive evidence that the Security has been authenticated under this
Indenture.

     The Debenture Trustee shall, upon a Corporation Order, authenticate for
original issue up to, and the aggregate principal amount of Securities
outstanding at any time may not exceed, $10,400,000 aggregate principal amount
of the Securities, except as provided in Sections 2.06, 2.07, 2.08 and 14.05.

     SECTION 2.03 Form and Payment.

     The Securities shall be issued in fully registered certificated form
without interest coupons. Principal of and premium, if any, and interest on the
Securities will be payable in immediately available funds, the transfer of such
Securities will be registerable and such Securities will be exchangeable for
Securities bearing identical terms and provisions, at the office or agency of
the Corporation maintained for such purpose under Section 3.02; provided,
however, that payments of interest shall be made by transfer to an account
maintained by the Person entitled thereto unless proper transfer instructions
have not been received in writing by the relevant record date, in which case
such payments shall be made by check mailed to the holder at such address as
shall appear in the Security Register. Notwithstanding the foregoing, so long as
the holder of any Securities is the Property Trustee, the payment of the
principal of and premium, if any, and interest (including Compounded Interest if
any) and Additional Sums, if any, on such Securities held by the Property
Trustee will be made at such place and to such account as may be designated by
the Property Trustee.

     SECTION 2.04 Legends.

     Except as otherwise determined by the Corporation in accordance with
applicable law, each Security shall bear the applicable legends relating to
restrictions on transfer pursuant to the Securities Act and any other applicable
securities laws in substantially the form set forth on Exhibit A hereto.

     SECTION 2.05 Interest.

     (a)  Each Security will bear interest, at the rate of 10.18% per annum (the
"Coupon Rate"), from the most recent date to which interest has been paid or
duly provided for or, if no interest has been paid or duly provided for, from
March 28, 2001, until the principal thereof becomes due and payable, and at the
Coupon Rate on any overdue principal (and premium, if any) and (to the extent
that payment of such interest is enforceable under applicable law) on any
overdue installment of interest, compounded semi-annually, payable (subject to
the provisions of Article XVI) semi-annually in arrears on June 8th and December
8th of each year, commencing June 8, 2001 (each, an "Interest Payment Date"),
to the Person in whose name such Security or any predecessor Security is
registered at the close of business on the regular record date for such interest
installment, which shall be the 15th day of the month immediately preceding the
month in which the relevant Interest Payment Date falls.

     (b)  The amount of interest payable on the Securities shall be computed on
the basis of a 360-day year of twelve 30-day months.

                                       10
<PAGE>

     (c)  During such time as the Property Trustee is the holder of any
Securities, the Corporation shall pay any additional amounts on the Securities
as may be necessary in order that the amount of Distributions then due and
payable by the Trust on the outstanding Trust Securities shall not be reduced as
a result of any additional taxes, duties and other governmental charges to which
the Trust has become subject as a result of a Tax Event ("Additional Sums").

     SECTION 2.06 Transfer and Exchange.

     (a)  Transfer Restrictions.

          (i)  The Securities may not be transferred except in compliance with
the legend contained in Exhibit A unless otherwise determined by the Corporation
in accordance with applicable law. Upon any distribution of the Securities
following a Dissolution Event, the Corporation and the Debenture Trustee shall
enter into a supplemental indenture pursuant to Section 9.01 to provide for the
transfer restrictions and procedures with respect to the Securities
substantially similar to those contained in the Declaration to the extent
applicable in the circumstances existing at such time.

          (ii) The Securities will be issued and may be transferred only in
blocks having an aggregate principal amount of not less than $100,000 and in
multiples of $1,000 in excess thereof. Any attempted transfer of the Securities
in a block having an aggregate principal amount of less than $100,000 shall be
deemed to be voided and of no legal effect whatsoever. Any such purported
transferee shall be deemed not to be a holder of such Securities for any
purpose, including, but not limited to the receipt of payments on such
Securities, and such purported transferee shall be deemed to have no interest
whatsoever in such Securities.

     (b)  General Provisions Relating to Transfers and Exchanges. To permit
registrations of transfers and exchanges, the Corporation shall execute and the
Debenture Trustee shall authenticate Securities at the request of the security
registrar. All Securities issued upon any registration of transfer or exchange
of Securities shall be the valid obligations of the Corporation, evidencing the
same debt, and entitled to the same benefits under this Indenture, as the
Securities surrendered upon such registration of transfer or exchange.

     No service charge shall be made to a holder for any registration of
transfer or exchange, but the Corporation may require payment of a sum
sufficient to cover any transfer tax or similar governmental charge payable in
connection therewith.

     The Corporation shall not be required to: (i) issue, register the transfer
of or exchange Securities during a period beginning at the opening of business
15 days before the day of mailing of a notice of prepayment or any notice of
selection of Securities for prepayment under Article XIV hereof and ending at
the close of business on the day of such mailing; or (ii) register the transfer
of or exchange any Security so selected for prepayment in whole or in part,
except the nonprepaid portion of any Security being prepaid in part.

     Prior to due presentment for the registration of a transfer of any
Security, the Debenture Trustee, the Corporation and any agent of the Debenture
Trustee or the Corporation may deem and treat the Person in whose name any
Security is registered as the absolute owner of such Security for the purpose of
receiving payment of principal of and premium, if any, and interest

                                       11
<PAGE>

on such Securities, and none of the Debenture Trustee, the Corporation or any
agents of the Debenture Trustee or the Corporation shall be affected by notice
to the contrary.

     (c)  Exchanges in Connection With a Dissolution Event. In connection with a
Dissolution Event, the Securities shall be presented to the Debenture Trustee by
the Property Trustee and any Capital Security certificates which represent
Capital Securities will be deemed to represent a beneficial interest in
Securities having an aggregate principal amount equal to the aggregate
liquidation amount of the Capital Securities until such Capital Security
certificates are presented to the security registrar for the Securities for
transfer or reissuance, at which time such Capital Security certificates will be
canceled, and a Security in a Like Amount, registered in the name of the holder
of the Capital Security certificate or the transferee of the holder of such
Capital Security certificate, as the case may be, will be executed by the
Corporation and delivered to the Debenture Trustee for authentication and
delivery in accordance with this Indenture; and upon the issuance of such
Securities to the holders, or transferee of the holder, of such Capital Security
certificate, Securities with an equivalent aggregate principal amount that were
presented by the Property Trustee to the Debenture Trustee will be canceled.

     SECTION 2.02 Replacement Securities.

     If any mutilated Security is surrendered to the Debenture Trustee, or the
Corporation and the Debenture Trustee receive evidence to their satisfaction of
the destruction, loss or theft of any Security, the Corporation shall issue and
the Debenture Trustee shall authenticate a replacement Security if the Debenture
Trustee's requirements for replacements of Securities are met. An indemnity bond
must be supplied by the holder that is sufficient in the judgment of the
Debenture Trustee and the Corporation to protect the Corporation, the Debenture
Trustee, any agent thereof or any Authenticating Agent from any loss that any of
them may suffer if a Security is replaced. The Corporation or the Debenture
Trustee may charge for its expenses in replacing a Security.

     Every replacement Security is an obligation of the Corporation and shall be
entitled to all of the benefits of this Indenture equally and proportionately
with all other Securities duly issued hereunder.

     SECTION 2.08 Temporary Securities.

     Pending the preparation of definitive Securities, the Corporation may
execute, and upon Corporation Order the Debenture Trustee shall authenticate and
make available for delivery, temporary Securities that are printed,
lithographed, typewritten, mimeographed or otherwise reproduced, in any
authorized denomination, substantially of the tenor of the definitive Securities
in lieu of which they are issued and with such appropriate insertions,
omissions, substitutions and other variations as the Officers executing such
Securities may determine, as conclusively evidenced by their execution of such
Securities.

     If temporary Securities are issued, the Corporation shall cause definitive
Securities to be prepared without unreasonable delay. The definitive Securities
shall be printed, lithographed or engraved, or provided by any combination
thereof, or in any other manner permitted by the rules and regulations of any
applicable securities exchange, all as determined by the Officers

                                       12
<PAGE>

executing such definitive Securities. After the preparation of definitive
Securities, the temporary Securities shall be exchangeable for definitive
Securities upon surrender of the temporary Securities at the office or agency
maintained by the Corporation for such purpose pursuant to Section 3.02 hereof,
without charge to the holder thereof. Upon surrender for cancellation of any one
or more temporary Securities, the Corporation shall execute, and the Debenture
Trustee shall authenticate and make available for delivery, in exchange therefor
the same aggregate principal amount of definitive Securities of authorized
denominations. Until so exchanged, the temporary Securities shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities.

     SECTION 2.09 Cancellation.

     The Corporation at any time may deliver Securities to the Debenture Trustee
for cancellation. The Debenture Trustee and no one else shall cancel all
Securities surrendered for registration of transfer, exchange, payment,
replacement or cancellation and shall return such canceled Securities to the
Corporation. The Corporation may not issue new Securities to replace Securities
that have been prepaid or paid or that have been delivered to the Debenture
Trustee for cancellation.

     SECTION 2.10 Defaulted Interest.

     Any interest on any Security that is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called "Defaulted
Interest") shall forthwith cease to be payable to the holder on the relevant
regular record date by virtue of having been such holder; and such Defaulted
Interest shall be paid by the Corporation, at its election, as provided in
clause (a) or clause (b) below:

          (a)  The Corporation may make payment of any Defaulted Interest on
     Securities to the Persons in whose names such 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 Corporation shall notify the
     Debenture Trustee in writing of the amount of Defaulted Interest proposed
     to be paid on each such Security and the date of the proposed payment, and
     at the same time the Corporation shall deposit with the Debenture Trustee
     an amount of money equal to the aggregate amount proposed to be paid in
     respect of such Defaulted Interest or shall make arrangements satisfactory
     to the Debenture 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 Debenture Trustee shall fix a special record date for the
     payment of such Defaulted Interest which shall not be more than 15 nor less
     than 10 days prior to the date of the proposed payment and not less than 10
     days after the receipt by the Debenture Trustee of the notice of the
     proposed payment. The Debenture Trustee shall promptly notify the
     Corporation of such special record date and, in the name and at the expense
     of the Corporation, 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 Security Register, not less than 10 days prior to such
     special record date. Notice of the proposed payment of such Defaulted

                                       13
<PAGE>

     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 Securities (or their respective Predecessor Securities) are
     registered on such special record date and shall be no longer payable
     pursuant to the following clause (b).

          (b)  The Corporation may make payment of any Defaulted Interest on any
     Securities in any other lawful manner not inconsistent with the
     requirements of any securities exchange on which such Securities may be
     listed, and upon such notice as may be required by such exchange, if, after
     notice given by the Corporation to the Debenture Trustee of the proposed
     payment pursuant to this clause, such manner of payment shall be deemed
     practicable by the Debenture Trustee.

     SECTION 2.11 CUSIP Numbers.

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

                                   ARTICLE III
                     PARTICULAR COVENANTS OF THE CORPORATION

     SECTION 3.01 Payment of Principal and Interest.

     The Corporation covenants and agrees for the benefit of the holders of the
Securities that it will duly and punctually pay or cause to be paid the
principal of and premium, if any, and interest on the Securities at the place,
at the respective times and in the manner provided herein. The Corporation
further covenants to pay any and all amounts due in respect of the Securities,
including, without limitation, Additional Sums, as may be required pursuant to
Section 2.05(c) and Compounded Interest, as may be required pursuant to Section
16.01.

     SECTION 3.02 Offices for Notices and Payments, etc.

     So long as any of the Securities remain outstanding, the Corporation will
maintain in Wilmington, Delaware an office or agency where the Securities may be
presented for payment, an office or agency where the Securities may be presented
for registration of transfer and for exchange as in this Indenture provided and
an office or agency where notices and demands to or upon the Corporation in
respect of the Securities or this Indenture may be served. The Corporation will
give to the Debenture Trustee written notice of the location of any such office
or agency and of any change of location thereof. Until otherwise designated from
time to time by the Corporation in a notice to the Debenture Trustee, any such
office or agency for all of the above purposes shall be the Principal Office of
the Debenture Trustee. In case the Corporation shall fail to maintain any such
office or agency or shall fail to give such notice of the location or

                                       14
<PAGE>

of any change in the location thereof, presentations and demands may be made and
notices may be served at the Principal Office of the Debenture Trustee.

     In addition to any such office or agency, the Corporation may from time to
time designate one or more offices or agencies outside Wilmington, Delaware
where the Securities may be presented for payment, for registration of transfer
and for exchange and where notices and demands to or upon the Corporation in
respect of the Securities or this Indenture may be served in the manner provided
in this Indenture, and the Corporation may from time to time rescind such
designation, as the Corporation may deem desirable or expedient; provided,
however, that no such designation or rescission shall in any manner relieve the
Corporation of its obligation to maintain any such office or agency in
Wilmington, Delaware for the purposes above mentioned. The Corporation will give
to the Debenture Trustee prompt written notice of any such designation or
rescission thereof.

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

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

     SECTION 3.04 Provision as to Paying Agent.

     (a)  If the Corporation shall appoint a paying agent other than the
Debenture Trustee with respect to the Securities, it will cause such paying
agent to execute and deliver to the Debenture Trustee an instrument in which
such agent shall agree with the Debenture Trustee, subject to the provisions of
this Section 3.04,

          (1)  that it will hold all sums held by it as such agent for the
               payment of the principal of and premium, if any, or interest on
               the Securities (whether such sums have been paid to it by the
               Corporation or by any other obligor on the Securities) in trust
               for the benefit of the holders of the Securities; and

          (2)  that it will give the Debenture Trustee notice of any failure by
               the Corporation (or by any other obligor on the Securities) to
               make any payment of the principal of or premium, if any, or
               interest (including Additional Sums and Compounded Interest, if
               any) on the Securities when the same shall be due and payable.

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

                                       15
<PAGE>

     (c)  Anything in this Section 3.04 to the contrary notwithstanding, the
Corporation may, at any time, for the purpose of obtaining a satisfaction and
discharge with respect to the Securities hereunder, or for any other reason, pay
or cause to be paid to the Debenture Trustee all sums payable with respect to
the Securities, such sums to be held by the Debenture Trustee upon the trusts
herein contained.

     (d)  Anything in this Section 3.04 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 3.04 is subject to
Sections 11.03 and 11.04.

     SECTION 3.05 Certificate to Debenture Trustee.

     The Corporation will deliver to the Debenture Trustee on or before 120 days
after the end of each fiscal year of the Corporation, commencing with the first
fiscal year ending after the date hereof, so long as Securities are outstanding
hereunder, an Officers' Certificate, one of the signers of which shall be the
principal executive, principal financial or principal accounting officer of the
Corporation, stating that in the course of the performance by the signers of
their duties as officers of the Corporation they would normally have knowledge
of any Default by the Corporation in the performance of any covenants 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, the nature
thereof and the action, if any, the Corporation intends to undertake as a result
of such Default.

     SECTION 3.06 Compliance with Consolidation Provisions.

     The Corporation will not, while any of the Securities remain outstanding,
consolidate with, or merge into, or merge into itself, or sell or convey all or
substantially all of its property to any other Person unless the provisions of
Article X hereof are complied with.

     SECTION 3.07 Limitation on Dividends.

     The Corporation will 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 Corporation's capital stock, (ii) make any payment of principal of or
interest or premium, if any, on, or repay, repurchase or redeem any debt
securities of the Corporation (including Other Debentures) that rank pari passu
with or junior in right of payment to the Securities or (iii) make any guarantee
payments with respect to any guarantee by the Corporation of the debt securities
of any Subsidiary of the Corporation (including Other Guarantees) if such
guarantee ranks pari passu with or junior in right of payment to the Securities
(other than (a) dividends or distributions in shares of, or options, warrants or
rights to subscribe for or purchase shares of, Common Stock, (b) any declaration
of a dividend in connection with the implementation of a stockholders' rights
plan, or the issuance of stock under any such plan in the future, or the
redemption or repurchase of any such rights pursuant thereto, (c) payments under
the Capital Securities Guarantee, (d) as a result of a reclassification of the
Corporation's capital stock or the exchange or conversion of one class or series
of the Corporation's capital stock for another class or series of the
Corporation's capital stock, (e) the purchase of fractional interests in shares
of the Corporation's capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged
and (f) purchases of Common Stock related to the issuance of Common

                                       16
<PAGE>

Stock or rights under any of the Corporation's benefit or compensation plans for
its directors, officers or employees or any of the Corporation's dividend
reinvestment plans), if at such time (1) there shall have occurred any event of
which the Corporation has actual knowledge that (a) is a Default or an Event of
Default and (b) in respect of which the Corporation shall not have taken
reasonable steps to cure, (2) such Securities are held by the Property Trustee,
and the Corporation shall be in default with respect to its payment of any
obligations under the Capital Securities Guarantee or (3) the Corporation shall
have given notice of its election to exercise its right to commence an Extended
Interest Payment Period and shall not have rescinded such notice, and such
Extended Interest Payment Period or any extension thereof shall have commenced
and be continuing.

     SECTION 3.08 Covenants as to the Trust

     In the event Securities are issued to the Trust or a trustee of such Trust
in connection with the issuance of Trust Securities by the Trust, for so long as
such Trust Securities remain outstanding, the Corporation (i) will maintain 100%
direct or indirect ownership of the Common Securities of the Trust; provided,
however, that any successor of the Corporation, permitted pursuant to Article X,
may succeed to the Corporation's ownership of such Common Securities, (ii) will
use commercially reasonable efforts to cause the Trust (a) to remain a business
trust, except in connection with a distribution of Securities to the holders of
Trust Securities in liquidation of the Trust, the redemption of all of the Trust
Securities of the Trust, or certain mergers, consolidations or amalgamations,
each as permitted by the Declaration, and (b) to otherwise continue to be
classified as a grantor trust and not an association taxable as a corporation
for United States federal income tax purposes, (iii) will use commercially
reasonable efforts to cause each holder of the Trust Securities to be treated as
owning an undivided beneficial interest in the Securities and (iv) will not
cause, as sponsor of the Trust, or permit, as holder of the Common Securities,
the dissolution, winding-up or liquidation of the Trust, except as provided in
the Declaration.

     SECTION 3.09 Payment of Expenses.

     In connection with the offering, sale and issuance of the Securities to the
Trust and in connection with the sale of the Trust Securities by the Trust, the
Corporation, in its capacity as borrower with respect to the Securities, shall:

     (a)  pay all costs and expenses relating to the offering, sale and issuance
          of the Securities, including compensation of the Debenture Trustee in
          accordance with the provisions of Section 6.06;

     (b)  pay all costs and expenses of the Trust, including, but not limited
          to, costs and expenses relating to the organization of the Trust, the
          sale and issuance of the Trust Securities (including commissions
          payable to the Placement Agent pursuant to the Placement Agent
          Agreement in connection therewith), the fees and expenses of the
          Property Trustee and the Delaware Trustee, the costs and expenses
          relating to the operation of the Trust, including without limitation,
          costs and expenses of accountants, attorneys, statistical or
          bookkeeping services, expenses for printing and engraving and
          computing or accounting equipment,

                                       17
<PAGE>

          paying agent(s), registrar(s), transfer agent(s), duplicating, travel
          and telephone and other telecommunications expenses and costs and
          expenses incurred in connection with the acquisition, financing, and
          disposition of assets of the Trust;

     (c)  be primarily and fully liable for any indemnification obligations
          arising with respect to the Declaration;

     (d)  pay any and all taxes (other than United States withholding taxes
          attributable to the Trust or its assets) and all liabilities, costs
          and expenses with respect to such taxes of the Trust; and

     (e)  pay all other fees, expenses, debts and obligations (other than in
          respect of the Trust Securities) related to the Trust.

     SECTION 3.10 Payment Upon Resignation or Removal.

     Upon termination of this Indenture or the removal or resignation of the
Debenture Trustee, unless otherwise stated, the Corporation shall pay to the
Debenture Trustee all amounts accrued and owing to the Debenture Trustee to the
date of such termination, removal or resignation. Upon termination of the
Declaration or the removal or resignation of the Delaware Trustee or the
Property Trustee, as the case may be, pursuant to Section 5.7 of the
Declaration, the Corporation shall pay to the Delaware Trustee or the Property
Trustee, as the case may be, all amounts accrued and owing to such trustee(s) to
the date of such termination, removal or resignation.

                                   ARTICLE IV
                   LIST OF SECURITYHOLDERS AND REPORTS BY THE
                      CORPORATION AND THE DEBENTURE TRUSTEE

     SECTION 4.01 List of Securityholders.

     The Corporation covenants and agrees that it will furnish or cause to be
furnished to the Debenture Trustee:

     (a)  on a semi-annual basis on each regular record date for the Securities,
          a list, in such form as the Debenture Trustee may reasonably require,
          of the names and addresses of the Securityholders as of such record
          date; and

     (b)  at such other times as the Debenture Trustee may request in writing,
          within 30 days after the receipt by the Corporation, 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 so long as the Debenture Trustee
is in possession thereof by reason of its acting as security registrar for
the Securities.

     SECTION 4.02 Preservation and Disclosure of Lists.

                                       18
<PAGE>

     (a)  The Debenture Trustee shall preserve, in as current a form as is
reasonably practicable, all information as to the names and addresses of the
holders of the 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 security
registrar (if so acting) hereunder. The Debenture 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 Securities (hereinafter referred to
as "applicants") apply in writing to the Debenture Trustee and furnish
to the Debenture Trustee reasonable proof that each such applicant has owned a
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 Securities or with holders of all Securities
with respect to their rights under this Indenture and is accompanied by a copy
of the form of proxy or other communication which such applicants propose to
transmit, then the Debenture Trustee shall, within five Business Days after the
receipt of such application, at its election, either:

     (1)  afford such applicants access to the information preserved at the time
          by the Debenture 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 all
          Securities whose names and addresses appear in the information
          preserved at the time by the Debenture 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 Debenture Trustee shall elect not to afford such applicants access
to such information, the Debenture Trustee shall, upon the written request of
such applicants, mail to each Securityholder whose name and address appear in
the information preserved at the time by the Debenture 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 Debenture Trustee of the material to be mailed
and of payment, or provision for the payment, of the reasonable expenses of
mailing, unless within five Business Days after such tender, the Debenture
Trustee shall mail to such applicants and, if required by law, file with the
Commission, together with a copy of the material to be mailed, a written
statement to the effect that, in the opinion of the Debenture Trustee, such
mailing would be contrary to the best interests of the holders of Securities or
would be in violation of applicable law. Such written statement shall specify
the basis of such opinion. If the Commission, after opportunity for a hearing
upon the objections specified in the written statement so filed, shall enter an
order refusing to sustain any of such objections or if, after the entry of an
order sustaining one or more of such objections, the 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 Debenture 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 Debenture Trustee shall be relieved of any obligation or duty to
such applicants respecting their application.

                                       19
<PAGE>
        (c) Each and every holder of Securities, by receiving and holding the
same, agrees with the Corporation and the Debenture Trustee that neither the
Corporation nor the Debenture 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 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 Debenture Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
said subsection (b).

        SECTION 4.03 Reports by the Corporation.

        (a) The Corporation covenants and agrees to file with the Debenture
Trustee, within 15 days after the date on which the Corporation is required to
file the same with the Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of
the foregoing as said Commission may from time to time by rules and regulations
prescribe) which the Corporation may be required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the
Corporation is not required to file information, documents or reports pursuant
to either of such sections, then to provide to the Debenture Trustee, such of
the supplementary and periodic information, documents and reports which would
have been required pursuant to Section 13 of the Exchange Act in respect of a
security listed and registered on a national securities exchange or copies of
the call reports that the Corporation is required to file with its primary
federal banking regulator. The Corporation also covenants and agrees to comply
with the provisions of Section 314(a) of the Trust Indenture Act.

        (b) The Corporation covenants and agrees to file with the Debenture
Trustee and the Commission, in accordance with the rules and regulations
prescribed from time to time by said Commission, such additional information,
documents and reports with respect to compliance by the Corporation with the
conditions and covenants provided for in this Indenture as may be required from
time to time by such rules and regulations.

        (c) The Corporation covenants and agrees to transmit by mail to
MMCapS(SM) Funding I, Ltd. and to all holders of Securities, as the names and
addresses of such holders appear upon the Security Register, within 30 days
after the filing thereof with the Debenture Trustee, such summaries of any
information, documents and reports required to be filed by the Corporation
pursuant to subsections (a) and (b) of this Section 4.03 as may be required by
rules and regulations prescribed from time to time by the Commission.

        (d) Delivery of such reports, information and documents to the Debenture
Trustee is for informational purposes only and the Debenture Trustee's receipt
of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Corporation's compliance with any of its covenants hereunder (as to which the
Debenture Trustee is entitled to rely exclusively on Officers' Certificates).

        (e) So long as is required for an offer or sale of the Securities to
qualify for an exemption under Rule 144A under the Securities Act, the
Corporation shall, upon request, provide the information required by clause
(d)(4) thereunder to each Securityholder and to each beneficial owner and
prospective purchaser of Securities identified by each Securityholder of

                                       20
<PAGE>

Restricted Securities, unless such information is furnished to the Commission
pursuant to Section 13 or 15(d) of the Exchange Act.

        SECTION 4.04 Reports by the Debenture Trustee.

        (a) The Debenture Trustee shall transmit to Securityholders such reports
concerning the Debenture Trustee and its actions under this Indenture as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto. If required by Section 313(a) of the Trust Indenture
Act, the Debenture Trustee shall, within 60 days after the date hereof, and no
later than the anniversary date hereof in each succeeding year, deliver to
Securityholders a brief report, dated as of each such date which complies with
the provisions of such Section 313(a).

        (b) A copy of each such report shall, at the time of such transmission
to Securityholders, be filed by the Debenture Trustee with each stock exchange,
if any, upon which the Securities are listed, with the Commission and with the
Corporation. The Corporation will promptly notify the Debenture Trustee when the
Securities are listed on any stock exchange.

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

        SECTION 5.01 Events of Default.

        One or more of the following events of default shall constitute an Event
of Default hereunder (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

        (a)    default in the payment of any interest (including Compounded
               Interest and Additional Sums, if any) on the Securities or any
               Other Debentures (about which a Responsible Officer of the
               Debenture Trustee has actual knowledge) when due, and continuance
               of such default for a period of 30 days; provided, however, that
               a valid extension of an interest payment period by the
               Corporation in accordance with the terms hereof or thereof shall
               not constitute a default in the payment of interest for this
               purpose; or

        (b)    default in the payment of any principal of (or premium, if any,
               on) the Securities or any Other Debentures (about which a
               Responsible Officer of the Debenture Trustee has actual
               knowledge) when due, whether at maturity, upon prepayment, by
               declaration of acceleration of maturity or otherwise; or

        (c)    default in the performance, or breach, of any covenant or
               warranty of the Corporation in this Indenture (other than a
               covenant or warranty 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 Corporation by the

                                       21

<PAGE>
               Debenture Trustee or to the Corporation and the Debenture Trustee
               by the holders of at least 25% in aggregate principal amount of
               the outstanding 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

        (d)    a court having jurisdiction in the premises shall enter a decree
               or order for relief in respect of the Corporation in an
               involuntary case under any applicable bankruptcy, insolvency or
               other similar law now or hereafter in effect, or appointing a
               receiver, liquidator, assignee, custodian, trustee, sequestrator
               (or similar official) of the Corporation or for any substantial
               part of its property, or ordering 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

        (e)    the Corporation 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 Corporation 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.

        If an Event of Default with respect to Securities at the time
outstanding occurs and is continuing, then in every such case the Debenture
Trustee or the holders of not less than 25% in aggregate principal amount of the
Securities then outstanding may declare the principal amount of all Securities
to be due and payable immediately, by a notice in writing to the Corporation
(and to the Debenture Trustee if given by the holders of the outstanding
Securities), and upon any such declaration the same shall become immediately due
and payable.

        The foregoing provisions, however, are subject to the condition that if,
at any time after the principal of the 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
Corporation shall pay or shall deposit with the Debenture Trustee a sum
sufficient to pay (A) all matured installments of interest (including Compounded
Interest and Additional Sums, if any) on all the Securities and the principal of
and premium, if any, on any and all Securities which shall have become due
otherwise than by acceleration (with interest upon such principal and premium,
if any, and, to the extent that payment of such interest is enforceable under
applicable law, on overdue installments of interest, at the same rate as the
rate of interest specified in the Securities to the date of such payment or
deposit) and (B) such amount as shall be sufficient to cover compensation due to
the Debenture Trustee and each predecessor Debenture Trustee, their respective
agents, attorneys and counsel, pursuant to Section 6.06, and (ii) any and all
Events of Default under the Indenture, other than the nonpayment of the
principal of the Securities which shall have become due solely by such
declaration of acceleration, shall have been cured, waived or otherwise remedied
as provided herein, then, in every such case, the holders of a majority in
aggregate principal amount of the Securities then outstanding, by written notice
to the Corporation and to the Debenture Trustee, may rescind and annul such
declaration and its consequences, but no such waiver or rescission

                                       22

<PAGE>
and annulment shall extend to or shall affect any subsequent default or shall
impair any right consequent thereon,

       In case the Debenture Trustee shall have proceeded to enforce any right
under this Indenture and such proceedings shall have been discontinued or
abandoned because of such rescission or annulment or for any other reason or
shall have been determined adversely to the Debenture Trustee, then and in every
such case the Corporation, the Debenture Trustee and the holders of the
Securities shall be restored respectively to their several positions and rights
hereunder, and all rights, remedies and powers of the Corporation, the Debenture
Trustee and the holders of the Securities shall continue as though no such
proceeding had been taken.

        SECTION 5.02 Payment of Securities on Default; Suit Therefor.

        The Corporation covenants that (a) in case default shall be made in the
payment of any installment of interest (including Compounded Interest and
Additional Sums, if any) on any of the Securities as and when the same shall
become due and payable, and such default shall have continued for a period of 30
days, or (b) in case default shall be made in the payment of the principal of or
premium, if any, on any of the Securities as and when the same shall have become
due and payable, whether at maturity of the Securities or upon prepayment or by
declaration or otherwise, then, upon demand of the Debenture Trustee, the
Corporation will pay to the Debenture Trustee, for the benefit of the holders of
the Securities, the whole amount that then shall have become due and payable on
all such Securities for principal and premium, if any, or interest (including
Compounded Interest and Additional Sums, if any), with interest upon the overdue
principal and premium, if any, and (to the extent that payment of such interest
is enforceable under applicable law and, if the Securities are held by the Trust
or a trustee of such Trust, without duplication of any other amounts paid by the
Trust or a trustee in respect thereof) upon the overdue installments of interest
(including Compounded Interest and Additional Sums, if any) at the rate borne by
the Securities; and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including reasonable
compensation to the Debenture Trustee, its agents, attorneys and counsel, and
any other amount due to the Debenture Trustee pursuant to Section 6.06.

        In case the Corporation shall fail forthwith to pay such amounts upon
such demand, the Debenture 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 Corporation or any other
obligor on the Securities and collect in the manner provided by law out of the
property of the Corporation or any other obligor on the 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 Corporation or any other obligor on the Securities under
Title 11, United States Code, or any other applicable law, or in case a receiver
or trustee shall have been appointed for the property of the Corporation or such
other obligor, or in the case of any other similar judicial proceedings relative
to the Corporation or other obligor upon the Securities, or to the creditors or
property of the Corporation or such other obligor, the Debenture Trustee,
irrespective of whether the

                                       23

<PAGE>
principal of the Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Debenture 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 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 Debenture
Trustee (including any claim for amounts due to the Debenture Trustee pursuant
to Section 6.06) and of the Securityholders allowed in such judicial proceedings
relative to the Corporation or any other obligor on the Securities, or to the
creditors or property of the Corporation or such other obligor, unless
prohibited by applicable law and regulations, to vote on behalf of the holders
of the 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 Debenture Trustee, and, in the event that the Debenture Trustee
shall consent to the making of such payments directly to the Securityholders, to
pay to the Debenture Trustee such amounts as shall be sufficient to cover
reasonable compensation to, and expenses of, the Debenture Trustee, each
predecessor Debenture Trustee and their respective agents, attorneys and
counsel, and all other amounts due to the Debenture Trustee pursuant to Section
6.06.

        Nothing herein contained shall be construed to authorize the Debenture
Trustee to authorize or consent to or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any holder thereof or to
authorize the Debenture Trustee to vote in respect of the claim of any
Securityholder in any such proceeding.

        All rights of action and of asserting claims under this Indenture, or
under any of the Securities, may be enforced by the Debenture Trustee without
the possession of any of the Securities, or the production thereof on any trial
or other proceeding relative thereto, and any such suit or proceeding instituted
by the Debenture 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 Securities.

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

        SECTION 5.03 Application of Moneys Collected by Debenture Trustee.

        Any moneys collected by the Debenture Trustee shall be applied in the
following order, at the date or dates fixed by the Debenture Trustee for the
distribution of such moneys, upon

                                       24

<PAGE>
presentation of the 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 of collection applicable to
the Securities and all other amounts due to the Debenture Trustee under Section
6.06;

        Second: To the payment of all Senior Indebtedness of the Corporation if
and to the extent required by Article XV;

        Third: To the payment of the amounts then due and unpaid upon Securities
for principal of (and premium, if any) and interest (including Compounded
Interest and Additional Sums, if any) on the Securities, in respect of which or
for the benefit of which money has been collected, ratably, without preference
of priority of any kind, according to the amounts due on such Securities for
principal (and premium, if any) and interest, respectively; and

        Fourth: To the Corporation.

        SECTION 5.04 Proceedings by Securityholders.

        No holder of any Security shall have any right by virtue of or by
availing of any provision of this Indenture to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Indenture
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless such holder previously shall have given to the Debenture
Trustee written notice of an Event of Default and of the continuance thereof
with respect to the Securities specifying such Event of Default, as hereinbefore
provided, and unless also the holders of not less than 25% in aggregate
principal amount of the Securities then outstanding shall have made written
request upon the Debenture Trustee to institute such action, suit or proceeding
in its own name as Debenture Trustee hereunder and shall have offered to the
Debenture Trustee such reasonable indemnity as it may require against the costs,
expenses and liabilities to be incurred therein or thereby, and the Debenture
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, it
being understood and intended, and being expressly covenanted by the taker and
holder of every Security with every other taker and holder and the Debenture
Trustee, that no one or more holders of Securities shall have any right in any
manner whatever by virtue of or by availing itself of any provision of this
Indenture to affect, disturb or prejudice the rights of any other holder of
Securities, or to obtain or seek to obtain priority over or preference to any
other such holder, or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all
holders of Securities.

        Notwithstanding any other provisions in this Indenture, however, the
right of any holder of any Security to receive payment of the principal of (and
premium, if any) and interest on (including Compounded Interest and Additional
Sums, if any) such Security, on or after the same shall have become due and
payable, or to institute suit for the enforcement of any such payment, shall not
be impaired or affected without the consent of such holder, and by accepting a
Security hereunder it is expressly understood, intended and covenanted by the
taker and holder of every Security with every other such taker and holder and
the Debenture Trustee, that no one or more holders of Securities shall have any
right in any manner whatsoever by virtue or by availing itself

                                       25

<PAGE>
of any provision of this Indenture to affect, disturb or prejudice the rights of
the holders of any other Securities, or to obtain or seek to obtain priority
over or preference to any other such holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all holders of Securities. For the protection and enforcement
of the provisions of this Section, each and every Securityholder and the
Debenture Trustee shall be entitled to such relief as can be given either at law
or in equity.

        The Corporation and the Debenture Trustee acknowledge that pursuant to
the Declaration, the holders of Capital Securities are entitled, in the
circumstances and subject to the limitations set forth therein, to commence a
Direct Action with respect to any Event of Default referred to in clause (a) or
(b) of Section 5.01.

        SECTION 5.05 Proceedings by Debenture Trustee.

        In case an Event of Default occurs with respect to Securities and is
continuing, the Debenture 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 Debenture 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 Debenture Trustee by this Indenture or by law.

        SECTION 5.06 Remedies Cumulative and Continuing.

        All powers and remedies given by this Article V to the Debenture 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
Debenture Trustee or the holders of the 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 Securities, and no delay or omission of the Debenture Trustee or of any
holder of any of the 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 Debenture Trustee or
to the Securityholders may be exercised from time to time, and as often as shall
be deemed expedient, by the Debenture 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
Securities at the time outstanding shall have the right to direct the time,
method, and place of conducting any proceeding for any remedy available to the
Debenture Trustee, or exercising any trust or power conferred on the Debenture
Trustee; provided, however, that (subject to the provisions of Section 6.01) the
Debenture Trustee shall have the right to decline to follow any such direction
if the Debenture Trustee shall determine that the action so directed would be
unjustly prejudicial to the

                                       26

<PAGE>
holders not taking part in such direction or if the Debenture Trustee being
advised by counsel determines that the action or proceeding so directed may not
lawfully be taken or if the Debenture Trustee in good faith by one of its
Responsible Officers shall determine that the action or proceedings so directed
would involve the Debenture Trustee in personal liability. Prior to any
declaration accelerating the maturity of the Securities, the holders of a
majority in aggregate principal amount of the Securities at the time outstanding
may on behalf of the holders of all of the Securities waive any past Default or
Event of Default and its consequences except a Default (a) in the payment of
principal of (or premium, if any) or interest on (including Compounded Interest
and Additional Sums, if any) any of the Securities (unless such default has been
cured and a sum sufficient to pay all matured installments of interest
(including Compounded Interest and Additional Sums, if any) and principal (and
premium, if any), due otherwise than by acceleration has been deposited with the
Debenture Trustee) or (b) in respect of covenants or provisions hereof which
cannot be modified or amended without the consent of the holder of each Security
affected; provided, however, that if the Securities are held by the Property
Trustee, such waiver or modification to such waiver shall not be effective until
the holders of a majority in aggregate liquidation amount of Trust Securities
shall have consented to such waiver or modification to such waiver; provided,
further, that if the consent of the holder of each outstanding Security is
required, such waiver shall not be effective until each holder of the Trust
Securities shall have consented to such waiver. Upon any such waiver, the
Default covered thereby shall be deemed to be cured for all purposes of this
Indenture and the Corporation, the Debenture Trustee and the holders of the
Securities shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other 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 Securities and this Indenture
be deemed to have been cured and to be not continuing.

        SECTION 5.08 Notice of Defaults

        (a) The Debenture Trustee shall, within 90 days after the Debenture
Trustee has knowledge of the occurrence of a Default with respect to the
Securities, mail to all Securityholders, as the names and addresses of such
holders appear upon the Security Register, notice of all such Defaults, unless
such Default shall have been cured before the giving of such notice (the term
"Default" for the purpose of this Section 5.08 being hereby defined to be any of
the events specified in clauses (a), (b), (c), (d) and (e) of Section 5.01, not
including periods of grace, if any, provided for therein, and irrespective of
the giving of written notice specified in clause (c) of Section 5.01); provided,
however, that, except in the case of Default in the payment of the principal of
(or premium, if any) or interest (including Compounded Interest or Additional
Sums, if any) on any of the Securities, the Debenture Trustee shall be protected
in withholding such notice if and so long as the board of directors, the
executive committee, or a trust committee of directors and/or Responsible
Officers of the Debenture Trustee in good faith determines that the withholding
of such notice is in the interests of the Securityholders; provided, further,
that in the case of any Default of the character specified in Section 5.01(c),
no such notice to Securityholders shall be given until at least 60 days after
the occurrence thereof, but shall be given within 90 days after such occurrence.

                                       27

<PAGE>
        (b) Within ten Business Days after the Debenture Trustee has knowledge
of the occurrence of any Event of Default, the Debenture Trustee shall transmit
notice of such Event of Default to all Securityholders as their names and
addresses appear on the Security Register, unless such Event of Default shall
have been cured or waived.

        SECTION 5.09 Undertaking to Pay Costs.

        All parties to this Indenture agree, and each holder of any Security by
its 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 Debenture Trustee for any action
taken or omitted by it as Debenture 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 Debenture Trustee, to any suit instituted by any Securityholder, or group
of Securityholders, holding in the aggregate more than 10% in aggregate
principal amount of the Securities outstanding, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest (including Compounded Interest and Additional Sums,
if any) on any Security against the Corporation on or after the same shall have
become due and payable.

                                   ARTICLE VI
                        CONCERNING THE DEBENTURE TRUSTEE

        SECTION 6.01 Duties and Responsibilities of Debenture Trustee.

        With respect to the holders of the Securities issued hereunder, the
Debenture Trustee, prior to the occurrence of an Event of Default (which, other
than in the case of Sections 5.01(a) and 5.01(b) hereof, is known to the
Debenture Trustee) and after the curing or waiving of all such Events of Default
which may have occurred, undertakes to perform such duties and only such duties
as are specifically set forth in this Indenture. In case an Event of Default
(which, other than in the case of Sections 5.01(a) and 5.01(b) hereof, is
known to the Debenture Trustee) has occurred (which has not been cured or
waived), the Debenture 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 his or her own affairs.

        No provision of this Indenture shall be construed to relieve the
Debenture 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 (which, other than in
the case of Sections 5.01(a) and 5.01(b) hereof, is known to the Debenture
Trustee) and after the curing or waiving of all such Events of Default which may
have occurred,

                                       28

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

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

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

        (c)     the Debenture 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
                Debenture Trustee, or exercising any trust or power conferred
                upon the Debenture Trustee, under this Indenture.

        None of the provisions contained in this Indenture shall require the
Debenture 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 it reasonably believes that the repayment of
such funds or liability is not reasonably assured to it under the terms of this
Indenture or adequate indemnity against such risk is not reasonably assured to
it.

        SECTION 6.02 Reliance on Documents, Opinions, etc.

        Except as otherwise provided in Section 6.01:

        (a)     the Debenture Trustee may conclusively rely and shall be
                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 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 Corporation
                mentioned herein may be sufficiently evidenced by an Officers'
                Certificate (unless other evidence in respect thereof be herein
                specifically prescribed); and any Board Resolution may

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<PAGE>
                be evidenced to the Debenture Trustee by a copy thereof
                certified by the Secretary or an Assistant Secretary of the
                Corporation;

        (c)     the Debenture 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 or
                suffered or omitted by it hereunder in good faith and in
                accordance with such advice or Opinion of Counsel;

        (d)     the Debenture 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 Debenture Trustee
                reasonable and sufficient security or indemnity against the
                costs, expenses and liabilities which may be incurred therein or
                thereby;

        (e)     the Debenture Trustee shall not be liable for any action taken
                or omitted by it in good faith and 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 Debenture Trustee of the obligation,
                upon the occurrence of an Event of Default (which, other than in
                the case of Sections 5.01(a) and 5.01(b) hereof, is known to
                the Debenture Trustee) (that has not been cured or waived), to
                exercise such of the rights and powers vested in it by this
                Indenture, and to use the same degree of care and skill in its
                exercise as a prudent person would exercise or use under the
                circumstances in the conduct of his or her own affairs;

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

        (g)     the Debenture 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 Debenture 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;

        (h)     notwithstanding any provision in this Indenture to the contrary,
                the Debenture Trustee shall not be charged with knowledge of any
                Default or Event of Default unless (1) such Default or Event of
                Default falls within Section 5.01(a) (other than a default with
                respect to the payment or nonpayment of Compounded Interest or

                                       30
<PAGE>
                Additional Sums or, unless the Debenture Trustee is also trustee
                with respect thereto, amounts on any Other Debentures) or
                Section 5.01 (b) (other than a default with respect to the
                payment or nonpayment of amounts on any Other Debentures unless
                the Debenture Trustee is also trustee with respect thereto) of
                this Indenture, (2) a Responsible Officer shall have actual
                knowledge of such Default or Event of Default or (3) written
                notice of such Default or Event of Default shall have been given
                to the Debenture Trustee by the Corporation or any other obligor
                on the Securities or by any holder of the Securities; and

        (i)     the Debenture Trustee shall not be liable for any action taken,
                suffered or omitted by it in good faith, without negligence or
                willful misconduct and believed by it to be authorized or within
                the discretion or rights or powers conferred upon it by this
                Indenture.

        SECTION 6.03 No Responsibility, for Recitals, etc.

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

        SECTION 6.04 Debenture Trustee, Authenticating Agent. Paying Agents,
                     Transfer Agents and Registrar May Own Securities.

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

        SECTION 6.05 Moneys to be Held in Trust.

        Subject to the provisions of Section 11.04, all moneys received by the
Debenture 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 Debenture 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 Corporation. So long as no Event of Default shall have occurred
and be continuing, all interest allowed on any such moneys shall be paid from
time to time upon the written order of the Corporation, signed by an Officer
thereof.

        SECTION 6.06 Compensation and Expenses of Debenture Trustee.

                                       31
<PAGE>
        The Corporation, as issuer of Securities under this Indenture, covenants
and agrees to pay to the Debenture Trustee from time to time, and the Debenture
Trustee shall be entitled to, such compensation as shall be agreed to in writing
between the Corporation and the Debenture 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 Corporation will pay or reimburse the Debenture Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made
by the Debenture Trustee in accordance with any of the provisions of this
Indenture (including the reasonable compensation and the expenses and
disbursements of its counsel and of all persons not regularly in its employ),
except any such expense, disbursement or advance as may arise from its
negligence or bad faith. The Corporation also covenants to indemnify each of the
Debenture Trustee (including in its individual capacity) and any predecessor
Debenture Trustee (and its officers, agents, directors and employees) for, and
to hold it harmless against, any and all loss, damage, claim, action, suit,
liability or expense including taxes (other than taxes based on the income of
the Debenture Trustee) incurred without negligence or bad faith on the part of
the Debenture Trustee and 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 of liability. The obligations of the Corporation under
this Section 6.06 to compensate and indemnify the Debenture Trustee and to pay
or reimburse the Debenture Trustee for expenses, disbursements and advances
shall constitute additional indebtedness hereunder. Such additional indebtedness
shall be secured by a lien prior to that of the Securities upon all property and
funds held or collected by the Debenture Trustee as such, except funds held in
trust for the benefit of the holders of particular Securities.

        When the Debenture Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 5.01(d) or Section
5.01(e), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for its 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 Debenture Trustee and the defeasance or other termination of this
Indenture.

        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 Debenture 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 is herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Debenture Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate delivered to the
Debenture Trustee, and such Officers' Certificate, in the absence of negligence
or bad faith on the part of the Debenture Trustee, shall be full warrant to the
Debenture Trustee for any action taken or omitted by it under the provisions of
this Indenture upon the faith thereof.

        SECTION 6.08 Conflicting Interest of Debenture Trustee.

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<PAGE>
        If the Debenture Trustee has or shall acquire any "conflicting interest"
within the meaning of Section 310(b) of the Trust Indenture Act, the Debenture
Trustee and the Corporation shall in all respects comply with the provisions of
Section 310(b) of the Trust Indenture Act.

        SECTION 6.09 Eligibility of Debenture Trustee.

        The Debenture Trustee hereunder shall at all times be a Person 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 a corporation or other
Person permitted to act as trustee by the Commission 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 Person 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 6.09 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.

        The Corporation may not, nor may any Person directly or indirectly
controlling, controlled by, or under common control with the Corporation, serve
as Debenture Trustee.

        In case at any time the Debenture Trustee shall cease to be eligible in
accordance with the provisions of this Section 6.09, the Debenture Trustee shall
resign immediately in the manner and with the effect specified in Section 6.10.

        SECTION 6.10      Resignation or Removal of Debenture Trustee.

        (a) The Debenture Trustee, or any trustee or trustees hereafter
appointed, may at any time resign by giving written notice of such resignation
to the Corporation and by mailing notice thereof to the holders of the
Securities at their addresses as they shall appear on the Security Register.
Upon receiving such notice of resignation, the Corporation shall promptly
appoint a successor trustee or trustees, in accordance with the provisions of
Section 6.09, by written instrument, in duplicate, one copy of which instrument
shall be delivered to the resigning Debenture Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed and have
accepted appointment within 60 days after the mailing of such notice of
resignation to the affected Securityholders, the resigning Debenture Trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee, or any Securityholder may, subject to the provisions of Section 5.09,
on behalf of himself and all others similarly situated, petition any such court
for the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

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

                (1)     the Debenture Trustee shall fail to comply with the
                        provisions of Section 6.08 after written request
                        therefor by the Corporation, or by MMCapS(SM) Funding I,
                        Ltd. or by any other Securityholder who has been a bona
                        fide holder of a Security or Securities for at least six
                        months, or

                                       33

<PAGE>
                (2)     the Debenture Trustee shall cease to be eligible in
                        accordance with the provisions of Section 6.09 and shall
                        fail to resign after written request therefor by the
                        Corporation, by MMCapS(SM) Funding I, Ltd. or by any
                        other Securityholder who has been a bona fide holder of
                        a Security or Securities for at least six months, or

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

then, in any such case, the Corporation may remove the Debenture Trustee and
appoint a successor trustee, in accordance with the provisions of Section 6.09,
by written instrument, in duplicate, one copy of which instrument shall be
delivered to the Debenture Trustee so removed and one copy to the successor
trustee, or, subject to the provisions of Section 5.09, MMCapS(SM) Funding I,
Ltd. or any other Securityholder who has been a bona fide holder of a Security
for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Debenture Trustee and the appointment of a successor trustee. Such court may
thereupon, after such notice, if any, as it may deem proper prescribe, remove
the Debenture Trustee and appoint a successor trustee.

        (c) The holders of a majority in aggregate principal amount of the
Securities at the time outstanding may at any time remove the Debenture Trustee
and nominate a successor trustee, which shall be deemed appointed as successor
trustee unless within 10 days after written notification of such nomination the
Corporation objects thereto, or if no successor trustee shall have been so
appointed and shall have accepted appointment within 30 days after such removal,
in which case the Debenture Trustee so removed or any Securityholder, upon the
terms and conditions and otherwise as in subsection (a) of this Section 6.10
provided, may petition any part of competent jurisdiction for an appointment of
a successor trustee.

        (d) Any resignation or removal of the Debenture Trustee and appointment
of a successor trustee pursuant to any of the provisions of this Section 6.10
shall become effective upon acceptance of appointment by the successor trustee
as provided in Section 6.11.

        SECTION 6.11 Acceptance by Successor Debenture Trustee.

        Any successor trustee appointed as provided in Section 6.10 shall
execute, acknowledge and deliver to the Corporation and to its predecessor
trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the retiring trustee shall become effective and such
successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, duties and obligations of its predecessor
hereunder, with like effect as if originally named as trustee herein; but,
nevertheless, on the written request of the Corporation or of the successor
trustee, the trustee ceasing to act shall, upon payment of all amounts then due
it pursuant to the provisions of Section 6.06, execute and deliver an instrument
transferring to such successor trustee all the rights and powers of the trustee
so ceasing to act and shall duly assign, transfer and deliver to such successor
trustee all property

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<PAGE>
and money held by such retiring trustee thereunder. Upon request of any such
successor trustee, the Corporation shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by such
trustee to secure any amounts then due it pursuant to the provisions of Section
6.06.

        No successor trustee shall accept appointment as provided in this
Section 6.11 unless at the time of such acceptance such successor trustee shall
be qualified under the provisions of Section 6.08 and eligible under the
provisions of Section 6.09.

        Upon acceptance of appointment by a successor trustee as provided in
this Section 6.11, the Corporation shall mail notice of the succession of such
trustee hereunder to the holders of Securities at their addresses as they shall
appear on the Security Register. If the Corporation fails to mail such notice
within 10 days after the acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the
Corporation.

        SECTION 6.12 Succession by Merger, etc.

        Any Person into which the Debenture 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 Debenture Trustee shall be a party, or
any Person succeeding to all or substantially all of the corporate trust
business of the Debenture Trustee, shall be the successor of the Debenture
Trustee hereunder without the execution or filing of any paper or any further
act on the part of any of the parties hereto.

        In case any Securities shall have been authenticated but not delivered
at the time such successor to the Debenture Trustee shall succeed to the trusts
created by this Indenture, any such successor to the Debenture Trustee may adopt
the certificate of authentication of any predecessor trustee, and deliver such
Securities so authenticated; and in case at that time any of the Securities
shall not have been authenticated, any successor to the Debenture Trustee may
authenticate such 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 the Securities or this Indenture elsewhere
provides that the certificate of the Debenture Trustee shall have; provided,
however, that the right to adopt the certificate of authentication of any
predecessor Debenture Trustee or authenticate Securities in the name of any
predecessor Debenture Trustee shall apply only to its successor or successors by
merger, conversion or consolidation.

        SECTION 6.13 Limitation on Rights of Debenture Trustee as a Creditor.

        The Debenture Trustee shall comply with Section 311 (a) of the Trust
Indenture Act, excluding any creditor relationship described in Section 311 (b)
of the Trust Indenture Act. A Debenture Trustee who has resigned or been removed
shall be subject to Section 311(a) of the Trust Indenture Act to the extent
included therein.

        SECTION 6.14 Authenticating Agents.

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        There may be one or more Authenticating Agents appointed by the
Debenture Trustee upon the request of the Corporation with power to act on the
Debenture Trustee's behalf and subject to the Debenture Trustee's direction in
the authentication and delivery of Securities issued upon exchange or transfer
thereof as fully to all intents and purposes as though any such Authenticating
Agent had been expressly authorized to authenticate and deliver Securities;
provided, however, that the Debenture Trustee shall have no liability to the
Corporation for any acts or omissions of the Authenticating Agent with respect
to the authentication and delivery of 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 $5,000,000 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 6.14 the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect herein specified in
this Section.

        Any Person into which any Authenticating Agent may be merged, converted
or with which it may be consolidated, or any Person resulting from any merger or
consolidation to which any Authenticating Agent shall be a party, or any Person
succeeding to 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 6.14 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 Debenture Trustee and to the Corporation. The Debenture
Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and to the
Corporation. 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 6.14, the Debenture Trustee may, and upon the
request of the Corporation shall, promptly appoint a successor Authenticating
Agent eligible under this Section 6.14, shall give written notice of such
appointment to the Corporation and shall mail notice of such appointment to all
Securityholders as the names and addresses of such holders appear on the
Security Register. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all rights, powers, duties and
responsibilities of its predecessor hereunder, with like effect as if originally
named as Authenticating Agent herein.

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The Corporation, as issuer of the Securities, 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 Debenture
Trustee.

                                   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 Securities may take
any action (including the making of any demand or request, the giving of any
notice, consent or waiver or the taking of any other action), the fact that at
the time of taking any such action the holders of such specified percentage have
joined therein may be evidenced (a) by any instrument (including by way of
electronic transmission) or any number of instruments of similar tenor executed
by such Securityholders in person or by agent or proxy appointed in writing, or
(b) by the record of such holders of Securities voting in favor thereof at any
meeting of such Securityholders duly called and held in accordance with the
provisions of Article VIII, or (c) by a combination of such instrument or
instruments and any such record of such a meeting of such Securityholders.

        If the Corporation shall solicit from the Securityholders any request,
demand, authorization, direction, notice, consent, waiver or other action, the
Corporation may, at its option, as evidenced by an Officers' Certificate, fix in
advance a record date for the determination of Securityholders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or other
action, but the Corporation shall have no obligation to do so. If such a record
date is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other action 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 Securities have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other action, and for that purpose the
outstanding 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 his agent or proxy shall be
sufficient if made in accordance with such reasonable rules and regulations as
may be prescribed by the Debenture Trustee or in such manner as shall be
satisfactory to the Debenture Trustee. The ownership of Securities shall be
proved by the Security Register or by a certificate of the security registrar
for the Securities. The Debenture Trustee may require such additional proof of
any matter referred to in this Section 7.02 as it shall deem necessary.

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

        SECTION 7.03 Who Are Deemed Absolute Owners.

        Prior to due presentment for registration of transfer of any Security,
the Corporation, the Debenture Trustee, any Authenticating Agent, any paying
agent, any transfer agent and any security registrar for the Securities may deem
the person in whose name such Security shall be registered upon the Security
Register to be, and may treat him or her as, the absolute owner of such Security
(whether or not such Security shall be overdue) for the purpose of receiving
payment of or on account of the principal of and premium, if any, and (subject
to Section 2.05) interest on such Security and for all other purposes; and
neither the Corporation nor the Debenture Trustee nor any Authenticating Agent
nor any paying agent nor any transfer agent nor any security registrar for the
Securities shall be affected by any notice to the contrary. All such payments so
made to any holder for the time being or upon his or her 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 Security.

        SECTION 7.04 Securities Owned by Corporation Deemed Not Outstanding.

        In determining whether the holders of the requisite aggregate principal
amount of Securities have concurred in any direction, consent or waiver under
this Indenture, Securities that are owned by the Corporation or any other
obligor on the Securities or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Corporation or
any other obligor on the Securities shall be disregarded and deemed not to be
outstanding for the purpose of any such determination; provided, however, that
for the purposes of determining whether the Debenture Trustee shall be protected
in relying on any such direction, consent or waiver, only Securities which a
Responsible Officer of the Debenture Trustee actually knows are so owned shall
be so disregarded. 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 Debenture Trustee the pledgee's right
to vote such Securities and that the pledgee is not the Corporation or any such
other obligor or Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Corporation or any such other
obligor. In the case of a dispute as to such right, any decision by the
Debenture Trustee taken upon the advice of counsel shall be full protection to
the Debenture Trustee.

        SECTION 7.05 Revocation of Consents; Future Holders Bound.

        At any time prior to (but not after) the evidencing to the Debenture
Trustee, as provided in Section 7.01, of the taking of any action by the holders
of the percentage in aggregate principal amount of the Securities specified in
this Indenture in connection with such action, any holder of a Security (or any
Security issued in whole or in part in exchange or substitution therefor),
subject to Section 7.01, the serial number of which is shown by the evidence to
be included in the group of Securities the holders of which have consented to
such action, may, by filing written notice with the Debenture Trustee at its
principal office and upon proof of holding as provided in Section 7.02, revoke
such action so far as concerns such Security (or so far as

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<PAGE>
concerns the principal amount represented by any exchanged or substituted
Security). Except as aforesaid, any such action taken by the holder of any
Security shall be conclusive and binding upon such holder and upon all future
holders and owners of such Security, and of any Security issued in exchange or
substitution therefor, irrespective of whether or not any notation in regard
thereto is made upon such Security or any Security issued in exchange or
substitution therefor.

                                  ARTICLE VIII
                           MEETINGS OF SECURITYHOLDERS

        SECTION 8.01 Purposes of Meetings.

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

        (a)     to give any notice to the Corporation or to the Debenture
                Trustee, or to give any directions to the Debenture 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 Debenture 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 Securities under any other provision of this Indenture or
                under applicable law.

        SECTION 8.02 Call of Meetings by Debenture Trustee.

        The Debenture 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 Wilmington, Delaware as the Debenture 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 Securities at their addresses as
they shall appear on the Security 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 Corporation or Securityholders.

        In case at any time the Corporation, pursuant to a resolution of the
Board of Directors, or the holders of at least 20% in aggregate principal amount
of the Securities then outstanding, shall have requested the Debenture Trustee
to call a meeting of Securityholders, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the
Debenture Trustee shall not have mailed the notice of such meeting within 20
days after receipt of such request, then the Corporation or such Securityholders
may determine the time and the

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<PAGE>
place in Los Angeles, California 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 Securities or (b) a Person appointed by an
instrument in writing as proxy by a holder of one or more 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 Debenture Trustee and its counsel and any
representatives of the Corporation and its counsel.

        SECTION 8.05 Regulations.

        Notwithstanding any other provisions of this Indenture, the Debenture
Trustee may make such reasonable regulations as it may deem advisable for any
meeting of Securityholders, in regard to proof of the holding of 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 think fit.

        The Debenture Trustee shall, by an instrument in writing, appoint a
temporary chairman of the meeting, unless the meeting shall have been called by
the Corporation or by Securityholders as provided in Section 8.03, in which case
the Corporation 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 of the
meeting.

        Subject to the provisions of Section 8.04, at any meeting each holder of
Securities or proxy therefor shall be entitled to one vote for each $1,000
principal amount of Securities held or represented by him or her; provided,
however, that no vote shall be cast or counted at any meeting in respect of any
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 Securities held by him or instruments in writing as
aforesaid duly designating him 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, 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
Securities 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 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

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<PAGE>
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 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
Corporation and the other to the Debenture Trustee to be preserved by the
Debenture 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.

                                   ARTICLE IX
                                   AMENDMENTS

        SECTION 9.01 Without Consent of Securityholders.

        The Corporation and the Debenture Trustee may from time to time and at
any time amend this Indenture, without the consent of the Securityholders, for
one or more of the following purposes:

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

        (b)     to add to the covenants of the Corporation such further
                covenants, restrictions or conditions for the protection of the
                Securityholders as the Board of Directors and the Debenture
                Trustee shall consider to be for the protection of the
                Securityholders, 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 remedies
                provided in this Indenture as herein set forth; provided,
                however, that in respect of any such additional covenant,
                restriction or condition such amendment 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 Debenture
                Trustee upon such default;

        (c)     to provide for the issuance under this Indenture of Securities
                in coupon form (including Securities registrable as to principal
                only) and to provide for exchangeability of such Securities with
                the Securities issued hereunder in fully registered form and to
                make all appropriate changes for such purpose;

        (d)     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 such other
                provisions in regard to matters or questions arising under this

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<PAGE>
                Indenture, provided that any such action shall not materially
                adversely affect the interests of the holders of the Securities;

        (e)     to evidence and provide for the acceptance of appointment
                hereunder by a successor trustee with respect to the Securities;

        (f)     to make provision for transfer procedures, certification, book
                entry provisions, the form of restricted securities legends, if
                any, to be placed on Securities, and all other matters required
                pursuant to Section 2.06 or otherwise necessary, desirable or
                appropriate in connection with the issuance of Securities to
                holders of Capital Securities in the event of a distribution of
                Securities by the Trust following a Dissolution Event, provided
                that any such action shall not materially adversely affect the
                interests of the holders of the Securities;

        (g)     to qualify or maintain qualification of this Indenture under the
                Trust Indenture Act; or

        (h)     to make any change that does not adversely affect the rights of
                any Securityholder in any material respect.

        The Debenture Trustee is hereby authorized to join with the Corporation
in the execution of any supplemental indenture to effect such amendment, 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 Debenture Trustee shall not be obligated to, but may in its
discretion, enter into any such supplemental indenture which affects the
Debenture Trustee's own rights, duties or immunities under this Indenture or
otherwise.

        Any amendment to this Indenture authorized by the provisions of this
Section 9.01 may be executed by the Corporation and the Debenture Trustee
without the consent of the holders of any of the Securities at the time
outstanding, notwithstanding any of the provisions of Section 9.02.

        SECTION 9.02 With Consent of Securityholders.

        With the consent (evidenced as provided in Section 7.01) of the holders
of a majority in aggregate principal amount of the Securities at the time
outstanding, the Corporation, when authorized by a Board Resolution, and the
Debenture Trustee may from time to time and at any time amend this Indenture for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of modifying in any manner the rights
of the holders of the Securities; provided, however, that no such amendment
shall, without the consent of the holders of each Security then outstanding and
affected thereby (i) change the Maturity Date of any Security, or reduce the
rate or extend the time of payment of interest thereon (except as contemplated
by Article XVI), or reduce or increase the aggregate principal amount of the
series of which such Security is a part or issue other Securities, or change any
prepayment provisions, or make the principal thereof or any interest or premium
thereon payable in any coin or currency other than U.S. dollars, or impair or
affect the right of any Securityholder to institute suit for payment thereof, or
(ii) reduce the aforesaid percentage of Securities, the holders of which are
required to consent to any such amendment to the Indenture; provided,

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<PAGE>
however, that if the Securities are held by the Trust, such amendment shall not
be effective until the holders of a majority in liquidation amount of Trust
Securities shall have consented to such amendment; provided, further, that if
the consent of the holder of each outstanding Security is required, such
amendment shall not be effective until the holder of each outstanding Trust
Security shall have consented to such amendment.

        Upon the request of the Corporation accompanied by a copy of a
resolution of the Board of Directors certified by its Secretary or Assistant
Secretary authorizing the execution of any supplemental indenture effecting
such amendment, and upon the filing with the Debenture Trustee of evidence of
the consent of Securityholders as aforesaid, the Debenture Trustee shall join
with the Corporation in the execution of such supplemental indenture unless such
supplemental indenture affects the Debenture Trustee's own rights, duties or
immunities under this Indenture or otherwise, in which case the Debenture
Trustee may in its discretion, but shall not be obligated to, enter into such
supplemental indenture.

        Promptly after the execution by the Corporation and the Debenture
Trustee of any supplemental indenture pursuant to the provisions of this
Section, the Debenture Trustee shall transmit by mail, first class postage
prepaid, a notice, prepared by the Corporation, setting forth in general terms
the substance of such supplemental indenture, to the Securityholders as their
names and addresses appear upon the Security Register. Any failure of the
Debenture 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 Compliance with Trust Indenture Act, Effect of Supplemental
                     Indentures.

        Any supplemental indenture executed pursuant to the provisions of this
Article IX shall comply with the Trust Indenture Act. 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 Debenture Trustee, the Corporation
and the holders of 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 Securities.

        Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article IX may bear a
notation in form approved by the Debenture Trustee as to any matter provided for
in such supplemental indenture. If the Corporation or the Debenture Trustee
shall so determine, new Securities so modified as to conform, in the opinion of
the Debenture Trustee and the Board of Directors, to any modification

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<PAGE>
of this Indenture contained in any such supplemental indenture may be prepared
and executed by the Corporation, authenticated by the Debenture Trustee or the
Authenticating Agent and delivered in exchange for the Securities then
outstanding.

        SECTION 9.05 Evidence of Compliance of Supplemental Indenture to be
                     Furnished to Debenture Trustee.

        The Debenture Trustee, subject to the provisions of Sections 6.01 and
6.02, may 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.

                                    ARTICLE X
           CONSOLIDATION, MERGER, SALE, CONVEYANCE, TRANSFER AND LEASE

        SECTION 10.01 Corporation May Consolidate, etc., on Certain Terms.

        Nothing contained in this Indenture or in any of the Securities shall
prevent any consolidation or merger of the Corporation with or into any other
Person (whether or not affiliated with the Corporation, as the case may be), or
successive consolidations or mergers in which the Corporation or its successor
or successors, as the case may be, shall be a party or parties, or shall prevent
any sale, conveyance, transfer or lease of the property of the Corporation, or
its successor or successors as the case may be, as an entirety, or substantially
as an entirety, to any other Person (whether or not affiliated with the
Corporation, or its successor or successors, as the case may be) authorized to
acquire and operate the same; provided, that (a) the Corporation is the
surviving Person, or the Person formed by or surviving any such consolidation or
merger (if other than the Corporation) or to which such sale, conveyance,
transfer or lease of property is made is a Person organized and existing under
the laws of the United States or any State thereof or the District of Columbia,
and (b) if the Corporation is not the surviving Person, upon any such
consolidation, merger, sale, conveyance, transfer or lease, the due and punctual
payment of the principal of (and premium, if any) and interest on the Securities
according to their tenor and the due and punctual performance and observance of
all the covenants and conditions of this Indenture to be kept or performed by
the Corporation shall be expressly assumed by the surviving Person, by
supplemental indenture (which shall conform to the provisions of the Trust
Indenture Act as then in effect) satisfactory in form to the Debenture Trustee,
executed and delivered to the Debenture Trustee by the Person formed by such
consolidation, or into which the Corporation shall have been merged, or by the
Person which shall have acquired such property, as the case may be, and (c)
after giving effect to such consolidation, merger, sale, conveyance, transfer or
lease, no Default or Event of Default shall have occurred and be continuing.

        SECTION 10.02 Successor Person to be Substituted for Corporation.

        In case of any such consolidation, merger, sale, conveyance, transfer or
lease, and upon the assumption by the successor corporation, by supplemental
indenture, executed and delivered to the Debenture Trustee and satisfactory in
form to the Debenture Trustee, of the obligation of due and punctual payment of
the principal of (and premium, if any) and interest on all of the Securities and
the due and punctual performance and observance of all of the covenants and

                                       44
<PAGE>
conditions of this Indenture to be performed or observed by the Corporation,
such successor Person shall succeed to and be substituted for the Corporation,
with the same effect as if it had been named herein as a party hereto, and the
Corporation thereupon shall be relieved of any further liability or obligation
hereunder or upon the Securities. Such successor Person thereupon may cause to
be signed, and may issue either in its own name or in the name of the
Corporation, any or all of the Securities issuable hereunder which theretofore
shall not have been signed by the Corporation and delivered to the Debenture
Trustee or the Authenticating Agent; and, upon the order of such successor
Person instead of the Corporation and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Debenture Trustee or the
Authenticating Agent shall authenticate and deliver any Securities which
previously shall have been signed and delivered by any Officer of the
Corporation to the Debenture Trustee or the Authenticating Agent for
authentication, and any Securities which such successor Person thereafter shall
cause to be signed and delivered to the Debenture Trustee or the Authenticating
Agent for that purpose. All the Securities so issued shall in all respects have
the same legal rank and benefit under this Indenture as the Securities
theretofore or thereafter issued in accordance with the terms of this Indenture
as though all of such Securities had been issued at the date of the execution
hereof.

       SECTION 10.03 Opinion of Counsel to be Given Debenture Trustee.

       The Debenture Trustee, subject to the provisions of Sections 6.01 and
6.02, may receive an Opinion of Counsel as conclusive evidence that any
consolidation, merger, sale, conveyance, transfer or lease, and any assumption,
permitted or required by the terms of this Article X complies with the
provisions of this Article X.

                                   ARTICLE XI
                     SATISFACTION AND DISCHARGE OF INDENTURE

       SECTION 11.01 Discharge of Indenture.

       When (a) the Corporation shall deliver to the Debenture Trustee for
cancellation all Securities theretofore authenticated (other than any Securities
which shall have been destroyed, lost or stolen and which shall have been
replaced as provided in Section 2.07) and not theretofore canceled, or (b) all
the Securities not theretofore canceled or delivered to the Debenture 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 prepayment within
one year under arrangements satisfactory to the Debenture Trustee for the giving
of notice of prepayment, and the Corporation shall deposit with the Debenture
Trustee, in trust, funds sufficient to pay on the Maturity Date or upon
prepayment all of the Securities (other than any Securities which shall have
been destroyed, lost or stolen and which shall have been replaced as provided in
Section 2.07) not theretofore canceled or delivered to the Debenture Trustee for
cancellation, including principal (and premium, if any) and interest (including
Compounded Interest and Additional Sums, if any) due or to become due to the
Maturity Date or prepayment date, as the case may be, but excluding, however,
the amount of any moneys for the payment of principal of (or premium, if any) or
interest (including Compounded Interest and Additional Sums, if any) on the
Securities (1) theretofore repaid to the Corporation in accordance with the
provisions of Section 11.04, or (2)

                                       45
<PAGE>
paid to any State or to the District of Columbia pursuant to its unclaimed
property or similar laws, and if, in either case the Corporation shall also pay
or cause to be paid all other sums payable hereunder by the Corporation, then
this Indenture shall cease to be of further effect except for the provisions of
Sections 2.02, 2.06, 2.07, 3.01, 3.02, 3.04, 6.06, 6.10 and 11.04 hereof, which
shall survive until such Securities shall mature and be paid. Thereafter,
Sections 6.06, 6.10 and 11.04 shall survive, and the Debenture Trustee, on
demand of the Corporation accompanied by any Officers' Certificate and an
Opinion of Counsel and at the cost and expense of the Corporation, shall execute
proper instruments acknowledging satisfaction of and discharging this Indenture;
the Corporation, however, hereby agrees to reimburse the Debenture Trustee for
any costs or expenses thereafter reasonably and properly incurred by the
Debenture Trustee in connection with this Indenture or the Securities.

       SECTION 11.02 Deposited Moneys and U.S. Government Obligations to be Held
                     in Trust by Debenture Trustee.

       Subject to the provisions of Section 11.04, all moneys and U.S.
Government Obligations deposited with the Debenture Trustee pursuant to Sections
11.01 or 11.05 shall be held in trust and applied by it to the payment, either
directly or through any paying agent (including the Corporation if acting as its
own paying agent), to the holders of the particular Securities for the payment
of which such moneys or U.S. Government Obligations have been deposited with the
Debenture Trustee, of all sums due and to become due thereon for principal,
premium, if any, and interest.

       The Corporation shall pay and indemnify the Debenture Trustee against any
tax, fee or other charge imposed on or assessed against the U.S. Governmental
Obligations deposited pursuant to Section 11.05 or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the holders of outstanding Securities.

       SECTION 11.03 Paying Agent to Repay Moneys Held.

       Upon the satisfaction and discharge of this Indenture all moneys then
held by any paying agent of the Securities (other than the Debenture Trustee)
shall, upon written demand of the Corporation, be repaid to it or paid to the
Debenture Trustee, and thereupon such paying agent shall be released from all
further liability with respect to such moneys.

       SECTION 11.04 Return of Unclaimed Moneys.

       Any moneys deposited with or paid to the Debenture Trustee or any paying
agent for payment of the principal of (or premium, if any) or interest
(including Compounded Interest and Additional Sums, if any) on Securities and
not applied but remaining unclaimed by the holders of Securities for two years
after the date upon which the principal of (or premium, if any) or interest
(including Compounded Interest and Additional Sums, if any) on such Securities,
as the case may be, shall have become due and payable, shall be repaid to the
Corporation by the Debenture Trustee or such paying agent; and the holder of any
of the Securities shall thereafter look only to the Corporation for any payment
which such holder may be entitled to collect and all liability of the Debenture
Trustee or such paying agent with respect to such moneys shall thereupon cease.

                                       46
<PAGE>

       SECTION 11.05 Defeasance Upon Deposit of Moneys or U.S. Government
                     Obligations.

       The Corporation shall be deemed to have been Discharged (as defined
below) from its obligations with respect to the Securities on the 91st day after
the applicable conditions set forth below have been satisfied:

       (a)    the Corporation shall have deposited or caused to be deposited
              irrevocably with the Debenture Trustee or the Defeasance Agent (as
              defined below) as trust funds in trust, specifically pledged as
              security for, and dedicated solely to, the benefit of the holders
              of the Securities (i) money in an amount, or (ii) U.S. Government
              Obligations which through the payment of interest and principal in
              respect thereof in accordance with their terms will provide, not
              later than one day before the due date of any payment, money in an
              amount, or (iii) a combination of (i) and (ii), sufficient, in the
              opinion (with respect to (ii) and (iii)) of a nationally
              recognized firm of independent public accountants expressed in a
              written certification thereof delivered to the Debenture Trustee
              and the Defeasance Agent, if any, to pay and discharge each
              installment of principal of and interest on and premium, if any,
              on the outstanding Securities on the dates such installments of
              principal and interest (and premium, if any) are due;

       (b)    if the Securities are then listed on any national securities
              exchange, the Corporation shall have delivered to the Debenture
              Trustee and the Defeasance Agent, if any, an Opinion of Counsel to
              the effect that the exercise of the option under this Section
              11.05 would not cause such Securities to be delisted from such
              exchange;

       (c)    no Default or Event of Default with respect to the Securities
              shall have occurred and be continuing on the date of such deposit;
              and

       (d)    the Corporation shall have delivered to the Debenture Trustee and
              the Defeasance Agent, if any, an Opinion of Counsel to the effect
              that holders of the Securities will not recognize income, gain or
              loss for United States federal income tax purposes as a result of
              the exercise of the option under this Section 11.05 and will be
              subject to United States federal income tax on the same amount and
              in the same manner and at the same times as would have been the
              case if such option had not been exercised.

       "Discharged" means that the Corporation shall be deemed to have paid and
discharged the entire indebtedness represented by, and obligations under, the
Securities and to have satisfied all the obligations under this Indenture
relating to the Securities (and the Debenture Trustee, at the expense of the
Corporation, shall execute proper instruments acknowledging the same), except
(1) the rights of holders of Securities to receive, from the trust fund
described in clause (a) above, payment of the principal of and the interest and
premium, if any, on the Securities when such payments are due; (2) the
Corporation's obligations with respect to the Securities under Sections 2.06,
2.07, 5.02 and 11.04; and (3) the rights, powers, trusts, duties and immunities
of the Debenture Trustee hereunder.

                                       47
<PAGE>

       "Defeasance Agent" means another financial institution which is eligible
to act as Debenture Trustee hereunder and which assumes all of the obligations
of the Debenture Trustee necessary to enable the Debenture Trustee to act
hereunder. In the event such a Defeasance Agent is appointed pursuant to this
Section, the following conditions shall apply:

       (1)    the Debenture Trustee shall have approval rights over the document
              appointing such Defeasance Agent and the document setting forth
              such Defeasance Agent's rights and responsibilities; and

       (2)    the Defeasance Agent shall provide verification to the Debenture
              Trustee acknowledging receipt of sufficient money and/or U.S.
              Government Obligations to meet the applicable conditions set forth
              in this Section 11.05.

                                   ARTICLE XII
                    IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
                             OFFICERS AND DIRECTORS

       SECTION 12.01 Indenture and Securities Solely Corporate Obligations.

       No recourse for the payment of the principal of or premium, if any, or
interest (including Compounded Interest and Additional Sums, if any) on any
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 Corporation
in this Indenture, or in any Security, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, employee, officer or director, as such, past, present or future, of
the Corporation or of any successor Person to the Corporation, either directly
or through the Corporation or any successor Person to the Corporation, 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 issuance of the
Securities.

                                  ARTICLE XIII
                            MISCELLANEOUS PROVISIONS

       SECTION 13.01 Successors.

       All of the covenants, stipulations, promises and agreements of the
Corporation contained in this Indenture shall also bind the Corporation's
successors and assigns whether so expressed or not.

       SECTION 13.02 Official Acts by Successor Corporation.

       Any act or proceeding that, by any provision of this Indenture, is
authorized or required to be done or performed by any board, committee or
officer of the Corporation shall and may be

                                       48
<PAGE>
done and performed with like force and effect by the like board, committee or
officer of any corporation that shall at the time be the lawful sole successor
of the Corporation.

       SECTION 13.03 Surrender of Corporation Powers.

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

       SECTION 13.04 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 Debenture Trustee or by the holders of
Securities on the Corporation may be given or served by being deposited postage
prepaid by first class mail, registered or certified mail, overnight courier
service or conformed telecopy addressed (until another address is filed by the
Corporation with the Debenture Trustee for the purpose) to Nara Bancorp, Inc. at
3701 Wilshire Boulevard, Suite 220, Los Angeles, California 90010,
Attention: Timothy Chang. Any notice, direction, request or demand by any
Securityholder to or upon the Debenture Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or made in writing at the
office of Wilmington Trust Company at Rodney Square North, 1100 North Market
Street, Wilmington, Delaware 19890, Attention: Corporate Trust Administration
(unless another address is provided by the Debenture Trustee to the Corporation
for such purpose). Any notice or communication to a Securityholder shall be
mailed by first class mail to his or her address shown on the Security Register
kept by the security registrar for the Securities. Notices required to be given
to the Debenture Trustee or the Authenticating Agent shall be in writing,
personally delivered or mailed first class postage prepaid to each of the
foregoing, or at such other address as shall be designated by written notice to
the other parties.

       SECTION 13.05 Governing Law.

       This Indenture and each Security shall be deemed to be a contract made
under the laws of the State of New York, and for all purposes shall be governed
by and construed in accordance with the laws of said State without regard to
conflict of law principles thereof.

       SECTION 13.06 Evidence of Compliance with Conditions Precedent.

       Upon any application or demand by the Corporation to the Debenture
Trustee to take any action under any of the provisions of this Indenture, the
Corporation shall furnish to the Debenture 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.

       Each certificate or opinion provided for in this Indenture and delivered
to the Debenture Trustee with respect to compliance with a condition or covenant
provided for in this Indentuure (except certificates delivered pursuant to
Section 3.05) shall include (1) a statement that the Person making such
certificate or opinion has read such covenant or condition; (2) a brief

                                       49
<PAGE>

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; (3) a statement that, in the opinion of such Person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

       SECTION 13.07 Business Days.

       In any case where the date of payment of principal of (or premium, if
any) or interest on the Securities is not a Business Day, the payment of such
principal of (or premium, if any) or interest on the Securities will not be made
on such date but will be made on the next succeeding Business Day, except if
such Business Day is in the next succeeding calendar year, such payment will be
made on the immediately preceding Business Day, with the same force and effect
as if made on the original date of payment, and no interest shall accrue for the
period from and after such date.

       SECTION 13.08 Trust Indenture Act to Control.

       If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by Sections 310 to 318,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

       SECTION 13.09 Table of Contents, Headings, etc.

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

       SECTION 13.10 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 13.11 Separability.

       In case any one or more of the provisions contained in this Indenture or
in the 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 the Securities,
but this Indenture and the Securities shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.

       SECTION 13.12 Assignment.

       The Corporation will have the right at all times to assign any of its
respective rights or obligations under this Indenture to a direct or indirect
wholly owned Subsidiary of the Corporation, provided that, in the event of any
such assignment, the Corporation will remain liable for all such obligations.
Subject to the foregoing, this Indenture is binding upon and inures

                                       50
<PAGE>
to the benefit of the parties thereto and their respective successors and
assigns. This Indenture may not otherwise be assigned by the parties thereto.

       SECTION 13.13 Acknowledgment of Rights.

       The Corporation acknowledges that, with respect to any Securities held by
the Trust or a trustee of such Trust, if the Property Trustee of such Trust
fails to enforce its rights under this Indenture as the holder of the Securities
held as the assets of the Trust, any holder of Capital Securities may institute
legal proceedings, subject to Section 5.09, directly against the Corporation to
enforce such Property Trustee's rights under this Indenture without first
instituting any legal proceedings against such Property Trustee or any other
person or entity. Notwithstanding the foregoing, if an Event of Default has
occurred and is continuing and such event is attributable to the failure of the
Corporation to pay principal of (or premium, if any) or interest on the
Securities when due, the Corporation acknowledges that a holder of Capital
Securities may directly institute a proceeding for enforcement of payment to
such holder of the principal of (or premium, if any) or interest on the
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 Securities.

                                   ARTICLE XIV
                            PREPAYMENT OF SECURITIES

       SECTION 14.01 Special Event Prepayment.

       If, prior to the Initial Optional Prepayment Date, a Special Event has
occurred and is continuing, then, notwithstanding Section 14.02(a) but subject
to Section 14.02(c), the Corporation shall have the right, at any time within 90
days following the occurrence of such Special Event, upon (i) not less than 45
days' written notice to the Debenture Trustee and (ii) not less than 30 days nor
more than 60 days' written notice to the Securityholders, to prepay the
Securities, in whole (but not in part), at the Special Event Prepayment Price.
The Special Event Prepayment Price shall be paid prior to 12:00 noon, New York
City time, on the date of such prepayment or such earlier time as the
Corporation determines, provided that the Corporation shall deposit with the
Debenture Trustee an amount sufficient to pay the Special Event Prepayment Price
by 10:00 a.m., New York City time, on the date such Special Event Prepayment
Price is to be paid.

       SECTION 14.02 Optional Prepayment by Corporation.

       (a) Subject to Sections 14.02(b) and (c), the Corporation shall have the
right to prepay the Securities, in whole or in part, at any time on or after the
Initial Optional Prepayment Date, upon (i) not more than 45 days' written notice
to the Debenture Trustee and (ii) not less than 30 days and not more than 60
days' written notice to the Securityholders, at the prepayment prices set forth
below plus, in each case, accrued and unpaid interest thereon (including
Compounded Interest and Additional Sums, if any) to the applicable date of
prepayment (the "Optional Prepayment Price"), if prepaid during the
12-month period beginning June 8 of the years indicated below.

                                       51
<PAGE>
<TABLE>
<CAPTION>
              Year               Percentage of Principal
              ----               -----------------------
<S>                              <C>
              2011                        105.090%
              2012                        104.581%
              2013                        104.072%
              2014                        103.563%
              2015                        103.054%
              2016                        102.545%
              2017                        102.036%
              2018                        101.527%
              2019                        101.018%
              2020                        100.509%
       2021 and thereafter                100.000%
</TABLE>

If the Securities are only partially prepaid pursuant to this Section 14.02, the
Securities to be prepaid shall be selected on a pro rata basis not more than 60
days prior to the date fixed for prepayment from the outstanding Securities not
previously called for prepayment; provided, however, that with respect to
Securityholders that would be required to hold Securities with an aggregate
principal amount of less than $100,000 but more than an aggregate principal
amount of zero as a result of such pro rata prepayment, the Corporation shall
prepay Securities of each such Securityholder so that after such prepayment such
Securityholder shall hold Securities either with an aggregate principal amount
of at least $100,000 or such Securityholder no longer holds any Securities, and
shall use such method (including, without limitation, by lot) as the Corporation
shall deem fair and appropriate; provided, further, that any such proration may
be made on the basis of the aggregate principal amount of Securities held by
each Securityholder and may be made by making such adjustments as the
Corporation deems fair and appropriate in order that only Securities in
denominations of $1,000 or integral multiples thereof shall be prepaid. The
Optional Prepayment Price shall be paid prior to 12:00 noon New York City time,
on the date of such prepayment or at such earlier time as the Corporation
determines, provided that the Corporation shall deposit with the Debenture
Trustee an amount sufficient to pay the Optional Prepayment Price by 10:00 a.m.,
New York City time, on the date such Optional Prepayment Price is to be paid.

       (b) Notwithstanding the first sentence of Section 14.02(a), upon the
entry of an order for dissolution of the Trust by a court of competent
jurisdiction, the Securities thereafter will be subject to optional prepayment,
in whole only, but not in part, on or after the Initial Optional Prepayment
Date, at the applicable Optional Prepayment Price and otherwise in accordance
with this Article XIV.

       (c) Any prepayment of Securities pursuant to Section 14.01 or Section
14.02 shall be subject to the Corporation obtaining any and all required
regulatory approvals.

       SECTION 14.03 No Sinking Fund.

       The Securities are NOT entitled to the benefit of any sinking fund.

                                       52
<PAGE>
       SECTION 14.04 Notice of Prepayment; Selection of Securities.

       In case the Corporation shall desire to exercise the right to prepay all,
or, as the case may be, any part of the Securities in accordance with their
terms, it shall fix a date for prepayment and shall mail a notice of such
prepayment at least 30 and not more than 60 days' prior to the date fixed for
prepayment to the holders of Securities to be so prepaid as a whole or in part
at their last addresses as the same appear on the 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 Security designated for
prepayment as a whole or in part shall not affect the validity of the
proceedings for the prepayment of any other Security.

       Each such notice of prepayment shall specify the CUSIP number of the
Securities to be prepaid, the date fixed for prepayment, the Prepayment Price at
which the Securities are to be prepaid (or the method by which such Prepayment
Price is to be calculated), the place or places of payment where payment will be
made upon presentation and surrender of the Securities, that interest accrued to
the date fixed for prepayment will be paid as specified in said notice, and that
on and after said date interest thereon or on the portions thereof to be prepaid
will cease to accrue. If less than all the Securities are to be prepaid, the
notice of prepayment shall specify the numbers of the Securities to be prepaid.
In case any Security is to be prepaid in part only, the notice of prepayment
shall state the portion of the principal amount thereof to be prepaid and shall
state that on and after the date fixed for prepayment, upon surrender of such
Security, a new Security or Securities in principal amount equal to the portion
thereof that has not been prepaid will be issued.

       By 10:00 a.m., New York City time, on the prepayment date specified in
the notice of prepayment given as provided in this Section, the Corporation will
deposit with the Debenture Trustee or with one or more paying agents an amount
of money sufficient to prepay on the prepayment date all the Securities so
called for prepayment at the Prepayment Price.

       SECTION 14.05 Payment of Securities Called for Prepayment.

       If notice of prepayment has been given as provided in Section 14.04, the
Securities or portions of Securities with respect to which such notice has been
given shall become due and payable on the date and at the place or places stated
in such notice at the Prepayment Price (subject to the rights of holders of
Securities at the close of business on a regular record date in respect of an
Interest Payment Date occurring on or prior to the prepayment date), and on and
after said date (unless the Corporation shall default in the payment of such
Securities at the Prepayment Price) interest (including Compounded Interest and
Additional Sums, if any) on the Securities or portions of Securities so called
for prepayment shall cease to accrue. On presentation and surrender of such
Securities at a place of payment specified in said notice, the said Securities
or the specified portions thereof shall be paid and prepaid by the Corporation
at the applicable Prepayment Price (subject to the rights of holders of
Securities on the close of business on a regular record date in respect of an
Interest Payment Date occurring on or prior to the prepayment date).

                                       53
<PAGE>
       Upon presentation of any Security prepaid in part only, the Corporation
shall execute and the Debenture Trustee shall authenticate and make available
for delivery to the holder thereof, at the expense of the Corporation, a new
Security or Securities of authorized denominations, in principal amount equal to
the portion of the Security so presented that has not been prepaid.

                                   ARTICLE XV
                           SUBORDINATION OF SECURITIES

       SECTION 15.01 Agreement to Subordinate.

       The Corporation covenants and agrees, and each holder of Securities
issued hereunder likewise covenants and agrees, that the Securities shall be
issued subject to the provisions of this Article XV; and each holder of a
Security, whether upon original issue or upon transfer or assignment thereof,
accepts and agrees to be bound by such provisions.

       The payment by the Corporation of the principal of, premium, if any, and
interest (including Compounded Interest and Additional Sums, if any) on all
Securities issued hereunder shall, to the extent and in the manner hereinafter
set forth, be subordinated and subject in right of payment to the prior payment
in full of all Allocable Amounts then due and payable in respect of Senior
Indebtedness, 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
Corporation in the payment of principal, premium, interest or any other payment
due on any Senior Indebtedness, or in the event that the maturity of any Senior
Indebtedness has been accelerated because of a default and such acceleration has
not been rescinded or canceled, then, in either case, no payment shall be made
by the Corporation with respect to the principal (including prepayment payments)
of (or premium, if any) or interest on the Securities (including Compounded
Interest and Additional Sums, if any, or any other amounts which may be due on
the Securities pursuant to the terms hereof or thereof).

       In the event of the acceleration of the maturity of the Securities, then
no payment shall be made by the Corporation with respect to the principal
(including prepayment payments) of (or premiums if any) or interest on the
Securities (including Compounded Interest and Additional Sums, if any, or any
other amounts which may be due on the Securities pursuant to the terms hereof or
thereof) until the holders of all Senior Indebtedness outstanding at the time of
such acceleration shall receive payment, in full, of all Allocable Amounts due
on or in respect of such Senior Indebtedness (including any amounts due upon
acceleration).

       In the event that, notwithstanding the foregoing, any payment is received
by the Debenture Trustee, or any Securityholder, when such payment is prohibited
by the preceding paragraphs of this Section 15.02, such payment shall be held in
trust for the benefit of, and shall be paid over or delivered by the Debenture
Trustee (if the notice required by Section 15.06 has

                                       54
<PAGE>

been received by the Debenture Trustee) or by any Securityholder, 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 of the Allocable Amounts in respect of such Senior Indebtedness and to
the extent that the holders of the Senior Indebtedness (or their representative
or representatives or a trustee) notify the Debenture Trustee in writing within
90 days of such payment of the Allocable Amounts then due and owing on such
Senior Indebtedness, and only the Allocable Amounts specified in such notice to
the Debenture Trustee shall be paid to the holders of such Senior Indebtedness.

       SECTION 15.03 Liquidation: Dissolution; Bankruptcy.

       Upon any payment by the Corporation or distribution of assets of the
Corporation of any kind or character, whether in cash, property or securities,
to creditors upon any dissolution, winding-up, liquidation or reorganization of
the Corporation, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, the holders of all Senior Indebtedness of the
Corporation will first be entitled to receive payment in full of Allocable
Amounts due on or in respect of such Senior Indebtedness, before any payment is
made by the Corporation on account of the principal of (or premium, if any) or
interest on the Securities (including Compounded Interest and Additional Sums,
if any, or any other amounts which may be due on the securities pursuant to the
terms hereof or thereof); and upon any such dissolution, winding-up, liquidation
or reorganization, any payment by the Corporation, or distribution of assets of
the Corporation of any kind or character, whether in cash, property or
securities, which the Securityholders or the Debenture Trustee would be entitled
to receive from the Corporation, except for the provisions of this Article XV,
shall be paid by the Corporation 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 Debenture Trustee under the Indenture if
received by them or it, directly to the holders of Senior Indebtedness of the
Corporation (pro rata to such holders on the basis of the respective Allocable
Amounts of Senior Indebtedness held by such holders, as calculated by the
Corporation) 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 all such Allocable Amounts of 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
or to the Debenture Trustee.

       In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Corporation of any kind or character prohibited by
the foregoing, whether in cash, property or securities, shall be received by the
Debenture Trustee, or any Securityholder, before the Allocable Amounts of all
Senior Indebtedness 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 by the Debenture
Trustee (if the notice requested by section 15.06 has been received by the
Debenture Trustee) or by any Securityholder, 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

                                       55
<PAGE>

interests may appear, as calculated by the Corporation, for application to the
payment of all Allocable Amounts of Senior Indebtedness remaining unpaid to the
extent necessary to pay all Allocable Amounts due on or in respect of 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 Corporation as reorganized
or readjusted, or securities of the Corporation 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 Securities to the payment of Senior Indebtedness that may at the time be
outstanding, provided that (i) such Senior Indebtedness is assumed by the new
corporation, if any, resulting from any such reorganization or readjustment, and
(ii) 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 Corporation with, or the merger of the Corporation into,
another Person or the liquidation or dissolution of the Corporation following
the sale, conveyance, transfer or lease of its property as an entirety, or
substantially as an entirety, to another Person upon the terms and conditions
provided for in Article X 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 Person shall, as a part of such consolidation, merger, sale,
conveyance, transfer or lease, comply with the conditions stated in Article X of
this Indenture. Nothing in Section 15.02 or in this Section 15.03 shall apply to
claims of, or payments to, the Debenture Trustee under or pursuant to Section
6.06 of this Indenture.

       SECTION 15.04 Subrogation.

       Subject to the payment in full of all Allocable Amounts of Senior
Indebtedness, the rights of 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 Corporation, as the case
may be, applicable to such Senior Indebtedness until the principal of (and
premium, if any) and interest on the 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 Debenture Trustee would be entitled except for the
provisions of this Article XV, and no payment over pursuant to the provisions of
this Article XV to or for the benefit of the holders of such Senior Indebtedness
by Securityholders or the Debenture Trustee, shall, as between the Corporation,
its creditors other than holders of Senior Indebtedness of the Corporation, and
the holders of the Securities, be deemed to be a payment by the Corporation 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 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 or in
the Securities is intended to or shall impair, as between the Corporation, its
creditors other than the holders of Senior Indebtedness of the Corporation, and
the holders of the Securities, the obligation of the Corporation, which is
absolute and unconditional, to pay to the holders of the Securities the
principal of (and premium, if any) and interest (including Compounded Interest
and Additional

                                       56
<PAGE>

Sums, if any) on the 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 Securities and creditors of the
Corporation, as the case may be, other than the holders of Senior Indebtedness
of the Corporation, as the case may be, nor shall anything herein or therein
prevent the Debenture Trustee or the holder of any Security from exercising all
remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article XV of the holders
of such Senior Indebtedness in respect of cash, property or securities of the
Corporation, as the case may be, received upon the exercise of any such remedy.

       SECTION 15.05 Debenture Trustee to Effectuate Subordination.

       Each Securityholder, by such Securityholder's acceptance thereof,
authorizes and directs the Debenture Trustee on such Securityholder's behalf to
take such action (as the Debenture Trustee, in its discretion, deems necessary
or appropriate, upon instruction or otherwise) to effectuate the subordination
provided in this Article XV and appoints the Debenture Trustee such
Securityholder's attorney-in-fact for any and all such purposes.

       SECTION 15.06 Notice by the Corporation.

       The Corporation shall give prompt written notice to a Responsible Officer
of the Debenture Trustee of any fact known to the Corporation that would
prohibit the making of any payment of monies to or by the Debenture Trustee in
respect of the Securities pursuant to the provisions of this Article XV.
Notwithstanding the provisions of this Article XV or any other provision of this
Indenture, the Debenture Trustee shall not be charged with knowledge of the
existence of any facts that would prohibit the making of any payment of monies
to or by the Debenture Trustee in respect of the Securities pursuant to the
provisions of this Article XV, unless and until a Responsible Officer of the
Debenture Trustee shall have received written notice thereof from the
Corporation or a holder or holders of Senior Indebtedness or from any trustee
therefor; and before the receipt of any such written notice, the Debenture
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 Debenture Trustee shall not have received the notice provided for in
this Section 15.06 at least two Business Days prior to the date upon which, by
the terms hereof, any money may become payable for any purpose (including,
without limitation, the payment of the principal of (or premium, if any) or
interest (including Compounded Interest and Additional Sums, if any) on any
Security), then, anything herein contained to the contrary notwithstanding, the
Debenture 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 Debenture Trustee, subject to the provisions of Article VI of this
Indenture, shall be entitled to conclusively rely on a written notice delivered
to it by a Person representing himself to be a holder of Senior Indebtedness of
the Corporation (or a trustee on behalf of such holder), as the case may be, to
establish that such notice has been given by a holder of such Senior
Indebtedness or a trustee on behalf of any such holder or holders. In the event
that the Debenture Trustee determines in good faith that further evidence is
required with respect to the right of any

                                       57
<PAGE>

Person as a holder of such Senior Indebtedness to participate in any payment or
distribution pursuant to this Article XV, the Debenture Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Debenture
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 Debenture Trustee
may defer any payment to such Person pending judicial determination as to the
right of such Person to receive such payment.

       Upon any payment or distribution of assets of the Corporation referred to
in this Article XV, the Debenture 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 entered by any court of competent jurisdiction in
which such insolvency, bankruptcy, receivership, liquidation, reorganization,
dissolution, winding-up or similar case or proceeding is pending, or a
certificate of the trustee in bankruptcy, liquidating trustee, custodian,
receiver, assignee for the benefit of creditors, agent or other person making
such payment or distribution, delivered to the Debenture Trustee or to the
Securityholders, for the purpose of ascertaining the persons entitled to
participate in such payment or distribution, the holders of Senior Indebtedness
and other indebtedness of the Corporation, 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 15.07 Rights of the Debenture Trustee; Holders of Senior
Indebtedness.

       The Debenture 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 shall deprive the Debenture Trustee
of any of its rights as such holder.

       With respect to the holders of Senior Indebtedness of the Corporation,
the Debenture 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 against the Debenture Trustee.
The Debenture Trustee shall not 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 Debenture Trustee shall not be liable to any holder of
such Senior Indebtedness if it shall pay over or deliver to Securityholders, the
Corporation 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
Debenture 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 Corporation 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 Corporation, as the case may be, or by any act or

                                       58
<PAGE>

failure to act, in good faith, by any such holder, or by any noncompliance by
the Corporation, as the case may be, with the terms, provisions and covenants of
this Indenture, regardless of any knowledge thereof that any such holder may
have or otherwise be charged with.

       Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Indebtedness of the Corporation may, at any time and from
time to time, without the consent of or notice to the Debenture 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 Securities to the holders of
such Senior Indebtedness, do any one or more of the following: (i) 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; (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing such Senior Indebtedness; (iii) release any Person liable in any manner
for the collection of such Senior Indebtedness; and (iv) exercise or refrain
from exercising any rights against the Corporation, as the case may be, and any
other Person.

                                   ARTICLE XVI
                      EXTENSION OF INTEREST PAYMENT PERIOD

       SECTION 16.01 Extension of Interest Payment Period.

       So long as no Event of Default has occurred and is continuing, the
Corporation shall have the right, at any time and from time to time during the
term of the Securities, to defer payments of interest by extending the interest
payment period of such Securities for a period not exceeding 10 consecutive
semi-annual periods, including the first such semi-annual period during such
extension period (the "Extended Interest Payment Period"), during which Extended
Interest Payment Period no interest shall be due and payable, provided that no
Extended Interest Payment Period shall end on a date other than an Interest
Payment Date or extend beyond the Maturity Date. To the extent permitted by
applicable law, interest, the payment of which has been deferred because of the
extension of the interest payment period pursuant to this Section 16.01, will
bear interest thereon at the Coupon Rate compounded semi-annually for each
semi-annual period during the Extended Interest Payment Period ("Compounded
Interest"). At the end of the Extended Interest Payment Period, the Corporation
shall pay all interest accrued and unpaid on the Securities, including any
Additional Sums and Compounded Interest (together, "Deferred Interest"), that
shall be payable to the holders of the Securities in whose names the Securities
are registered in the Security Register on the record date immediately preceding
the end of the Extended Interest Payment Period. Before the termination of any
Extended Interest Payment Period, the Corporation may further defer payments of
interest by further extending such Extended Interest Payment Period, provided
that such Extended Interest Payment Period, together with all such previous and
further extensions within such Extended Interest Payment Period, shall not (i)
exceed 10 consecutive semi-annual periods, including the first such semiannual
period during such Extended Interest Payment Period, (ii) end on a date other
than an Interest Payment Date or (iii) extend beyond the Maturity Date of the
Securities. Upon the termination of any Extended Interest Payment Period and the
payment of all amounts then due,

                                       59
<PAGE>

the Corporation may commence a new Extended Interest Payment Period, subject to
the foregoing requirements. No interest shall be due and payable during an
Extended Interest Payment Period, except at the end thereof, but the Corporation
may prepay at any time all or any portion of the interest accrued during an
Extended Interest Payment Period.

       SECTION 16.02 Notice of Extension.

       (a) If the Property Trustee is the only holder of the Securities at the
time the Corporation elects to commence an Extended Interest Payment Period, the
Corporation shall give written notice to the Administrative Trustees, the
Property Trustee and the Debenture Trustee of its election to commence such
Extended Interest Payment Period at least five Business Days before the earlier
of (i) the next succeeding date on which Distributions on the Trust Securities
would have been payable, and (ii) the date the Property Trustee is required to
give notice of the record date, or the date such Distributions are payable, to
any national securities exchange or to holders of the Capital Securities, but in
any event at least five Business Days before such record date.

       (b) If the Property Trustee is not the only holder of the Securities at
the time the Corporation elects to commence an Extended Interest Payment Period,
the Corporation shall give the holders of the Securities and the Debenture
Trustee written notice of its election of such Extended Interest Payment Period
at least 10 Business Days before the earlier of (i) the next succeeding Interest
Payment Date, and (ii) the date the Debenture Trustee is required to give notice
of the record or payment date of such interest payment to any national
securities exchange.

       (c) The semiannual period in which any notice is given pursuant to
paragraphs (a) or (b) of this Section 16.02 shall be counted as one of the 10
semi-annual periods permitted in the maximum Extended Interest Payment Period
permitted under Section 16.01.

       Wilmington Trust Company hereby accepts the trusts in this Indenture
declared and provided, upon the terms and conditions hereinabove set forth.

                                       60
<PAGE>
       IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed by their respective officers thereunto duly authorized, as of the
day and year first above written.

                                       NARA BANCORP, INC.

                                       By: /s/ BENJAMIN B. HONG
                                          --------------------------------------
                                          Benjamin B. Hong
                                          President and  Chief Executive Officer

                                       WILMINGTON TRUST COMPANY,
                                       as Debenture Trustee

                                       By: /s/ DONALD G. MACKELCAN
                                          --------------------------------------
                                          Name: Donald G. MacKelcan
                                          Title: Vice President

                                       S-1
<PAGE>
                                    EXHIBIT A

                           (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 LAW. 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, REGISTRATION.

        THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER THIS SECURITY, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUANCE DATE HEREOF AND THE LAST DATE ON WHICH NARA BANCORP, INC. (THE
"CORPORATION") OR ANY "AFFILIATE" OF THE CORPORATION WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) ONLY (A) TO THE CORPORATION, (B)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON IT 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 I44A, (D) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF
SUBPARAGRAPH (a)(1), (2), (3), (7) OR (8) OF RULE 501 UNDER THE SECURITIES ACT
THAT IS ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH
AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT 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 ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT, SUBJECT
TO THE RIGHT OF THE CORPORATION PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i)
PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE CORPORATION, AND
(ii) PURSUANT TO CLAUSE (D) TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE
FORM APPEARING ON THE REVERSE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEREE TO THE CORPORATION. SUCH HOLDER FURTHER AGREES THAT IT WILL DELIVER
TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND.

                                   Exhibit A-1
<PAGE>
        THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS
HAVING AN AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000. ANY ATTEMPTED
TRANSFER OF SECURITIES IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS
THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF 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 SUCH SECURITIES FOR ANY PURPOSE, INCLUDING, BUT
NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH SECURITIES, AND
SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH
SECURITIES.

        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 THE SECURITIES 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 THE
SECURITIES 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.

                                   Exhibit A-2
<PAGE>
          JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE CERTIFICATE

                               NARA BANCORP, INC.

$_______________________

       10.18% JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE

                                DUE JUNE 8, 2031

       Nara Bancorp, Inc., a Delaware corporation (the "Corporation," which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to _______________ or registered assigns,
the principal sum of $ ________________ (___________________________ Dollars) on
June 8, 2031 (the "Maturity Date"), unless previously prepaid, and to pay
interest on the outstanding principal amount hereof from March 28, 2001, 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, semi-annually
(subject to deferral as set forth herein) in arrears on June 8th and December
8th of each year, commencing June 8, 2001 at the rate of 10.18% per annum, until
the principal hereof shall have become due and payable, and on any overdue
principal and premium, if any, and (without duplication and to the extent that
payment of such interest is enforceable under applicable law) on any overdue
installment of interest at the same rate per annum compounded semi-annually
("Compounded Interest"). The amount of interest payable hereon shall be computed
on the basis of a 360-day year of twelve 30-day months. In the event that any
date on which the principal of (or premium, if any) or interest on this Security
is payable is not a Business Day (as defined in the Indenture), then the payment
payable on such date will be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such delay),
except that if such next succeeding Business Day falls in the next succeeding
calendar year such payment shall be made on the immediately preceding Business
Day with the same force and effect as if made on such date. Pursuant to the
Indenture, in certain circumstances the Corporation will be required to pay
Additional Sums (as defined in the Indenture) with respect to this Security.

       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 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, which shall be at the close
of business on the 15th day of the month immediately preceding the month in
which the relevant Interest Payment Date falls. Any such interest installment
not punctually paid or duly provided for shall forthwith cease to be payable to
the holders on such regular record date and may be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on a special record date to be fixed by the Debenture Trustee
for the payment of such defaulted interest, notice whereof shall be given to the
holders of Securities not less than 10 days prior to such special record date,
or may be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture.

                                  Exhibit A-3
<PAGE>
       The principal of (and premium, if any) and interest (including Compounded
Interest and Additional Sums, if any) on this Security shall be payable in
immediately available funds at the office or agency of the Corporation
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 shall be made by
transfer to an account maintained by the Person entitled thereto unless proper
written transfer instructions have not been received by the relevant record
date, in which case such payments shall be made by check mailed to the holder at
such address as shall appear in the Security Register. Notwithstanding the
foregoing, so long as the holder of this Security is the Property Trustee of
Nara Bancorp Capital Trust 1 the payment of the principal of (and premium if
any) and interest (including Compounded Interest and Additional Sums, if any) on
this Security will be made at such place and to such account as may be
designated by such Property Trustee.

       The indebtedness evidenced by this Security is, to the extent provided in
the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Allocable Amounts then due and payable in respect of Senior
Indebtedness, and this Security is issued subject to the provisions of the
Indenture with respect thereto. Each holder of this Security, by accepting the
same, (a) agrees to and shall be bound by such provisions, (b) authorizes and
directs the Debenture Trustee on his or her behalf to take such action as may be
necessary or appropriate to acknowledge or effectuate the subordination so
provided and (c) appoints the Debenture Trustee his or her attorney-in-fact for
any and all such purposes. Each holder hereof, by his or her 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.

       This Security shall not be entitled to any benefit under the Indenture or
be valid or become obligatory for any purpose until the Certificate of
Authentication hereon shall have been signed by or on behalf of the Debenture
Trustee.

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

                                   Exhibit A-4
<PAGE>
       IN WITNESS WHEREOF, the Corporation has caused this instrument to be duly
executed and sealed this __ day of ________________, _________________.

                                        NARA BANCORP, INC.

                                        By:
                                           ------------------------------------
                                           Benjamin B. Hong
                                           President and Chief Executive Officer

Attest:

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

                          CERTIFICATE OF AUTHENTICATION

       This is one of the 10.18% Junior Subordinated Deferrable Interest
Debentures of Nara Bancorp, Inc. referred to in the within-mentioned Indenture.

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

                                      By:
                                         --------------------------------------
                                         Authorized Signatory

Dated:
      ---------------------

                                   Exhibit A-5
<PAGE>
                          (FORM OF REVERSE OF SECURITY)

        This Security is one of the Securities of the Corporation (herein
sometimes referred to as the "Securities"), specified in the Indenture, all
issued or to be issued under and pursuant to an Indenture, dated as of march 28,
2001 (the "indenture"), duly executed and delivered between the corporation and
Wilmington Trust Company, as Debenture Trustee (the "Debenture Trustee"), to
which Indenture reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Debenture Trustee, the Corporation and the holders of the Securities. The
Securities are limited in aggregate principal amount as specified in Section
2.02 of the Indenture.

        Upon the occurrence and continuation of a Special Event (as defined in
the Indenture) prior to June 8, 2011 (the "Initial Optional Prepayment Date"),
the Corporation shall have the right, at any time within 90 days following the
occurrence of such Special Event, to prepay this Security in whole (but not in
part) at the Special Event Prepayment Price. "Special Event Prepayment Price"
shall mean, with respect to any prepayment of the Securities following the
occurrence and continuation of a Special Event prior to the Initial Optional
Prepayment Date, an amount in cash equal to (i) 106.09% of the principal amount
of the Securities to be prepaid, if the Special Event occurs prior to June 8,
2011 and (ii) if the Special Event occurs on or June 8, 2011, the amount of the
Optional Prepayment Price (calculated as if the Corporation had prepaid such
Securities on such date), plus, in the case of (i) and (ii), any accrued and
unpaid interest (including Compounded Interest and Additional Sums, if any)
thereon to the date of such prepayment.

        In addition, the Corporation shall have the right to prepay this
Security, in whole or in part, at any time on or after the Initial Optional
Prepayment Date (an "Optional Prepayment"), at the prepayment prices set forth
below plus, in each case, accrued and unpaid interest thereon (including
Compounded Interest and Additional Sums, if any, thereon to the applicable date
of prepayment (the "Optional Prepayment Price"), if prepaid during the 12-month
period beginning June 8, of the years indicated below.

<TABLE>
<CAPTION>
              Year              Percentage of Principal
              ----              -----------------------
<S>                            <C>
              2011                     105.090%
              2012                     104.581%
              2013                     104.072%
              2014                     103.563%
              2015                     103.054%
              2016                     102.545%
              2017                     102.036%
              2018                     101.527%
              2019                     101.018%
              2020                     100.509%
       2021 and thereafter             100.000%
</TABLE>

        The Prepayment Price shall be paid prior to 12:00 noon, New York City
time, on the date of such prepayment or at such earlier time as the Corporation
determines, provided that the Corporation shall deposit with the Debenture
Trustee an amount sufficient to pay the Prepayment

                                   Exhibit A-6
<PAGE>
Price by 10:00 a.m., New York City time, on the date such Prepayment Price is to
be paid. Any prepayment pursuant to this paragraph will be made upon not less
than 30 days nor more than 60 days' prior written notice.

        If the Securities are only partially prepaid by the Corporation pursuant
to an Optional Prepayment, the particular Securities to be prepaid shall be
selected on a pro rata basis from the outstanding Securities not previously
called for prepayment; provided, however, that with respect to Securityholders
that would be required to hold Securities with an aggregate principal amount of
less than $100,000 but more than an aggregate principal amount of zero as a
result of such pro rata prepayment, the Corporation shall prepay Securities of
each such Securityholder so that after such prepayment such Securityholder shall
hold Securities either with an aggregate principal amount of at least $100,000
or such Securityholder no longer holds any Securities and shall use such method
(including, without limitation, by lot) as the Corporation shall deem fair and
appropriate; provided, further, that any such proration may be made on the basis
of the aggregate principal amount of Securities held by each Securityholder
thereof and may be made by making such adjustments as the Corporation deems fair
and appropriate in order that only Securities in denominations of $1,000 or
integral multiples thereof shall be prepaid. In the event of prepayment of this
Security in part only, a new Security or Securities for the portion hereof that
has not been prepaid will be issued in the name of the holder hereof upon the
cancellation hereof.

        Notwithstanding the foregoing, any prepayment of Securities by the
Corporation shall be subject to the receipt of any and all required regulatory
approvals.

        In case an Event of Default (as defined in the Indenture) shall have
occurred and be continuing, the principal of all of the Securities may be
declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.

        The Indenture contains provisions permitting the Corporation and the
Debenture Trustee, with the consent of the holders of a majority in aggregate
principal amount of the Securities at the time outstanding (as defined 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 modifying in any manner the rights of the holders of the
Securities; provided, however, that no such supplemental indenture shall,
without the consent of each holder of Securities then outstanding and affected
thereby, (i) change the Maturity Date of any Security, or reduce the rate or
extend the time of payment of interest thereon (subject to Article XVI of the
Indenture), or reduce or increase the aggregate principal amount of the series
of which such Security is a part or issue other Securities, or change any of the
prepayment provisions or make the principal thereof or any interest or premium
thereon payable in any coin or currency other than U.S. dollars, or impair or
affect the right of any holder of Securities to institute suit for payment
thereof, or (ii) reduce the aforesaid percentage of 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 Securities at the time outstanding affected thereby, on
behalf of all of the holders of the 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 default in the

                                   Exhibit A-7

<PAGE>
payment of the principal of or premium, if any, or interest on any of the
Securities or a default in respect of any covenant or provision under which the
Indenture cannot be modified or amended without the consent of each holder of
Securities then outstanding. Any such consent or waiver by the holder of this
Security (unless revoked as provided in the Indenture) shall be conclusive and
binding upon such holder and upon all future holders and owners of this Security
and of any 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 Security.

        No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Corporation,
which is absolute and unconditional, to pay the principal of (and premium, if
any) and interest (including Compounded Interest Additional Sums, if any) on
this Security at the time and place and at the rate and in the money herein
prescribed.

        So long as no Event of Default shall have occurred and be continuing,
the Corporation shall have the right, at any time and from time to time during
the term of the Securities, to defer payments of interest by extending the
interest payment period (an "Extended Interest Payment Period") of such
Securities for a period not (i) exceeding 10 consecutive semi-annual periods,
including the first such semi-annual period during such extension period, (ii)
ending on a date other than an Interest Payment Date or (iii) extending beyond
the Maturity Date of the Securities, at the end of which period the Corporation
shall pay all interest then accrued and unpaid (together with interest thereon
at the rate specified for the Securities to the extent that payment of such
interest is enforceable under applicable law). Before the termination of any
such Extended Interest Payment Period, the Corporation may further defer
payments of interest by further extending such Extended Interest Payment Period,
provided that such Extended Interest Payment Period, together with all such
previous and further extensions within such Extended Interest Payment Period,
(i) shall not exceed 10 consecutive semi-annual periods including the first
semi-annual period during such Extended Interest Payment Period, (ii) shall not
end on any date other than an Interest Payment Date, and (iii) shall not extend
beyond the Maturity Date of the Securities. Upon the termination of any such
Extended Interest Payment Period and the payment of all accrued and unpaid
interest and any additional amounts then due, the Corporation may commence a new
Extended Interest Payment Period, subject to the foregoing requirements. No
interest shall be due and payable during an Extended Interest Payment Period,
except at the end thereof, but the Corporation may prepay at any time all or any
portion of the interest accrued during an Extended Interest Payment Period.

        The Corporation has agreed that it will 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 Corporation's capital stock,
(ii) make any payment of principal of or premium, if any, or interest on or
repay, repurchase or redeem any debt securities of the Corporation (including
Other Debentures) that rank pari passu with or junior in right of payment to the
Securities or (iii) make any guarantee payments with respect to any guarantee by
the Corporation of the debt securities of any Subsidiary of the Corporation
(including Other Guarantees) if such guarantee ranks pari passu with or junior
in right of payment to the Securities (other than (a) dividends or distributions
in shares of, or options, warrants or rights to subscribe for or purchase shares
of, Common Stock), (b) any declaration of a dividend in connection with the
implementation of a

                                   Exhibit A-8

<PAGE>
stockholders' rights plan, or the issuance of stock under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto, (c)
payments under the Capital Securities Guarantee, as defined in the Indenture,
(d) as a result of a reclassification of the Corporation's capital stock or the
exchange or conversion of one class or series of the Corporation's capital stock
for another class or series of the Corporation's capital stock, (e) the purchase
of fractional interests in shares of the Corporation's capital stock pursuant to
the conversion or exchange provisions of such capital stock or the security
being converted or exchanged and (f) purchases of Common Stock related to the
issuance of Common Stock or rights under any of the Corporation's benefit or
compensation plans for its directors, officers or employees or any of the
Corporation's dividend reinvestment plans), if at such time (1) there shall have
occurred any event of which the Corporation has actual knowledge that (a) is a
Default or an Event of Default and (b) in respect of which the Corporation shall
not have taken reasonable steps to cure, (2) such Securities are held by the
Property Trustee of Nara Bancorp Capital Trust I and the Corporation shall be in
default with respect to its payment of any obligations under the Capital
Securities Guarantee or (3) the Corporation shall have given notice of its
election to exercise its right to commence an Extended Interest Payment Period
and shall not have rescinded such notice, and such Extended Interest Payment
Period or any extension thereof shall have commenced and be continuing.

        Subject to (i) the Corporation having received any required regulatory
approvals and (ii) the Administrative Trustees of Nara Bancorp Capital Trust I
having received an opinion of counsel to the effect that such distribution will
not cause the holders of Capital Securities to recognize gain or loss for United
States federal income tax purposes, the Corporation will have the right at any
time to liquidate the Trust and, after satisfaction of liabilities of creditors
of the Trust as required by applicable law, to cause the Securities to be
distributed to the holders of the Trust Securities in liquidation of the Trust.

        The Securities are issuable only in registered form without coupons in
minimum denominations of $100,000 and multiples of $1,000 in excess thereof. As
provided in the Indenture and subject to the transfer restrictions limitations
as may be contained herein and therein from time to time, this Security is
transferable by the holder hereof on the Security Register of the Corporation,
upon surrender of this Security for registration of transfer at the office or
agency of the Corporation in Wilmington, Delaware accompanied by a written
instrument or instruments of transfer in form satisfactory to the Corporation or
the Debenture Trustee duly executed by the holder hereof or his or her attorney
duly authorized in writing, and thereupon one or more new 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 Corporation 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 Security,
the Corporation, the Debenture Trustee, any authenticating agent, any paying
agent, any transfer agent and the security registrar may deem and treat the
holder hereof as the absolute owner hereof (whether or not this Security shall
be overdue and notwithstanding any notice of ownership or writing hereon made by
anyone other than the security registrar for the Securities) for the purpose of
receiving payment of or on account of the principal hereof and premium, if any,
and (subject to the Indenture) interest due hereon and for all other purposes,
and neither the Corporation nor the

                                   Exhibit A-9

<PAGE>
Debenture Trustee nor any authenticating agent nor any paying agent nor any
transfer agent nor any security registrar shall be affected by any notice to the
contrary.

        No recourse shall be had for the payment of the principal of or premium,
if any, or interest (including Compounded Interest and Additional Sums, if any)
on this 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, employee, officer or director, past, present or future, as such, of
the Corporation or of any predecessor or successor Person, 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.

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

        THE INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF
LAW PRINCIPLES THEREOF.

                                  Exhibit A-10

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