Document:

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                                                                     EXHIBIT 4.3

                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                             FULTON CAPITAL TRUST I

                         Amended as of January 26, 2006

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                                TABLE OF CONTENTS

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<S>                                                                                                             <C>
                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

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

                                   ARTICLE II
                               TRUST INDENTURE ACT

Section 2.1.     Trust Indenture Act; Application........................................................         9
Section 2.2.     List of Holders of Trust Securities.....................................................        10
Section 2.3.     Reports by the Institutional Trustee....................................................        10
Section 2.4.     Periodic Reports to Institutional Trustee...............................................        11
Section 2.5.     Evidence of Compliance with Conditions Precedent........................................        11
Section 2.6.     Events of Default; Waiver...............................................................        11
Section 2.7.     Default; Notice.........................................................................        12

                                   ARTICLE III
                                  ORGANIZATION

Section 3.1.     Name....................................................................................        13
Section 3.2.     Office..................................................................................        13
Section 3.3.     Purpose.................................................................................        13
Section 3.4.     Authority...............................................................................        13
Section 3.5.     Title to Property of the Trust..........................................................        14
Section 3.6.     Powers and Duties of the Trustees and the Administrators................................        14
Section 3.7.     Prohibition of Actions by the Trust and the Trustees....................................        19
Section 3.8.     Powers and Duties of the Institutional Trustee..........................................        20
Section 3.9.     Certain Duties and Responsibilities of the Trustees and the Administrators..............        22
Section 3.10.    Certain Rights of Institutional Trustee.................................................        23
Section 3.11.    Delaware Trustee........................................................................        26
Section 3.12.    Execution of Documents..................................................................        26
Section 3.13.    Not Responsible for Recitals or Issuance of Trust Securities............................        26
Section 3.14.    Duration of Trust.......................................................................        26
Section 3.15.    Mergers.................................................................................        26

                                   ARTICLE IV
                                     SPONSOR

Section 4.1.     Sponsor's Purchase of Common Securities.................................................        28
Section 4.2.     Responsibilities of the Sponsor.........................................................        28
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                                    ARTICLE V
                           TRUSTEES AND ADMINISTRATORS

Section 5.1.     Number of Trustees......................................................................        29
Section 5.2.     Delaware Trustee........................................................................        29
Section 5.3.     Institutional Trustee; Eligibility......................................................        29
Section 5.4.     Administrators..........................................................................        30
Section 5.5.     Appointment, Removal and Resignation of the Trustees and the Administrators.............        30
Section 5.6.     Vacancies Among Trustees................................................................        32
Section 5.7.     Effect of Vacancies.....................................................................        32
Section 5.8.     Meetings of the Trustees and the Administrators.........................................        33
Section 5.9.     Delegation of Power.....................................................................        33
Section 5.10.    Merger, Conversion, Consolidation or Succession to Business.............................        33

                                   ARTICLE VI
                                  DISTRIBUTIONS

Section 6.1.     Distributions...........................................................................        34

                                   ARTICLE VII
                          ISSUANCE OF TRUST SECURITIES

Section 7.1.     General Provisions Regarding Trust Securities...........................................        34
Section 7.2.     Paying Agent, Transfer Agent, Calculation Agent and Registrar...........................        35
Section 7.3.     Form and Dating; Global Capital Security................................................        36
Section 7.4.     Temporary Certificates..................................................................        38
Section 7.5.     Mutilated, Destroyed, Lost or Stolen Certificates.......................................        38
Section 7.6.     Cancellation............................................................................        38
Section 7.7.     Rights of Holders.......................................................................        39

                                  ARTICLE VIII
                      DISSOLUTION AND TERMINATION OF TRUST

Section 8.1.     Dissolution and Termination of Trust....................................................        40

                                   ARTICLE IX
                              TRANSFER OF INTERESTS

Section 9.1.     Transfer of Trust Securities............................................................        41
Section 9.2.     Transfer Procedures and Restrictions....................................................        42
Section 9.3.     Deemed Security Holders.................................................................        44
Section 9.4.     Book-Entry Capital Security.............................................................        44
Section 9.5.     Appointment of Successor Depositary.....................................................        45

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

Section 10.1.    Liability...............................................................................        45
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                                       ii

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Section 10.2.    Exculpation.............................................................................        45
Section 10.3.    Fiduciary Duty..........................................................................        46
Section 10.4.    Indemnification.........................................................................        46
Section 10.5.    Outside Businesses......................................................................        49
Section 10.6.    Compensation; Fee.......................................................................        50

                                   ARTICLE XI
                                   ACCOUNTING

Section 11.1.    Fiscal Year.............................................................................        50
Section 11.2.    Certain Accounting Matters..............................................................        50
Section 11.3.    Banking.................................................................................        51
Section 11.4.    Withholding.............................................................................        51

                                   ARTICLE XII
                             AMENDMENTS AND MEETINGS

Section 12.1.    Amendments..............................................................................        52
Section 12.2.    Meetings of the Holders of the Trust Securities; Action by Written Consent..............        54

                                  ARTICLE XIII
          REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

Section 13.1.    Representations and Warranties of Institutional Trustee.................................        55
Section 13.2.    Representations and Warranties of Delaware Trustee......................................        56

                                   ARTICLE XIV
                                  MISCELLANEOUS

Section 14.1.    Notices.................................................................................        57
Section 14.2.    Governing Law...........................................................................        58
Section 14.3.    Submission to Jurisdiction..............................................................        58
Section 14.4.    Intention of the Parties................................................................        59
Section 14.5.    Headings................................................................................        59
Section 14.6.    Successors and Assigns..................................................................        59
Section 14.7.    Partial Enforceability..................................................................        59
Section 14.8.    Counterparts............................................................................        59
Section 14.9.    Characterization........................................................................        59
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                              ANNEXES AND EXHIBITS

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<S>              <C>
ANNEX I          Terms of 6.29% Capital Securities and Common Securities
EXHIBIT A-1      Form of Capital Securities Certificate
EXHIBIT A-2      Form of Common Securities Certificate
EXHIBIT B        Form of Administrator's Certificate of the Trust
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                                      iii

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                             CROSS-REFERENCE TABLE*

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

    310(b)....................................................................      2.2(b), 5.3(c),
                                                                                        5.3(d)

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

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

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

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

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

    314(a)....................................................................       2.4; 2.7(c);
                                                                                     3.6(a)(i)(R)

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

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

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

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

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

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

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

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

    317(b)....................................................................          7.2(b)

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

                                       iv

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

                                       v

<PAGE>

                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                             FULTON CAPITAL TRUST I

                                January 26, 2006

            AMENDED AND RESTATED DECLARATION OF TRUST (as amended or
supplemented from time to time in accordance with the terms hereof), dated and
effective as of January 26, 2006 (this "Declaration"), by and among the Trustees
(as defined herein), the Administrators (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 (as defined herein) to
be issued pursuant to this Declaration.

            WHEREAS, the Delaware Trustee (as defined herein) and the Sponsor
established Fulton Capital Trust I (the "Trust"), a statutory trust created
under the Statutory Trust Act (as defined herein), pursuant to a Declaration of
Trust, dated as of October 24, 2005 (the "Original Declaration"), and a
Certificate of Trust filed with the Secretary of State of the State of Delaware
on October 24, 2005, for the sole purpose of issuing and selling the Trust
Securities (as defined herein) representing undivided beneficial interests in
the assets of the Trust, investing the proceeds thereof in the Debt Securities
(as defined herein) of the Debt Security Issuer (as defined herein) and engaging
in those activities necessary, advisable or incidental thereto;

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

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

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

                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

            Section 1.1. Definitions. Unless the context otherwise requires:

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

<PAGE>

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

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

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

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

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

            "Additional Amounts" has the meaning set forth in Section 3.06 of
the Indenture.

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

            "Administrators" means each of R. Scott Smith, Jr., Charles J.
Nugent, Beth Ann L. Chivinski and Jeffrey W. Peeling, solely in such Person's
capacity as Administrator of the Trust continued hereunder and not in such
Person's individual capacity, or such Administrator's successor in interest in
such capacity, or any successor appointed as herein provided.

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

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

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

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

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

            (b) such Person commences a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, consents
to the entry of an

                                       2

<PAGE>

order for relief in an involuntary case under any such law, or consents to the
appointment of or taking possession by a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of such Person or of
any substantial part of its property, or makes any general assignment for the
benefit of creditors, or fails generally to pay its debts as they become due.

            "Book-Entry Capital Security" means a beneficial interest in the
Global Capital Security registered in the name of a Depositary or its nominee,
ownership and transfers of which shall be maintained and made through book
entries by a Depositary as described in Section 9.4.

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

            "Capital Securities" means undivided preferred beneficial interests
in the assets of the Trust which are designated as "Capital Securities" and rank
pari passu with the Common Securities issued by the Trust, subject to Section
7.1.

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

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

            "Certificate" means any certificate evidencing Trust Securities.

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

            "Closing Date" has the meaning set forth in the Purchase Agreement.

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

            "Commission" means the United States Securities and Exchange
Commission.

            "Common Securities" means undivided common beneficial interests in
the assets of the Trust which are designated as "Common Securities" and rank
pari passu with the Capital Securities issued by the Trust, subject to Section
7.1.

            "Company" means Fulton Financial Corporation, a Pennsylvania
corporation, and any permitted successor of the Debt Security Issuer under the
Indenture.

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

                                       3

<PAGE>

representatives or agents of any Administrator or (d) any officer, employee or
agent of the Trust or its Affiliates.

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

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

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

            "Debt Security Issuer" means Fulton Financial Corporation, a
Pennsylvania corporation, in its capacity as issuer of the Debt Securities under
the Indenture, and any permitted successor under the Indenture.

            "Debt Securities" means, the 6.29% Junior Subordinated Deferrable
Interest Debt Securities due 2036.

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

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

            "Definitive Capital Securities" means any Capital Securities in
certificated form issued by the Trust substantially in the form of Exhibit A-1.

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

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

            "Depositary" means an organization registered as a "clearing agency"
under the Exchange Act that is designated as Depositary for the Capital
Securities by the Sponsor and in whose name or in the name of a nominee of that
organization shall be registered a Global Capital Security and which shall
undertake to effect transfers of Book-Entry Capital Securities. DTC will be the
initial Depositary.

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

            "DTC" means The Depository Trust Company or any successor thereto.

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

                                       4

<PAGE>

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

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

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

            "DTC" means The Depository Trust Company, the initial Depositary.

            "Event of Default" means the occurrence of an Indenture Event of
Default.

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

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

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

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

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

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

            "Guarantee" means the Guarantee, dated as of the Closing Date, by
Fulton Financial Corporation, in respect of the Capital Securities.

            "Holder" means a Person in whose name a Certificate representing a
Trust Security is registered on the Securities Register maintained by or on
behalf of the Registrar, such Person being a beneficial owner within the meaning
of the Statutory Trust Act.

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

            "Indenture" means the Indenture, dated as of the Closing Date,
between the Debt Security Issuer and the Indenture Trustee, and any indenture
supplemental thereto pursuant to which the Debt Securities are to be issued.

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

                                       5

<PAGE>

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

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

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

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

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

            "Issuer Free Writing Prospectus" has the meaning set forth in Rule
433 under the Securities Act.

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

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

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

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

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

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

            "Majority in Liquidation Amount" means Holders of outstanding Trust
Securities voting together as a single class or, as the context may require,
Holders of outstanding Capital Securities or Holders of outstanding Common
Securities voting separately as a class, who are the record owners of more than
50% of the aggregate Liquidation Amount (including the amount that would be paid
upon the redemption, liquidation or otherwise on the date upon which the voting
percentages are determined, plus unpaid Distributions accrued thereon to such
date) of all outstanding Trust Securities of the relevant class.

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

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

            "Officers' Certificate" means a certificate signed by the Chairman
of the Board, the Vice Chairman, the Chief Executive Officer, the President, the
Chief Operating Officer or any Executive or Senior Vice President, and by the
Chief Financial Officer, the Treasurer, an

                                       6

<PAGE>

Assistant Treasurer, the Comptroller, an Assistant Comptroller, the Secretary or
an Assistant Secretary of the Company, and delivered to the Institutional
Trustee. Any Officers' Certificate delivered with respect to compliance with a
condition or covenant provided for in this Declaration shall include:

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

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

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

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

            "Opinion of Counsel" means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Company, or may be other
counsel reasonably acceptable to the Institutional Trustee.

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

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

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

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

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

            "Prospectus" means the prospectus included as part of the
Registration Statement or filed pursuant to Section 424(b) under the Securities
Act, as the same may be supplemented or amended from time to time, in respect of
the Capital Securities.

            "Purchase Agreement" means the Purchase Agreement, dated January 20,
2006, by and among the Trust, the Debt Security Issuer, FFC Management, Inc. and
the Underwriters named therein.

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

                                       7

<PAGE>

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

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

            "Registration Statement" means the Registration Statement on Form
S-3 used to register the Capital Securities, the Debt Securities and the
Guarantee under the Securities Act and any amendments thereto.

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

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

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

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

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

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

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

            "Sponsor" means Fulton Financial Corporation., a Pennsylvania
corporation, or any permitted successor of the Debt Security Issuer under the
Indenture, in its capacity as sponsor of the Trust.

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

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

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

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

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

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

                                       8

<PAGE>

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

            "10% in Liquidation Amount" means Holders of outstanding Trust
Securities voting together as a single class or, as the context may require,
Holders of outstanding Capital Securities or Holders of outstanding Common
Securities voting separately as a class, who are the record owners of 10% or
more of the aggregate Liquidation Amount (including the stated amount that would
be paid upon the redemption, liquidation or otherwise on the date upon which the
voting percentages are determined, plus unpaid Distributions accrued thereon to
such date) of all outstanding Trust Securities of the relevant class.

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

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

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

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

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

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

            "Underwriters" means each Person listed on Schedule I to the
Purchase Agreement.

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

                                   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.

                                       9

<PAGE>

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

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

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

            Section 2.2. List of Holders of Trust Securities.

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

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

            Section 2.3. Reports by the Institutional Trustee.

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

            (b) A copy of each report shall, at the time of transmission to the
Holders, be filed by the Institutional Trustee with each national securities
exchange, national market or other organization upon which the Capital
Securities are listed, if any, and also with the Commission and the Sponsor. The
Sponsor and/or the Trust shall promptly notify the Institutional Trustee when
the Capital Securities are listed on any national securities exchange, national
market or other organizations and/or the delisting thereof.

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<PAGE>

            Section 2.4. Periodic Reports to Institutional Trustee.

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

            Section 2.6. Events of Default; Waiver.

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

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

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

The foregoing provisions of this Section 2.6(a) shall be in lieu of Section
3l6(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
Trust Securities, as permitted by the Trust Indenture Act. Upon such waiver, any
such Default or Event of Default shall cease to exist, and any Default or 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 a Default or 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 Default
or Event of Default with respect to the Common Securities for all purposes of
this Declaration without any further action.

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

                                       11

<PAGE>

past Default or Event of Default with respect to the Common Securities and its
consequences, provided, that if the underlying Indenture Event of Default:

                  (i) is not waivable under the Indenture, the Default or Event
            of Default under this Declaration shall also not be waivable; or
            except where the Holders of the Common Securities are deemed to have
            waived such Default or Event of Default under this Declaration as
            provided below in this Section 2.6(b), the Default or 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 Default or Event of Default under this
            Declaration as provided below in this Section 2.6(b), the Default or
            Event of Default under this Declaration may only be waived by the
            vote of the Holders of at least the proportion in aggregate
            Liquidation Amount of the Common Securities that the relevant Super
            Majority represents of the aggregate principal amount of the Debt
            Securities outstanding;

provided further, each Holder of Common Securities will be deemed to have waived
any such Default or Event of Default and all Defaults or Events of Default with
respect to the Common Securities and their consequences if all Defaults or
Events of Default with respect to the Capital Securities have been cured, waived
or otherwise eliminated, and until such Defaults or Events of Default have been
so cured, waived or otherwise eliminated, the Institutional Trustee will be
deemed to be acting solely on behalf of the Holders of the Capital Securities
and only the Holders of the Capital Securities will have the right to direct the
Institutional Trustee in accordance with the terms of the Trust Securities. The
foregoing provisions of this Section 2.6(b) shall be in lieu of 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 Trust Securities, as permitted by the
Trust Indenture Act. Subject to the foregoing provisions of this Section 2.6(b),
upon such waiver, any such Default or Event of Default shall cease to exist and
any Default or 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 a Default under the Indenture or an Indenture Event
of Default by the Institutional Trustee, at the direction of the Holders of the
Capital Securities, constitutes a waiver of the corresponding Default or 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 Trust Securities, as permitted by the
Trust Indenture Act.

            Section 2.7. Default; Notice.

            (a) The Institutional Trustee shall, within 90 days after a
Responsible Officer has actual knowledge of the occurrence of a Default with
respect to the Trust Securities, transmit by mail, first class postage prepaid,
to the Holders, notices of all such Defaults, unless such

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<PAGE>

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

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

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

                                   ARTICLE III
                                  ORGANIZATION

            Section 3.1. Name. The Trust is named "Fulton Capital Trust I," as
such name may be modified from time to time by the Administrators following
written notice to the Institutional Trustee and the Holders of the Trust
Securities. The Trust's activities may be conducted under the name of the Trust
or any other name deemed advisable by the Administrators.

            Section 3.2. Office. The address of the principal office of the
Trust, which shall be in a state of the United States or the District of
Columbia, is c/o Fulton Financial Corporation, One Penn Square, P.O. Box 4887,
Lancaster, Pennsylvania 17604. On ten Business Days' prior written notice to the
Institutional Trustee and the Holders of the Trust Securities, the
Administrators may designate another principal office, which shall be in a state
of the United States or the District of Columbia.

            Section 3.3. Purpose. The exclusive purposes and functions of the
Trust are (a) to issue and sell the Trust Securities, (b) to invest the gross
proceeds from such sale in the Debt Securities and (c) except as otherwise
limited herein, to engage in only those other activities deemed necessary,
advisable or incidental thereto by the Institutional Trustee, including, without
limitation, those activities specified in this Declaration. The Trust shall not
borrow money, issue debt or reinvest proceeds derived from investments, pledge
any of its assets, or otherwise undertake (or permit to be undertaken) any
activity that would cause the Trust to fail to be classified for United States
federal income tax purposes as a grantor trust.

            Section 3.4. Authority. Except as specifically provided in this
Declaration, the Institutional Trustee shall have exclusive and complete
authority to carry out the purposes of the Trust. An action taken by a Trustee
on behalf of the Trust and in accordance with such Trustee's powers shall
constitute the act of and serve to bind the Trust. In dealing with the Trustees
acting on behalf of the Trust, no Person shall be required to inquire into the
authority of the Trustees to

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<PAGE>

bind the Trust. Persons dealing with the Trust are entitled to rely conclusively
on the power and authority of the Trustees as set forth in this Declaration. The
Administrators shall have only those ministerial duties set forth herein with
respect to accomplishing the purposes of the Trust and are not intended to be
trustees or fiduciaries with respect to the Trust or the Holders. The
Institutional Trustee shall have the right, but shall not be obligated except as
provided in Section 3.6(a)(iii), to perform those duties assigned to the
Administrators.

            Section 3.5. Title to Property of the Trust. Except as provided in
Section 3.6(g) and 3.8 with respect to the Debt Securities and the Property
Account or as otherwise provided in this Declaration, legal title to all assets
of the Trust shall be vested in the Trust. The Holders shall not have legal
title to any part of the assets of the Trust, but shall have an undivided
beneficial interest in the assets of the Trust.

            Section 3.6. Powers and Duties of the Trustees and the
Administrators.

            (a) The Trustees and the Administrators shall conduct the affairs of
the Trust in accordance with the terms of this Declaration. Subject to the
limitations set forth in paragraph (b) of this Section, and in accordance with
the following provisions (i) and (ii), the Administrators and, at the direction
of the Administrators, the Trustees, shall have the authority to enter into all
transactions and agreements determined by the Administrators to be appropriate
in exercising the authority, express or implied, otherwise granted to the
Trustees or the Administrators, as the case may be, under this Declaration, and
to perform all acts in furtherance thereof, including without limitation, the
following:

                  (i) Each Administrator shall have the power, duty and
            authority, and is hereby authorized, to act on behalf of the Trust
            with respect to the following matters:

                        (A) the issuance and sale of the Trust Securities;

                        (B) to cause the Trust to enter into, and to execute,
                  deliver and perform on behalf of the Trust, such agreements as
                  may be necessary or desirable in connection with the purposes
                  and function of the Trust, including agreements with the
                  Paying Agent, a subscription agreement for Debt Securities
                  between the Trust and the Sponsor, a subscription agreement
                  for Common Securities between the Trust and the Sponsor and
                  the Prospectus and, if applicable, any Issuer Free Writing
                  Prospectuses prepared by the Sponsor in relation to the
                  offering;

                        (C) to execute and file any documents, including the
                  Registration Statement, 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
                  under the federal securities laws or the securities laws of
                  any jurisdiction in which the Sponsor has determined to
                  qualify or register such Capital Securities;

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<PAGE>

                        (D) to take all action necessary to cause the
                  qualification of the Indenture, this Declaration and the
                  Guarantee under the Trust Indenture Act;

                        (E) to execute and file any document, prepared by the
                  Sponsor, to permit the Capital Securities to trade or be
                  quoted on any securities exchange, quotation system or the
                  NASDAQ National Market;

                        (F) to execute, enter into and deliver any letters,
                  documents or instruments with one or more "nationally
                  recognized statistical rating organizations," as that term is
                  defined for purposes of Rule 436(g)(2) under the Securities
                  Act, relating to the Capital Securities;

                        (G) if required, execute and file with the Commission a
                  registration statement on Form 8-A, including any amendments
                  thereto, prepared by the Sponsor, relating to the registration
                  of the Capital Securities under Section 12(b) or 12(g) of the
                  Exchange Act, as the case may be;

                        (H) letters, documents, or instruments with DTC and
                  other Depositaries relating to the Capital Securities;

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

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

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

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

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

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

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<PAGE>

                        (O) the taking of any action as the Sponsor or an
                  Administrator may from time to time determine is necessary,
                  advisable or incidental to the foregoing to give effect to the
                  terms of this Declaration for the benefit of the Holders
                  (without consideration of the effect of any such action on any
                  particular Holder);

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

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

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

                        (S) to duly prepare and file on behalf of the Trust all
                  applicable tax returns and tax information reports that are
                  required to be filed with respect to the Trust;

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

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

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

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

                  (ii) As among the Trustees and the Administrators, the
            Institutional Trustee shall have the power, duty and authority, and
            is hereby authorized, to act on behalf of the Trust with respect to
            the following matters:

                                       16

<PAGE>

                        (A) the establishment of the Property Account;

                        (B) the receipt of the Debt Securities;

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

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

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

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

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

                        (H) to the extent provided in this Declaration, the
                  winding up of the affairs of and liquidation of the Trust and
                  the preparation, execution and filing of the certificate of
                  cancellation with the Secretary of State of the State of
                  Delaware;

                        (I) after any Event of Default (of which the
                  Institutional Trustee has knowledge (as provided in Section
                  3.10(m) hereof)) (provided, that such Event of Default is not
                  by or with respect to the Institutional Trustee), the taking
                  of any action that the Institutional Trustee may from time to
                  time determine is necessary, advisable or incidental for the
                  foregoing to give effect to the terms of this Declaration and
                  protect and conserve the Trust Property for the benefit of the
                  Holders (without consideration of the effect of any such
                  action on any particular Holder);

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

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

                  (iii) The Institutional Trustee shall have the power and
            authority, and is hereby authorized, to act on behalf of the Trust
            with respect to any of the duties, liabilities, powers or the
            authority of the Administrators set forth in Section 3.6(a)(i)(J)
            and (K) herein but shall not have a duty to do any such act unless

                                       17

<PAGE>

            specifically requested to do so in writing by the Sponsor, and shall
            then be fully protected in acting pursuant to such written request;
            and in the event of a conflict between the action of the
            Administrators and the action of the Institutional Trustee, the
            action of the Institutional Trustee shall prevail.

            (b) So long as this Declaration remains in effect, the Trust (or the
Trustees or Administrators acting on behalf of the Trust) shall not undertake
any business, activities or transaction except as expressly provided herein or
contemplated hereby. In particular, neither the Trustees nor the Administrators
may cause the Trust to (i) acquire any investments or engage in any activities
not authorized by this Declaration, (ii) sell, assign, transfer, exchange,
mortgage, pledge, set-off or otherwise dispose of any of the Trust Property or
interests therein, including to Holders, except as expressly provided herein,
(iii) take any action that would cause (or in the case of the Institutional
Trustee, to the actual knowledge of a Responsible Officer would cause) the Trust
to fail to be classified as a grantor trust for United States federal income tax
purposes, (iv) incur any indebtedness for borrowed money or issue any other debt
or (v) take or consent to any action that would result in the placement of a
lien on any of the Trust Property. The Institutional Trustee shall, at the sole
cost and expense of the Trust subject to reimbursement under Section 10.6(a),
defend all claims and demands of all Persons at any time claiming any lien on
any of the Trust Property adverse to the interest of the Trust or the Holders in
their capacity as Holders.

            (c) In connection with the issuance and sale of the Capital
Securities, the Sponsor shall have the right and responsibility to assist the
Trust with respect to, or effect on behalf of the Trust, the following (and any
actions taken by the Sponsor in furtherance of the following prior to the date
of this Declaration are hereby ratified and confirmed in all respects):

                  (i) the determination of the jurisdictions in which to take
            appropriate action to qualify or register for sale all or part of
            the Capital Securities and the determination of any and all such
            acts, other than actions which must be taken by or on behalf of the
            Trust, and the advisement of and direction to the Trustees of
            actions they must take on behalf of the Trust, and the preparation
            for execution and filing of any documents to be executed and filed
            by the Trust or on behalf of the Trust, as the Sponsor deems
            necessary or advisable in order to comply with the applicable laws
            of any such jurisdictions in connection with the sale of the Capital
            Securities; and

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

            (d) Notwithstanding anything herein to the contrary, the
Administrators, the Institutional Trustee and the Holders of a Majority in
Liquidation Amount of the Common Securities are authorized and directed to
conduct the affairs of the Trust and to operate the Trust so that (i) the Trust
will not be deemed to be an Investment Company required to be registered under
the Investment Company Act (in the case of the Institutional Trustee, to the
actual knowledge of a Responsible Officer), and (ii) the Trust will not fail to
be classified as a grantor trust for United States federal income tax purposes
(in the case of the Institutional Trustee, to the actual knowledge of a
Responsible Officer) and (iii) the Trust will not take any action

                                       18

<PAGE>

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

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

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

            (g) Legal title to all Trust Property shall be vested at all times
in the Institutional Trustee (in its capacity as such) and shall be held and
administered by the Institutional Trustee for the benefit of the Trust in
accordance with this Declaration.

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

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

            The Trust shall not, and the Institutional Trustee and the
Administrators shall not, and the Administrators shall cause the Trust not to,
engage in any activity other than as required or authorized by this Declaration.
In particular, the Trust shall not, and the Institutional Trustee and the
Administrators shall not cause the Trust to:

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

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

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

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

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

                                       19

<PAGE>

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

            (g) other than as provided in this Declaration (including Annex I),
(i) direct the time, method and place of exercising any trust or power conferred
upon the Indenture Trustee with respect to the Debt Securities, (ii) waive any
past default that is waivable under the Indenture, (iii) exercise any right to
rescind or annul any declaration that the principal of all the Debt Securities
shall be due and payable, or (iv) consent to any amendment, modification or
termination of the Indenture or the Debt Securities where such consent shall be
required, in each case unless the Trust shall have received an Opinion of
Counsel experienced in such matters to the effect that the Trust will continue
to be classified as a grantor trust for United States federal income tax
purposes.

            Section 3.8. Powers and Duties of the Institutional Trustee.

            (a) The legal title to the Debt Securities shall be owned by and
held of record in the name of the Institutional Trustee in trust for the benefit
of the Trust. The right, title and interest of the Institutional Trustee to the
Debt Securities shall vest automatically in each Person who may hereafter be
appointed as Institutional Trustee in accordance with Section 5.5. Such vesting
and cessation of title shall be effective whether or not conveyancing documents
with regard to the Debt Securities have been executed and delivered.

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

            (c) The Institutional Trustee shall:

                  (i) establish and maintain a segregated non-interest bearing
            trust account (the "Property Account") in the United States (as
            defined in Treasury Regulations Section 301.7701-7), in the name of
            and under the exclusive control of the Institutional Trustee, and
            maintained in the Institutional Trustee's trust department, on
            behalf of the Holders of the Trust Securities and, upon the receipt
            of payments of funds made in respect of the Debt Securities held by
            the Institutional Trustee, deposit such funds into the Property
            Account and make payments to the Holders of the Capital Securities
            and Holders of the Common Securities from the Property Account in
            accordance with Section 6.1. Funds in the Property Account shall be
            held uninvested until disbursed in accordance with this Declaration;

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

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

                                       20

<PAGE>

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

            (e) The Institutional Trustee may bring or defend, pay, collect,
compromise, arbitrate, resort to legal action with respect to, or otherwise
adjust claims or demands of or against, the Trust (a "Legal Action") which arise
out of or in connection with an Event of Default of which a Responsible Officer
of the Institutional Trustee has actual knowledge or the Institutional Trustee's
duties and obligations under this Declaration or the Trust Indenture Act;
provided, however, that if an Event of Default has occurred and is continuing
and such event is attributable to the failure of the Debt Security Issuer to pay
interest or premium, if any, on or principal of the Debt Securities on the date
such interest, or premium, if any, or principal is otherwise payable (or in the
case of redemption, on the date of redemption), then a Holder of the Capital
Securities may directly institute a proceeding for enforcement of payment to
such Holder of the principal of and premium, if any, and interest on the Debt
Securities having a principal amount equal to the aggregate Liquidation Amount
of the Capital Securities of such Holder (a "Direct Action") on or after the
respective due date specified in the Debt Securities (or, in the case of
redemption, on or after the date of redemption). In connection with such Direct
Action, the rights of the Holders of the Common Securities will be subrogated to
the rights of such Holder of the Capital Securities to the extent of any payment
made by the Debt Security Issuer to such Holder of the Capital Securities in
such Direct Action; provided, however, that a Holder of the Common Securities
may exercise such right of subrogation only if no Event of Default with respect
to the Capital Securities has occurred and is continuing.

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

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

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

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

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

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

                                       21

<PAGE>

            Section 3.9. Certain Duties and Responsibilities of the Trustees and
the Administrators.

            (a) The Institutional Trustee, before the occurrence of any Event of
Default (of which the Institutional Trustee has knowledge (as provided in
Section 3.10(m) hereof)) and after the curing of all Events of Default that may
have occurred, shall undertake to perform only such duties as are specifically
set forth in this Declaration and no implied covenants shall be read into this
Declaration against the Institutional Trustee. In case an Event of Default (of
which the Institutional Trustee has knowledge (as provided in Section 3.10(m)
hereof)), has occurred (that has not been cured or waived pursuant to Section
7.7), the Institutional Trustee shall exercise such of the rights and powers
vested in it by this Declaration, and use the same degree of care and skill in
their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

            (b) The duties and responsibilities of the Trustees and the
Administrators shall be as provided by this Declaration and, in the case of the
Institutional Trustee, by the Trust Indenture Act. Notwithstanding the
foregoing, no provision of this Declaration shall require any Trustee or
Administrator to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity satisfactory to it
against such risk or liability is not reasonably assured to it. Whether or not
therein expressly so provided, every provision of this Declaration relating to
the conduct or affecting the liability of or affording protection to the
Trustees or the Administrators shall be subject to the provisions of this
Article. Nothing in this Declaration shall be construed to release a Trustee
from liability for its own negligent action, its own negligent failure to act,
or its own willful misconduct or bad faith. Nothing in this Declaration shall be
construed to release an Administrator from liability for its own gross negligent
action, its own gross negligent failure to act, or its own willful misconduct or
bad faith. To the extent that, at law or in equity, a Trustee or an
Administrator has duties and liabilities relating to the Trust or to the
Holders, such Trustee or Administrator shall not be liable to the Trust or to
any Holder for such Trustee's or Administrator's good faith reliance on the
provisions of this Declaration. The provisions of this Declaration, to the
extent that they restrict the duties and liabilities of the Administrators or
the Trustees otherwise existing at law or in equity, are agreed by the Sponsor
and the Holders to replace such other duties and liabilities of the
Administrators or the Trustees.

            (c) All payments made by the Institutional Trustee or a Paying Agent
in respect of the Trust Securities shall be made only from the revenue and
proceeds from the Trust Property and only to the extent that there shall be
sufficient revenue or proceeds from the Trust Property to enable the
Institutional Trustee or a Paying Agent to make payments in accordance with the
terms hereof. Each Holder, by its acceptance of a Trust Security, agrees that it
will look solely to the revenue and proceeds from the Trust Property to the
extent legally available for distribution to it as herein provided and that the
Trustees and the Administrators are not personally liable to it for any amount
distributable in respect of any Trust Security or for any other liability in
respect of any Trust Security. This Section 3.9(c) does not limit the liability
of the Trustees expressly set forth elsewhere in this Declaration or, in the
case of the Institutional Trustee, in the Trust Indenture Act.

                                       22

<PAGE>

            (d) No provision of this Declaration shall be construed to relieve
the Institutional Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct or bad faith with
respect to matters that are within the authority of the Institutional Trustee
under this Declaration, except that:

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

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

                  (iii) the Institutional Trustee's sole duty with respect to
            the custody, safe keeping and physical preservation of the Debt
            Securities and the Property Account shall be to deal with such
            property in a similar manner as the Institutional Trustee deals with
            similar property for its own account, subject to the protections and
            limitations on liability afforded to the Institutional Trustee under
            this Declaration and the Trust Indenture Act;

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

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

            Section 3.10. Certain Rights of Institutional Trustee. Subject to
the provisions of Section 2.9:

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

                                       23

<PAGE>

            (b) if (i) in performing its duties under this Declaration, the
Institutional Trustee is required to decide between alternative courses of
action, (ii) in construing any of the provisions of this Declaration, the
Institutional Trustee finds the same ambiguous or inconsistent with any other
provisions contained herein, or (iii) the Institutional Trustee is unsure of the
application of any provision of this Declaration, then, except as to any matter
as to which the Holders of Capital Securities are entitled to vote under the
terms of this Declaration, the Institutional Trustee may deliver a notice to the
Sponsor requesting the Sponsor's opinion as to the course of action to be taken
and the Institutional Trustee shall take such action, or refrain from taking
such action, as the Institutional Trustee in its sole discretion shall deem
advisable and in the best interests of the Holders, in which event the
Institutional Trustee shall have no liability except for its own negligence,
willful misconduct or bad faith;

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

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

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

            (f) the Institutional Trustee may consult with counsel of its
selection (which counsel may be counsel to the Sponsor or any of its Affiliates)
and the advice of such counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon and in accordance with such advice; the
Institutional Trustee shall have the right at any time to seek instructions
concerning the administration of this Declaration from any court of competent
jurisdiction;

            (g) the Institutional Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Declaration at the
request or direction of any of the Holders pursuant to this Declaration, unless
such Holders shall have offered to the Institutional Trustee security or
indemnity reasonably satisfactory to it against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction; provided, that nothing contained in this Section 3.10(g) shall be
taken to relieve the Institutional Trustee, upon the occurrence of an Event of
Default (of which the Institutional Trustee has knowledge (as provided in
Section 3.10(m) hereof)) that has not been cured or waived, of its obligation to
exercise the rights and powers vested in it by this Declaration;

            (h) the Institutional Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order,
approval, bond, debenture, note or other evidence of indebtedness or other paper
or document, unless requested in writing to do so by one or more Holders, but
the

                                       24

<PAGE>

Institutional Trustee may make such further inquiry or investigation into such
facts or matters as it may see fit;

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

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

            (k) except as otherwise expressly provided in this Declaration, the
Institutional Trustee shall not be under any obligation to take any action that
is discretionary under the provisions of this Declaration;

            (l) when the Institutional Trustee incurs expenses or renders
services in connection with a Bankruptcy Event, such expenses (including the
fees and expenses of its counsel) and the compensation for such services are
intended to constitute expenses of administration under any bankruptcy law or
law relating to creditors rights generally;

            (m) the Institutional Trustee shall not be charged with knowledge of
an Event of Default unless a Responsible Officer of the Institutional Trustee
has actual knowledge of such event or the Institutional Trustee receives written
notice of such event from any Holder, except that the Institutional Trustee
shall be deemed to have knowledge of any Event of Default pursuant to Sections
5.01(a), 5.01(b) or 5.01(c) of the Indenture (other than an Event of Default
resulting from the default in the payment of Additional Amounts if the
Institutional Trustee does not have actual knowledge or written notice that such
payment is due and payable);

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

            (o) no provision of this Declaration shall be deemed to impose any
duty or obligation on the Institutional Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it, in any
jurisdiction in which it shall be illegal, or in which the Institutional Trustee
shall be unqualified or incompetent in accordance with applicable

                                       25

<PAGE>

law, to perform any such act or acts, or to exercise any such right, power, duty
or obligation, and no permissive power or authority available to the
Institutional Trustee shall be construed to be a duty.

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

            Section 3.12. Execution of Documents. Unless otherwise determined in
writing by the Institutional Trustee, and except as otherwise required by the
Statutory Trust Act, the Institutional Trustee, or any one or more of the
Administrators, as the case may be, is authorized to execute and deliver on
behalf of the Trust any documents, agreements, instruments or certificates that
the Trustees or the Administrators, as the case may be, have the power and
authority to execute pursuant to Section 3.6.

            Section 3.13. Not Responsible for Recitals or Issuance of Trust
Securities. The recitals contained in this Declaration and the Trust Securities
shall be taken as the statements of the Sponsor, and the Trustees do not assume
any responsibility for their correctness. The Trustees make no representations
as to the value or condition of the Trust Property or any part thereof. The
Trustees make no representations as to the validity or sufficiency of this
Declaration, the Debt Securities or the Trust Securities.

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

            Section 3.15. Mergers. (a) The Trust may not consolidate,
amalgamate, merge with or into, or be replaced by, or convey, transfer or lease
its properties and assets substantially as an entirety to any corporation or
other Person, except as described in this Section 3.15 and except with respect
to the distribution of Debt Securities to Holders of Trust Securities pursuant
to Section 8.1(a)(iv) of this Declaration or paragraph 4 of Annex I.

            (b) The Trust may, with the consent of the Administrators (which
consent will not be unreasonably withheld) and without the consent of the
Institutional Trustee, the Delaware Trustee or the Holders of the Capital
Securities, consolidate, amalgamate, merge with or into, or be replaced by, or
convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to a trust organized as such under the laws of any
state; provided, that:

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

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

                                       26

<PAGE>

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

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

                  (iii) the Capital Securities or any Successor Securities are
            listed or quoted, or any Successor Securities will be listed or
            quoted upon notification of issuance, on any national securities
            exchange or with another organization on which the Capital
            Securities are then listed or quoted, if any;

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

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

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

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

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

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

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

                                       27

<PAGE>

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

                  (ix) prior to such merger, consolidation, amalgamation,
            replacement, conveyance, transfer or lease, the Institutional
            Trustee shall have received an Officers' Certificate of the
            Administrators and an Opinion of Counsel, each to the effect that
            all conditions precedent of this paragraph (b) to such transaction
            have been satisfied.

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

                                   ARTICLE IV

                                    SPONSOR

            Section 4.1. Sponsor's Purchase of Common Securities. On the Closing
Date, the Sponsor will purchase all of the Common Securities issued by the
Trust, in an amount at least equal to 3% of the capital of the Trust, at the
same time as the Capital Securities are sold.

            Section 4.2. Responsibilities of the Sponsor. In connection with the
issue and sale of the Capital Securities, the Sponsor shall have the exclusive
right and responsibility and sole decision to engage in, or direct the
Administrators to engage in, the following activities:

            (a) to prepare and file with the Commission the Registration
Statement and the Prospectus and, if applicable, any Issuer Free Writing
Prospectuses, and any amendments or supplements to any of the foregoing;

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

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

            (d) if deemed necessary or advisable by the Sponsor, to prepare for
filing and request the Administrators to cause the filing by the Trust, as may
be appropriate, of an

                                       28

<PAGE>

application to permit the Capital Securities to trade or be quoted or listed in
or on any securities exchange, quotation system or the NASDAQ National Market;

            (e) if deemed necessary or advisable by the Sponsor, to prepare such
letters, documents or instruments to one or more "nationally recognized
statistical rating organizations," as that term is defined for purposes of Rule
436(g)(2) under the Securities Act, relating to the Capital Securities; and

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

                                    ARTICLE V

                           TRUSTEES AND ADMINISTRATORS

            Section 5.1. Number of Trustees. The number of Trustees initially
shall be two, and:

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

            (b) after the issuance of any Trust Securities, the number of
Trustees may be increased or decreased by vote of the Holder of a Majority in
Liquidation Amount of the Common Securities voting as a class at a meeting of
the Holder of the Common Securities; provided, however, that there shall be a
Delaware Trustee if required by Section 5.2; and there shall always be one
Trustee who shall be the Institutional Trustee, and such Trustee may also serve
as Delaware Trustee if it meets the applicable requirements, in which case
Section 3.11 shall have no application to such entity in its capacity as
Institutional Trustee.

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

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

            (b) if not a natural person, an entity which is organized under the
laws of the United States or any state thereof or the District of Columbia, has
its principal place of business in the State of Delaware, and otherwise meets
the requirements of applicable law, including Section 3807 of the Statutory
Trust Act.

            The initial Delaware Trustee shall be Wilmington Trust Company.

            Section 5.3. Institutional Trustee; Eligibility.

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

                  (i) not be an Affiliate of the Sponsor;

                                       29

<PAGE>

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

                  (iii) be a banking corporation or national association
            organized and doing business under the laws of the United States of
            America or any state thereof or of the District of Columbia or other
            Person permitted by the Commission to act as indenture trustee under
            the Trust Indenture Act and authorized under such laws to exercise
            corporate trust powers, having a combined capital and surplus of at
            least fifty million U.S. dollars ($50,000,000), and subject to
            supervision or examination by federal, state or District of Columbia
            authority. If such corporation, national association or other Person
            publishes reports of condition at least annually, pursuant to law or
            to the requirements of the supervising or examining authority
            referred to above, then for the purposes of this Section
            5.3(a)(iii), the combined capital and surplus of such corporation,
            national association or other Person shall be deemed to be its
            combined capital and surplus as set forth in its most recent report
            of condition so published.

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

            (c) If the Institutional Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Institutional Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to this
Declaration and Section 310(b) of the Trust Indenture Act.

            (d) The 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 Institutional Trustee shall be Wilmington Trust
Company.

            Section 5.4. Administrators. Each Administrator shall be a U.S.
Person. There shall at all times be at least one Administrator. Except where a
requirement for action by a specific number of Administrators is expressly set
forth in this Declaration and except with respect to any action the taking of
which is the subject of a meeting of the Administrators, any action required or
permitted to be taken by the Administrators may be taken by, and any power of
the Administrators may be exercised by, or with the consent of, any one such
Administrator acting alone.

            Section 5.5. Appointment, Removal and Resignation of the Trustees
and the Administrators.

            (a) No resignation or removal of any Trustee (the "Relevant
Trustee") and no appointment of a successor Trustee pursuant to this Article
shall become effective until the acceptance of appointment by the successor
Trustee in accordance with the applicable requirements of this Section.

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<PAGE>

            (b) Subject to Section 5.5(a), a Relevant Trustee may resign at any
time by giving written notice thereof to the Holders of the Trust Securities and
by appointing a successor Relevant Trustee. Upon the resignation of the
Institutional Trustee, the Institutional Trustee shall appoint a successor by
requesting from at least three Persons meeting the eligibility requirements
their expenses and charges to serve as the successor Institutional Trustee on a
form provided by the Administrators, and selecting the Person who agrees to the
lowest expense and charges (the "Successor Institutional Trustee"). If the
instrument of acceptance by the successor Relevant Trustee required by this
Section shall not have been delivered to the Relevant Trustee within 60 days
after the giving of such notice of resignation or delivery of the instrument of
removal, the Relevant Trustee may petition, at the expense of the Trust, any
federal, state or District of Columbia court of competent jurisdiction for the
appointment of a successor Relevant Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper, appoint a Relevant
Trustee. The Institutional Trustee shall have no liability for the selection of
such successor pursuant to this Section.

            (c) Unless an Event of Default shall have occurred and be
continuing, any Trustee may be removed at any time by an act of the Holders of a
Majority in Liquidation Amount of the Common Securities. If any Trustee shall be
so removed, the Holders of the Common Securities, by act of the Holders of a
Majority in Liquidation Amount of the Common Securities delivered to the
Relevant Trustee, shall promptly appoint a successor Relevant Trustee, and such
successor Relevant Trustee shall comply with the applicable requirements of this
Section. If an Event of Default shall have occurred and be continuing, the
Institutional Trustee or the Delaware Trustee, or both of them, may be removed
by the act of the Holders of a Majority in Liquidation Amount of the Capital
Securities, delivered to the Relevant Trustee (in its individual capacity and on
behalf of the Trust). If any Trustee shall be so removed, the Holders of Capital
Securities, by act of the Holders of a Majority in Liquidation Amount of the
Capital Securities then outstanding delivered to the Relevant Trustee, shall
promptly appoint a successor Relevant Trustee or Trustees, and such successor
Relevant Trustee shall comply with the applicable requirements of this Section.
If no successor Relevant Trustee shall have been so appointed by the Holders of
a Majority in Liquidation Amount of the Capital Securities and accepted
appointment in the manner required by this Section within 30 days after delivery
of an instrument of removal, the Relevant Trustee or any Holder who has been a
Holder of the Trust Securities for at least six months may, on behalf of himself
and all others similarly situated, petition any federal, state or District of
Columbia court of competent jurisdiction for the appointment of a successor
Relevant Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a successor Relevant Trustee or Trustees.

            (d) The Institutional Trustee shall give notice of each resignation
and each removal of a Trustee and each appointment of a successor Trustee to all
Holders and to the Sponsor. Each notice shall include the name of the successor
Relevant Trustee and the address of its Corporate Trust Office if it is the
Institutional Trustee.

            (e) Notwithstanding the foregoing or any other provision of this
Declaration, in the event a Delaware Trustee who is a natural person dies or is
adjudged by a court to have become incompetent or incapacitated, the vacancy
created by such death, incompetence or incapacity may be filled by the
Institutional Trustee following the procedures in this Section

                                       31

<PAGE>

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

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

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

            (h) The Holders of the Capital Securities will have no right to vote
to appoint, remove or replace the Administrators, which voting rights are vested
exclusively in the Holders of the Common Securities.

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

            Section 5.6. Vacancies Among Trustees. If a Trustee ceases to hold
office for any reason and the number of Trustees is not reduced pursuant to
Section 5.1, or if the number of Trustees is increased pursuant to Section 5.1,
a vacancy shall occur. A resolution certifying the existence of such vacancy by
the Trustees or, if there are more than two, a majority of the Trustees shall be
conclusive evidence of the existence of such vacancy. The vacancy shall be
filled with a Trustee appointed in accordance with Section 5.5.

            Section 5.7. Effect of Vacancies. The death, resignation,
retirement, removal, bankruptcy, dissolution, liquidation, incompetence or
incapacity to perform the duties of a Trustee shall not operate to dissolve,
terminate or annul the Trust or terminate this Declaration. Whenever a vacancy
in the number of Trustees shall occur, until such vacancy is filled by the
appointment of the Trustees in accordance with Section 5.5, the Institutional
Trustee shall have

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<PAGE>

all the powers granted to the Trustees and shall discharge all the duties
imposed upon the Trustees by this Declaration.

            Section 5.8. Meetings of the Trustees and the Administrators.
Meetings of the Trustees or the Administrators shall be held from time to time
upon the call of any Trustee or Administrator, as applicable. Regular meetings
of the Trustees and the Administrators, respectively, may be in person in the
United States or by telephone, at a place (if applicable) and time fixed by
resolution of the Trustees or the Administrators, as applicable. Notice of any
in-person meetings of the Trustees or the Administrators shall be hand delivered
or otherwise delivered in writing (including by facsimile, with a hard copy by
overnight courier) not less than 48 hours before such meeting. Notice of any
telephonic meetings of the Trustees or the Administrators or any committee
thereof shall be hand delivered or otherwise delivered in writing (including by
facsimile, with a hard copy by overnight courier) not less than 24 hours before
a meeting. Notices shall contain a brief statement of the time, place and
anticipated purposes of the meeting. The presence (whether in person or by
telephone) of a Trustee or an Administrator, as the case may be, at a meeting
shall constitute a waiver of notice of such meeting except where a Trustee or an
Administrator, as the case may be, attends a meeting for the express purpose of
objecting to the transaction of any activity on the ground that the meeting has
not been lawfully called or convened. Unless provided otherwise in this
Declaration, any action of the Trustees or the Administrators, as the case may
be, may be taken at a meeting by vote of a majority of the Trustees or the
Administrators present (whether in person or by telephone) and eligible to vote
with respect to such matter; provided, that, in the case of the Administrators,
a Quorum is present, or without a meeting by the unanimous written consent of
the Trustees or the Administrators, as the case may be. Meetings of the Trustees
and the Administrators together shall be held from time to time upon the call of
any Trustee or Administrator.

            Section 5.9. Delegation of Power. (a) Any Trustee or any
Administrator, as the case may be, may, by power of attorney consistent with
applicable law, delegate to any other natural person over the age of 21 that is
a U.S. Person his or her power for the purpose of executing any documents,
instruments or other writings contemplated in Section 3.6 including the
Registration Statement, or any other registration statement or amendment
thereto, filed with the Commission, or including any other governmental filing.

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

            Section 5.10. Merger, Conversion, Consolidation or Succession to
Business. Any Person into which the Institutional Trustee or the Delaware
Trustee, as the case may be, may be merged or converted or with which either may
be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Institutional Trustee or the Delaware Trustee, as the
case may be, shall be a party, or any Person succeeding to all or substantially
all the corporate trust business of the Institutional Trustee or the Delaware
Trustee, as the case may be, shall be the successor of the Institutional Trustee
or the Delaware Trustee, as the case may be,

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<PAGE>

hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, provided such Person shall be otherwise
qualified and eligible under this Article and, provided, further, that such
Person shall file an amendment to the Certificate of Trust with the Secretary of
State of the State of Delaware as contemplated in Section 5.5(i).

                                   ARTICLE VI

                                  DISTRIBUTIONS

            Section 6.1. Distributions. Holders shall receive Distributions in
accordance with the applicable terms of the relevant Holder's Trust Securities.
Distributions shall be made on the Capital Securities and the Common Securities
in accordance with the preferences set forth in their respective terms. If and
to the extent that the Debt Security Issuer makes a payment of interest
(including any Additional Amounts or Deferred Interest) or premium on and/or
principal of the Debt Securities held by the Institutional Trustee (the amount
of any such payment being a "Payment Amount"), the Institutional Trustee shall
and is directed, to the extent funds are available in the Property Account for
that purpose, to make a distribution (a "Distribution") of the Payment Amount to
Holders. For the avoidance of doubt, funds in the Property Account shall not be
distributed to Holders to the extent of any taxes payable by the Trust, in the
case of withholding taxes, as determined by the Institutional Trustee or any
Paying Agent and, in the case of taxes other than withholding taxes, as
determined by the Administrators in a written notice to the Institutional
Trustee.

                                   ARTICLE VII

                          ISSUANCE OF TRUST SECURITIES

            Section 7.1. General Provisions Regarding Trust Securities.

            (a) On the Closing Date, the Administrators shall on behalf of the
Trust issue one series of securities (the Capital Securities) evidenced by a
certificate substantially in the form of Exhibit A-1, representing undivided
preferred beneficial interests in the assets of the Trust and having such terms
as are set forth in Annex I, and one series of common securities (the Common
Securities) evidenced by a certificate substantially in the form of Exhibit A-2,
representing undivided common beneficial interests in the assets of the Trust
and having such terms as are set forth in Annex I. The Trust shall issue no
securities or other interests in the assets of the Trust other than the Capital
Securities and the Common Securities. The Capital Securities rank pari passu
with, and payment thereon shall be made Pro Rata with the Common Securities
except that, where an Event of Default has occurred and is continuing, the
rights of Holders of the Common Securities to payment in respect of
Distributions and payments upon Liquidation, redemption or otherwise are
subordinated to the rights to payment of the Holders of the Capital Securities.

            (b) The Certificates shall be signed on behalf of the Trust by one
or more Administrators. Such signature shall be the facsimile or manual
signature of any Administrator. In case any Administrator of the Trust who shall
have signed any of the Trust Securities shall cease to be such Administrator
before the Certificates so signed shall be delivered by the Trust,

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<PAGE>

such Certificates nevertheless may be delivered as though the person who signed
such Certificates had not ceased to be such Administrator. Any Certificate may
be signed on behalf of the Trust by such person who, at the actual date of
execution of such Certificate, shall be an Administrator of the Trust, although
at the date of the execution and delivery of the Declaration any such person was
not such an Administrator. A Capital Security shall not be valid until the
Certificate evidencing it is authenticated by the manual or facsimile signature
of an Authorized Officer of the Institutional Trustee. Such signature shall be
conclusive evidence that the Certificate evidencing such Capital Security has
been authenticated under this Declaration. Upon written order of the Trust
signed by one Administrator, the Institutional Trustee shall authenticate one or
more Certificates evidencing the Capital Securities for original issue. The
Institutional Trustee may appoint an authenticating agent that is a U.S. Person
acceptable to the Sponsor to authenticate the Certificates evidencing Capital
Securities. A Common Security need not be so authenticated and shall be valid
upon execution by one or more Administrators.

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

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

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

            Section 7.2. Paying Agent, Transfer Agent, Calculation Agent and
Registrar.

            (a) The Trust shall maintain in Wilmington, Delaware (i) an office
or agency where the Trust Securities may be presented for payment (the "Paying
Agent") and (ii) an office or agency where Trust Securities may be presented for
registration of transfer or exchange (the "Transfer Agent"). The Trust shall
keep or cause to be kept at such office or agency a register (the "Securities
Register") for the purpose of registering Trust Securities and transfers and
exchanges of Trust Securities, such Securities Register to be held by a
registrar (the "Registrar"). The Administrators may appoint the Paying Agent,
the Registrar and the Transfer Agent, and may appoint one or more additional
Paying Agents, one or more co-Registrars, or one or more co-Transfer Agents in
such other locations as it shall determine. The term "Paying Agent" includes any
additional Paying Agent, the term "Registrar" includes any additional Registrar
or co-Registrar and the term "Transfer Agent" includes any additional Transfer
Agent or co-Transfer Agent. The Administrators may change any Paying Agent,
Transfer Agent or Registrar at any time without prior notice to any Holder. The
Administrators shall notify the Institutional Trustee of the name and address of
any Paying Agent, Transfer Agent and Registrar not a party to this Declaration.
The Paying Agent, Transfer Agent or Registrar, as the case may be, may resign
upon 30 days' prior written notice to the Institutional Trustee, the
Administrators and the Sponsor. The Administrators hereby initially appoint the
Institutional Trustee to act as Paying Agent, Transfer Agent and Registrar for
the Capital Securities and the Common Securities at its Corporate Trust Office.
The Institutional Trustee or any of its Affiliates in the

                                       35

<PAGE>

United States may act as Paying Agent, Transfer Agent or Registrar. In the event
that the Institutional Trustee is no longer the Paying Agent, Transfer Agent or
Registrar, as the case may be, the Administrators shall appoint a successor
(which must be a bank or trust company acceptable to the Administrators and the
Sponsor) to act as Paying Agent.

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

            Section 7.3. Form and Dating; Global Capital Security.

            (a) The Capital Securities shall be evidenced by one or more
Certificates and the Institutional Trustee's certificate of authentication
thereon shall be substantially in the form of Exhibit A-1, and the Common
Securities shall be evidenced by one or more Certificates substantially in the
form of Exhibit A-2, each of which is hereby incorporated in and expressly made
a part of this Declaration. Certificates may be typed, printed, lithographed or
engraved or may be produced in any other manner as is reasonably acceptable to
the Administrators, as conclusively evidenced by their execution thereof. The
Certificates evidencing Trust Securities may have letters, "CUSIP" or other
numbers, notations or other marks of identification or designation and such
legends or endorsements required by law, stock exchange rule, agreements to
which the Trust is subject, if any, or usage (provided, that any such notation,
legend or endorsement is in a form acceptable to the Sponsor). The Trust at the
direction of the Sponsor shall furnish any such legend not contained in Exhibit
A-1 to the Institutional Trustee in writing. Each Capital Security Certificate
shall be dated the date of its authentication. The terms and provisions of the
Trust Securities set forth in Annex I and the forms of Certificates set forth in
Exhibits A-1 and A-2 are part of the terms of this Declaration and to the extent
applicable, the Institutional Trustee, the Delaware Trustee, the Administrators
and the Sponsor, by their execution and delivery of this Declaration, expressly
agree to such terms and provisions and to be bound thereby. Capital Securities
will be issued, and may be transferred, only in blocks having an aggregate
Liquidation Amount of not less than $1,000 and integral multiples of $1,000 in
excess thereof.

            (b) Capital Securities offered and sold, as provided in the Purchase
Agreement, shall be initially issued in the form of a single permanent Global
Capital Security in definitive, fully registered form without distribution
coupons and shall include the legends set forth in Exhibit A-1 hereto. The
Global Capital Security shall be deposited on behalf of the purchasers of the
Capital Securities represented thereby with the Institutional Trustee, at its
Corporate Trust Office as custodian for the Depositary, and registered in the
name of the

                                       36

<PAGE>

Depositary or a nominee of the Depositary, duly executed by the Trust and
authenticated by the Institutional Trustee as hereinafter provided. The number
of Capital Securities represented by the Global Capital Security may from time
to time be increased or decreased by adjustments made on the records of the
Institutional Trustee and the Depositary or its nominee as hereinafter provided.

            (c) This Section 7.3(c) shall apply only to the Global Capital
Security as may be authorized by the Trust to be deposited with or on behalf of
the Depositary.

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

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

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

            (d) Except as provided in Section 7.4 or 9.2(d), owners of
beneficial interests in the Global Capital Security will not be entitled to
receive physical delivery of Definitive Capital Securities.

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<PAGE>

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

            Section 7.4. Temporary Certificates. Until definitive Certificates
are ready for delivery, the Administrators may prepare and execute on behalf of
the Trust and, in the case of Definitive Capital Securities, the Institutional
Trustee shall, upon receipt of an Issuer Order to do so, authenticate, temporary
Certificates. Temporary Certificates shall be substantially in the form of
definitive Certificates but may have variations that the Administrators consider
appropriate for temporary Certificates. Without unreasonable delay, the
Administrators shall prepare and execute on behalf of the Trust and, in the case
of the Definitive Capital Securities, the Institutional Trustee shall, upon
receipt of an Issuer Order to do so, authenticate definitive Certificates in
exchange for temporary Certificates.

            Section 7.5. Mutilated, Destroyed, Lost or Stolen Certificates. If:

            (a) any mutilated Certificates should be surrendered to the
Registrar, or if the Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Certificate; and

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

then, in the absence of notice that such Certificate shall have been acquired by
a bona fide purchaser, an Administrator on behalf of the Trust shall execute
(and in the case of a Capital Security Certificate, the Institutional Trustee
shall authenticate) and deliver to such Holder, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of
like denomination. In connection with the issuance of any new Certificate under
this Section, the Registrar or the Administrators may require such Holder to pay
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith. Any Certificate executed and delivered pursuant
to this Section shall constitute conclusive evidence of an ownership interest in
the relevant Trust Securities, as if originally issued, whether or not the lost,
stolen or destroyed Certificate shall be found at any time.

            Section 7.6. Cancellation. The Administrators at any time may
deliver Certificates evidencing Trust Securities to the Institutional Trustee
for cancellation. The Registrar shall forward to the Institutional Trustee any
Certificates evidencing Trust Securities surrendered to it for registration of
transfer, redemption or payment. The Institutional Trustee shall promptly cancel
all Certificates surrendered for registration of transfer, payment, replacement
or cancellation and shall dispose of such canceled Certificates as the
Administrators direct. The Administrators may not issue new Certificates to
replace Certificates evidencing

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<PAGE>

Trust Securities that have been paid or, except for Certificates surrendered for
purposes of the transfer or exchange of the Trust Securities evidenced thereby,
that have been delivered to the Institutional Trustee for cancellation.

            Section 7.7. Rights of Holders.

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

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

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

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

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

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

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

                        (D) all sums paid or advanced by the Indenture Trustee
                  under the Indenture and the reasonable compensation,
                  documented expenses,

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<PAGE>

                  disbursements and advances of the Indenture Trustee and the
                  Institutional Trustee, their agents and counsel; and

                  (ii) all Events of Default with respect to the Debt
            Securities, other than the non-payment of the principal of or
            premium, if any, on the Debt Securities that has become due solely
            by such acceleration, have been cured or waived as provided in
            Section 5.01 of the Indenture.

            (d) The Holders of a Majority in Liquidation Amount of the Capital
Securities may, on behalf of the Holders of all the Capital Securities, waive
any past Default or Event of Default as set forth in Section 2.6 hereof.

            (e) Upon receipt by the Institutional Trustee of written notice
declaring such an acceleration, or rescission and annulment thereof, by Holders
of any part of the Capital Securities, a record date shall be established for
determining Holders of outstanding Capital Securities entitled to join in such
notice, which record date shall be at the close of business on the day the
Institutional Trustee receives such notice. The Holders on such record date, or
their duly designated proxies, and only such Persons, shall be entitled to join
in such notice, whether or not such Holders remain Holders after such record
date; provided, that, unless such declaration of acceleration, or rescission and
annulment, as the case may be, shall have become effective by virtue of the
requisite percentage having joined in such notice prior to the day that is 90
days after such record date, such notice of declaration of acceleration, or
rescission and annulment, as the case may be, shall automatically and without
further action by any Holder be canceled and of no further effect. Nothing in
this paragraph shall prevent a Holder, or a proxy of a Holder, from giving,
after expiration of such 90-day period, a new written notice of declaration of
acceleration, or rescission and annulment thereof, as the case may be, that is
identical to a written notice that has been canceled pursuant to the proviso to
the preceding sentence, in which event a new record date shall be established
pursuant to the provisions of this Section.

                                  ARTICLE VIII

                      DISSOLUTION AND TERMINATION OF TRUST

            Section 8.1. Dissolution and Termination of Trust. (a) The Trust
shall dissolve on the first to occur of:

                  (i) February 1, 2041, the expiration of the term of the Trust;

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

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

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<PAGE>

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

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

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

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

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

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

                                   ARTICLE IX

                              TRANSFER OF INTERESTS

            Section 9.1. Transfer of Trust Securities.

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

            (b) Upon issuance of the Common Securities, the Sponsor shall
acquire and retain beneficial and record ownership of the Common Securities and,
for so long as the Trust Securities remain outstanding, the Sponsor shall
maintain 100% direct or indirect ownership of the Common Securities; provided,
however, that any permitted successor of the Company under the Indenture may
succeed to the Sponsor's ownership of the Common Securities.

            (c) In the event of the redemption of the Trust Securities issued by
the Trust, neither the Trust nor the Registrar shall be required to register the
transfer of or exchange any Trust Security as of the close of business on the
earliest date on which the notice of redemption is deemed to have been given to
all Holders of the Trust Securities.

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<PAGE>

            Section 9.2. Transfer Procedures and Restrictions.

            (a) As applicable, when Definitive Capital Securities are presented
to the Registrar or co-registrar to register the transfer of such 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 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.

            (b) The transfer and exchange of the Global Capital Security or
beneficial interests therein shall be effected through the Depositary in
accordance with this Declaration (including applicable restrictions on transfer
set forth herein, if any) and the procedures of the Depositary therefor.

            (c) Notwithstanding any other provisions of this Declaration (other
than the provisions set forth in subsection (d) of this Section 9.2), the Global
Capital Security may not be transferred as a whole except by the Depositary to a
nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary.

            (d) If at any time (i) a Default or an Event of Default has occurred
and is continuing, (ii) the Trust, in its sole discretion, notifies the
Institutional Trustee in writing that it elects to cause the issuance of
Definitive Capital Securities under this Declaration, or (iii) the Depositary
notifies the Sponsor that it is unwilling or unable to continue as Depositary
for the Global Capital Security or if at any time such Depositary ceases to be a
"clearing agency" registered under the Exchange Act, and, in each case, a
clearing agency is not appointed by the Sponsor within 90 days of receipt of
such notice or of becoming aware of such condition, then an Administrator on
behalf of the Trust will execute, and the Institutional Trustee, upon receipt of
an Issuer Order requesting the authentication and delivery of Definitive Capital
Securities to the Persons designated by the Trust, will authenticate and make
available for delivery Definitive Capital Securities, equal in number to the
number of Capital Securities represented by the Global Capital Security, in
exchange for such Global Capital Security. Any portion of the Global Capital
Security transferred pursuant to this Section shall be registered in such names
as the Depositary shall direct.

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

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<PAGE>

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

                  (ii) Registrations of transfers or exchanges will be effected
            without charge, but only upon payment in respect of any tax or other
            governmental charge that may be imposed in relation to it other than
            exchanges pursuant to Section 7.4 not involving any transfer.

                  (iii) In the event of the redemption of the Capital
            Securities, the Registrar or co-registrar shall not be required to
            register the transfer of or exchange any Capital Securities as of
            the close of business on the earliest date on which the notice of
            redemption is deemed to have been given to all Holders of the
            Capital Securities.

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

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

            (g) (i) Neither the Administrators nor the Institutional Trustee
            shall have any responsibility or obligation to any Capital Security
            Beneficial Owner, a Participant in the Depositary or other Person
            with respect to the accuracy of the records of the Depositary or its
            nominee or of any Participant thereof, with respect to any ownership
            interest in the Capital Securities or with respect to the delivery
            to any Participant, Capital Security Beneficial Owner or other
            Person (other than the Depositary) of any notice (including any
            notice of redemption) or the payment of any amount, under or with
            respect to such Capital Securities. All notices and communications
            to be given to the Holders and all payments to be made to Holders
            under the Capital Securities shall be given or made only to or upon
            the order of the Holders (which shall be the Depositary or its
            nominee in the case of the Global Capital Security).

                  The rights of Capital Security Beneficial Owners shall be
            exercised only through the Depositary subject to the applicable
            rules and procedures of the Depositary. The Institutional Trustee
            may conclusively rely and shall be fully protected in relying upon
            information furnished by the Depositary or any agent

                                       43

<PAGE>

            thereof with respect to its Participants and any Capital Security
            Beneficial Owners.

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

            Section 9.3. Deemed Security Holders. The Trust, the Administrators,
the Trustees, the Paying Agent, the Transfer Agent or the Registrar may treat
the Person in whose name any Trust Security shall be registered on the
Securities Register of the Trust as the sole Holder and owner of such Trust
Security for purposes of receiving Distributions and for all other purposes
whatsoever and, accordingly, shall not be bound to recognize any equitable or
other claim to or interest in such Trust Security on the part of any other
Person, whether or not the Trust, the Administrators, the Trustees, the Paying
Agent, the Transfer Agent or the Registrar shall have actual or other notice
thereof.

            Section 9.4. Book-Entry Capital Security.

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

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

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

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

            (d) the rights of the Capital Security Beneficial Owners shall be
exercised only through the Depositary and shall be limited to those established
by law, the Applicable Depositary Procedures and agreements between such Capital
Security Beneficial Owners and the Depositary and/or the Depositary
Participants, and the Depositary shall receive and transmit payments of
Distributions on the Global Capital Security to such Depositary Participants;
provided, however, that solely for the purposes of determining whether the
Holders of the requisite amount of Capital Securities have voted on any matter
provided for in this Declaration,

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<PAGE>

the Trustees, with respect to the Global Capital Security, may conclusively rely
on, and shall be protected in relying on, any written instrument (including a
proxy) delivered to the Trustees by the Depositary setting forth the Capital
Security Beneficial Owners' votes or assigning the right to vote on any matter
to any other Persons either in whole or in part; and the Depositary will also
make book-entry transfers among the Depositary Participants.

            (e) Notices to Depositary.

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

            Section 9.5. Appointment of Successor Depositary.

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

                                    ARTICLE X

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

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

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

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

            (b) The Holder of the Common Securities shall be liable for all of
the debts and obligations of the Trust (other than with respect to the Trust
Securities) to the extent not satisfied out of the Trust's assets.

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

            Section 10.2. Exculpation. (a) No Indemnified Person shall be
liable, responsible or accountable in damages or otherwise to the Trust or any
Covered Person for any loss, damage or claim incurred by reason of any act or
omission performed or omitted by such Indemnified Person in good faith on behalf
of the Trust and in a manner such Indemnified Person reasonably believed to be
within the scope of the authority conferred on such Indemnified Person

                                       45

<PAGE>

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

            (b) An Indemnified Person shall be fully protected in relying in
good faith upon the records of the Trust and upon such information, opinions,
reports or statements presented to the Trust by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and, if selected by such Indemnified Person,
has been selected by such Indemnified Person with reasonable care by or on
behalf of the Trust, including information, opinions, reports or statements as
to the value and amount of the assets, liabilities, profits, losses or any other
facts pertinent to the existence and amount of assets from which Distributions
to Holders of Trust Securities might properly be paid.

            Section 10.3. Fiduciary Duty. (a) To the extent that, at law or in
equity, an Indemnified Person has duties (including fiduciary duties) and
liabilities relating thereto to the Trust or to any other Covered Person, an
Indemnified Person acting under this Declaration shall not be liable to the
Trust or to any other Covered Person for its good faith reliance on the
provisions of this Declaration. The provisions of this Declaration, to the
extent that they restrict the duties and liabilities of an Indemnified Person
otherwise existing at law or in equity (other than the duties imposed on the
Institutional Trustee under the Trust Indenture Act), are agreed by the parties
hereto to replace such other duties and liabilities of the Indemnified Person.

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

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

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

            Section 10.4. Indemnification. (a)

                  (i) The Sponsor shall indemnify, to the fullest extent
            permitted by law, any Indemnified Person who was or is a party or is
            threatened to be made a party to any threatened, pending or
            completed action, suit or proceeding, whether civil, criminal,
            administrative or investigative (other than an action by or in the
            right of the Trust) by reason of the fact that such Person is or was
            an Indemnified Person against expenses (including attorneys' fees
            and expenses), judgments,

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<PAGE>

            fines and amounts paid in settlement actually and reasonably
            incurred by such Person in connection with such action, suit or
            proceeding if such Person acted in good faith and in a manner such
            Person reasonably believed to be in or not opposed to the best
            interests of the Trust, and, with respect to any criminal action or
            proceeding, had no reasonable cause to believe such conduct was
            unlawful. The termination of any action, suit or proceeding by
            judgment, order, settlement, conviction, or upon a plea of nolo
            contendere or its equivalent, shall not, of itself, create a
            presumption that the Indemnified Person did not act in good faith
            and in a manner which such Person reasonably believed to be in or
            not opposed to the best interests of the Trust, and, with respect to
            any criminal action or proceeding, had reasonable cause to believe
            that such conduct was unlawful.

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

                  (iii) To the extent that an Indemnified Person shall be
            successful on the merits or otherwise (including dismissal of an
            action without prejudice or the settlement of an action without
            admission of liability) in defense of any action, suit or proceeding
            referred to in paragraphs (i) and (ii) of this Section 9.4(a), or in
            defense of any claim, issue or matter therein, such Person shall be
            indemnified, to the fullest extent permitted by law, against
            expenses (including attorneys' fees and expenses) actually and
            reasonably incurred by such Person in connection therewith.

                  (iv) Any indemnification of an Administrator under paragraphs
            (i) and (ii) of this Section 10.4(a) (unless ordered by a court)
            shall be made by the Sponsor only as authorized in the specific case
            upon a determination that indemnification of the Indemnified Person
            is proper in the circumstances because such Person has met the
            applicable standard of conduct set forth in paragraphs (i) and (ii).
            Such determination shall be made (A) by the Administrators by a
            majority vote of a Quorum consisting of such Administrators who were
            not parties to such action, suit or proceeding, (B) if such a Quorum
            is not obtainable, or, even if obtainable, if a Quorum of
            disinterested Administrators so directs, by

                                       47

<PAGE>

            independent legal counsel in a written opinion, or (C) by the Common
            Security Holder of the Trust.

                  (v) To the fullest extent permitted by law, expenses
            (including attorneys' fees and expenses) incurred by an Indemnified
            Person in defending a civil, criminal, administrative or
            investigative action, suit or proceeding referred to in paragraphs
            (i) and (ii) of this Section 10.4(a) shall be paid by the Sponsor in
            advance of the final disposition of such action, suit or proceeding
            upon receipt of an undertaking by or on behalf of such Indemnified
            Person to repay such amount if it shall ultimately be determined
            that such Person is not entitled to be indemnified by the Sponsor as
            authorized in this Section 10.4(a). Notwithstanding the foregoing,
            no advance shall be made by the Sponsor if a determination is
            reasonably and promptly made (1) in the case of a Company
            Indemnified Person (A) by the Administrators by a majority vote of a
            Quorum of disinterested Administrators, (B) if such a Quorum is not
            obtainable, or, even if obtainable, if a Quorum of disinterested
            Administrators so directs, by independent legal counsel in a written
            opinion or (C) by the Common Security Holder of the Trust, that,
            based upon the facts known to the Administrators, counsel or the
            Common Security Holder at the time such determination is made, such
            Indemnified Person acted in bad faith or in a manner that such
            Person either believed to be opposed to or did not believe to be in
            the best interests of the Trust, or, with respect to any criminal
            proceeding, that such Indemnified Person believed or had reasonable
            cause to believe such conduct was unlawful, or (2) in the case of a
            Fiduciary Indemnified Person, by independent legal counsel in a
            written opinion that, based upon the facts known to the counsel at
            the time such determination is made, such Indemnified Person acted
            in bad faith or in a manner that such Indemnified Person either
            believed to be opposed to or did not believe to be in the best
            interests of the Trust, or, with respect to any criminal proceeding,
            that such Indemnified Person believed or had reasonable cause to
            believe such conduct was unlawful. In no event shall any advance be
            made (i) to a Company Indemnified Person in instances where the
            Administrators, independent legal counsel or the Common Security
            Holder reasonably determine that such Person deliberately breached
            such Person's duty to the Trust or its Common or Capital Security
            Holders or (ii) to a Fiduciary Indemnified Person in instances where
            independent legal counsel promptly and reasonably determines in a
            written opinion that such Person deliberately breached such Person's
            duty to the Trust or its Common or Capital Security Holders.

            (b) The Sponsor shall indemnify, to the fullest extent permitted by
applicable law, each Indemnified Person from and against any and all loss,
damage, liability, tax (other than taxes based on the income of such Indemnified
Person), penalty, expense or claim of any kind or nature whatsoever incurred by
such Indemnified Person arising out of or in connection with or by reason of the
creation, administration or termination of the Trust, or any act or omission of
such Indemnified Person in good faith on behalf of the Trust and in a manner
such Indemnified Person reasonably believed to be within the scope of authority
conferred on such Indemnified Person by this Declaration, except that no
Indemnified Person shall be entitled to be indemnified in respect of any loss,
damage, liability, tax, penalty, expense or claim incurred by such

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<PAGE>

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

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

            (d) The Sponsor or the Trust may purchase and maintain insurance on
behalf of any Person who is or was an Indemnified Person against any liability
asserted against such Person and incurred by such Person in any such capacity,
or arising out of such Person's status as such, whether or not the Sponsor would
have the power to indemnify such Person against such liability under the
provisions of this Section.

            (e) For purposes of this Section, references to "the Trust" shall
include, in addition to the resulting or surviving entity, any constituent
entity (including any constituent of a constituent) absorbed in a consolidation
or merger, so that any Person who is or was a director, trustee, officer or
employee of such constituent entity, or is or was serving at the request of such
constituent entity as a director, trustee, officer, employee or agent of another
entity, shall stand in the same position under the provisions of this Section
with respect to the resulting or surviving entity as such Person would have with
respect to such constituent entity if its separate existence had continued.

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

            (g) The provisions of this Section shall survive the termination of
this Declaration or the earlier resignation or removal of the Institutional
Trustee. The obligations of the Sponsor under this Section to compensate and
indemnify the Trustees and to pay or reimburse the Trustees for expenses,
disbursements and advances shall constitute additional indebtedness hereunder.
Such additional indebtedness shall be secured by a lien prior to that of the
Trust Securities upon all property and funds held or collected by the Trustees
as such, except funds held in trust for the benefit of the Holders of particular
Capital Securities, provided, that the Sponsor is the Holder of the Common
Securities.

            Section 10.5. Outside Businesses. Any Covered Person, the Sponsor,
the Delaware Trustee and the Institutional Trustee (subject to Section 5.3(c))
may engage in or possess an interest in other business ventures of any nature or
description, independently or with others, similar or dissimilar to the business
of the Trust, and the Trust and the Holders of Trust Securities shall have no
rights by virtue of this Declaration in and to such independent ventures

                                       49

<PAGE>

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

            Section 10.6. Compensation; Fee. (a) The Sponsor agrees:

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

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

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

                                   ARTICLE XI

                                   ACCOUNTING

            Section 11.1. Fiscal Year. The fiscal year (the "Fiscal Year") of
the Trust shall be the calendar year, or such other year as is required by the
Code.

            Section 11.2. Certain Accounting Matters.

            (a) At all times during the existence of the Trust, the
Administrators shall keep, or cause to be kept, at the principal office of the
Trust in the United States, as defined for purposes of Treasury Regulations
Section 301.7701-7, full books of account, records and supporting documents,
which shall reflect in reasonable detail each transaction of the Trust. The
books of account shall be maintained on the accrual method of accounting, in
accordance with generally accepted accounting principles, consistently applied.

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<PAGE>

            (b) The Sponsor shall cause the Administrators to deliver, by
hardcopy or electronic transmission, to each Holder of Securities: (1) each Form
10-K and Form 10-Q prepared by the Sponsor and filed with the Commission in
accordance with the Exchange Act, within ten Business Days after the filing
thereof; (2) if the Sponsor is not then (y) subject to Section 13 or 15(d) of
the Exchange Act or (z) exempt from reporting pursuant to Rule 12g3-2(b)
thereunder, the Sponsor's reports on Form FR Y-9C promptly following their
filing with the Federal Reserve; and (3) within 90 days after the end of each
Fiscal Year of the Trust, annual financial statements of the Trust, including a
balance sheet of the Trust as of the end of such Fiscal Year and the statements
of income or loss for the Fiscal Year then ended, that are prepared at the
principal office of the Trust in the United States, as defined for purposes of
Treasury Regulations Section 301.7701-7.

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

            (d) The Administrators shall cause to be duly prepared in the United
States, as defined for purposes of Treasury Regulations Section 301.7701-7, and
filed an annual United States federal income tax return on a Form 1041 or such
other form required by United States federal income tax law, and any other
annual income tax returns required to be filed by the Administrators on behalf
of the Trust with any state or local taxing authority.

            Section 11.3. Banking. The Trust shall maintain one or more bank
accounts in the United States, as defined for purposes of Treasury Regulations
Section 301.7701-7, in the name and for the sole benefit of the Trust; provided,
however, that all payments of funds in respect of the Debt Securities held by
the Institutional Trustee shall be made directly to the Property Account and no
other funds of the Trust shall be deposited in the Property Account. The sole
signatories for such accounts (including the Property Account) shall be
designated by the Institutional Trustee.

            Section 11.4. Withholding. The Institutional Trustee or any Paying
Agent and the Administrators shall comply with all withholding requirements
under United States federal, state and local law. The Institutional Trustee or
any Paying Agent shall request, and each Holder shall provide to the
Institutional Trustee or any Paying Agent, such forms or certificates as are
necessary to establish an exemption from withholding with respect to the Holder,
and any representations and forms as shall reasonably be requested by the
Institutional Trustee or any Paying Agent to assist it in determining the extent
of, and in fulfilling, its withholding obligations. The Administrators shall
file required forms with applicable jurisdictions and, unless an exemption from
withholding is properly established by a Holder, shall remit amounts withheld
with respect to the Holder to applicable jurisdictions. To the extent that the
Institutional Trustee or any Paying Agent is required to withhold and pay over
any amounts to any authority with respect to distributions or allocations to any
Holder, the amount withheld shall be deemed to be a Distribution to the Holder
in the amount of the withholding. In the event of

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<PAGE>

any claimed overwithholding, Holders shall be limited to an action against the
applicable jurisdiction. If the amount required to be withheld was not withheld
from actual Distributions made, the Institutional Trustee or any Paying Agent
may reduce subsequent Distributions by the amount of such withholding.

                                   ARTICLE XII

                             AMENDMENTS AND MEETINGS

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

                  (i) the Institutional Trustee,

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

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

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

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

                  (i) unless the Institutional Trustee shall have first received

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

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

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

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

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

                                       52

<PAGE>

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

                        (D) cause the Debt Security Issuer to be unable to treat
                  the Capital Securities as "Tier 1 Capital" (or its then
                  equivalent) for purposes of the capital adequacy guidelines of
                  the Federal Reserve (or any successor regulatory authority
                  with jurisdiction over bank holding companies).

            (c) Except as provided in Section 12.1(d), (e) or (g), no amendment
shall be made, and any such purported amendment shall be void and ineffective,
unless the Holders of a Majority in Liquidation Amount of the Capital Securities
shall have consented to such amendment.

            (d) In addition to and notwithstanding any other provision in this
Declaration, without the consent of each affected Holder, this Declaration may
not be amended to (i) change the amount or timing of any Distribution on the
Trust Securities or any redemption or liquidation provisions applicable to the
Trust Securities or otherwise adversely affect the amount of any Distribution
required to be made in respect of the Trust Securities as of a specified date,
(ii) restrict the right of a Holder to institute suit for the enforcement of any
Distributions or other amounts on or after their due date, or (iii) change
Section 3.8(e).

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

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

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

                  (i) cure any ambiguity;

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

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

                  (iv) modify, eliminate or add to any provision of this
                  Declaration to such extent as may be necessary or desirable,
                  including, without limitation, to ensure that the Trust will
                  be classified for United States federal income tax purposes at
                  all times as a grantor trust and will not be required to
                  register as an Investment Company under the Investment Company
                  Act (including without limitation to conform to any change in
                  Rule 3a-5, Rule 3a-7 or any other applicable rule under the
                  Investment

                                       53

<PAGE>

                  Company Act or written change in interpretation or application
                  thereof by any legislative body, court, government agency or
                  regulatory authority)

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

            Section 12.2. Meetings of the Holders of the Trust Securities;
Action by Written Consent.

            (a) Meetings of the Holders of the Trust Securities may be called at
any time by the Administrators (or as provided in the terms of such Trust
Securities) to consider and act on any matter on which Holders of such Trust
Securities are entitled to act under the terms of this Declaration, the terms of
such Trust Securities or the rules of any stock exchange on which the Capital
Securities are listed or admitted for trading, if any. The Administrators shall
call a meeting of the Holders of such Trust Securities if directed to do so by
the Holders of not less than 10% in Liquidation Amount of such Trust Securities.
Such direction shall be given by delivering to the Administrators one or more
notices in a writing stating that the signing Holders of such Trust Securities
wish to call a meeting and indicating the general or specific purpose for which
the meeting is to be called. Any Holders of Trust Securities calling a meeting
shall specify in writing the Certificates held by the Holders of the Trust
Securities exercising the right to call a meeting and only those Trust
Securities represented by such Certificates shall be counted for purposes of
determining whether the required percentage set forth in the second sentence of
this paragraph has been met.

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

                  (i) Notice of any such meeting shall be given to all the
            Holders of the Trust Securities having a right to vote thereat at
            least 7 days and not more than 60 days before the date of such
            meeting. Whenever a vote, consent or approval of the Holders of the
            Trust Securities is permitted or required under this Declaration or
            the rules of any stock exchange on which the Capital Securities are
            listed or admitted for trading, if any, such vote, consent or
            approval may be given at a meeting of the Holders of the Trust
            Securities. Any action that may be taken at a meeting of the Holders
            of the Trust Securities may be taken without a meeting if a consent
            in writing setting forth the action so taken is signed by the
            Holders of the Trust Securities owning not less than the minimum
            Liquidation Amount of Trust Securities that would be necessary to
            authorize or take such action at a meeting at which all Holders of
            the Trust Securities having a right to vote thereon were present and
            voting. Prompt notice of the taking of action without a meeting
            shall be given to the Holders of the Trust Securities entitled to
            vote who have not consented in writing. The Administrators may
            specify that any written ballot submitted to the Holders of the
            Trust Securities for the purpose of taking any action without a
            meeting shall be returned to the Trust within the time specified by
            the Administrators.

                                       54

<PAGE>

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

                  (iii) Unless the Statutory Trust Act, this Declaration, the
            terms of the Trust Securities, the Trust Indenture Act or the
            listing rules of any stock exchange on which the Capital Securities
            are then listed or admitted for trading, if any, otherwise provides,
            the Administrators, in their sole discretion, shall establish all
            other provisions relating to meetings of Holders of Trust
            Securities, including notice of the time, place or purpose of any
            meeting at which any matter is to be voted on by any Holders of the
            Trust Securities, waiver of any such notice, action by consent
            without a meeting, the establishment of a record date, quorum
            requirements, voting in person or by proxy or any other matter with
            respect to the exercise of any such right to vote; provided,
            however, that each meeting shall be conducted in the United States
            (as that term is defined in Treasury Regulations Section
            301.7701-7).

                                  ARTICLE XIII

                    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
                              AND DELAWARE TRUSTEE

            Section 13.1. Representations and Warranties of Institutional
Trustee. The Trustee that acts as initial Institutional Trustee represents and
warrants to the Trust and to the Sponsor at the date of this Declaration, and
each Successor Institutional Trustee represents and warrants to the Trust and
the Sponsor at the time of the Successor Institutional Trustee's acceptance of
its appointment as Institutional Trustee, that:

            (a) the Institutional Trustee is a banking corporation or national
association with trust powers, duly organized, validly existing and in good
standing under the laws of the State of Delaware or the United States of
America, respectively, with trust power and authority to execute and deliver,
and to carry out and perform its obligations under the terms of, this
Declaration;

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

                                       55

<PAGE>

            (c) the Institutional Trustee is not an Affiliate of the Sponsor,
nor does the Institutional Trustee offer or provide credit or credit enhancement
to the Trust;

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

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

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

            Section 13.2. Representations and Warranties of Delaware Trustee.
The Trustee that acts as initial Delaware Trustee represents and warrants to the
Trust and to the Sponsor at the date of this Declaration, and each Successor
Delaware Trustee represents and warrants to the Trust and the Sponsor at the
time of the Successor Delaware Trustee's acceptance of its appointment as
Delaware Trustee that:

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

            (b) if it is not a natural person, the execution, delivery and
performance by the Delaware Trustee of this Declaration has been duly authorized
by all necessary corporate action on the part of the Delaware Trustee, and this
Declaration has been duly executed and delivered by the Delaware Trustee, and
under Delaware law (excluding any securities laws) constitutes a legal, valid
and binding obligation of the Delaware Trustee, enforceable against it in
accordance with its terms, subject to applicable bankruptcy, reorganization,
moratorium, insolvency and other similar laws affecting creditors' rights
generally and to general principles of equity and the discretion of the court
(regardless of whether considered in a proceeding in equity or at law);

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

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

            (e) no consent, approval or authorization of, or registration with
or notice to, any state or federal banking authority governing the trust powers
of the Delaware Trustee is

                                       56

<PAGE>

required for the execution, delivery or performance by the Delaware Trustee of
this Declaration; and

            (f) the Delaware Trustee is a natural person who is a resident of
the State of Delaware or, if not a natural person, it is an entity which has its
principal place of business in the State of Delaware and, in either case, a
Person that satisfies for the Trust the requirements of Section 3807 of the
Statutory 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 (which telecopy shall be followed by notice delivered or
mailed by first class mail) or mailed by first class mail, as follows:

            (a) if given to the Trust, in care of the Administrators at the
Trust's mailing address set forth below (or such other address as the Trust may
give notice of to the Holders of the Trust Securities):

            Fulton Capital Trust I
            c/o Fulton Financial Corporation
            One Penn Square
            P.O. Box 4887
            Lancaster, Pennsylvania 17604
            Attention: Administrator
            Telephone: (717) 291-2411
            Telecopy: (717) 295-5312;

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

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

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

                                       57

<PAGE>

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

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

            Fulton Financial Corporation
            One Penn Square
            P.O. Box 4887
            Lancaster, Pennsylvania 17604
            Attention: Chief Financial Officer
            Telephone: (717) 291-2411
            Telecopy: (717) 295-5312; or

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

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

            Section 14.2. Governing Law. This Declaration and the rights and
obligations of the parties hereunder shall be governed by and interpreted in
accordance with the law of the State of Delaware and all rights, obligations and
remedies shall be governed by such laws without regard to the principles of
conflict of laws of the State of Delaware or any other jurisdiction that would
call for the application of the law of any jurisdiction other than the State of
Delaware.

            Section 14.3. Submission to Jurisdiction.

            (a) Each of the parties hereto agrees that any suit, action or
proceeding arising out of or based upon this Declaration, or the transactions
contemplated hereby, may be instituted in any of the courts of the State of New
York and the United States District Courts, in each case located in the Borough
of Manhattan, City and State of New York, and further agrees to submit to the
jurisdiction of any competent court in the place of its corporate domicile in
respect of actions brought against it as a defendant. In addition, each such
party irrevocably waives, to the fullest extent permitted by law, any objection
which it may now or hereafter have to the laying of the venue of such suit,
action or proceeding brought in any such court and irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum and irrevocably waives any right to which it
may be entitled on account

                                       58

<PAGE>

of its place of corporate domicile. Each such party hereby irrevocably waives
any and all right to trial by jury in any legal proceeding arising out of or
relating to this Declaration or the transactions contemplated hereby. Each such
party agrees that final judgment in any proceedings brought in such a court
shall be conclusive and binding upon it and may be enforced in any court to the
jurisdiction of which it is subject by a suit upon such judgment.

            (b) Each of the Sponsor, the Trustees, the Administrators and the
Holder of the Common Securities irrevocably consents to the service of process
on it in any such suit, action or proceeding by the mailing thereof by
registered or certified mail, postage prepaid, to it at its address given in or
pursuant to Section 14.1 hereof.

            (c) To the extent permitted by law, nothing herein contained shall
preclude any party from effecting service of process in any lawful manner or
from bringing any suit, action or proceeding in respect of this Declaration in
any other state, country or place.

            Section 14.4. Intention of the Parties. It is the intention of the
parties hereto that the Trust be classified for United States federal income tax
purposes as a grantor trust. The provisions of this Declaration shall be
interpreted to further this intention of the parties.

            Section 14.5. Headings. Headings contained in this Declaration are
inserted for convenience of reference only and do not affect the interpretation
of this Declaration or any provision hereof.

            Section 14.6. Successors and Assigns. Whenever in this Declaration
any of the parties hereto is named or referred to, the successors and assigns of
such party shall be deemed to be included, and all covenants and agreements in
this Declaration by the Sponsor and the Trustees shall bind and inure to the
benefit of their respective successors and assigns, whether or not so expressed.

            Section 14.7. Partial Enforceability. If any provision of this
Declaration, or the application of such provision to any Person or circumstance,
shall be held invalid, the remainder of this Declaration, or the application of
such provision to persons or circumstances other than those to which it is held
invalid, shall not be affected thereby.

            Section 14.8. Counterparts. This Declaration may contain more than
one counterpart of the signature page and this Declaration may be executed by
the affixing of the signature of each of the Trustees and Administrators to any
of such counterpart signature pages. All of such counterpart signature pages
shall be read as though one, and they shall have the same force and effect as
though all of the signers had signed a single signature page.

            Section 14.9. Characterization. Each of the Sponsor, the Trust, the
Trustees, the Administrators and the Holders and beneficial owners of the Trust
Securities agrees, for United States federal income tax purposes, to treat the
Debt Securities as indebtedness of the Debt Security Issuer and to treat the
Trust Securities as evidence of a beneficial ownership interest in the Debt
Securities through a grantor trust.

                                       59

<PAGE>

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

                                         WILMINGTON TRUST COMPANY,
                                          as Delaware Trustee

                                         By: _____________________________
                                             Name:
                                             Title:

                                         WILMINGTON TRUST COMPANY,
                                          as Institutional Trustee

                                         By: _____________________________
                                             Name:
                                             Title:

                                         Fulton Financial Corporation
                                           as Sponsor

                                         By: _____________________________
                                             Charles J. Nugent
                                             Senior Executive Vice President
                                               and Chief Financial Officer

                                         _________________________________
                                         R. Scott Smith, Jr.
                                           as Administrator

                                         _________________________________
                                         Charles J. Nugent
                                           as Administrator

                                         _________________________________
                                         Beth Ann Chivinski
                                           as Administrator

                                         _________________________________
                                         Jeffrey W. Peeling
                                           as Administrator

                                       60

<PAGE>

                                     ANNEX I

                                 TERMS OF 6.29%
                    CAPITAL SECURITIES AND COMMON SECURITIES

            Pursuant to Section 7.1 of the Amended and Restated Declaration of
Trust, dated as of January 26, 2006 (as amended from time to time, the
"Declaration"), the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Capital Securities and the Common
Securities (collectively, the "Trust Securities") are set out below (each
capitalized term used but not defined herein has the meaning set forth in the
Declaration):

            1. Designation and Number.

            (a) Capital Securities. 150,000 Capital Securities of Fulton Capital
Trust I (the "Trust"), with an aggregate Liquidation Amount with respect to the
assets of the Trust at any one time outstanding of One Hundred Fifty Million
Dollars ($150,000,000) and a Liquidation Amount with respect to the assets of
the Trust of $1,000 per Capital Security, are hereby designated for the purposes
of identification only as "6.29% Capital Securities" (the "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 stock exchange or quotation system on or in
which the Capital Securities are listed, traded or quoted, if any.

            (b) Common Securities. 4,640 Common Securities of the Trust (the
"Common Securities") will be evidenced by Definitive Common Securities
substantially in the form of Exhibit A-2 to the Declaration, with such changes
and additions thereto or deletions therefrom as may be required by ordinary
usage, custom or practice. In the absence of an Event of Default, the Common
Securities will have an aggregate Liquidation Amount with respect to the assets
of the Trust of Four Million Six Hundred Forty Thousand Dollars ($4,640,000) and
a Liquidation Amount with respect to the assets of the Trust of $1,000 per
Common Security.

            2. Distributions.

            (a) Distributions payable on each Trust Security will be payable at
a rate of interest equal to 6.29% per annum (such rate is referred to herein as
the "Coupon Rate"). Distributions in arrears for more than one Distribution
Period will bear interest thereon, compounded semi-annually, at the Coupon Rate
for each Distribution Period thereafter (to the extent permitted by applicable
law). The term "Distributions", as used herein, includes cash Distributions, any
such compounded Distributions, and any Additional Amounts payable on the Debt
Securities unless otherwise stated. A Distribution is payable only to the extent
that payments are made in respect of the Debt Securities held by the
Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any Distribution Period will be computed on the basis of a 360-day
year consisting of twelve 30-day months.

                                      A-I-1

<PAGE>

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

            (b) Distributions on the Trust Securities will be cumulative, will
accrue from the date of original issuance, and will be payable, subject to
extension of Distribution Periods as described herein, semi-annually in arrears
on February 1st and August 1st of each year, commencing on August 1, 2006 (each,
a "Distribution Payment Date"), and on any earlier date of redemption, as
applicable. The Debt Security Issuer has the right under certain circumstances
specified in the Indenture to defer payments of interest on the Debt Securities
by extending the interest payment period for up to 10 consecutive semi-annual
periods (each such extended interest payment period, together with all previous
and future consecutive extensions thereof, is referred to herein as an
"Extension Period") at any time and from time to time on the Debt Securities,
subject to the conditions described below and in the Indenture. No Extension
Period may end on a date other than a Distribution Payment Date or extend beyond
the Maturity Date or the Special Redemption Date, as the case may be (each such
term as defined herein). During any Extension Period, interest will continue to
accrue on the Debt Securities, and interest on such accrued interest (such
accrued interest and interest thereon referred to herein as "Deferred Interest")
will accrue, at an annual rate equal to the Coupon Rate compounded semi-annually
from the date such Deferred Interest would have been payable were it not for the
Extension Period, to the extent permitted by applicable law. At the end of any
Extension Period, the Debt Security Issuer shall pay all Deferred Interest then
accrued and unpaid on the Debt Securities; provided, however, that during any
Extension Period, the Debt Security Issuer may not (i) declare or pay any
dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of the Debt Security Issuer's capital
stock, (ii) make any payment of principal or premium or interest on or repay,
repurchase or redeem any debt securities of the Debt Security Issuer that rank
in all respects pari passu with or junior in interest to the Debt Securities or
(iii) make any payment under any guarantees of the Debt Security Issuer that
rank in all respects pari passu with or junior in interest to the Guarantee
(other than (a) repurchases, redemptions or other acquisitions of shares of
capital stock of the Debt Security Issuer (A) in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
one or more employees, officers, directors or consultants, (B) in connection
with a dividend reinvestment or stockholder stock purchase plan or (C) in
connection with the issuance of capital stock of the Debt Security Issuer (or
securities convertible into or exercisable for such capital stock), as
consideration in an acquisition transaction entered into prior to the applicable
Extension Period, (b) as a result of any exchange or conversion of any class or
series of the Debt Security Issuer's capital stock (or any capital stock of a
subsidiary of the Debt Security Issuer) for any class or series of the Debt
Security Issuer's capital stock or of any class or series of the Debt Security
Issuer's indebtedness for any class or series of the Debt Security Issuer's
capital stock, (c) the purchase of fractional interests in shares of the Debt
Security Issuer's capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged,
(d) any declaration of a dividend in connection with any stockholder's rights
plan, or the issuance of rights, stock or other property under any stockholder's
rights plan, or the redemption or repurchase of rights

                                     A-I-2

<PAGE>

pursuant thereto, or (e) any dividend in the form of stock, warrants, options or
other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks pari passu with or junior in interest to such
stock). Prior to the termination of any Extension Period, the Debt Security
Issuer may further extend such Extension Period, provided, that no Extension
Period (including all previous and further consecutive extensions that are part
of such Extension Period) shall exceed 10 consecutive semi-annual periods. Upon
the termination of any Extension Period and upon the payment of all Deferred
Interest, the Debt Security Issuer may commence a new Extension Period, subject
to the requirements herein and in the Indenture. No interest or Deferred
Interest (except any Additional Amounts that may be due and payable) shall be
due and payable during an Extension Period, except at the end thereof, but
Deferred Interest shall accrue upon each installment of interest that would
otherwise have been due and payable during such Extension Period until such
installment is paid.

            As a consequence of any Extension Period, Distributions will be
deferred. Notwithstanding any such deferral, Distributions will continue to
accrue on the Trust Securities, and Distributions on such accrued Distributions
will accrue, at the Coupon Rate applicable during such Extension Period,
compounded semi-annually, to the extent permitted by applicable law. If
Distributions are deferred, the Distributions due shall be paid on the date that
such Extension Period terminates to Holders of the Trust Securities as they
appear on the books and records of the Trust on the regular record date
immediately preceding the Distribution Payment Date on which such Extension
Period terminates to the extent that the Trust has funds legally available for
the payment of such Distributions in the Property Account of the Trust.

            The Trust's funds available for Distributions to the Holders of the
Trust Securities will be limited to payments received from the Debt Security
Issuer. The payment of Distributions out of moneys held by the Trust is
guaranteed by the Guarantor pursuant to the Guarantee.

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

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

                                     A-I-3

<PAGE>

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

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

            The Sponsor, as the Holder of all of the Common Securities, has the
right at any time, upon receipt by the Debt Security Issuer and the
Institutional Trustee for the benefit of the Trust of (i) an opinion of
nationally recognized tax counsel that Holders will not recognize any gain or
loss for United States Federal income tax purposes as a result of the
distribution of Debt Securities, to dissolve the Trust (including, without
limitation, upon the occurrence of a Tax Event, an Investment Company Event or a
Capital Treatment Event, each as defined herein) and (ii) prior approval from
the Federal Reserve or any such successor regulatory agency (if then required
under applicable capital guidelines or policies of the Federal Reserve or any
such successor regulatory agency) and, after satisfaction of liabilities to
creditors of the Trust, cause the Debt Securities to be distributed to the
Holders of the Trust Securities on a Pro Rata basis in accordance with the
aggregate Liquidation Amount thereof.

            The Trust shall dissolve on the first to occur of (i) February 1,
2041, the expiration of the term of the Trust, (ii) a Bankruptcy Event with
respect to the Sponsor, the Trust or the Debt Security Issuer, (iii) (other than
in connection with a merger, consolidation or similar transaction not prohibited
by the Indenture, the Declaration or the Guarantee, as the case may be) the
filing of a certificate of dissolution or its equivalent with respect to the
Sponsor or upon the revocation of the charter of the Sponsor and the expiration
of 90 days after the date of revocation without a reinstatement thereof, (iv)
the distribution of all of the Debt Securities to the Holders of the Trust
Securities, upon exercise of the right of the Holders of all of the outstanding
Common Securities to dissolve the Trust as described above, (v) the entry of a
decree of a judicial dissolution of any Holder of the Common Securities, the
Sponsor, the Trust or the Debt Security Issuer, (vi) when all of the Trust
Securities are then subject to redemption and the amounts necessary for
redemption thereof shall have been paid to the Holders in accordance with the
terms of the Trust Securities or (vii) before the issuance of any Trust
Securities, with the consent of all of the Trustees and the Sponsor. As soon as
practicable after the dissolution of the

                                     A-I-4

<PAGE>

Trust and upon completion of the winding up of the Trust, the Trust shall
terminate upon the filing of a certificate of cancellation with the Secretary of
State of the State of Delaware.

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

            If, upon any Liquidation of the Trust, the Liquidation Distribution
can be paid only in part because the Trust has insufficient assets available to
pay in full the aggregate Liquidation Distribution, then the amounts payable
directly by the Trust on the Trust Securities shall be paid to the Holders of
the Trust Securities on a Pro Rata basis, except that if an Event of Default has
occurred and is continuing, then the Capital Securities shall have a preference
over the Common Securities with regard to such amounts.

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

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

                                     A-I-5

<PAGE>

            4. Redemption and Distribution.

            (a) The Debt Securities will mature on February 1, 2036 (the
"Maturity Date") at an amount in cash equal to 100% of the principal amount
thereof plus unpaid interest accrued thereon to such date (the "Maturity
Redemption Price"). Upon the occurrence and continuation of a Tax Event, an
Investment Company Event or a Capital Treatment Event, the Debt Securities may
be redeemed by the Debt Security Issuer, at its option, in whole but not in
part, at any time within 90 days following the occurrence of such Tax Event,
Investment Company Event or Capital Treatment Event, as the case may be (the
"Special Redemption Date"), at the Special Redemption Price, upon not less than
30 nor more than 60 days' prior written notice to holders of the Debt Securities
so long as such Tax Event, Investment Company Event or Capital Treatment Event,
as the case may be, is continuing. The right of the Debt Security Issuer to
redeem the Debt Securities prior to maturity is subject to the Debt Security
Issuer and the Trust having received prior approval from the Federal Reserve, if
then required under applicable capital guidelines or policies of the Federal
Reserve.

            "Tax Event" means the receipt by the Debt Security Issuer and the
Trust of an Opinion of Counsel experienced in such matters to the effect that,
as a result of any amendment to or change (including any announced prospective
change) in the laws or any regulations thereunder of the United States or any
political subdivision or taxing authority thereof or therein, or as a result of
any official administrative pronouncement (including any private letter ruling,
technical advice memorandum, regulatory procedure, notice or announcement (an
"Administrative Action")) or judicial decision interpreting or applying such
laws or regulations, regardless of whether such Administrative Action or
judicial decision is issued to or in connection with a proceeding involving the
Debt Security Issuer or the Trust and whether or not subject to review or
appeal, which amendment, clarification, change, Administrative Action or
decision is enacted, promulgated or announced, in each case on or after the date
of original issuance of the Debt Securities, there is more than an insubstantial
risk that: (i) the Trust is, or will be within 90 days of the date of such
opinion, subject to United States federal income tax with respect to income
received or accrued on the Debt Securities; (ii) if the Debt Security Issuer is
then organized and existing under the laws of the United States or any state
thereof or the District of Columbia interest payable by the Debt Security Issuer
on the Debt Securities is not, or within 90 days of the date of such opinion,
will not be, deductible by the Debt Security Issuer, in whole or in part, for
United States federal income tax purposes; or (iii) the Trust is, or will be
within 90 days of the date of such opinion, subject to or otherwise required to
pay, or required to withhold from Distributions to Holders of Trust Securities,
more than a de minimis amount of other taxes (including withholding taxes),
duties, assessments or other governmental charges.

            "Capital Treatment Event" means, if the Debt Security Issuer is then
organized and existing under the laws of the United States or any state thereof
or the District of Columbia, the receipt by the Debt Security Issuer and the
Trust of an Opinion of Counsel experienced in such matters to the effect that,
as a result of any amendment to, or change in, the laws, rules or regulations of
the United States or any political subdivision thereof or therein or any
guidelines or policies of an applicable regulatory agency or authority, or as
the result of any official or administrative pronouncement or action or judicial
decision interpreting or applying such laws, rules or regulations, which
amendment or change is effective or which pronouncement, action or decision is
announced on or after the date of original issuance of the Debt Securities,
there is

                                     A-I-6

<PAGE>

more than an insubstantial risk that the Debt Security Issuer will not, within
90 days of the date of such opinion, be entitled to treat an amount equal to the
aggregate Liquidation Amount of the Capital Securities as "Tier 1 Capital" (or
the then equivalent thereof) for purposes of the capital adequacy guidelines of
the Federal Reserve (or any successor regulatory authority with jurisdiction
over bank holding companies), or any capital adequacy guidelines as then in
effect and applicable to the Debt Security Issuer; provided, however, that the
inability of the Debt Security Issuer to treat all or any portion of the
aggregate Liquidation Amount of the Capital Securities as "Tier 1 Capital" shall
not constitute the basis for a Capital Treatment Event if such inability results
from the Debt Security Issuer having preferred stock, minority interests in
consolidated subsidiaries and any other class of security or interest which the
Federal Reserve (or any successor regulatory authority with jurisdiction over
bank holding companies) may now or hereafter accord "Tier 1 Capital" treatment
that, in the aggregate, exceed the amount which may now or hereafter qualify for
treatment as "Tier 1 Capital" under applicable capital adequacy guidelines of
the Federal Reserve (or any successor regulatory authority with jurisdiction
over bank holding companies); provided, further, however, that the distribution
of the Debt Securities in connection with the Liquidation of the Trust by the
Debt Security Issuer shall not in and of itself constitute a Capital Treatment
Event unless such Liquidation shall have occurred in connection with a Tax Event
or an Investment Company Event.

            "Investment Company Event" means the receipt by the Debt Security
Issuer and the Trust of an Opinion of Counsel experienced in such matters to the
effect that as a result of any amendment to, or change in, the laws, rules or
regulations of the United States or any political subdivision thereof or
therein, or as the result of any official or administrative pronouncement or
action or judicial decision interpreting or applying such laws, rules or
regulations, which amendment or change is effective or which pronouncement,
action or decision is announced on or after the date of original issuance of the
Debt Securities, there is more than an insubstantial risk that the Trust is, or
within 90 days of the date of such opinion will be, considered an Investment
Company that is required to be registered under the Investment Company Act.

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

            "Special Redemption Price" means, with respect to the redemption of
any Debt Security following a Special Event, an amount in cash equal to the
principal amount of the Debt Securities plus any unpaid interest accrued thereon
to but excluding the Special Redemption Date.

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

                                     A-I-7

<PAGE>

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

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

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

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

            (g) If the Trust Securities are to be redeemed and the Trust gives a
Redemption/Distribution Notice, which notice may only be issued if the Debt
Securities are redeemed or repaid as set out in this Paragraph (which notice
will be irrevocable), then, provided, that the Institutional Trustee has a
sufficient amount of cash in connection with the related redemption or maturity
of the Debt Securities, the Institutional Trustee will, with respect to the
Book-Entry Capital Securities, irrevocably deposit with the Depositary for such
Book-Entry Capital Securities, the price payable upon redemption of the Trust
Securities, and will give such Depositary irrevocable instructions and authority
to pay the price payable upon redemption of such Book-Entry Capital Securities
to Capital Security Beneficial Owners. With respect to Capital Securities that
are non Book-Entry Capital Securities, the Institutional Trustee will pay the
price payable upon redemption of such Capital Securities to the Holders of such
Trust Securities by check mailed to the address of each such Holder appearing on
the books and records of the Trust on the related date of redemption. If a
Redemption/Distribution Notice shall have been given and funds deposited as
required, then immediately prior to the close of business on the date of such
deposit, Distributions will cease to accrue on the Trust Securities so subject
to redemption and all rights of Holders of such Trust Securities so subject to
redemption will cease, except the right of the Holders of such Trust Securities
to receive the applicable price specified in Paragraph 4(a), but without
interest on such price. If any date of redemption of the Trust Securities falls
on a day that is not a Business Day, then payment of all amounts payable on such
date will be made on the next succeeding Business Day, and no additional
Distributions will accrue in respect of such payment on such next succeeding
Business Day. If any amount payable upon redemption of the Trust Securities is
improperly withheld or refused and not paid

                                     A-I-8

<PAGE>

either by the Trust, the Debt Security Issuer or the Sponsor as guarantor
pursuant to the Guarantee, Distributions on such Trust Securities will continue
to accrue at the Coupon Rate applicable from the date of redemption to the
actual date of payment, in which case the actual payment date will be considered
the date of redemption for purposes of calculating the price payable upon
redemption of the Trust Securities. In the event of the redemption of the
Capital Securities issued by the Trust, the Trust shall not be required to
register the transfer of or exchange any Capital Securities as of the close of
business on the earliest date on which the notice of redemption is deemed to
have been given to all Holders of the Capital Securities

            (h) Redemption/Distribution Notices shall be sent by the
Administrators on behalf of the Trust (A) in respect of the Capital Securities,
to the Holders thereof, and (B) in respect of the Common Securities, to the
Holder thereof.

            (i) Subject to the foregoing and applicable law (including, without
limitation, United States federal securities laws), and provided, that the
acquiror is not the Holder of the Common Securities or the obligor under the
Indenture, the Sponsor or any of its subsidiaries may at any time and from time
to time purchase outstanding Capital Securities by tender, in the open market or
by private agreement.

            5. Voting Rights - Capital Securities. (a) Except as provided under
Paragraphs 5(b) and 7 and as otherwise required by law and the Declaration, the
Holders of the Capital Securities will have no voting rights. The Administrators
are required to call a meeting of the Holders of the Capital Securities if
directed to do so by Holders of not less than 10% in Liquidation Amount of the
Capital Securities.

            (b) Subject to the requirements of obtaining a tax opinion by the
Institutional Trustee in certain circumstances set forth in the last sentence of
this paragraph, the Holders of a Majority in Liquidation Amount of the Capital
Securities, voting separately as a class, have the right to direct the time,
method, and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the
Institutional Trustee under the Declaration, including (i) directing the time,
method, place of conducting any proceeding for any remedy available to the
Indenture Trustee, or exercising any trust or power conferred on the Indenture
Trustee with respect to the Debt Securities, (ii) waiving any past default and
its consequences that are waivable under the Indenture, (iii) exercising any
right to rescind or annul an acceleration of the principal of all the Debt
Securities or (iv) consenting on behalf of all the Holders of the Capital
Securities to any amendment, modification or termination of the Indenture or the
Debt Securities where such consent shall be required; provided, however, that,
where a consent or action under the Indenture would require the consent or act
of the holders of greater than a simple majority in principal amount of Debt
Securities (a "Super Majority") affected thereby, the Institutional Trustee may
only give such consent or take such action at the written direction of the
Holders of not less than the proportion in Liquidation Amount of the Capital
Securities outstanding which the relevant Super Majority represents of the
aggregate principal amount of the Debt Securities outstanding. If the
Institutional Trustee fails to enforce its rights under the Debt Securities
after the Holders of a Majority or Super Majority, as the case may be, in
Liquidation Amount of such Capital Securities have so directed the Institutional
Trustee, to the fullest extent permitted by law, a Holder of the Capital
Securities may institute a legal proceeding directly against the Debt Security
Issuer to enforce the

                                     A-I-9

<PAGE>

Institutional Trustee's rights under the Debt Securities without first
instituting any legal proceeding against the Institutional Trustee or any other
person or entity. Notwithstanding the foregoing, if an Event of Default has
occurred and is continuing and such event is attributable to the failure of the
Debt Security Issuer to pay interest, or premium, if any, on or principal of the
Debt Securities on the date such interest, premium, if any, or principal is
payable (or in the case of redemption, the date of redemption), then a Holder of
the Capital Securities may directly institute a proceeding for enforcement of
payment, on or after the respective due dates specified in the Debt Securities,
to such Holder directly of the principal of and premium, if any, and interest on
the Debt Securities having an aggregate principal amount equal to the aggregate
Liquidation Amount of the Capital Securities of such Holder. The Institutional
Trustee shall notify all Holders of the Capital Securities of any default
actually known to the Institutional Trustee with respect to the Debt Securities
unless (x) such default has been cured prior to the giving of such notice or (y)
the Institutional Trustee determines in good faith that the withholding of such
notice is in the interest of the Holders of such Capital Securities, except
where the default relates to the payment of principal of or interest on any of
the Debt Securities. Such notice shall state that such Indenture Event of
Default also constitutes an Event of Default hereunder. The Institutional
Trustee shall not take any of the actions described in clause (i), (ii), (iii)
or (iv) above unless the Institutional Trustee has obtained an opinion of tax
counsel to the effect that, as a result of such action, the Trust will not be
classified as other than a grantor trust for United States federal income tax
purposes.

            A waiver of an Indenture Event of Default will constitute a waiver
of the corresponding Event of Default hereunder. Any required approval or
direction of Holders of the Capital Securities may be given at a separate
meeting of Holders of the Capital Securities convened for such purpose, at a
meeting of all of the Holders of the Trust Securities in the Trust or pursuant
to written consent. The Institutional Trustee will cause a notice of any meeting
at which Holders of the Capital Securities are entitled to vote, or of any
matter upon which action by written consent of such Holders is to be taken, to
be mailed to each Holder of the Capital Securities. Each such notice will
include a statement setting forth the following information (i) the date of such
meeting or the date by which such action is to be taken, (ii) a description of
any resolution proposed for adoption at such meeting on which such Holders are
entitled to vote or of such matter upon which written consent is sought and
(iii) instructions for the delivery of proxies or consents. No vote or consent
of the Holders of the Capital Securities will be required for the Trust to
redeem and cancel Capital Securities or to distribute the Debt Securities in
accordance with the Declaration and the terms of the Trust Securities.

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

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

                                     A-I-10

<PAGE>

            6. Voting Rights - Common Securities. (a) Except as provided under
Paragraphs 6(b), 6(c) and 7 and as otherwise required by law and the
Declaration, the Common Securities will have no voting rights.

            (b) The Holder of the Common Securities is entitled, in accordance
with Article V of the Declaration, to vote to appoint, remove or replace any
Administrators.

            (c) Subject to Paragraph 2.6 of the Declaration and only after each
Event of Default (if any) with respect to the Capital Securities has been cured,
waived or otherwise eliminated and subject to the requirements of the second to
last sentence of this paragraph, the Holder of the Common Securities, voting
separately as a class, may direct the time, method, and place of conducting any
proceeding for any remedy available to the Institutional Trustee, or exercising
any trust or power conferred upon the Institutional Trustee under the
Declaration, including (i) directing the time, method, place of conducting any
proceeding for any remedy available to the Indenture Trustee, or exercising any
trust or power conferred on the Indenture Trustee with respect to the Debt
Securities, (ii) waiving any past default and its consequences that are waivable
under the Indenture, or (iii) exercising any right to rescind or annul an
acceleration of the principal of all the Debt Securities. Notwithstanding this
Paragraph 6(c), the Institutional Trustee shall not revoke any action previously
authorized or approved by a vote or consent of the Holders of the Capital
Securities. Other than with respect to directing the time, method and place of
conducting any proceeding for any remedy available to the Institutional Trustee
or the Indenture Trustee as set forth above, the Institutional Trustee shall not
take any action described in clause (i), (ii) or (iii) above, unless the
Institutional Trustee has obtained an opinion of tax counsel to the effect that
for the purposes of United States federal income tax the Trust will not be
classified as other than a grantor trust on account of such action. If the
Institutional Trustee fails to enforce its rights under the Declaration, to the
fullest extent permitted by law, the Holder of the Common Securities may
institute a legal proceeding directly against any Person to enforce the
Institutional Trustee's rights under the Declaration, without first instituting
a legal proceeding against the Institutional Trustee or any other Person.

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

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

            7. Amendments to Declaration and Indenture. In addition to any
requirements under Section 12.1 of the Declaration, if any proposed amendment to
the

                                     A-I-11

<PAGE>

Declaration provides for, or the Trustees otherwise propose to effect, (i) any
action that would adversely affect the powers, preferences or special rights of
the Trust Securities, whether by way of amendment to the Declaration or
otherwise, or (ii) the Liquidation of the Trust, other than as described in
Section 8.1 of the Declaration, then the Holders of outstanding Trust
Securities, voting together as a single class, will be entitled to vote on such
amendment or proposal and such amendment or proposal shall not be effective
except with the approval of the Holders of a Majority in Liquidation Amount of
the Trust Securities affected thereby; provided, however, if any amendment or
proposal referred to in clause (i) above would adversely affect only the Capital
Securities or only the Common Securities, then only Holders of the affected
Trust Securities will be entitled to vote on such amendment or proposal and such
amendment or proposal shall not be effective except with the approval of the
Holders of a Majority in Liquidation Amount of such Trust Securities.

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

            (b) Notwithstanding the foregoing, no amendment or modification may
be made to the Declaration if such amendment or modification would (i) cause the
Trust to fail to be classified for purposes of United States federal income
taxation as a grantor trust, (ii) reduce or otherwise adversely affect the
powers of the Institutional Trustee or (iii) cause the Trust to be deemed an
Investment Company which is required to be registered under the Investment
Company Act.

            (c) Notwithstanding any provision of the Declaration, the right of
any Holder of the Capital Securities to receive payment of Distributions and
payments upon redemption, Liquidation or otherwise, on or after their respective
due dates, or to institute a suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the
consent of such Holder. For the protection and enforcement of the foregoing
provision, each and every Holder of the Capital Securities shall be entitled to
such relief as can be given either at law or equity.

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

                                     A-I-12

<PAGE>

Securities held by the relevant Holder relative to the aggregate Liquidation
Amount of all Capital Securities outstanding, and only after satisfaction of all
amounts owed to the Holders of the Capital Securities, to each Holder of the
Common Securities Pro Rata according to the aggregate Liquidation Amount of the
Common Securities held by the relevant Holder relative to the aggregate
Liquidation Amount of all Common Securities outstanding.

            9. Ranking. The Capital Securities rank pari passu with, and payment
thereon shall be made Pro Rata with, the Common Securities except that, where an
Event of Default has occurred and is continuing, the rights of Holders of the
Common Securities to receive payment of Distributions and payments upon
Liquidation, redemption and otherwise are subordinated to the rights of the
Holders of the Capital Securities with the result that no payment of any
Distribution on, or any amount payable upon the redemption of, any Common
Security, and no payment to the Holder of any Common Security on account of the
Liquidation of the Trust, shall be made unless payment in full in cash of (i)
all accrued and unpaid Distributions on all outstanding Capital Securities for
all Distribution Periods terminating on or prior thereto, (ii) all amounts
payable upon Capital Securities then subject to redemption and (iii) all amounts
payable upon Capital Securities in the event of the Liquidation of the Trust, in
each case, shall have been made or provided for, and all funds immediately
available to the Institutional Trustee shall first be applied to the payment in
full in cash of the amounts specified in clause (i), (ii) and (iii) above that
are then due and payable.

            10. Acceptance of Guarantee and Indenture. Each Holder of the
Capital Securities and the Common Securities, by the acceptance of such Trust
Securities, agrees to the provisions of the Guarantee and the Indenture,
including the subordination provisions therein.

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

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

                                     A-I-13

<PAGE>

                                   EXHIBIT A-1

                      FORM OF CAPITAL SECURITY CERTIFICATE

                       [FORM OF FACE OF CAPITAL SECURITY]

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

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

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

                                     A-1-1

<PAGE>

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

                                     A-1-2

<PAGE>

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

                              CUSIP NO 360008 AA 4

                    Certificate Evidencing Capital Securities

                                       of

                             FULTON CAPITAL TRUST I

                            6.29% Capital Securities

                (Liquidation Amount $1,000 per Capital Security)

            Fulton Capital Trust I, a statutory trust created under the laws of
the State of Delaware (the "Trust"), hereby certifies that [Cede & Co.](1)
[_________](2) is the registered owner (the "Holder") of [______________]
capital securities of the Trust representing undivided preferred beneficial
interests in the assets of the Trust, designated as 6.29% Capital Securities
(Liquidation Amount $1,000 per Capital Security) (the "Capital Securities").
Subject to the Declaration (as defined below), the Capital Securities are
transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this Certificate duly endorsed and in
proper form for transfer. The Capital Securities represented hereby are issued
pursuant to, and the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Capital Securities shall in all respects
be subject to, the provisions of the Amended and Restated Declaration of Trust
of the Trust, dated as of January 26, 2006, among R. Scott Smith, Jr., Charles
J. Nugent, Beth Ann Chivinski and Jeffrey W. Peeling, as Administrators,
Wilmington Trust Company, as Delaware Trustee, Wilmington Trust Company, as
Institutional Trustee, Fulton Financial Corporation, as Sponsor, and the holders
from time to time of undivided beneficial interests in the assets of the Trust,
including the designation of the terms of the Capital Securities as set forth in
Annex I to the Declaration, as the same may be amended from time to time (the
"Declaration"). Capitalized terms used herein but not defined shall have the
meaning given them in the Declaration. The Holder is entitled to the benefits of
the Guarantee and the Indenture to the extent provided therein. The Sponsor will
provide a copy of the Declaration, the Guarantee, and the Indenture to the
Holder without charge upon written request to the Sponsor at its principal place
of business.

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

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

----------
(1)   Insert in Global Capital Securities only.

(2)   Insert in Definitive Capital Securities only.

                                     A-1-3

<PAGE>

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

                                     A-1-4

<PAGE>

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

                                               FULTON CAPITAL TRUST I

                                               By: _____________________________
                                                   Name:
                                                   Title: Administrator

                                               Dated: __________________________

                          CERTIFICATE OF AUTHENTICATION

            This Certificate represents 6.29% Capital Securities referred to in
the within-mentioned Declaration.

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

                                               By: _____________________________
                                                   Authorized Officer

                                               Dated: __________________________

                                     A-1-5

<PAGE>

                      [FORM OF REVERSE OF CAPITAL SECURITY]

            Distributions payable on each Capital Security will be payable at a
rate of interest per annum, which, with respect to any Distribution Period (as
defined herein), will be equal to 6.29% (the "Coupon Rate"). Distributions in
arrears for more than one Distribution Period will bear interest thereon,
compounded semi-annually, at the applicable Coupon Rate for each Distribution
Period thereafter (to the extent permitted by applicable law). The term
"Distributions," as used herein, includes cash Distributions, any such
compounded Distributions and any Additional Amounts payable on the Debt
Securities unless otherwise stated. A Distribution is payable only to the extent
that payments are made in respect of the Debt Securities held by the
Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any Distribution Period will be computed on the basis of a 360-day
year consisting of twelve 30-day months.

            Except as otherwise described below, Distributions on the Capital
Securities will be cumulative, will accrue from the date of original issuance
and will be payable semi-annually in arrears on February 1st and August 1st of
each year, commencing on August 1, 2006, and on any date of redemption (each, a
"Distribution Payment Date"), subject to the Business Day convention specified
in the Declaration. The Debt Security Issuer has the right under certain
circumstances specified in the Indenture to defer payments of interest on the
Debt Securities by extending the interest payment period for up to 10
consecutive semi-annual periods (each such extended interest payment period,
together with all previous and future consecutive extensions thereof, is
referred to herein as an "Extension Period") at any time and from time to time
on the Debt Securities, subject to the conditions described below and in the
Declaration and the Indenture. No Extension Period may end on a date other than
a Distribution Payment Date or extend beyond the Maturity Date or the Special
Redemption Date, as the case may be. During any Extension Period, interest will
continue to accrue on the Debt Securities, and interest on such accrued interest
(such accrued interest and interest thereon referred to herein as "Deferred
Interest") will accrue, at an annual rate equal to the Coupon Rate, compounded
semi-annually from the date such Deferred Interest would have been payable were
it not for the Extension Period, to the extent permitted by applicable law. At
the end of any Extension Period, the Debt Security Issuer shall pay all Deferred
Interest then accrued and unpaid on the Debt Securities; provided, however, that
prior to the termination of any Extension Period, the Debt Security Issuer may
further extend such Extension Period, provided, that no Extension Period
(including all previous and further consecutive extensions that are part of such
Extension Period) shall exceed 10 consecutive semi-annual periods. Upon the
termination of any Extension Period and upon the payment of all Deferred
Interest, the Debt Security Issuer may commence a new Extension Period, subject
to the requirements set forth herein and in the Declaration and the Indenture.
No interest or Deferred Interest (except any Additional Amounts that may be due
and payable) shall be due and payable during an Extension Period, except at the
end thereof, but Deferred Interest shall accrue upon each installment of
interest that would otherwise have been due and payable during such Extension
Period until such installment is paid.

            As a consequence of any Extension Period, Distributions will be
deferred. If Distributions are deferred, the Distributions due shall be paid on
the date that the related Extension Period terminates to Holders of the Capital
Securities as they appear on the books and

                                     A-1-6

<PAGE>

records of the Trust on the regular record date immediately preceding the
Distribution Payment Date on which such Extension Period terminates to the
extent that the Trust has funds legally available for the payment of such
Distributions in the Property Account of the Trust.

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

                                     A-1-7

<PAGE>

                                   ASSIGNMENT

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

____________________________

____________________________

____________________________

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

____________________________

____________________________

____________________________

(Insert address and zip code of assignee),

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

            Date:__________________

            Signature:__________________

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

            Signature Guarantee:(1) ____________________________

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

                                     A-1-8

<PAGE>

                                   EXHIBIT A-2

                             FORM OF COMMON SECURITY

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

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

                                     A-2-1

<PAGE>

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

                    Certificate Evidencing Common Securities

                                       of

                             FULTON CAPITAL TRUST I

                             6.29% Common Securities
                 (Liquidation Amount $1,000 per Common Security)

            Fulton Capital Trust I, a statutory trust created under the laws of
the State of Delaware (the "Trust"), hereby certifies that Fulton Financial
Corporation is the registered owner (the "Holder") of common securities of the
Trust representing undivided common beneficial interests in the assets of the
Trust (Liquidation Amount $1,000 per Common Security)(the "Common Securities").
The Common Securities represented hereby are issued pursuant to, and the
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities shall in all respects be subject to, the
provisions of the Amended and Restated Declaration of Trust of the Trust, dated
as of January 26, 2006, among R. Scott Smith, Jr., Charles J. Nugent, Beth Ann
Chivinski and Jeffrey W. Peeling, as Administrators, Wilmington Trust Company,
as Delaware Trustee, Wilmington Trust Company, as Institutional Trustee, the
Holder, as Sponsor, and the holders from time to time of undivided beneficial
interests in the assets of the Trust, including the designation of the terms of
the Common Securities as set forth in Annex I to the Declaration, as the same
may be amended from time to time (the "Declaration"). Capitalized terms used
herein but not defined shall have the meaning given them in the Declaration. The
Sponsor will provide a copy of the Declaration and the Indenture to the Holder
without charge upon written request to the Sponsor at its principal place of
business.

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

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

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

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

                                     A-2-2

<PAGE>

            IN WITNESS WHEREOF, the Trust has executed this Certificate this ___
day of ____, 2006.

                                               FULTON CAPITAL TRUST I

                                               By:______________________________
                                                  Name:
                                                  Title: Administrator

                                     A-2-3

<PAGE>

                          [FORM OF REVERSE OF SECURITY]

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

            Except as otherwise described below, Distributions on the Common
Securities will be cumulative, will accrue from the date of original issuance
and will be payable semi-annually in arrears on February 1st and August 1st of
each year, commencing on August 1, 2006, and on any date of redemption (each, a
"Distribution Payment Date"), subject to the Business Day convention specified
in the Declaration. The Debt Security Issuer has the right under certain
circumstances specified in the Indenture to defer payments of interest on the
Debt Securities by extending the interest payment period for up to 10
consecutive semi-annual periods (each such extended interest payment period,
together with all previous and future consecutive extensions thereof, is
referred to herein as an "Extension Period") at any time and from time to time
on the Debt Securities, subject to the conditions described below and in the
Declaration and the Indenture. No Extension Period may end on a date other than
a Distribution Payment Date or extend beyond the Maturity Date or the Special
Redemption Date, as the case may be. During any Extension Period, interest will
continue to accrue on the Debt Securities, and interest on such accrued interest
(such accrued interest and interest thereon referred to herein as "Deferred
Interest") will accrue, at an annual rate equal to the Coupon Rate, compounded
semi-annually from the date such Deferred Interest would have been payable were
it not for the Extension Period, to the extent permitted by applicable law. At
the end of any Extension Period, the Debt Security Issuer shall pay all Deferred
Interest then accrued and unpaid on the Debt Securities; provided, however, that
prior to the termination of any Extension Period, the Debt Security Issuer may
further extend such Extension Period, provided, that no Extension Period
(including all previous and further consecutive extensions that are part of such
Extension Period) shall exceed 10 consecutive semi-annual periods. Upon the
termination of any Extension Period and upon the payment of all Deferred
Interest, the Debt Security Issuer may commence a new Extension Period, subject
to the requirements set forth herein and in the Declaration and the Indenture.
No interest or Deferred Interest (except any Additional Amounts that may be due
and payable) shall be due and payable during an Extension Period, except at the
end thereof, but Deferred Interest shall accrue upon each installment of
interest that would otherwise have been due and payable during such Extension
Period until such installment is paid.

            As a consequence of any Extension Period, Distributions will be
deferred. If Distributions are deferred, the Distributions due shall be paid on
the date that the related Extension Period terminates to Holders of the Trust
Securities as they appear on the books and

                                     A-2-4

<PAGE>

records of the Trust on the regular record date immediately preceding the
Distribution Payment Date on which such Extension Period terminates to the
extent that the Trust has funds legally available for the payment of such
Distributions in the Property Account of the Trust.

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

                                     A-2-5

<PAGE>

                                   ASSIGNMENT

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

____________________________

____________________________

____________________________

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

____________________________

____________________________

____________________________

(Insert address and zip code of assignee),

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

            Date:____________________

            Signature:________________________

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

            Signature Guarantee:(1) _______________________

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

                                     A-2-6

<PAGE>

                                    EXHIBIT B

                       FORM OF ADMINISTRATOR'S CERTIFICATE
                                  OF THE TRUST

            Pursuant to Section 3.6(a)(i)(R) of the Amended and Restated
Declaration of Trust, dated as of January 26, 2006 (as amended or supplemented
from time to time, the "Trust Agreement"), of Fulton Capital Trust I (the
"Trust") among Fulton Financial Corporation, as Sponsor, Wilmington Trust
Company, as Institutional Trustee, Wilmington Trust Company, as Delaware
Trustee, the Administrators named therein, and the holders from time to time of
beneficial interests in the assets of the Trust, the undersigned (on behalf of
the Trust) hereby certifies that he/she is an Administrator of the Trust and
that, to his/her knowledge under the terms of the Trust Agreement, the Trust has
complied (without regard to any period of grace or requirement of notice
provided under the Trust Agreement) with all conditions and covenants under the
Trust Agreement for the year 20__.

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

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

                                                 Name: _________________________
                                                 Title: ________________________

                                       B-1AGREEMENT AND PLAN OF REORGANIZATION

                                  MODAVOX, INC.
                           KINO ACQUISITION SUB, INC.
                              KINO INTERACTIVE, LLC

      THIS AGREEMENT AND PLAN OF REORGANIZATION (this "Agreement") is dated as
of the latest date set forth on the signature page (the "Signature Date"), and
is among MODAVOX, INC., a Delaware corporation ("Modavox"); KINO ACQUISITION
SUB, INC., a Delaware corporation and wholly owned Subsidiary of Modavox to be
formed ("Subsidiary"); and KINO INTERACTIVE, LLC, an Arizona limited liability
company to be formed ("Kino"). Modavox, Subsidiary and Kino are sometimes
referred to individually as the "Party" and collectively as the "Parties."

                              STATEMENT OF PURPOSE

      A. The Boards of Directors of Modavox and Subsidiary and the members of
Kino deem it advisable and in the best interests of each entity and its
respective holders of equity interests that Modavox and Kino combine to advance
their long-term business interests;

      B. The combination of Modavox and Kino will be effected by the terms of
this Agreement through a transaction (the "Merger") in which (i) Kino will merge
with and into Subsidiary, and (ii) the members of Kino will become stockholders
of Modavox; and

      C. For federal income tax purposes, it is intended that the Merger will
qualify as reorganization within the meaning of Section 368(a) of the Internal
Revenue Code of 1986, as amended (the "Code").

                                    AGREEMENT

      In consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth below, the Parties agree as
follows:

                                    ARTICLE 1

                                   THE MERGER

1.1   EFFECTIVE TIME OF THE MERGER. Subject to the provisions of this Agreement,
      Modavox, Subsidiary and Kino will duly prepare, execute, acknowledge and
      deliver to the Delaware Secretary of State an Agreement of Merger in such
      form as is required by the relevant provisions of the Delaware Business
      Corporation Law (the "DBCL") for filing as soon as practicable on or after
      the Closing Date (as defined in Section 1.2). The Merger will be effective
      upon the filing of the Certificate of Merger to be filed with and accepted
      by the Delaware Secretary of State (the "Effective Time").
<PAGE>

1.2   CLOSING. The closing of the Merger (the "Closing") will take place at 1:00
      p.m., Arizona Time, in Phoenix, Arizona at a location Modavox specifies by
      not later than February 28, 2006 (the "Closing Date"), provided that the
      other closing conditions set forth in Article 6 have been met or waived as
      provided in Article 6 at or prior to the Closing,

1.3   EFFECTS OF THE MERGER. At the Effective Time (i) the separate existence of
      Kino will cease, and it will be merged with and into Subsidiary (sometimes
      hereinafter the "Surviving Entity"), (ii) the Certificate of Incorporation
      of Subsidiary will become the Certificate of Incorporation of the
      Surviving Entity, and (iii) the Bylaws of Subsidiary will become the
      Bylaws of the Surviving Entity. At and after the Effective Time, the
      Surviving Entity will possess all the rights, privileges, powers and
      franchises of a public as well as of a private nature, and be subject to
      all the restrictions, disabilities and duties of Kino; and all singular
      rights, privileges, powers and franchises of Kino, and all property, real,
      personal and mixed, and all debts due to Kino on whatever account, as well
      as for subscriptions for membership interests and all other things in
      action or belonging to Kino, will be vested in the Surviving Entity, and
      all property, rights, privileges, powers and franchises, and all and every
      other interest will be thereafter as effectually the property of the
      Surviving Entity as they were of Kino, and the title to any real estate
      vested by deed or otherwise, in Kino, will not revert or be in any way
      impaired but all rights of creditors and all liens upon any property of
      Kino will be preserved unimpaired, and all debts, liabilities and duties
      of Kino will thereafter attach to the Surviving Entity, and may be
      enforced against it to the same extent as if such debts and liabilities
      had been incurred by it.

1.4   DIRECTORS AND EXECUTIVE OFFICERS. The directors and executive officers of
      Modavox immediately prior to the Effective Time will be the initial
      directors, executive officers of the Surviving Entity, each of whom will
      hold office in accordance with the organizational documents of the
      Surviving Entity, until their respective successors are duly elected or
      appointed. In addition, Kino will have the right to appoint two additional
      directors to the board of directors of the Surviving Entity in addition to
      Nathan T. Bradley who has already been appointed to Modavox's Board of
      Directors.

                                    ARTICLE 2

                            CONVERSION OF SECURITIES

2.1   CONVERSION OF CAPITAL. As of the Effective Time, by virtue of the Merger
      and without any action on the part of the holder of any membership
      interests of Kino or capital stock of the Surviving Entity:

                                       2
<PAGE>

      (a)   Capital Stock of Surviving Entity. Each issued and outstanding share
            of the capital stock of Subsidiary will be converted into and become
            one fully paid and nonassessable share of Common Stock of the
            Surviving Entity.

      (b)   Conversion of Kino's Membership Interests. Subject to Section 2.2,
            all of the issued and outstanding membership interests of Kino
            ("Kino's Membership Interests"), will be converted into the right to
            receive eight million (8,000,000) shares of Modavox Common Stock,
            two million (2,000,000) shares of Modavox Class A Convertible
            Preferred Stock and two million (2,000,000) shares of Modavox Class
            B Convertible Preferred Stock ("Merger Shares"). The Class A
            Convertible Preferred Stock will have the attributes described in
            the Certificate of Designation attached hereto as Exhibit 2.1(b-1).
            The Class B Convertible Preferred Stock will have the attributes
            described in the Certificate of Designation attached hereto as
            Exhibit 2.1(b-2). Kino's Membership Interests, when so converted,
            will no longer be outstanding and will automatically be canceled and
            retired and will cease to exist, and each holder of Kino's
            Membership Interests will cease to have any rights with respect
            thereto, except the right to receive the Merger Shares to be issued
            in consideration therefor in accordance with this Article 2.

      (c)   Exchange Procedures. Upon conversion of Kino's Membership Interests
            pursuant to Section 2.1(b) into the right to receive shares of
            Modavox Common Stock, each holder of the Kino Membership Interests
            will be entitled to receive in exchange therefor a certificate
            representing that number of whole Merger Shares which such holder
            has the right to receive pursuant to the provisions of Section
            2.1(b); provided, however, that the Modavox Escrow Shares and Kino
            Escrow Shares (as such terms are defined in Sections 2.3(a) and
            2.3(b)) shall be retained by the Escrow Agent (as such term is
            defined in Section 2.3(a)) in accordance with the provisions of the
            Escrow Agreement (as such term is defined in Section 2.3(a)). The
            Merger Shares (including the Kino Escrow Shares) and the Modavox
            Escrow Shares will be deemed to have been issued at the Effective
            Time.

      (d)   No Further Ownership Rights in Kino's Membership Interests. All
            shares of Modavox Common Stock issued upon the exchange of Kino's
            Membership Interests in accordance with the terms hereof will be
            deemed to have been issued in full satisfaction of all rights
            pertaining to Kino's Membership Interests, and there will be no
            further registration of transfers on the stock transfer books of the
            Surviving Entity of Kino's Membership Interests which were
            outstanding immediately prior to the Effective Time.

      (e)   No Fractional Shares. No certificate or scrip representing
            fractional shares of Modavox Common Stock will be issued upon the
            exchange of Kino's Membership Interests, and such fractional shares
            will not entitle the owner thereof to vote or to any rights of a
            stockholder of Modavox. If there are fractional shares, each member
            will round up such fractional share that is one-half or greater to
            the nearest whole number and round down to the nearest whole number
            for each fractional share that is less than one-half.

                                       3
<PAGE>

2.2   STOCK ESCROW.

      (a)   Modovox Escrow Shares. In addition to the Merger Shares, one million
            two hundred thousand (1,200,000) shares of Modavox Common Stock (the
            "Modavox Escrow Shares") will be issued to each holder of the Kino
            Membership Interests pro rate in accordance with their Kino
            Membership Interests and deposited in escrow (the "Escrow") with the
            Company's transfer agent, Interwest Transfer Co., Inc. ("Escrow
            Agent"), to be held and administered in accordance with an Escrow
            Agreement, substantially in the form attached hereto as Exhibit 2.3
            (the "Escrow Agreement"). While in Escrow, all voting rights with
            respect to the Modavox Escrow Shares will reside with Modavox's
            Board of Directors. Any securities received by the Escrow Agent in
            respect of any Modavox Escrow Shares held in the Escrow as a result
            of any stock split or combination of shares of Modavox Common Stock,
            payment of a stock dividend or other stock distribution in or on
            shares of Modavox Common Stock, or change of Modavox Common Stock
            into any other securities pursuant to or as a part of a merger,
            consolidation, acquisition of property or stock, separation,
            reorganization or liquidation of Modavox, or otherwise, will be held
            by the Escrow Agent as, and will be included within the definition
            of, Modavox Escrow Shares. The Modavox Escrow Shares will be
            available to satisfy any indemnification obligations arising under
            Section 7.2 during the indemnification period specified in Section
            7.1.

      (b)   Kino Escrow Shares. 15% of the Merger Shares (the "Kino Escrow
            Shares") will be deposited in the Escrow with the Escrow Agent, to
            be held and administered in accordance with the Escrow Agreement,
            such Kino Escrow Shares to be withheld and deducted, pro rata, from
            the Merger Shares otherwise issuable to each holder of Kino's
            Membership Interests. By approving the Merger, the holders of the
            Merger Shares will agree to be bound with respect to the
            indemnification obligations of Kino arising under Section 7.3.
            Notwithstanding the escrow of the Kino Escrow Shares, dividends or
            other distributions declared and paid on such shares will continue
            to be paid by Modovox to the holders of Kino Escrow Shares and all
            voting rights with respect to such shares will inure to the benefit
            of and be enjoyed by such stockholders. Any securities received by
            the Escrow Agent in respect of any Kino Escrow Shares held in escrow
            as a result of any stock split or combination of shares of Modavox
            Common Stock, payment of a stock dividend or other stock
            distribution in or on shares of Modavox Common Stock, or change of
            Modavox Common Stock into any other securities pursuant to or as a
            part of a merger, consolidation, acquisition of property or stock,
            separation, reorganization or liquidation of Modavox, or otherwise,
            will be held by the Escrow Agent as, and will be included within the
            definition of, Kino Escrow Shares. The Kino Escrow Shares will be
            available to satisfy any indemnification obligations arising under
            Section 7.3 during the indemnification period specified in Section
            7.1.

                                       4
<PAGE>

2.3   STOCKHOLDER REPRESENTATIVE.

      (a)   Each holder of Kino's Membership Interests who has approved the
            Merger and received Merger Shares will have irrevocably authorized
            and appointed the chief executive officer of the Surviving
            Corporation (the "Stockholder Representative"), with full power of
            substitution and resubstitution, as such stockholder's
            representative and true and lawful attorney-in-fact and agent to
            execute in the name and on behalf of such stockholder the Escrow
            Agreement and any other agreement, certificate, instrument or
            document to be delivered by such stockholder in connection with the
            Escrow Agreement.

      (b)   The Stockholder Representative will not be liable for any act done
            or omitted hereunder or under the Escrow Agreement as the
            Stockholder Representative while acting in good faith and in the
            exercise of reasonable judgment. The stockholders on whose behalf
            the Kino Escrow Shares and Modavox Escrow Shares were contributed to
            the Escrow will indemnify the Stockholder Representative and hold
            the Stockholder Representative harmless against any loss, liability
            or expense incurred without gross negligence or bad faith on the
            part of the Stockholder Representative and arising out of or in
            connection with the acceptance or administration of the Stockholder
            Representative's duties hereunder and under the Escrow Agreement,
            including the reasonable fees and expenses of any legal counsel
            retained by the Stockholder Representative.

      (c)   A decision, act, consent or instruction of the Stockholder
            Representative will constitute a decision of the stockholders on
            whose behalf the Kino Escrow Shares and Modavox Escrow Shares were
            contributed and will be final, binding and conclusive upon such
            stockholders; and the Escrow Agent and the Indemnitee (as defined in
            Section 7.4) may rely upon any such decision, act, consent or
            instruction of the Stockholder Representative as being the decision,
            act, consent or instruction of such stockholders. The Escrow Agent
            and the Indemnitee are hereby relieved from any liability to any
            person for any acts done by them in accordance with such decision,
            act, consent or instruction of the Stockholder Representative.

                                       5
<PAGE>

                                    ARTICLE 3

                         REPRESENTATIONS AND WARRANTIES

3.1   REPRESENTATIONS AND WARRANTIES OF KINO. Kino hereby represents and
      warrants to Modavox that except as set forth on Kino's exceptions schedule
      ("Kino's Exceptions Schedule") attached hereto as Schedule 3.1:

      (a)   Organization and Standing. Kino is a limited liability company duly
            organized, validly existing and in good standing, all under the laws
            of the State of Arizona, and has all requisite power and authority
            to conduct its business in the place where the business is now
            conducted and to own, lease and operate its assets, as now
            conducted, owned, leased and operated. Kino is duly qualified or
            licensed to do business and is in good standing under the laws of
            each state or other jurisdiction in which the nature of the business
            or location of the assets requires such qualification or licensing,
            and where the failure to be so qualified or licensed and in good
            standing would not individually or in the aggregate have a material
            adverse effect on Kino.

      (b)   Authority. Kino has the full legal right, power, capacity and
            authority to enter into this Agreement and all other agreements,
            instruments and documents to be signed and delivered by Kino in
            connection herewith (the "Sale Documents"), and to carry out its
            obligations hereunder and thereunder. The managing members of Kino
            (i) has made assessments of the value of Kino and has taken other
            actions as to satisfy the fiduciary duties that must be satisfied by
            it to enable Kino to enter into this Agreement and to render this
            Agreement binding upon Kino in accordance with its terms and (ii)
            has duly approved the Sale Documents to which Kino is a party and
            has duly authorized the execution and delivery of the Sale Documents
            to which Kino is a party and the consummation of the transactions
            contemplated thereby. Kino has taken, or will prior to the Closing
            Date have taken, all actions necessary to authorize it to enter into
            and perform its obligations under this Agreement and the Sale
            Documents, and to consummate the transactions contemplated hereby.
            This Agreement has been duly executed and delivered by Kino, and
            this Agreement and the Sale Documents constitute the legal, valid
            and binding obligations of Kino enforceable against Kino in
            accordance with their terms.

      (c)   Compliance with Law. Kino has complied, and is in compliance, with
            all applicable federal, state and local laws, statutes, licensing
            requirements, rules and regulations, and judicial or administrative
            decisions applicable to Kino, except where failure to be in
            compliance therewith would not have a material adverse effect upon
            Kino. To Kino's knowledge, Kino has been granted all permits from
            federal, state, and local government regulatory bodies necessary to
            carry on its business, all of which are currently valid and in full
            force and effect. There is no order issued, investigation or
            proceeding pending or, to Kino's knowledge, threatened, or notice
            served with respect to any violation of any law, ordinance, order,
            writ, decree, rule or regulation issued by any federal, state, local
            or foreign court or governmental or regulatory agency or
            instrumentality applicable to Kino.

                                       6
<PAGE>

      (d)   No Conflict or Default. Neither the signing and delivery of this
            Agreement nor compliance with the terms and provisions hereof,
            including the consummation of the transactions contemplated hereby,
            will conflict with or result in the breach of any term, condition or
            provision of either Kino's certificate of organization or operating
            agreement, or any material agreement, deed, contract, mortgage,
            indenture, writ, order, decree, legal obligation or instrument to
            which Kino is a party or by which it is or may be bound or
            constitute a default (or an event which, with the lapse of time or
            the giving of notice, or both, would constitute a default)
            thereunder or, to Kino's knowledge, violate any statute, regulation
            or ordinance of any governmental authority.

      (e)   Brokers' and Finders' Fees. Kino is not obligated to pay any fees or
            expenses of any broker or finder in connection with the origin,
            negotiation or signing of this Agreement or in connection with any
            transactions contemplated hereby.

      (f)   Taxes.

            (i)   All returns and reports in respect of Taxes (as hereinafter
                  defined) required to be filed with respect to Kino have been
                  timely filed. All Taxes required to be shown on such returns
                  and reports or otherwise due have been timely paid. All such
                  returns and reports are true, correct and complete in all
                  material respects. No adjustment relating to such returns has
                  been proposed formally or informally by any Tax authority
                  (insofar as either relates to the activities or income of Kino
                  or could result in liability of Kino on the basis of joint
                  and/or several liability) and, to the best knowledge of Kino
                  (after due inquiry), no basis exists for any such adjustment.
                  There are no pending or, to the best knowledge of Kino (after
                  due inquiry), threatened actions or proceedings for the
                  assessment or collection of Taxes against Kino. Kino has not
                  granted any waiver of any statute of limitations with respect
                  to, or any extension of a period for the assessment of any
                  Tax. There are no Tax liens on any assets of Kino, except
                  liens for current Taxes not yet due. The accruals and reserves
                  for Taxes reflected in Kino's financial statements, and the
                  accruals and reserves provided on Kino's Exceptions Schedule,
                  are adequate to satisfy all liabilities for Taxes relating to

                                       7
<PAGE>

                  Kino for periods through the Effective Time (without regard to
                  the materiality thereof). Kino is not a party to any contract,
                  agreement, plan or arrangement, including but not limited to
                  the provisions of this Agreement, that would result,
                  separately or in the aggregate, in the payment of any "excess
                  parachute payments" within the meaning of Section 280G of the
                  Code. Kino is not a party to or bound by any tax sharing or
                  tax allocation or other agreement, instrument or arrangement
                  which would prohibit or limit Kino, with respect to any period
                  after the Effective Time, (i) from entering into or performing
                  under any tax sharing or tax allocation agreement, or any
                  other arrangement regarding the allocation, among Modavox and
                  Kino, of federal, state and local income, franchise or other
                  tax liabilities, credits, deductions or other tax-related
                  matters, or (i) from consenting to join in the filing of a
                  consolidated federal income tax return. Kino is not aware of
                  any agreement, plan or other circumstance that would prevent
                  the Merger from qualifying under Section 368(a) of the Code.

            (ii)  As used in this Agreement, "Tax" or "Taxes" means any and all
                  taxes, fees, levies, duties, tariffs, imposts, and other
                  charges of any kind (together with any and all interest,
                  penalties, additions to tax and additional amounts imposed
                  with respect thereto) imposed by any governmental or taxing
                  authority including, without limitation: taxes or other
                  charges on or with respect to income, franchises, windfall or
                  other profits, gross receipts, property, sales use, capital
                  stock, payroll, employment, social security, workers'
                  compensation, unemployment compensation, or net worth; taxes
                  or other charges in the nature of excise, withholding, ad
                  valorem, stamp, transfer, value added, or gains taxes;
                  license, registration and documentation fees; and customs'
                  duties, tariffs, and similar charges. Kino has not to its
                  knowledge violated any of the health care continuation
                  coverage requirements of the Consolidated Omnibus Budget
                  Reconciliation Act of 1985 ("COBRA") prior to the Closing
                  Date.

      (g)   Books and Records. The books and records of Kino to which Modavox
            and its accountants and attorneys have been given access are the
            true books and records of Kino, and truly and fairly reflect the
            underlying facts and transactions in all material respects.

      (h)   Interested Party Relationships. Kino has no material financial
            interest, direct or indirect, in any material supplier or customer
            or other party to any contract, which is material to Modavox or
            Kino, or in competition with, Modavox or Kino.

                                       8
<PAGE>

      (i)   Labor Matters.

            (i)   To Kino's knowledge, Kino is in compliance in all material
                  respects with Title VII of the Civil Rights Act of 1964, as
                  amended, the Fair Labor Standards Act, as amended, and the
                  Occupational Safety and Health Act of 1970, as amended.

            (ii)  There are no written or oral separation, severance or golden
                  parachute agreements or understandings with the service
                  providers of Kino.

            (iii) Kino (a) is in compliance in all material respects with all
                  applicable foreign, federal, state and local laws, rules and
                  regulations respecting employment, employment practices, terms
                  and conditions of employment and wages and hours, in each
                  case, with respect to employees, (b) has withheld all amounts
                  required by law or by agreement to be withheld from the wages,
                  salaries and other payments to employees, (c) is not liable
                  for any arrears of wages or any taxes of any penalty for
                  failure to comply with any of the foregoing, and (d) is not
                  liable for any payment to any trust or other fund or to any
                  governmental or administrative authority, with respect to
                  unemployment compensation benefits, social security or other
                  benefits or obligations for employees (other than routine
                  payments to be made in the normal course of business and
                  consistent with past practice).

      (j)   Employees and Employee Benefit Plans.

            (i)   Except as set forth on Kino's Exception's Exhibit, (i) Kino is
                  not a party to any pension, profit sharing, savings,
                  retirement or other deferred compensation plan, or any bonus
                  (whether payable in cash or stock) or incentive program, or
                  any group health plan (whether insured or self-funded), or any
                  disability or group life insurance plan or other employee
                  welfare benefit plan, or to any collective bargaining
                  agreement or other agreement, written or oral, with any trade
                  or labor union, employees association or similar organization
                  (a "Plan"); (ii) Kino does not have any plan or commitment,
                  whether legally binding or not, to establish a Plan; and (iii)
                  Kino is not a party to, nor has it made any contribution to or
                  otherwise incurred any obligation under, any "multi-employer
                  plan" as defined in Section 3(37) of the Employee Retirement
                  Income Security Act of 1974, as amended.

            (ii)  There are no strikes or labor disputes pending or, to the
                  knowledge of Kino, threatened by, or, any attempts at union
                  organization of, any of the Employees. None of the Employees
                  whose continued services are material to Kino has terminated
                  employment, and to the knowledge of Kino no such Employee or
                  group of Employees intends to terminate their employment.

                                       9
<PAGE>

            (iii) To the knowledge of Kino, no Employee is or will be in
                  violation of any judgment, decree or order, or any term of any
                  employment contract, or other contract or agreement relating
                  to the relationship of any of such Employee with Kino or any
                  other party because of the nature of the business conducted by
                  Kino.

            (iv)  Kino has not, to its knowledge, violated any of the health
                  care continuation coverage requirements of COBRA prior to the
                  Closing Date.

      (k)   Environmental Matters.

            (i)   As of the date hereof, no material amount of any substance
                  that has been designated by applicable law or regulation to be
                  radioactive, toxic, hazardous or otherwise a danger to health
                  or the environment, excluding office, janitorial and similar
                  substances (a "Hazardous Material"), is present, as a result
                  of the actions of Kino or, to Kino's knowledge, as a result of
                  any actions of any third party or otherwise, in, on or under
                  any property, including the land and the improvements, ground
                  water and surface water, that Kino has at any time owned,
                  operated, occupied or leased. To the knowledge of Kino, no
                  underground storage tanks are present under any property that
                  Kino has at any time owned, operated, occupied or leased.

            (ii)  At no time has Kino transported, stored, used, manufactured,
                  disposed of, released or exposed its employees or others to
                  Hazardous Materials (collectively, "Hazardous Materials
                  Activities") in violation of any law, rule, regulation or
                  treaty promulgated by any governmental entity, except for
                  Hazardous Materials Activities which have not had and are not
                  likely to have a material adverse effect on Kino.

            (iii) Kino currently holds all environmental approvals, permits,
                  licenses, clearances and consents (the "Environmental
                  Permits") necessary for the conduct of its business as such
                  businesses is currently being conducted, except for such
                  Environmental Permits the absence of which would not be likely
                  to have a material adverse effect on Kino.

            (iv)  No action, proceeding, writ, injunction or claim is pending
                  or, to the knowledge of Kino, threatened concerning any
                  Environmental Permit or any Hazardous Materials Activity of
                  Kino. Kino is not aware of any fact or circumstance which
                  could reasonably be expected to involve Kino in any
                  environmental litigation or impose upon Kino any liability
                  concerning Hazardous Materials Activities which would be
                  reasonably likely to have a material adverse effect on Kino.

                                       10
<PAGE>

      (l)   Litigation. Except as set forth in Kino's Exceptions Schedule, there
            is no claim, litigation, action, suit or proceeding, administrative
            or judicial, pending or, to Kino's knowledge, threatened against
            Kino relating to Kino, at law or in equity, before any federal,
            state, local or foreign court, regulatory agency, other governmental
            authority or any arbitration or mediation forum, including any
            unfair labor practice or grievance proceedings or otherwise.

      (m)   Financial Statements. Kino has delivered, or will deliver, to
            Modavox its pro forma balance sheets (the "Balance Sheets") as of
            October 31, 2005 and December 31, 2004 and its pro forma income
            statements for the ten months ended October 31, 2005 and the fiscal
            year or period ended December 31, 2004 (together with the Balance
            Sheets, the "Financial Statements"). The Financial Statements (i)
            are in accordance with Kino's books and records, and (ii) fairly and
            accurately present Kino's financial condition at the respective
            dates therein indicated and the results of operations for the
            respective periods therein specified. Kino does not have any
            material debt, liability or obligation of any nature, whether
            accrued, absolute, contingent or otherwise, and whether due or to
            become due, that is not reflected, reserved against or disclosed in
            the Financial Statements, except for those that may have been
            incurred after December 31, 2004 in the ordinary course of its
            business consistent with past practice, and which are disclosed by
            Kino on its Exceptions Schedule. Since the Balance Sheet Date, and
            except as set forth on Kino's Exceptions Schedule, there has not
            been:

            (i)   Any material adverse change in Kino's financial condition,
                  results of operation, assets, or liabilities or any
                  occurrence, circumstance or combination thereof which
                  reasonably could be expected to result in such a material
                  adverse change;

            (ii)  Any change, other than in the ordinary course of business,
                  made by Kino in its method of operating the business or its
                  accounting practices relating thereto;

            (iii) Any sale, lease, or disposition of, or any agreement to sell,
                  lease or dispose of any of the assets, other than sales,
                  leases or dispositions in the usual and ordinary course of
                  business and other than pursuant to this Agreement;

            (iv)  Any modification, waiver, change, amendment, release,
                  rescission, accord and satisfaction, or termination of, or
                  with respect to, any term, condition or provision of any
                  material contract relating to or affecting Kino, the business,
                  the assets and/or the liabilities, other than any satisfaction
                  by performance in accordance with the terms thereof in the
                  usual and ordinary course of business;

                                       11
<PAGE>

            (v)   Any adverse relationships or conditions with vendors,
                  suppliers or customers that may have a material adverse effect
                  on Kino;

            (vi)  Any return of any of Kino's products by a purchaser or user
                  thereof (other than for minor nonrecurring warranty problems),
                  and Kino is not aware of any (i) pending warranty claims for
                  such products, (ii) right to return such products (other than
                  units under customary evaluation terms), or (iii) evaluation
                  units expected to be returned after their evaluation period;

            (vii) Any borrowing or lending of money by Kino, including to or
                  from the members or managers thereof (the "Principals"), but
                  excluding for this purpose sales made on ordinary trade terms;

            (viii) Any other event or condition of any character that has had a
                  material adverse effect, or could reasonably be expected to
                  have a material adverse effect, on Kino; or

            (ix)  Any agreement by Kino and/or the Principals to do, cause or
                  effect any of the foregoing events, set forth in sections (i)
                  through (viii) above.

      (n)   Undisclosed Liabilities. There are no material debts, claims,
            liabilities or obligations with respect to Kino or to which the
            assets are subject, liquidated, unliquidated, accrued, absolute,
            contingent or otherwise, that are not identified in Kino's Financial
            Statements or on Kino's Exceptions Schedule.

      (o)   Intellectual Property.

            (i)   Kino owns, is licensed or is otherwise entitled to exercise,
                  without restriction, all rights to all material intellectual
                  property and all other material tangible and intangible
                  information or material in any form (the "Intellectual
                  Property"), as used or currently proposed to be used by Kino,
                  without, to the knowledge of Kino, any conflict with or
                  infringement of the rights of others. A schedule of the
                  Intellectual Property is attached hereto as Schedule 3.1(o).

            (ii)  Kino is the owner or exclusive licensee of, with all right,
                  title and interest in and to, free and clear of any Liens (as
                  hereinafter defined), the Intellectual Property, and has the
                  exclusive right to make, have made, use, sell, copy, create
                  derivative works of, distribute, publicly perform, publicly
                  display, license, assign, transfer, convey or dispose thereof
                  or the products, processes and materials covered thereby. All
                  patents and unregistered and registered trademarks, service
                  marks, and other company, product or service identifiers and
                  all registered and unregistered copyrights held by Kino are
                  valid and enforceable.

                                       12
<PAGE>

            (iii) To the knowledge of Kino, there has not been, and there is not
                  now, any unauthorized use, infringement or misappropriation of
                  any of the Intellectual Property Rights by any third party
                  service provider of Kino, by its Principals, or by any other
                  third party.

            (iv)  No person has asserted or threatened to assert any claims with
                  respect to any of the Intellectual Property (i) contesting the
                  right of Kino to use, exercise, sell, license, transfer or
                  dispose of any of the Intellectual Property or any products,
                  processes or materials covered thereby, or (ii) challenging
                  the ownership, validity or enforceability of any of the
                  Intellectual Property. None of the Intellectual Property is
                  subject to any outstanding order, judgment, decree,
                  stipulation or agreement related to or restricting in any
                  manner the licensing, assignment, transfer or conveyance
                  thereof by Kino.

            (v)   Kino is in material compliance with the terms and conditions
                  of all licenses, sublicenses and other agreements to which
                  Kino is a party and pursuant to which Kino is authorized to
                  use, exercise, or receive any benefit from any intellectual
                  property non-exclusively licensed to Kino (the "Licensed
                  Intellectual Property"). Kino has no knowledge of any
                  assertion, claim or threatened claim that Kino and/or its
                  Principals have breached any terms or conditions of such
                  licenses, sublicenses or other agreements.

            (vi)  None of the Licensed Intellectual Property is subject to any
                  outstanding order, judgment, decree, stipulation or agreement
                  related to or restricting in any manner the use by or
                  licensing thereof to Kino.

            (vii) Kino has the right to assign all the Intellectual Property and
                  the Licensed Intellectual Property to Modavox pursuant to the
                  terms of this Agreement. Kino is not, nor will it be, as a
                  result of the signing and delivery of this Agreement or the
                  performance of its obligations hereunder, in violation of, nor
                  will it lose or in any way impair, any material rights
                  pursuant to any license, sublicense or agreement pertaining to
                  the Intellectual Property or Licensed Intellectual Property.
                  If required by the terms of any licenses, sublicenses or other
                  agreements with respect to the Licensed Intellectual Property,
                  Kino has secured or will promptly secure valid written
                  consents from the licensors thereof to the assignment of such
                  Licensed Intellectual Property to Modavox pursuant to the
                  terms of this Agreement.

                                       13
<PAGE>

            (viii) The manufacture, marketing, license, sale or use of any
                  product or service as now used or offered or proposed for use
                  or sale by Kino does not, to the knowledge of Kino, infringe
                  any copyright, patent, trademark, service mark, trade secret
                  or other intellectual property right of any third party or
                  violate any license or agreement with any third party. Kino
                  knows of no claims and has not been sued or charged in writing
                  as a defendant in any claim, suit, action or proceeding which
                  involves a claim of infringement of any patents, trademarks,
                  service marks, trade secret rights, copyrights or other
                  intellectual property rights and which has not been finally
                  terminated prior to the date hereof; there are no such charges
                  or claims outstanding; and Kino does not have any outstanding
                  restrictions or infringement liability with respect to any
                  patent, trade secret, trademark, service mark, copyright or
                  other intellectual property right of another.

            (ix)  Kino has not entered into any agreement to indemnify any other
                  person against any charge of infringement of any third party
                  intellectual property right, the Intellectual Property or the
                  Licensed Intellectual Property.

            (x)   Kino has taken reasonable steps to protect and preserve the
                  confidentiality of all inventions, algorithms, formulas,
                  schematics, technical drawings, ideas, know-how, all other
                  processes not otherwise protected by patents or patent
                  applications, source code, object code, program listings and
                  trade secrets related to Kino, or owned by Kino (collectively,
                  the "Confidential Information"), including the marking thereof
                  with appropriate "Proprietary" or "Confidential" legends, the
                  establishment of policies for the handling, disclosure and use
                  of the Confidential Information, and the acquisition of valid
                  written nondisclosure agreements from any party receiving the
                  Confidential Information. All the Confidential Information is
                  presently and as of the Closing Date will be located at Kino's
                  address as set forth in this Agreement. All use, disclosure or
                  appropriation of the Confidential Information by a third party
                  has been pursuant to the terms of a written agreement between
                  Kino and such third party. All use, disclosure or
                  appropriation of inventions, algorithms, formulas, schematics,
                  technical drawings, ideas, know-how, all other processes not
                  otherwise protected by patents or patent applications, source
                  code, object code, program listings and trade secrets not
                  owned by Kino (the "Licensed Confidential Information") has
                  been pursuant to the terms of a written agreement between Kino
                  and the owner of the Licensed Confidential Information, or is
                  otherwise lawful. Kino has delivered to Modavox copies of all
                  nondisclosure agreements or other agreements relating to the
                  handling, disclosure and use of the Confidential Information
                  and Licensed Confidential Information, and Kino knows of no
                  breaches or claims relating to such agreements.

                                       14
<PAGE>

      (p)   Contracts and Commitments.

            (i)   Schedule 3.1(p)(i) lists all outstanding contracts (other than
                  contracts with customers) involving an annual expense in
                  excess of five thousand ($5,000) setting forth the parties and
                  the dates thereto that relate to the business, whether or not
                  in writing, to which Kino is a party, and/or to which any of
                  Kino's assets are subject. Kino has performed all of its
                  obligations under the terms of each such contract, and is not
                  in default thereunder. No event or omission has occurred
                  which, but for the giving of notice or lapse of time or both,
                  would constitute a default by any party thereto under any such
                  contract, where such default by any party could have a
                  material adverse effect on Kino. Each such contract is in full
                  force and effect and valid and binding on all parties thereto.
                  Kino has not received any notice of default, cancellation or
                  termination in connection with any such contract, and is not
                  aware that any such action is currently contemplated or
                  threatened.

            (ii)  Schedule 3.1(p)(ii) lists all contracts that require a
                  novation or consent to assignment, as the case may be, prior
                  to the Closing Date so that Modavox may be made a party in
                  place of Kino, or as assignee ("Contracts Requiring Novation
                  or Consent to Assignment"). Such listing is complete, accurate
                  and includes every contract of which the failure to obtain
                  such novation or consent to assignment would have a material
                  adverse effect on Modavox's ability to operate the business in
                  the same manner as the business was operated by Kino prior to
                  the Closing Date.

      (q)   Assets. All of Kino's assets are in good operating condition and
            repair (normal wear and tear excepted). Except as set forth on
            Kino's Exceptions Schedule, Kino has good and marketable title to
            its assets, free and clear of any pledges, liens, encumbrances,
            security interests, equities, charges and restrictions of any nature
            whatsoever (collectively, the "Liens").

      (r)   Employees and Consultants. Schedule 3.1(r) lists all of the
            employees of Kino and consultants to Kino, who provide services for
            Kino. Except as listed on Kino's Exceptions Schedule, all severance,
            bonus and vacation payments by Kino which are or were due under the
            terms of any agreement have been paid or accrued as a liability on
            Kino Financial Statements.

                                       15
<PAGE>

      (s)   Customers. Schedule 3.1(s) lists all customers of Kino. Prior to the
            Closing Date, Kino will furnish Modavox with complete and accurate
            copies of all current written agreements with such customers.

      (t)   Accounts Receivable. Except as listed on Kino's Exceptions Schedule,
            the amount of all accounts receivable, unbilled invoices and other
            debts due or recorded in the records and books of account of Kino as
            being due to Kino at the Closing Date are expected to be collectible
            in the ordinary course of business; no contest with respect to the
            amount or validity of any material amount is pending or, to the best
            of Kino's knowledge, contemplated or threatened; and no material
            amount of such accounts receivable or other debts is or will at the
            Closing Date be subject to any counterclaim, return or set-off. The
            values at which accounts receivable are carried reflect the accounts
            receivable valuation policy of Kino, which is consistent with its
            past practice.

      (u)   Complete Disclosure. To the knowledge of Kino, no representation or
            warranty by Kino in this Agreement, and no exhibit, schedule,
            statement, certificate or other writing furnished to Modavox
            pursuant to this Agreement or in connection with the transactions
            contemplated hereby, contains any untrue statement of a material
            fact or omits or will omit to state a material fact necessary to
            make the statements contained herein and therein in the context in
            which they were made not misleading.

3.2   REPRESENTATIONS AND WARRANTIES OF MODAVOX AND SUBSIDIARY. Modavox and
      Subsidiary hereby represent and warrant to Kino that except as set forth
      on Modavox's exceptions schedule ("Modavox's Exceptions Schedule")
      attached hereto as Schedule 3.2:

      (a)   Organization and Standing. Modavox is a corporation duly organized,
            validly existing and in good standing, under the laws of the state
            of Delaware, and has all requisite power and authority to conduct
            its business in the place where that business is now being
            conducted, to own or use the properties and assets that it purports
            to own or use. Modavox is duly qualified or licensed to do business
            in each of the jurisdictions in which the nature of its business or
            location of its assets requires such qualification or licensing, and
            where the failure to be so qualified would have a material adverse
            effect on its business. Upon its due formation, Subsidiary will be a
            corporation duly organized, validly existing and in good standing,
            under the laws of the state of Delaware, and have all requisite
            power and authority to conduct its business in the place where that
            business will be conducted, to own or use the properties and assets
            that it will purport to own or use.

                                       16
<PAGE>

      (b)   Authority. Modavox has, and prior to the Closing Date Subsidiary
            will have, full legal right, power, capacity and authority to enter
            into this Agreement, together with all other agreements, instruments
            and documents to be signed and delivered by Modavox and Subsidiary
            in connection herewith (the "Modavox Documents"), and to carry out
            their obligations hereunder and thereunder. Modavox and Subsidiary
            have taken, or will prior to the Closing Date have taken, all
            actions necessary to authorize them to enter into and perform their
            obligations under this Agreement and the Modavox Documents, and to
            consummate the transactions contemplated hereby. This Agreement has
            been duly signed and delivered by Modavox, and this Agreement and
            the Modavox Documents constitute legal, valid and binding
            obligations of Modavox enforceable against Modavox in accordance
            with their terms.

      (c)   Capital Stock. The authorized capital stock of Modavox consists of
            one hundred million (100,000,000) shares of common stock, par value
            $.0001 per share (the "Modavox Common Stock"), and twenty-five
            million (25,000,000) shares of preferred stock, par value $.0001 per
            share (the "Modavox Preferred Stock"), of which fifteen million six
            hundred three thousand five hundred seventeen (15,603,517) shares of
            Modavox Common Stock are issued and outstanding as of the date
            hereof. All such shares are validly issued, fully paid and
            non-assessable, and they constitute all of the issued and
            outstanding shares of the capital stock of Modavox. None of the
            issued and outstanding shares of Modavox stock was issued in
            violation of any preemptive rights. Except as set forth on Modavox's
            Exceptions Schedule, there are (i) no options, warrants, convertible
            securities or other rights, agreements, arrangements or commitments
            of any character obligating Modavox to issue or sell any shares of
            Modavox Common Stock or Modavox Preferred Stock or other interest in
            Modavox; (ii) no outstanding contractual obligations requiring
            Modavox to repurchase, redeem or otherwise acquire any shares of
            Modavox Common Stock or to provide funds to, or make any investment
            (in the form of a loan, capital contribution or otherwise) in, any
            other person; or (iii) no voting trusts, stockholder agreements,
            proxies or other agreements or understandings in effect with respect
            to the voting or transfer of any of the shares of Modavox Common
            Stock or Modavox Preferred Stock and to which Modavox is a party.

      (d)   Financial Statements. Modavox has delivered to Kino the balance
            sheet (the "Modavox Balance Sheet") of Modavox as of August 31, 2005
            and the income statements of Modavox for the year ended February 28,
            2005 and the fiscal quarter ended August 31, 2005 (together with the
            Modavox Balance Sheet, the "Modavox Financial Statement"). The
            Modavox Financial Statement (i) is in accordance with the books and
            records of Modavox and (ii) fairly and accurately present the
            financial condition of Modavox at the date therein indicated and the
            results of operations for the respective period therein specified.
            Modavox does not have any material debt, liability or obligation of
            any nature, whether accrued, absolute, contingent or otherwise, and
            whether due or to become due, that is not reflected, reserved
            against or disclosed in the Modavox Financial Statement, except for
            those that may have been incurred after August 31, 2005 in the
            ordinary course of its business consistent with past practice, and
            which are disclosed by Modavox on Modavox's Exceptions Schedule.
            Since the Balance Sheet Date, and except as set forth on Modavox's
            Exceptions Schedule, there has not been:

                                       17
<PAGE>

            (i)   Any material adverse change in the financial condition,
                  results of operation, assets, or liabilities of Modavox or any
                  occurrence, circumstance or combination thereof which
                  reasonably could be expected to result in such a material
                  adverse change;

            (ii)  Any change, other than in the ordinary course of business,
                  made by Modavox in its method of operating the business or its
                  accounting practices relating thereto;

            (iii) Any sale, lease, or disposition of, or any agreement to sell,
                  lease or dispose of any of the assets, other than sales,
                  leases or dispositions in the usual and ordinary course of
                  business and other than pursuant to this Agreement;

            (iv)  Any modification, waiver, change, amendment, release,
                  rescission, accord and satisfaction, or termination of, or
                  with respect to, any term, condition or provision of any
                  material contract relating to or affecting Modavox, the
                  business, the assets and/or the liabilities, other than any
                  satisfaction by performance in accordance with the terms
                  thereof in the usual and ordinary course of business;

            (v)   Any adverse relationships or conditions with vendors,
                  suppliers or customers that may have a material adverse effect
                  on Modavox;

            (vi)  Any borrowing or lending of money by Modavox, including to or
                  from the Principals, but excluding for this purpose sales made
                  on ordinary trade terms;

            (vii) Any other event or condition of any character that has had a
                  material adverse effect, or could reasonably be expected to
                  have a material adverse effect, on Modavox; or

            (viii) Any agreement by Modavox and/or its Principals to do, cause
                  or effect any of the foregoing events, set forth in sections
                  (1) through (7) above.

      (e)   Undisclosed Liabilities. There are no material debts, claims,
            liabilities or obligations with respect to Modavox or to which the
            assets are subject, liquidated, unliquidated, accrued, absolute,
            contingent or otherwise, that are not identified in the Modavox
            Financial Statements or on Modavox's Exceptions Schedule.

                                       18
<PAGE>

      (f)   Indebtedness. Modavox's Exceptions Schedule contains a complete and
            accurate list of all direct and indirect (i) indebtedness of Modavox
            for borrowed money (including commitments, lines of credit and other
            credit availability); and (ii) guaranties of Modavox, and Modavox is
            current in its payment of all such obligations.

      (g)   Taxes. Except as disclosed in Modavox's Exceptions Schedule, all
            material Tax returns, statements, reports and forms (including
            estimated Tax returns and reports and information returns and
            reports) required to be filed with any Tax authority with respect to
            any Tax period ending on or before the Closing Date by or on behalf
            of Modavox, have been or will be completed and filed when due
            (including any extensions of such due date), and all amounts shown
            due thereon have been or will be paid on or before such due date.
            Except as disclosed in Modavox's Exceptions Schedule, to the
            knowledge of Modavox, Modavox has withheld and paid to the
            applicable financial institution or Tax authority all amounts
            required to be withheld. Except as disclosed in Modavox's Exceptions
            Schedule, to the best knowledge of Modavox, there is no material
            claim, audit, action, suit, proceeding or investigation now pending
            or threatened against or with respect to Modavox in respect of any
            Tax or assessment nor is there any basis therefor. Except as
            disclosed in Modavox's Exceptions Schedule, no notice of deficiency
            or similar document of any Tax authority has been received by
            Modavox for any material amount. Modavox is not aware of any
            agreement, plan or other circumstance that would prevent the Merger
            from qualifying under Section 368(a) of the Code.

      (h)   Compliance with Laws. Modavox is in compliance with applicable
            federal, state and local laws, statutes, licensing requirements,
            rules and regulations, and judicial or administrative decisions
            applicable to its business, except where failure to be in compliance
            therewith would not have a material adverse effect upon Modavox. To
            the knowledge of Modavox, Modavox has been granted all permits from
            federal, state, and local government regulatory bodies necessary to
            carry on its business, all of which are currently valid and in full
            force and effect. There is no order issued, investigation or
            proceeding pending or, to the knowledge of Modavox, threatened, or
            notice served with respect to any violation of any law, ordinance,
            order, writ, decree, rule or regulation issued by any federal,
            state, local or foreign court or governmental or regulatory agency
            or instrumentality applicable to Modavox.

                                       19
<PAGE>

      (i)   Intellectual Property.

            (i)   Modavox owns, or is licensed or otherwise possesses legally
                  enforceable rights to use, all material intellectual property
                  that is used in the business of Modavox.

            (ii)  There is no material unauthorized use, disclosure,
                  infringement or misappropriation of any intellectual property
                  rights of Modavox, any trade secret material to Modavox, or
                  any intellectual property right of any third party to the
                  extent licensed by or through Modavox, and Modavox has not
                  entered into any agreement to indemnify any other person
                  against any charge of infringement of any intellectual
                  property, other than indemnification provisions contained in
                  sales invoices arising in the ordinary course of business.

            (iii) Modavox has not, nor will it be as a result of the signing and
                  delivery of this Agreement or the performance of its
                  obligations hereunder, in breach of any license, sublicense or
                  other agreement relating to its intellectual property.

      (j)   Litigation. There is no claim, litigation, action, suit or
            proceeding, administrative or judicial, pending or, to Modavox's
            knowledge, threatened against Modavox relating to this Agreement or
            the transactions contemplated hereunder, at law or in equity, before
            any federal, state, local or foreign court, regulatory agency, or
            other governmental authority, which could result in the institution
            of legal proceedings to prohibit or restrain the consummation or
            performance of this Agreement or the transactions contemplated
            hereby, or claim damages as a result of this Agreement or the
            transactions contemplated hereby.

      (k)   No Conflict or Default. Neither the signing and delivery of this
            Agreement, nor compliance with the terms and provisions hereof,
            including the consummation of the transactions contemplated hereby,
            will conflict with or result in the breach of any term, condition or
            provision of Modavox's certificate of incorporation or bylaws, or of
            any agreement, deed, contract, mortgage, indenture, writ, order,
            decree, legal obligation or instrument to which Modavox is a party,
            or by which it is or may be bound or constitute a default (or an
            event which, with the lapse of time or the giving of or notice, or
            both, would constitute a default) thereunder, or to Modavox's
            knowledge, violate any statute, regulation or ordinance of any
            governmental authority.

      (l)   Labor Relations. To the knowledge of Modavox, Modavox is in
            compliance in all material respects with Title VII of the Civil
            Rights Act of 1964, as amended, the Fair Labor Standards Act, as
            amended, the Occupational Safety and Health Act of 1970, as amended,
            all applicable federal state and local laws, rules and regulations
            relating to employment, and all applicable laws, rules and
            regulations governing payment of minimum wages and overtime rates
            and the withholding and payment of taxes from compensation of
            employees.

                                       20
<PAGE>

      (m)   Brokers' and Finders' Fees. Modavox is not obligated to pay any fees
            or expenses of any broker or finder in connection with the origin,
            negotiation or signing of this Agreement or in connection with any
            transactions contemplated hereby.

      (n)   Complete Disclosure. To the knowledge of Modavox, no representation
            or warranty by Modavox in this Agreement, and no exhibit, schedule,
            statement, certificate or other writing furnished to Kino or the
            Principals pursuant to this Agreement or in connection with the
            transactions contemplated hereby, contains any untrue statement of a
            material fact or omits to state a material fact necessary to make
            the statements contained herein and therein in the context in which
            they were made not misleading.

3.3   CERTIFICATE LEGENDS. Each certificate evidencing the Merger Shares to be
      issued pursuant to this Agreement will bear the following legend:

            THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
            UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SHARES HAVE BEEN
            ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
            TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
            WITH RESPECT TO THE SHARES OR AN EXEMPTION FROM THE REGISTRATION
            REQUIREMENTS OF SAID ACT THAT IS THEN APPLICABLE TO THE SHARES, AS
            TO WHICH A PRIOR OPINION OF COUNSEL MAY BE REQUIRED BY THE ISSUER OR
            THE TRANSFER AGENT.

            THE SHARES REPRESENTED BY THIS CERTIFICATE ARE FURTHER SUBJECT TO A
            STOCK TRANSFER RESTRICTION AGREEMENT BETWEEN KINO AND THE REGISTERED
            HOLDER, WHICH IMPOSES SIGNIFICANT RESTRICTIONS ON THE TRANSFER OF
            THE SHARES. A COPY OF THAT AGREEMENT IS ON FILE AT THE PRINCIPAL
            OFFICE OF THE COMPANY.

                                       21
<PAGE>

                                    ARTICLE 4

                           COVENANTS PRIOR TO CLOSING

4.1   AFFIRMATIVE COVENANTS OF KINO. Kino covenants and agrees that, from the
      date of this Agreement and until the Closing or the date, if any, on which
      this Agreement is earlier terminated pursuant to Section 8.1 hereof,
      unless Modavox otherwise agrees in writing and except as expressly
      contemplated by this Agreement, will, using reasonable, best efforts:

      (a)   conduct its business and operations only in the ordinary course of
            business;

      (b)   keep in full force and effect its limited liability company
            existence and all rights, franchises and proprietary rights relating
            or pertaining to Kino and use its reasonable best efforts to cause
            its current insurance (or reinsurance) policies not to be canceled
            or terminated or any of the coverage thereunder to lapse;

      (c)   carry on the business in the same manner as presently conducted and
            to keep Kino's business organization and properties intact,
            including its present business operations, physical facilities,
            working conditions and employees and its present relationships with
            lessors, licensors, suppliers and customers and others having
            business relations with it;

      (d)   maintain the material assets in good repair, order and condition
            (normal wear and tear excepted) consistent with current needs,
            replace in accordance with prudent practices its inoperable, worn
            out or obsolete assets with assets of good quality consistent with
            prudent practices and current needs and, if a casualty, loss or
            damage occurs to any of such assets or properties prior to the
            Closing Date (whether or not such casualty, loss or damage is
            covered by insurance), either repair or replace such damaged
            property or use the proceeds of such insurance in such other manner
            as mutually agreed upon by Kino and Modavox;

      (e)   facilitate the continued employment of employees by Modavox after
            the Closing;

      (f)   maintain the books, accounts and records in accordance with past
            custom and practice as used in the preparation of Kino's financial
            statements;

      (g)   immediately (once Kino obtains knowledge thereof) inform Modavox in
            writing of any material exceptions from the representations and
            warranties contained in Article 3 hereof that were not previously
            disclosed or any breach of any covenant hereunder by Kino;

                                       22
<PAGE>

      (h)   cooperate with Modavox and cause the conditions to Modavox's
            obligations to close to be satisfied (including, without limitation,
            the execution and delivery of all agreements contemplated hereunder
            to be so executed and delivered and the making and obtaining of all
            third party and governmental notices, filings, authorizations,
            approvals, consents, releases and terminations);

      (i)   obtain all third party and governmental approvals and consents
            necessary or desirable to consummate the transactions contemplated
            hereby;

      (j)   maintain the existence of and use commercially reasonable efforts to
            protect all proprietary rights used in the business;

      (k)   maintain the existence of and protect all of the governmental
            permits, licenses, approvals and other authorizations of the
            business;

      (l)   comply with all applicable laws, ordinances and regulations in the
            operation of the business; and

      (m)   cooperate with Modavox in its investigation of Kino and permit
            Modavox and its employees, agents, accounting, legal and other
            authorized representatives to (i) have full access to the premises,
            books and records of Kino at reasonable hours, (ii) visit and
            inspect any of the properties of Kino and (iii) discuss the affairs,
            finances and accounts of Kino with the directors, officers,
            partners, key employees, key sales representatives, and independent
            accountants of Kino.

4.2   NEGATIVE COVENANTS OF KINO. Kino covenants and agrees that, from the date
      of this Agreement and until the Closing or the date, if any, on which this
      Agreement is earlier terminated pursuant to Section 8.1 hereof, unless
      Modavox otherwise agrees in writing and except as expressly contemplated
      by this Agreement, will not:

      (a)   take any action that would require disclosure under the Agreement;

      (b)   make any loans, enter into any transaction with any insider or make
            or grant any increase in any employee's or officer's compensation or
            make or grant any increase in any employee benefit plan, incentive
            arrangement or other benefit covering any of the employees;

      (c)   establish or, except in the ordinary course of business and
            disclosed in Kino's Exceptions Schedule, contribute to any pension,
            retirement, profit sharing or stock bonus plan or multiemployer plan
            covering the employees;

      (d)   except as specifically contemplated by this Agreement, enter into
            any contract, agreement or transaction, other than in the ordinary
            course of business and at arm's length, with unaffiliated persons;

                                       23
<PAGE>

      (e)   engage in any activity other than in the ordinary course of business
            which would accelerate or delay the collection of its accounts or
            notes receivable, accelerate or delay the payment of its accounts
            payable, delay its capital expenditures, or reduce or otherwise
            restrict the amount of inventory on hand;

      (f)   sell, transfer, contribute, distribute, or otherwise dispose of any
            securities or assets, or agree to do any of the foregoing, to or
            with any person, other than in the ordinary course of business; or

      (g)   make, change or revoke any Tax election, adopt or change any method
            of accounting, or enter into any agreement regarding Taxes with any
            Taxing authority.

4.3   ADDITIONAL COVENANTS OF KINO.

      (a)   Kino represents and warrants to Modavox that the Board of Directors
            of Kino has made such assessments of Kino's value and has taken such
            other actions as to satisfy the fiduciary duties of the Board of
            Directors that must be satisfied to enable Kino to enter into this
            Agreement and to render this Agreement binding upon Kino in
            accordance with its terms.

      (b)   Kino hereby agrees that, prior to the Closing or termination of this
            Agreement, it will not, and will not cause or permit any of its
            directors, officers, employees, agents or representatives (each a
            "Seller Representative"), directly or indirectly, to:

            (i)   solicit, initiate or encourage (including by way of furnishing
                  or disclosing non-public information) the making of, or any
                  inquiries regarding, any Transaction Proposal (as hereinafter
                  defined),

            (ii)  engage in negotiations, explore or otherwise engage in
                  substantive discussions with or furnish any information to any
                  Person (other than Modavox or its Representatives (as
                  hereinafter defined)), or enter into any agreement with
                  respect to any Transaction Proposal, or enter into any
                  agreement, arrangement or understanding requiring it to
                  abandon, terminate or fail to consummate the transactions
                  contemplated by this Agreement, or

            (iii) take or approve any actions to facilitate any such activities.

      (c)   Nothing in this Section 4.3 will:

            (i)   permit Kino to terminate this Agreement other than pursuant to
                  Section 8.1 hereof or

            (ii)  affect any other obligation of Kino under this Agreement.

                                       24
<PAGE>

      (d)   Kino hereby covenants that it will use its best efforts to cause
            Kino's net working capital as of the Closing Date to be equal to or
            exceed its net working capital as of the close of business as of the
            Signature Date.

4.4   COVENANTS OF MODAVOX. Prior to the Closing, Modavox will:

      (a)   promptly (once it obtains knowledge thereof) inform Kino in writing
            of any exceptions from the representations and warranties contained
            in Article 3 not previously disclosed or any breach of any covenant
            hereunder by Modavox; and

      (b)   cooperate with Kino and use commercially reasonable efforts to cause
            the conditions to Kino' obligations to close to be satisfied
            (including, without limitation, the execution and delivery of all
            agreements contemplated hereunder to be so executed and delivered
            and the making and obtaining of all third party and governmental
            filings, authorizations, approvals, consents, releases and
            terminations).

4.5   MUTUAL COVENANTS OF THE PARTIES. The Parties hereto agree that:

      (a)   Subject to the terms and conditions of this Agreement, each Party
            will use commercially reasonable efforts to take, or cause to be
            taken, all action and to do, or cause to be done, all things
            necessary, proper or advisable under applicable laws and regulations
            to consummate the transactions contemplated by this Agreement. In
            connection with, and without limiting the foregoing, each Party will
            (i) use commercially reasonable efforts to take all action necessary
            to render true and correct as of the Closing Date its
            representations and warranties contained in this Agreement, (ii)
            refrain from taking any action that would render any such
            representation or warranty untrue or incorrect as of such time,
            (iii) perform or cause to be satisfied each agreement, covenant or
            condition to be performed or satisfied by it and (iv) use
            commercially reasonable efforts to satisfy the other Party's
            conditions to closing as set forth in Section 6.2 with respect to
            Modavox and in Section 6.1 with respect to Kino. Kino and Modavox
            will each furnish to one another and to one another's counsel all
            such information as may be required to accomplish the foregoing
            actions.

      (b)   After signing this Agreement, Kino will give Modavox and any
            Representatives full access, during normal business hours, to all of
            the properties, books, contracts, commitments and records relating
            to such Company, provided that such access will not unreasonably
            interfere with the normal operations of Kino. Further, Kino will
            furnish to Modavox and its officers, directors, employees, agents
            and/or representatives (collectively, the "Representatives") all
            such information concerning such Company as Modavox may reasonably
            request; provided, however, that any furnishing of such information
            pursuant hereto or any investigation by Modavox will not affect
            Modavox's right to rely on the representations, warranties,
            agreements and covenants made by Kino in this Agreement.

                                       25
<PAGE>

      (c)   Each Party will cooperate with one another (i) in connection with
            the preparation of any disclosure document filed after the date
            hereof pursuant to the Securities Act or any state securities law
            (each a "Disclosure Document"), (ii) in determining whether any
            other action by or in respect of, or filing with, any governmental
            entity or any department, agency or political subdivision thereof,
            or any actions, consents, approvals or waivers are required to be
            obtained from parties to any material contracts in connection with
            the consummation of the transactions contemplated by this Agreement
            and (iii) in timely seeking to obtain any such actions, consents,
            approvals or waivers and timely making any such filings, and
            furnishing information required in connection therewith and/or with
            any Disclosure Document.

      (d)   Kino, on the one hand, and Modavox, on the other hand, will promptly
            notify the other of:

            (i)   any notice or other communication from any person alleging
                  that the consent of such person is or may be required in
                  connection with the transactions contemplated by this
                  Agreement;

            (ii)  any notice or other communication from any governmental entity
                  or any department, agency or political subdivision thereof in
                  connection with the transactions contemplated by this
                  Agreement;

            (iii) any actions, suits, claims, investigations or proceedings
                  commenced or, to the best of its knowledge threatened against,
                  relating to or involving or otherwise affecting Kino, on the
                  one hand, or Modavox, on the other hand, which relate to the
                  consummation of the transactions contemplated by this
                  Agreement; and

            (iv)  any action, event or occurrence that would constitute a breach
                  of any representation, warranty, covenant or agreement of such
                  Person set forth in this Agreement.

      (e)   This Agreement is intended to constitute a "plan of reorganization"
            within the meaning of the income tax regulations promulgated under
            the Code. From and after the date of this Agreement and until the
            Effective Time, each party hereto will use its reasonable best
            efforts to cause the Merger to qualify, and will not knowingly take
            any action, cause any action to be taken, fail to take any action or
            cause any action to fail to be taken which action or failure to act
            could prevent the Merger from qualifying as a reorganization under
            the provisions of Section 368(a) of the Code. Following the
            Effective Time, neither Modavox nor any of its affiliates will
            knowingly take any action, cause any action to be taken, fail to
            take any action or cause any action to fail to be taken, which
            action or failure to act could cause the Merger to fail to qualify
            as a reorganization under Section 368(a) of the Code.

                                       26
<PAGE>

                                    ARTICLE 5

                             POST CLOSING COVENANTS

5.1   CONFIDENTIALITY. Kino will not disseminate any press release or
      announcement concerning the transactions contemplated by this Agreement,
      or identifying the parties, without the prior written consent of Modavox.
      Kino will maintain the confidentiality of this Agreement, and all
      discussions and negotiations regarding the Merger.

5.2   EMPLOYEE MATTERS. The parties agree that Modavox will be obligated to
      continue the employment of any employees of Kino, except as expressly
      provided otherwise in this Agreement. Employees of Kino that Modavox
      retains following the Closing will receive compensation or credit by
      Modavox for benefits earned while employed by Kino.

5.3   BONUS. The Chairman of Modavox will receive a bonus of seventy-five
      thousand dollars ($75,000) for effectuating the Merger.

                                    ARTICLE 6

                              CONDITIONS TO MERGER

6.1   CONDITIONS TO EACH PARTY'S OBLIGATION TO EFFECT THE MERGER. The respective
      obligation of each Party to effect the Merger will be subject to the
      satisfaction on or prior to the Closing Date of the following conditions:

      (a)   Accuracy of Representations and Warranties. The representations and
            warranties of each of the other Parties contained herein were true
            and correct in all material respects when made and, except for
            changes contemplated by this Agreement and to the extent such
            representations and warranties speak as of an earlier date, are true
            and correct in all material respects as of the Closing Date as
            though made on that date.

      (b)   Performance of Agreements. Each of the other Parties will have
            performed in all material respects all obligations and agreements
            and complied in all material respects with all covenants contained
            in this Agreement to be performed and complied with by them at or
            prior to the Closing.

                                       27
<PAGE>

      (c)   Compliance Certificate. The chief executive officer of each of the
            other Parties will have delivered to the receiving Party a
            certificate, dated the Closing Date, Substantially in form of
            Exhibit 6.1(c) certifying that (i) the representations and
            warranties of such Party contained herein were true and correct in
            all material respects when made and, except for changes contemplated
            by this Agreement and to the extent such representations and
            warranties speak as of an earlier date, are true and correct in all
            material respects as of the Closing Date as though made on that
            date, and (ii) the covenants and agreements to be performed and
            complied with by such Party at or prior to the Closing have been
            fulfilled. (d) Absence of Objection. There is no pending or
            threatened investigation, action, suit or proceeding challenging the
            transaction by any body or agency of the federal, state or local
            government or by any third party, and the consummation of the
            transaction has not been enjoined by a court of competent
            jurisdiction as of the Closing Date and any applicable waiting
            period under any applicable federal law has expired.

      (e)   Approval of Documentation. The form and substance of all
            certificates, instruments and other documents delivered or to be
            delivered under this Agreement is reasonably satisfactory.

      (f)   Consents. All requisite consents and approvals of all lenders,
            lessors and other third parties whose consent or approval is
            required to consummate the transactions contemplated by this
            Agreement have been received.

      (g)   Operation of Businesses. Since the Balance Sheet Date, each of the
            other Parties has been operated in the ordinary course consistent
            with past practices.

      (h)   Changes. Since the Balance Sheet Date, there has not been any
            material adverse change in the financial condition, results of
            operations, prospects, properties or business of the each of the
            other Parties.

      (i)   Approvals. This Agreement and the Merger is approved and adopted by
            the affirmative vote of the holders of the requisite number of
            outstanding membership interests of Kino, and Modavox's Board of
            Directors.

      (j)   Merger Shares. Modavox will have delivered the Merger Shares to
            Kino.

      (k)   Employment Agreements. Employment Agreements with David J. Ide,
            Pascal Marco, Richard Keppler, Jim Crawford and Sean Bradley in the
            form attached hereto as Exhibits 6.1(k-1), 6.1(k-2), 6.1(k-3),
            6.1(k-4) and, 6.1(k-5), respectively, have been approved by
            Modavox's Board of Directors, executed and received.

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<PAGE>

      (l)   Consulting Agreement. A Consulting Agreement with Nathan T. Bradley
            in the form attached hereto as Exhibit 6.1(l) has been approved by
            Modavox's Board of Directors, executed and received.

      (m)   Board of Directors. Kino will have the right to appoint two
            additional members to Modavox's Board of Directors in addition to
            Robert D. Arkin, Nathan T. Bradley, Hubert Glover and Jay Stulberg.

      (n)   Escrow Agreement. The Escrow Agreement with the Escrow Agent and the
            Stockholder Representative in substantially the form attached hereto
            as Exhibit 2.3 has been approved by Modavox's Board of Directors,
            executed and received.

      (o)   Amended and Restated Bylaws. Amended and Restated Bylaws in the form
            attached hereto as Exhibit 6.1(o), including among other provisions
            that the Surviving Corporation's Vice Chairman may convene meetings
            of the Board of Directors, has been approved by Modavox's Board of
            Directors and duly adopted.

      (p)   Certificates of Designation. Certificates of Designation in the form
            attached hereto as Exhibit 2.1(p-1) and Exhibit 2.1(p-2) have been
            approved by Modavox's Board of Directors and duly adopted.

                                    ARTICLE 7

                                 INDEMNIFICATION

7.1   TWO YEAR SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS. The
      representations and warranties in this Agreement, and all statements
      contained in this Agreement, any certificate, financial statement or
      report or other document delivered pursuant to this Agreement or in
      connection with the transactions contemplated hereby (collectively, the
      "Acquisition Documents"), will survive the signing and delivery of this
      Agreement and the Closing hereunder for a period of two years following
      the Closing Date, notwithstanding any investigation made at any time by or
      on behalf of any party, provided that the representations and warranties
      contained in Section 3.1(g) will survive the applicable statute of
      limitations with respect to the Tax liabilities in question (giving effect
      to any waiver, mitigation or extension thereof). If written notice of a
      specific claim made in good faith has been given pursuant to Section
      7.4(b) on or prior to such date, then the relevant representations and
      warranties will survive as to such claim, until the claim has been finally
      resolved.

7.2   INDEMNIFICATION BY MODAVOX. Except as otherwise limited by this Article,
      Kino and its officers, directors, agents and successors and permitted
      assigns will be indemnified and held harmless by Modavox for any and all
      liabilities, losses, damages, claims, costs and expenses, interest,
      awards, judgments, and penalties (including reasonable attorneys' and
      consultants' fees and expenses) actually suffered or incurred by them
      ("Kino's Losses") arising out of or resulting from:

                                       29
<PAGE>

      (a)   the inaccuracy or breach of any representation or warranty by
            Modavox contained herein or in any document delivered by Modavox
            pursuant to this Agreement;

      (b)   the breach of any covenant or agreement by Modavox, contained herein
            or in any document delivered by Modavox pursuant to this Agreement;

      (c)   the execution of the Promissory Notes in favor of Modavox by the
            individuals identified on Schedule 7.2(c);

      (d)   the agreement to issue Common Stock registered on Form S-8 to the
            law firm of Lerch & DePrima for services rendered;

      (e)   the departures of Andrew Burgess and Joseph Fox as employees of
            Modavox; or

      (f)   payroll tax liabilities arising prior to October 18, 2005.

7.3   INDEMNIFICATION BY KINO. Except as otherwise limited by this Article,
      Modavox and its officers, directors, agents and successors and permitted
      assigns will be indemnified and held harmless by Kino for any and all
      liabilities, losses, damages, claims, costs and expenses, interest,
      awards, judgments, and penalties (including reasonable attorneys' and
      consultants' fees and expenses) actually suffered or incurred by them
      ("Modavox's Losses") arising out of or resulting from:

      (a)   the inaccuracy or breach of any representation or warranty by Kino
            contained herein or in any document delivered by Kino pursuant to
            this Agreement; or

      (b)   the breach of any covenant or agreement by Kino, contained herein or
            in any document delivered by Kino pursuant to this Agreement;

7.4   GENERAL INDEMNIFICATION PROVISIONS.

      (a)   Definitions. For the purposes of this Agreement, the term
            "Indemnitee" will refer to the person(s) or entity(ies) indemnified,
            or entitled, or claiming to be entitled, to be indemnified, pursuant
            to the provisions of Sections 7.2, the term "Indemnitor" will refer
            to the person(s) or entity(ies) having the obligation to indemnify
            pursuant to such provisions, and "Losses" will refer to Kino's
            Losses or Modavox's Losses, as the case may be.

      (b)   Notice. The Indemnitee will promptly give the Indemnitor notice of
            any matter which the Indemnitee has determined has given or could
            give rise to a right of indemnification under this Agreement,
            stating the amount of the Losses, if known, the method of
            computation thereof and the basis for the claim, all with reasonable
            particularity. Failure to give timely notice of a matter which may
            give rise to an indemnification claim will not affect the rights of
            the Indemnitee to collect such claim from the Indemnitor so long as
            such failure to so notify does not materially adversely affect the
            Indemnitor's ability to defend such claim against a third party.

                                       30
<PAGE>

      (c)   Third Party Claims. The obligations and liabilities of the
            Indemnitor with respect to Losses arising from claims of any third
            party that are subject to the indemnification provided for in this
            Article 7 ("Third-Party Claims") will be governed by the following
            additional terms and conditions:

            (i)   if the Indemnitee will receive notice of any Third-Party
                  Claim, the Indemnitee will give the Indemnitor prompt notice
                  of such Third-Party Claim and will permit the Indemnitor, at
                  its option, to assume and control the defense and/or
                  management of such Third-Party Claim at the Indemnitor's
                  expense and through counsel of its choice if the Indemnitor
                  gives prompt notice of its intention to do so to the
                  Indemnitee and does so within a reasonable time thereafter;

            (ii)  if the Indemnitor exercises its right to undertake the defense
                  and/or management of any such Third-Party Claim, the
                  Indemnitee will cooperate with the Indemnitor in such defense
                  and/or management and make available to the Indemnitor all
                  witnesses, pertinent records, materials and information in the
                  Indemnitee's possession or under its control relating thereto
                  as is reasonably required by the Indemnitor;

            (iii) if the Indemnitor does not exercise its right to undertake the
                  defense and/or management of any Third-Party Claim as provided
                  above, the Indemnitee may, directly or indirectly, conduct the
                  defense and/or management of any such Third-Party Claim in any
                  manner it reasonably may deem appropriate and at the expense
                  of the Indemnitor, and the Indemnitor will cooperate with the
                  Indemnitee in such defense and/or management and make
                  available to the Indemnitee all witnesses, pertinent records,
                  materials and information in the Indemnitor's possession or
                  under its control relating thereto as is reasonably required
                  by the Indemnitee;

            (iv)  the Indemnitor will not consent to the entry of any judgment
                  or enter into any settlement with respect to a Third-Party
                  Claim (x) without the prior written consent of the Indemnitee
                  (not to be unreasonably withheld), unless the judgment or
                  proposed settlement involves only the payment of money
                  damages, does not impose an injunction or other equitable
                  relief upon the Indemnitee and could not otherwise reasonably
                  be expected to have a material adverse effect on the
                  Indemnitee and (y) unless the consent or settlement includes
                  as an unconditional term thereof the giving by the claimant or
                  plaintiff to the Indemnitee on an unconditional release from
                  all liability in respect of the Third-Party Claim;

                                       31
<PAGE>

            (v)   the Indemnitee will not consent to the entry of any judgment
                  or enter into any settlement with respect to a Third-Party
                  Claim without the prior written consent of the Indemnitor (not
                  to be unreasonably withheld), unless the Indemnitor fails to
                  assume the defense and/or management of the Third-Party Claim
                  in accordance with this Section 7.5(c); and

            (vi)  if there is a reasonable probability that a Third-Party Claim
                  may materially and adversely affect the Indemnitee other than
                  as a result of money damages or other monetary payments, the
                  Indemnitee will have the right, at its own cost and expense,
                  to participate in the defense of the Third-Party Claim.

      (d)   Effect of Materiality Qualifiers. Although a representation,
            warranty or covenant of any of the parties to this Agreement may not
            be deemed breached, inaccurate or in default unless or until a
            certain standard as to "material", "materiality", or "material
            adverse effect" has been met, for purposes of calculating Losses in
            connection with this Article 7, once such materiality or material
            adverse effect standard has been met, the Indemnitee will be
            entitled to indemnification for all Losses arising out of or
            resulting from such breach, inaccuracy or default of any such
            representation, warranty, or covenant without giving effect to any
            such standard.

                                    ARTICLE 8

                                   TERMINATION

8.1   TERMINATION. Notwithstanding anything herein to the contrary, this
      Agreement may be terminated at any time: (i) on or prior to the Closing
      Date by mutual consent of Modavox and Kino; or (ii) by either Modavox or
      any of Kino if the Closing will not have taken place within sixty (60)
      days of the Signature Date, unless the party desiring to terminate as
      above provided is in default hereunder.

8.2   EFFECT OF TERMINATION. If this Agreement is validly terminated pursuant to
      this Article 8, there will be no further liability or obligation on the
      part of the parties hereto (or any of their respective officers,
      directors, employees, agents or other representatives); provided, however,
      that if this Agreement is terminated due to a material breach by one of
      the parties, the breaching party(ies) will remain liable to the
      non-breaching parties for such breach existing at the time of such
      termination and the non-breaching parties may seek any remedies, including
      damages and fees of attorneys, against the breaching party(ies) with
      respect to such breach as are provided in this Agreement or as are
      otherwise available at law or in equity.

                                       32
<PAGE>

                                    ARTICLE 9

                                  MISCELLANEOUS

9.1   NOTICE. All notices and other communications required or permitted under
      this Agreement will be delivered to the parties at the address set forth
      below their respective signature blocks, or at such other address that
      they hereafter designate by notice to all other parties in accordance with
      this Section 9.1. All notices and communications will be deemed to be
      received in accordance with the following: (i) in the case of personal
      delivery, on the date of such delivery; (ii) in the case of facsimile
      transmission, on the date on which the sender receives confirmation by
      facsimile transmission that such notice was received by the addressee,
      provided that a copy of such transmission is additionally sent by mail as
      set forth in (iv) below; (iii) in the case of overnight air courier, on
      the second business day following the day sent, with receipt confirmed by
      the courier; and (iv) in the case of mailing by first class certified
      mail, postage prepaid, return receipt requested, on the fifth business day
      following such mailing.

9.2   ASSIGNMENT. This Agreement and the various rights and obligations arising
      hereunder will inure to the benefit of and be binding upon Kino, their
      successors and permitted assigns, and Modavox and its successors and
      permitted assigns. Neither this Agreement nor any of the rights,
      interests, or obligations hereunder will be transferred or assigned by
      Kino, including but not limited to assignment by operation of law or by
      change of control of Kino, without the prior written consent of the other
      parties.

9.3   EXPENSES. Modavox and Kino will each bear and pay all costs and expenses
      respectively incurred by each of them on their behalf in connection with
      this Agreement, including fees and expenses of their own financial
      consultants, accountants and legal counsel. Modavox will pay all
      applicable sales, use, excise, transfer, documentary and any other similar
      taxes arising out of this Agreement, or in relation to the transactions
      referenced herein.

9.4   WAIVER; CONSENT. This Agreement may not be changed, amended, terminated,
      augmented, rescinded, or discharged (other than by performance), in whole
      or in part, except by a writing signed by the parties hereto, and no
      waiver of any of the provisions or conditions of this Agreement or any of
      the rights of a party will be effective or binding unless such waiver will
      be in writing and signed by the party claimed to have given or consented
      thereto. Except to the extent that a party may have otherwise agreed in
      writing, no waiver by that party of any condition of this Agreement or
      breach by the other party of any of its obligations or representations
      hereunder or thereunder will be deemed to be a waiver of any other
      condition or subsequent or prior breach of the same or any other
      obligation or representation by the other party.

                                       33
<PAGE>

9.5   COUNTERPARTS. This Agreement may be signed simultaneously in multiple
      counterparts, each of which will be deemed an original, but all of which
      taken together will constitute one and the same instrument.

9.6   SEVERABILITY. If one or more provisions of this Agreement are held to be
      unenforceable under applicable law, such provision will be excluded from
      this Agreement to the extent of its unenforceability, and the balance of
      the Agreement will be interpreted as if such unenforceable provision (to
      the extent of its unenforceability) was so excluded, but will otherwise be
      enforceable in accordance with its terms.

9.7   ABSENCE OF THIRD PARTY BENEFICIARY RIGHTS. No provisions of this Agreement
      are intended, nor will be interpreted, to provide or create any third
      party beneficiary rights or any other rights of any kind in any client,
      customer, affiliate, stockholder, partner or employee of any party or any
      other person or entity unless specifically provided otherwise herein, and,
      except as so provided, all provisions hereof will be personal solely
      between the parties to this Agreement.

9.8   COOPERATION AND RECORDS RETENTION. Kino and Modavox will (i) each provide
      the other with such assistance as may reasonably be requested by them in
      connection with the preparation of any Tax Returns, or in connection with
      any audit or other examination by any taxing authority or any judicial or
      administrative proceedings relating to liability for Taxes, (ii) each
      retain and provide the other, with any records or other information which
      may be relevant to any such Tax Return, audit or examination, proceeding
      or determination, and (iii) each provide the other with any final
      determination of any such audit or examination, proceeding or
      determination that affects any amount required to be shown on any Tax
      Return of the other for any period. Without limiting the generality of the
      foregoing, the Principals and Modavox will retain, until the applicable
      statute of limitations (including any extensions) have expired, copies of
      all Tax Returns, supporting work schedules and other records or
      information which may be relevant to such Tax Returns for all tax periods
      or portions thereof ending before or including the Closing Date and will
      not destroy or otherwise dispose of any such records without first
      providing the other party with a reasonable opportunity to review and copy
      the same. Modavox will keep the original copies of the records at its
      facilities in Delaware and elsewhere, if applicable, and, at the
      Principals' expense, will provide copies of the Records to the Principals
      upon the Principals' request. Any information obtained under this Section
      9.8 will be kept confidential except as may be otherwise necessary in
      connection with the filing of Tax returns or claims for refund or in
      conducting an audit or other proceeding.

9.9   COMPULSORY ARBITRATION AND LEGAL FEES. Any controversy, claim and/or
      dispute arising out of or relating to this Agreement or the breach hereof
      or subject matter hereof (including any action in tort) will be finally
      and settled by arbitration in Phoenix, Arizona, in accordance with
      then-existing Commercial Arbitration Rules of the American Arbitration
      Association (the "AAA"), and judgment upon the award rendered by the
      arbitrators may be entered in any court having applicable jurisdiction.
      Written notice of demand for arbitration will be given to the other
      parties and to the AAA within six (6) months after the controversy, claim
      or dispute has arisen or be barred, and in no event after the date when
      the institution of court proceedings based on such dispute would be barred
      by the applicable of statute of limitations. Controversies, claims and/or

                                       34
<PAGE>

      disputes will be resolved by one arbitrator selected by the mutual
      agreement of the parties or, failing that agreement within forty-five (45)
      days after written notice demanding arbitration, by the AAA. There will be
      limited discovery prior to the arbitration hearing as follows: (i)
      exchange of witness lists and copies of documentary evidence and documents
      related to or arising out of the issues to be arbitrated, and (ii)
      depositions of all party witnesses. Depositions will be conducted in
      accordance with the rules or code of Civil Procedure of the jurisdiction
      in which the arbitration is conducted, and a court reporter will record
      all hearings, with such record constituting the official transcript of
      such proceedings. All decisions of the arbitrator will be in writing, and
      the arbitrator will provide reasons for the decision. Each Party will bear
      its own respective attorneys' fees, costs and disbursements in connection
      with any dispute or arbitration.

9.10  SPECIFIC PERFORMANCE. Notwithstanding Section 9.9, the parties agree that
      irreparable damage would occur if any provision of this Agreement is not
      performed in accordance with the terms hereof, and that Kino and Modavox
      will be permitted to access the court system to obtain injunctive relief
      and/or specific performance of the terms hereof.

9.11  FURTHER ACTION. Each of the parties will use all reasonable efforts to
      take, or cause to be taken, all appropriate action, do or cause to be done
      all things reasonably necessary, proper or advisable under applicable
      laws, and sign and deliver such documents and other papers, as may be
      reasonably required to carry out the provisions of this Agreement, and
      consummate and make effective the transactions contemplated by this
      Agreement.

9.12  INTERPRETATION. As used in this Agreement, the term "person" will mean and
      include any individual, partnership, joint venture, corporation, trust,
      unincorporated organization, and government or other department or agency
      thereof. Except to the extent the context otherwise requires: (i) any
      reference to an Article, Section, Schedule or Exhibit is a reference to an
      article, section, schedule or exhibit of this Agreement; (ii) any
      reference to a section or a clause is, unless otherwise stated, a
      reference to a section or a clause of the Section or subsection in which
      the reference appears; (iii) the words "hereof", "herein", "hereto" and
      the like mean and refer to this Agreement as a whole, and not merely to
      the specific Article, Section, subsection, paragraph or clause in which
      the respective word appears; (iv) the meaning of defined terms will be
      equally applicable to both the singular and plural forms of the terms
      defined; (v) the words "including", "includes" and "include" will be

                                       35
<PAGE>

      deemed to always be followed by the words "without limitation"; (vi)
      references to agreements and other contractual instruments will be deemed
      to include all subsequent amendments and other modifications thereto;
      (vii) references to statutes or regulations are to be construed as
      including all statutory and regulatory provisions consolidating, amending
      or replacing the statute or regulation referred to; (viii) any table of
      contents, captions and headings are for convenience of reference only, and
      will not affect the construction of this Agreement; (ix) in the
      computation of periods of time from a specified date to a later specified
      date, the word "from" means "from and including"; the words "to" and
      "until" each mean "to but excluding"; and the word "through" means "to and
      including"; and (x) references to days will mean calendar days. No
      provision of this Agreement will be construed against or interpreted to
      the disadvantage of any of the parties by any court or other authority by
      reason of that party having drafted or proposed such provision.

9.13  APPLICABLE LAW. This Agreement will, in all respects, be governed by the
      laws of the state of Delaware applicable to all agreements signed and to
      be wholly performed within the state of Delaware. If one or more
      provisions of this Agreement are held to be unenforceable under applicable
      law, such provision will be excluded from this Agreement to the extent of
      its unenforceability, and the balance of the Agreement will be interpreted
      as if such unenforceable provision (to the extent of its unenforceability)
      was so excluded, but will otherwise be enforceable in accordance with its
      terms.

9.14  SURVIVAL. The representations, warranties and covenants of the parties
      hereto will survive the Closing or the termination of this Agreement if
      the Closing does not occur, subject to the express limitations on
      survivability contained in this Agreement.

9.15  ENTIRE AGREEMENT. This Agreement will be deemed to include the exhibits
      and schedules referred to herein. This Agreement, together with the
      documents referred to herein, and the documents to be signed and delivered
      hereunder contemporaneously with the Closing Date embody the entire
      agreement and understanding of the parties with respect to the subject
      matter hereof, and supersede and extinguish all prior agreements, drafts,
      representations and understandings, oral or written, relative to such
      subject matter. Each of the parties hereby acknowledges that no
      representations, inducements, promises or agreements, verbally or
      otherwise, have been made by any of the parties, or anyone acting on
      behalf of any of the parties, which are not embodied in this Agreement,
      and that no other agreement, statement or promise not contained in this
      Agreement will be valid or binding. Each of the parties represents and
      warrants that it has fully familiarized itself with this Agreement, and
      that such party has been fully authorized to sign this Agreement, and all
      related documents. The parties agree that this Agreement will only be
      binding when signed by the parties in the blanks immediately below. If the
      pages of this Agreement are initialed, such initialing will be solely for
      the purpose of identification. If initialing is on some, but not all, of
      the pages of this Agreement, that absence of initialing will not affect
      the validity of this Agreement, to the extent it is signed in the blanks
      immediately below.

                                       36
<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Agreement to be signed
and delivered as of the latest date this Agreement is executed by the
signatories, as set forth below.

Modavox, Inc.                             Kino Interactive, L.L.C.

By: /s/ David Ide                         By: /s/ Nathan Bradley
    ---------------------------------         ---------------------------------
    David Ide                                 Nathan Bradley
    Chief Executive Officer                   Managing Member

Date: December 5, 2005                    Date: December 5, 2005

2617 South 46th Street, Suite 300         5151 E. Broadway
Phoenix, AZ  85034                        Tucson, AZ  85711

                                       37

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