Document:

Exhibit 4.2

                             CRM USA Holdings, Inc.
                                   As Company

                               CRM HOLDINGS, LTD.
                               As Parent Guarantor

                                    INDENTURE
                          Dated as of November 14, 2006

            THE BANK OF NEW YORK TRUST COMPANY, NATIONAL ASSOCIATION
                                   As Trustee

                       JUNIOR SUBORDINATED DEBT SECURITIES

                              Due December 15, 2036

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                                TABLE OF CONTENTS

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                                                     ARTICLE I
                                                    DEFINITIONS

SECTION 1.01.   Definitions...........................................................................1

                                                    ARTICLE II
                                                  DEBT SECURITIES

SECTION 2.01.   Authentication and Dating.............................................................9

SECTION 2.02.   Form of Trustee's Certificate of Authentication......................................10

SECTION 2.03.   Form and Denomination of Debt Securities.............................................10

SECTION 2.04.   Execution of Debt Securities.........................................................10

SECTION 2.05.   Exchange and Registration of Transfer of Debt Securities.............................11

SECTION 2.06.   Mutilated, Destroyed, Lost or Stolen Debt Securities.................................14

SECTION 2.07.   Temporary Debt Securities............................................................15

SECTION 2.08.   Payment of Interest..................................................................15

SECTION 2.09.   Cancellation of Debt Securities Paid, etc............................................16

SECTION 2.10.   Computation of Interest..............................................................17

SECTION 2.11.   Extension of Interest Payment Period.................................................18

SECTION 2.12.   CUSIP Numbers........................................................................19

SECTION 2.13.   Parent Guarantor.....................................................................19

SECTION 2.14.   Income Tax Certification.............................................................20

SECTION 2.15.   Global Securities....................................................................20

                                                    ARTICLE III
                                        PARTICULAR COVENANTS OF THE COMPANY

SECTION 3.01.   Payment of Principal, Premium and Interest; Agreed Treatment of the Debt Securities..29

SECTION 3.02.   Offices for Notices and Payments, etc................................................29

SECTION 3.03.   Appointments to Fill Vacancies in Trustee's Office...................................30

SECTION 3.04.   Provision as to Paying Agent.........................................................30

SECTION 3.05.   Certificate to Trustee...............................................................31

SECTION 3.06.   Additional Interest..................................................................31

SECTION 3.07.   Compliance with Consolidation Provisions.............................................32

SECTION 3.08.   Limitation on Dividends..............................................................32

SECTION 3.09.   Covenants as to the Trust............................................................33
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                                                    ARTICLE IV
                                 LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

SECTION 4.01.   Securityholders' Lists...............................................................33

SECTION 4.02.   Preservation and Disclosure of Lists.................................................34

SECTION 4.03.   Financial and Other Information......................................................35

                                                     ARTICLE V
                       REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

SECTION 5.01.   Events of Default. The following events shall be "Events of Default" with
                respect to Debt Securities:..........................................................36

SECTION 5.02.   Payment of Debt Securities on Default; Suit Therefor.................................39

SECTION 5.03.   Application of Moneys Collected by Trustee...........................................40

SECTION 5.04.   Proceedings by Securityholders.......................................................40

SECTION 5.05.   Proceedings by Trustee...............................................................41

SECTION 5.06.   Remedies Cumulative and Continuing...................................................41

SECTION 5.07.   Direction of Proceedings and Waiver of Defaults by Majority of Securityholders.......41

SECTION 5.08.   Notice of Defaults...................................................................42

SECTION 5.09.   Undertaking to Pay Costs.............................................................43

                                                    ARTICLE VI
                                              CONCERNING THE TRUSTEE

SECTION 6.01.   Duties and Responsibilities of Trustee...............................................43

SECTION 6.02.   Reliance on Documents, Opinions, etc.................................................44

SECTION 6.03.   No Responsibility for Recitals, etc..................................................45

SECTION 6.04.   Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar
                May Own Debt Securities..............................................................46

SECTION 6.05.   Moneys to be Held in Trust...........................................................46

SECTION 6.06.   Compensation and Expenses of Trustee.................................................46

SECTION 6.07.   Officer's Certificate as Evidence....................................................47

SECTION 6.08.   Eligibility of Trustee...............................................................47
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SECTION 6.09.   Resignation or Removal of Trustee, Calculation Agent, Paying Agent or Debt
                Security Registrar...................................................................48

SECTION 6.10.   Acceptance by Successor..............................................................49

SECTION 6.11.   Succession by Merger, etc............................................................50

SECTION 6.12.   Authenticating Agents................................................................50

                                                    ARTICLE VII
                                          CONCERNING THE SECURITYHOLDERS

SECTION 7.01.   Action by Securityholders............................................................51

SECTION 7.02.   Proof of Execution by Securityholders................................................52

SECTION 7.03.   Who Are Deemed Absolute Owners.......................................................52

SECTION 7.04.   Debt Securities Owned by Company Deemed Not Outstanding..............................53

SECTION 7.05.   Revocation of Consents; Future Holders Bound.........................................53

                                                   ARTICLE VIII
                                             SECURITYHOLDERS' MEETINGS

SECTION 8.01.   Purposes of Meetings.................................................................54

SECTION 8.02.   Call of Meetings by Trustee..........................................................54

SECTION 8.03.   Call of Meetings by Company or Securityholders.......................................54

SECTION 8.04.   Qualifications for Voting............................................................55

SECTION 8.05.   Regulations..........................................................................55

SECTION 8.06.   Voting...............................................................................55

SECTION 8.07.   Quorum; Actions......................................................................56

SECTION 8.08.   Written Consent Without a Meeting....................................................57

                                                    ARTICLE IX
                                              SUPPLEMENTAL INDENTURES

SECTION 9.01.   Supplemental Indentures without Consent of Securityholders...........................57

SECTION 9.02.   Supplemental Indentures with Consent of Securityholders..............................58

SECTION 9.03.   Effect of Supplemental Indentures....................................................59

SECTION 9.04.   Notation on Debt Securities..........................................................60

SECTION 9.05.   Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee..........60
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                                                     ARTICLE X
                                             REDEMPTION OF SECURITIES

SECTION 10.01.  Optional Redemption..................................................................60

SECTION 10.02.  Special Event Redemption.............................................................60

SECTION 10.03.  Notice of Redemption; Selection of Debt Securities...................................61

SECTION 10.04.  Payment of Debt Securities Called for Redemption.....................................61

                                                    ARTICLE XI
                                 CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

SECTION 11.01.  Company or Parent Guarantor May Consolidate, etc., on Certain Terms..................62

SECTION 11.02.  Successor Entity to be Substituted...................................................63

SECTION 11.03.  Opinion of Counsel to be Given to Trustee............................................63

                                                    ARTICLE XII
                                      SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 12.01.  Discharge of Indenture...............................................................64

SECTION 12.02.  Deposited Moneys to be Held in Trust by Trustee......................................65

SECTION 12.03.  Paying Agent to Repay Moneys Held....................................................65

SECTION 12.04.  Return of Unclaimed Moneys...........................................................65

                                                   ARTICLE XIII
                          IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 13.01.  Indenture and Debt Securities Solely Corporate Obligations...........................65

                                                    ARTICLE XIV
                                             MISCELLANEOUS PROVISIONS

SECTION 14.01.  Successors...........................................................................65

SECTION 14.02.  Official Acts by Successor Entity....................................................66

SECTION 14.03.  Surrender of Company Powers..........................................................66

SECTION 14.04.  Addresses for Notices, etc...........................................................66

SECTION 14.05.  Governing Law........................................................................67

SECTION 14.06.  Evidence of Compliance with Conditions Precedent.....................................67

SECTION 14.07.  Business Day Convention..............................................................67

SECTION 14.08.  Table of Contents, Headings, etc.....................................................68
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SECTION 14.09.  Execution in Counterparts............................................................68

SECTION 14.10.  Severability.........................................................................68

SECTION 14.11.  Assignment...........................................................................68

SECTION 14.12.  Acknowledgment of Rights.............................................................68

                                                    ARTICLE XV
                                         SUBORDINATION OF DEBT SECURITIES

SECTION 15.01.  Agreement to Subordinate.............................................................69

SECTION 15.02.  Default on Senior Indebtedness.......................................................69

SECTION 15.03.  Liquidation; Dissolution; Bankruptcy.................................................70

SECTION 15.04.  Subrogation..........................................................................71

SECTION 15.05.  Trustee to Effectuate Subordination..................................................72

SECTION 15.06.  Notice by the Company................................................................72

SECTION 15.07.  Rights of the Trustee. Holders of Senior Indebtedness................................73

SECTION 15.08.  Subordination May Not Be Impaired....................................................73
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EXHIBITS

EXHIBIT A       FORM OF DEBT SECURITY
EXHIBIT B       FORM OF OFFICER'S FINANCIAL CERTIFICATE
EXHIBIT C       FORM OF RULE 144A TO REGULATION S SECURITY TRANSFER CERTIFICATE
EXHIBIT D       FORM OF REGULATION S TO RULE 144A SECURITY TRANSFER CERTIFICATE
EXHIBIT E       FORM OF TRANSFER FOR NON-GLOBAL SECURITIES
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                                      -vi-
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                  THIS INDENTURE, dated as of November 14, 2006, between CRM USA
Holdings, Inc., a company incorporated in Delaware (hereinafter sometimes called
the "Company"), CRM Holdings, Ltd., an exempted holding company organized under
the laws of Bermuda (the "Parent Guarantor") and The Bank of New York Trust
Company, National Association, as trustee (hereinafter sometimes called the
"Trustee").

                              W I T N E S S E T H:

                  WHEREAS, for its lawful corporate purposes, the Company has
duly authorized the issuance of its Junior Subordinated Debt Securities due
December 15, 2036 (the "Debt Securities") under this Indenture and to provide,
among other things, for the execution and authentication, delivery and
administration thereof, the Company has duly authorized the execution of this
Indenture.

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

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.01.  Definitions.
                        -----------

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

                  "Additional Interest" shall have the meaning set forth in
Section 3.06.

                  "Additional Provisions" shall have the meaning set forth in
Section 15.01.

                  "Affiliate" has the meaning given to that term in Rule 405 of
the Security Act or any successor rule thereunder.

                  "Agent Member" has the meaning set forth in Section 2.14(f).

                  "Applicable Accounting Principles" means accounting practices
prescribed or permitted by the National Association of Insurance Commissioners,
if then applicable to the Company or its subsidiaries, and/or, the applicable
insurance department or regulators of the jurisdiction of domicile of such
Regulated Insurance Company, and in each case, applied consistently throughout
the periods involved.

<PAGE>

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

                  "Applicable Insurance Regulatory Authority" means, when used
with respect to any Regulated Insurance Company, (x) the insurance department or
similar administrative authority or agency located in each state or jurisdiction
(foreign or domestic) in which such Regulated Insurance Company is domiciled or
(y) to the extent such regulatory authority has jurisdiction over such Regulated
Insurance Company, the insurance department, authority or agency in each state
or jurisdiction (foreign or domestic) in which such Regulated Insurance Company
is licensed, and shall include any Federal or national insurance regulatory
department, authority or agency that may be created and that asserts insurance
regulatory jurisdiction over such Regulated Insurance Company.

                  "Authenticating Agent" means any agent or agents of the
Trustee which at the time shall be appointed and acting pursuant to Section
6.12.

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

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

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

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

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

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

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

                                       -2-
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                  "Certificate" means a certificate signed by any one of the
principal executive officer, the principal financial officer or the principal
accounting officer of the Company.

                  "Code" has the meaning set forth in Section 2.15(h)(ix).

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

                  "Company" means CRM USA Holdings, Inc., a company incorporated
in Delaware, and, subject to the provisions of Article XI, shall include its
successors and assigns.

                  "Debt Security" or "Debt Securities" has the meaning stated in
the first recital of this Indenture.

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

                  "Declaration" means the Amended and Restated Declaration of
Trust of the Trust dated as of the date hereof, as amended or supplemented from
time to time.

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

                  "Defaulted Interest" has the meaning set forth in Section
2.08.

                  "Deferred Interest" has the meaning set forth in Section 2.11.

                  "Depositary" means an organization registered as a clearing
agency under the Exchange Act that is designated as Depositary by the Company or
any successor thereto. 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 the
Depositary.

                  "DTC" means The Depository Trust Company, a New York
corporation.

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

                                       -3-
<PAGE>

                  "Exchange Act" means the Securities Exchange Act of 1934 or
any statute successor thereto, in each case as amended from time to time.

                  "Extension Period" has the meaning set forth in Section 2.11.

                  "Fixed Rate" means a per annum rate of interest, equal to
8.65%.

                  "Fixed Rate Period" has the meaning assigned to it in Section
2.10(a).

                  "Global Security" means a Security that evidences all or part
of the Securities, the ownership and transfers of which shall be made through
book entries by a Depositary.

                  "Holder" means a Person in whose name a Certificate
representing a Debt Security is registered on the Debt Security Register.

                  "Indenture" means this instrument as originally executed or,
if amended or supplemented as herein provided, as so amended or supplemented, or
both.

                  "Institutional Trustee" has the meaning set forth in the
Declaration.

                  "Insurance Business" means one or more aspects of the business
of selling, issuing or underwriting insurance or reinsurance.

                  "Interest Payment Date" means March 15, June 15, September 15
and December 15 of each year, commencing on December 15, 2006, during the term
of this Indenture.

                  "Interest Period" has the meaning set forth in Section 2.08.

                  "Interest Rate" means the Fixed Rate and Variable Rate, as
applicable.

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

                  "LIBOR" means the London Interbank Offered Rate for U.S.
Dollar deposits in Europe as determined by the Calculation Agent according to
Section 2.10(b).

                  "LIBOR Banking Day" has the meaning set forth in Section
2.10(b)(1).

                  "LIBOR Business Day" has the meaning set forth in Section
2.10(b)(1).

                  "LIBOR Determination Date" has the meaning set forth in
Section 2.10(b).

                                       -4-
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                  "Liquidation Amount" means the liquidation amount of $1,000
per Trust Security.

                  "Maturity Date" means December 15, 2036.

                  "Notice" has the meaning set forth in Section 2.11.

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

                  "Opinion of Counsel" means an opinion in writing signed by
legal counsel, who may be an employee of or counsel to the Company, or may be
other counsel reasonably satisfactory to the Trustee. Each such opinion shall
include the statements provided for in Section 14.06 if and to the extent
required by the provisions of such Section.

                  "Original Issue Date" means the date of original issuance of
each Security.

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

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

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

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

                  "Parent Guarantee Agreement" means an agreement of even date
herewith by and between the Parent Guarantor and the Trustee.

                  "Parent Guarantor" means CRM Holdings, Ltd., an exempted
holding company organized under the laws of Bermuda.

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

                                       -5-
<PAGE>

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

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

                  "Principal Office of the Trustee" means the office of the
Trustee, at which at any particular time its corporate trust business shall be
principally administered, which at all times shall be located within the United
States and at the time of the execution of this Indenture shall be 600 Travis
Street, 50th Floor, Houston, Texas 77002.

                  "QIB" or "Qualified Institutional Buyer" means a "qualified
institutional buyer" as defined in Rule 144A.

                  "QIB/QP" mean any Person that, at the time of its acquisition,
purported acquisition or proposed acquisition of Securities, is both a QIB and a
QP.

                  "QP" or "Qualified Purchaser" means (i) a "qualified
purchaser" within the meaning of Section 3(c)(7) of the Investment Company Act
or (ii) a company beneficially owned exclusively by one or more "qualified
purchasers" and/or "knowledgeable employees" with respect to the Company within
the meaning of Rule 3c-5 under the Investment Company Act.

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

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

                  "Regulated Insurance Company" means any subsidiary of the
Company, whether now owned or hereafter acquired, that is authorized or admitted
to carry on or transact Insurance Business in any jurisdiction (foreign or
domestic) and is regulated by any Applicable Insurance Regulatory Authority.

                  "Regulation S" means Regulation S under the Securities Act of
1933, as amended.

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

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<PAGE>

                  "Rule 144A" means Rule 144A under the Securities Act.

                  "SEC" means the Securities and Exchange Commission

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

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

                  "Significant Subsidiary(ies)" is defined in Section 1-02(w) of
Regulation S-X of the Securities Act.

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

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

                  "Special Redemption Price" means (1) if the Special Redemption
Date is before December 15, 2011, 107.5% of the principal amount to be redeemed
plus any accrued and unpaid interest thereon to the date of such redemption and
(2) if the Special Redemption Date is on or after December 15, 2011, the
Redemption Price.

                  "Statutory Financial Statements" means all financial
statements of the Company's subsidiary insurance companies for each relevant
period, each prepared in accordance with Applicable Accounting Principles

                                       -7-
<PAGE>

                  "Subsidiary" means, with respect to any Person, (i) any
corporation, at least a majority of the outstanding voting stock of which is
owned, directly or indirectly, by such Person or by one or more of its
Subsidiaries, or by such Person and one or more of its Subsidiaries, (ii) any
general partnership, joint venture or similar entity, at least a majority of the
outstanding partnership or similar interests of which shall at the time be owned
by such Person, or by one or more of its Subsidiaries, or by such Person and one
or more of its Subsidiaries, and (iii) any partnership, limited liability
company, association, joint venture or similar business organization more than
50% of the ownership interests having ordinary voting power of which shall at
the time be owned or controlled, directly or indirectly, by such Person and/or
by one or more of its subsidiaries. For the purposes of this definition, "voting
stock" means shares, interests, participations or other equivalents in the
equity interest (however designated) in such Person having ordinary voting power
for the election of a majority of the directors (or the equivalent) of such
Person, other than shares, interests, participations or other equivalents having
such power only by reason of the occurrence of a contingency.

                  "Tax Event" means the receipt by the Company and the
Institutional Trustee for the benefit of 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 published or private letter ruling,
technical advice memorandum, field service advice, regulatory procedure, notice
or announcement (an "Administrative Action")) or judicial decision interpreting
or applying such laws or regulations, regardless of whether such Administrative
Action or judicial decision is issued to or in connection with a proceeding
involving the Company or the Trust and whether or not subject to review or
appeal, which amendment, clarification, change, Administrative Action or
decision is enacted, promulgated or announced, in each case on or after the date
of original issuance of the Debt Securities, there is more than an insubstantial
risk that: (i) the Trust is, or will be within 90 days of the date of such
opinion of counsel, subject to United States federal income tax with respect to
income received or accrued on the Debt Securities; (ii) interest payable by the
Company on the Debt Securities is not, or within 90 days of the date of such
opinion of counsel, will not be, deductible by the Company, in whole or in part,
for United States federal income tax purposes; or (iii) the Trust is, or will be
within 90 days of the date of such opinion of counsel, subject to or otherwise
required to pay, or required to withhold from distributions to holders of Trust
Securities, more than a de minimis amount of other taxes (including withholding
taxes), duties, assessments or other governmental charges.

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

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

                  "Trust Securities" means Common Securities and Capital
Securities of CRM USA Holdings Trust I.

                                       -8-
<PAGE>

                  "Trustee" means the Person identified as "Trustee" in the
first paragraph hereof, and, subject to the provisions of Article VI hereof,
shall also include its successors and assigns as Trustee hereunder.

                  "United States" means the United States of America and the
District of Columbia.

                  "U.S. Person" has the meaning given to the term "United States
Person" as set forth in Section 7701(a)(30) of the Internal Revenue Code of
1986, as amended.

                  "U.S. Resident" means a "resident of the United States" under
Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended.

                  "Variable Rate" means a per annum rate of interest, equal to
LIBOR plus 3.65%, as determined on the LIBOR Determination Date preceding each
Interest Payment Date, reset quarterly, commencing upon expiration of the Fixed
Rate Period.

                                   ARTICLE II

                                 DEBT SECURITIES

         SECTION 2.01.  Authentication and Dating.
                        -------------------------

                  Upon the execution and delivery of this Indenture, or from
time to time thereafter, Debt Securities in an aggregate principal amount not in
excess of $36,083,000 may be executed and delivered by the Company to the
Trustee for authentication, and the Trustee shall thereupon authenticate and
make available for delivery said Debt Securities to or upon the written order of
the Company, signed by its Chairman of the Board of Directors, Vice Chairman,
President or Chief Financial Officer or one of its Vice Presidents, without any
further action by the Company hereunder. In authenticating such Debt Securities,
and accepting the additional responsibilities under this Indenture in relation
to such Debt Securities, the Trustee shall be entitled to receive, and (subject
to Section 6.01) shall be fully protected in relying upon a copy of any Board
Resolution or Board Resolutions relating thereto and, if applicable, an
appropriate record of any action taken pursuant to such resolution, in each case
certified by the Secretary or an Assistant Secretary or other officers with
appropriate delegated authority of the Company as the case may be.

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

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

                                       -9-
<PAGE>

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

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

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

                  The Bank of New York Trust Company, National Association, not
in its individual capacity but solely as Trustee.

                                           By
                                                 -------------------------------
                                                       Authorized Officer

         SECTION 2.03.  Form and Denomination of Debt Securities.
                        ----------------------------------------

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

         SECTION 2.04.  Execution of Debt Securities.
                        ----------------------------

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

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

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

                                      -10-
<PAGE>

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

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

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

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

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

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

                  The Company or the Trustee shall not be required to (i)
register a transfer or exchange of any Debt Security for a period beginning at
the opening of business 15 days immediately preceding the date of selection of
Debt Securities for redemption and ending at the close of business on the
earliest date on which the relevant notice of redemption is deemed to have been
given to all Holders of the Debt Securities to be redeemed, or (ii) register the
transfer or exchange of any Debt Security so selected for redemption in whole or
in part, except the unredeemed portion of any Debt Security being redeemed in
part.

                                      -11-
<PAGE>

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

                  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY
OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY
PRIOR TO THE DATE WHICH IS THE LATER OF (i) TWO YEARS (OR SUCH SHORTER PERIOD OF
TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT) AFTER THE LATER OF
(Y) THE DATE OR ORIGINAL ISSUANCE HEREOF AND (Z) THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER THE SECURITIES ACT) OF
THE COMPANY WAS THE HOLDER OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION
(OR ANY PREDECESSOR THERETO) AND (ii) SUCH LATER DATE, IF ANY, AS MAY BE
REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE COMPANY,
(B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON
THE HOLDER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED
IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN "ACCREDITED INVESTOR"
WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3), (7) OR (8) OF RULE 501
UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR
FOR THE ACCOUNT OF AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO A PERSON
THAT IS NEITHER A U.S. PERSON (AS DEFINED IN REGULATION S) NOR A U.S. RESIDENT
(WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE
"INVESTMENT COMPANY ACT")) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE
903 OR RULE 904 OF REGULATION S, ACTING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF ONE OR MORE PERSONS WITH RESPECT TO WHICH IT EXERCISES SOLE INVESTMENT
DISCRETION, EACH OF WHICH IS NEITHER A U.S. PERSON (AS DEFINED IN REGULATIONS S)
NOR A U.S. RESIDENT (WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT) OR (E)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT,

                                      -12-
<PAGE>

SUBJECT TO THE COMPANY'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (C), (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE
WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE HOLDER
OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE
FOREGOING RESTRICTIONS.

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

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

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

                                      -13-
<PAGE>

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

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

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

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

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

                                      -14-
<PAGE>

         SECTION 2.07.  Temporary Debt Securities.
                        -------------------------

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

         SECTION 2.08.  Payment of Interest.
                        -------------------

                  During the Fixed Rate Period, each Debt Security will bear
interest at the Fixed Rate. Thereafter, each Debt Security will bear interest at
the then applicable Variable Rate (i) in the case of the initial Interest
Period, for the period from, and including, the date of original issuance of
such Debt Security to, but excluding, the initial Interest Payment Date and (ii)
thereafter, for the period from, and including, the first day following the end
of the preceding Interest Period to, but excluding, the applicable Interest
Payment Date or, in the case of the last Interest Period, the Redemption Date,
the Special Redemption Date or Maturity Date, as applicable (each period
described in (i) and (ii), an "Interest Period"), on the principal thereof, on
any overdue principal and (to the extent that payment of such interest is
enforceable under applicable law) on Deferred Interest and on any overdue
installment of interest (including Defaulted Interest), payable (subject to the
provisions of Article XII) on each Interest Payment Date. Interest and any
Deferred Interest on any Debt Security that is payable, and is punctually paid
or duly provided for by the Company or the Parent Guarantor, on any Interest
Payment Date shall be paid to the Person in whose name said Debt Security (or
one or more Predecessor Securities) is registered at the close of business on
the regular record date for such Interest Period, except that interest and any
Deferred Interest payable on the Maturity Date, any Redemption Date or Special
Redemption Date, as the case may be, shall be paid to the Person to whom
principal is paid. In case (i) the Maturity Date of any Debt Security or (ii)
any Debt Security or portion thereof is called for redemption and the redemption
date is subsequent to a regular record date with respect to any Interest Payment
Date and either on or prior to such Interest Payment Date, interest on such Debt
Security will be paid upon presentation and surrender of such Debt Security.

                                      -15-
<PAGE>

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

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

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

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

         SECTION 2.09.  Cancellation of Debt Securities Paid, etc.
                        -----------------------------------------

                  All Debt Securities surrendered for the purpose of payment,
redemption, exchange or registration of transfer, shall, if surrendered to the
Company or any Paying Agent, be surrendered to the Trustee and promptly canceled
by it, or, if surrendered to the Trustee shall be promptly canceled by it, and
no Debt Securities shall be issued in lieu thereof except as expressly permitted
by any of the provisions of this Indenture.

                                      -16-
<PAGE>

The Trustee shall dispose of all canceled Debt Securities in accordance with its
customary practices unless the Company otherwise directs the Trustee in writing,
in which case the Trustee shall dispose of such Debt Securities as directed by
the Company. If the Company shall acquire any of the Debt Securities, however,
such acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Debt Securities unless and until the same are
surrendered to the Trustee for cancellation.

         SECTION 2.10.  Computation of Interest
                        ----------------------

                  (a)      From November 14, 2006 until December 15, 2011 (the
"Fixed Rate Period"), the interest shall be computed on the basis of a 360-day
year of twelve 30-day months and the amount payable for any partial period shall
be computed on the basis of the number of days elapsed in a 360-day year of
twelve 30-day months. Upon expiration of the Fixed Rate Period, the amount of
interest payable for any Interest Period will be computed on the basis of a
360-day year and the actual number of days elapsed in such Interest Period.

                  (b)      Upon expiration of the Fixed Rate Period, LIBOR shall
be determined by the Calculation Agent for each Interest Period in accordance
with the following provisions:

                           (1)      On the second LIBOR Business Day (provided,
                  that on such day commercial banks are open for business
                  (including dealings in foreign currency deposits) in London (a
                  "LIBOR Banking Day"), and otherwise the next preceding LIBOR
                  Business Day that is also a LIBOR Banking Day) prior to March
                  15, June 15, September 15 and December 15 (except, with
                  respect to the first Interest Period upon expiration of the
                  Fixed Rate Period, on December 15, 2011), (each such day, a
                  "LIBOR Determination Date"), LIBOR shall equal the rate, as
                  obtained by the Calculation Agent for three-month U.S. Dollar
                  deposits in Europe, which appears on Telerate Page 3750 (as
                  defined in the International Swaps and Derivatives
                  Association, Inc. 2000 Interest Rate and Currency Exchange
                  Definitions) or such other page as may replace such Page 3750,
                  as of 11:00 a.m. (London time) on such LIBOR Determination
                  Date, as reported by Bloomberg Financial Markets Commodities
                  News or any successor service. "LIBOR Business Day" means any
                  day that is not a Saturday, Sunday or other day on which
                  commercial banking institutions in New York, New York or
                  Wilmington, Delaware are authorized or obligated by law or
                  executive order to be closed. If such rate is superseded on
                  Telerate Page 3750 by a corrected rate before 12:00 noon
                  (London time) on such LIBOR Determination Date, the corrected
                  rate as so substituted will be LIBOR for such LIBOR
                  Determination Date.

                           (2)      If, on any LIBOR Determination Date, such
                  rate does not appear on Telerate Page 3750 as reported by
                  Bloomberg Financial Markets Commodities News or such other
                  page as may replace such Telerate Page 3750, the Calculation
                  Agent shall determine the arithmetic mean of the offered
                  quotations of the Reference Banks (as defined below) to
                  leading banks in the London interbank market for three-month
                  U.S. Dollar deposits in Europe (in an amount determined by the
                  Calculation Agent) by reference to requests for quotations as
                  of

                                      -17-
<PAGE>

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

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

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

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

         SECTION 2.11.  Extension of Interest Payment Period.
                        ------------------------------------

                  So long as no Event of Default has occurred and is continuing,
the Company shall have the right, from time to time and without causing an Event
of Default, to defer payments of interest on the Debt Securities by extending
the interest payment period on the Debt Securities at any time and from time to
time during the term of the Debt Securities, for up to twenty consecutive
quarterly periods (each such extended interest payment period, together with all
previous and further consecutive extensions thereof, is referred to herein as an
"Extension Period"), during which Extension Period no interest shall be due and
payable (except any Additional Interest that may be due and payable). No
Extension Period may end on a date other than an Interest Payment Date or extend
beyond the Maturity Date, any Redemption Date or the Special Redemption Date, as
the case may be.

                                      -18-
<PAGE>

During any Extension Period, interest will continue to accrue on the Debt
Securities, and interest on such accrued interest (such accrued interest and
interest thereon referred to herein as "Deferred Interest") will accrue at an
annual rate equal to the Interest Rate in effect for such Extension Period,
compounded quarterly from the date such Deferred Interest would have been
payable were it not for the Extension Period, to the extent permitted by law. No
interest or Deferred Interest (except any Additional Interest that may be due
and payable) shall be due and payable during an Extension Period, except at the
end thereof. At the end of any such Extension Period the Company shall pay all
Deferred Interest then accrued and unpaid on the Debt Securities, provided that
any Deferred Interest theretofor paid by the Parent Guarantor may then be repaid
to the Parent Guarantor by the Company; provided, however, that during any such
Extension Period, (i) the Company shall be subject to the restrictions set forth
in Section 3.08 of this Indenture, and (ii) shall not enter into any contracts
with shareholders holding more than 10% of the outstanding shares of common
stock of the Company. Prior to the termination of any Extension Period, the
Company may further extend such Extension Period, provided, that no Extension
Period (including all previous and further consecutive extensions that are part
of such Extension Period) shall exceed twenty consecutive quarterly periods, or
extend beyond the Maturity Date. Upon the termination of any Extension Period
and upon the payment of all Deferred Interest, the Company may commence a new
Extension Period, subject to the foregoing requirements. The Company must give
the Trustee and the Parent Guarantor notice of its election to begin such
Extension Period ("Notice") not later than the related regular record date for
the next succeeding Interest Payment Date. The Notice shall describe, in
reasonable detail, why the Company has elected to begin an Extension Period. The
Notice shall acknowledge and affirm the Company's understanding that it is
prohibited from issuing dividends and other distributions during the Extension
Period. Upon receipt of the Notice, the Placement Agent has the right, at its
sole discretion, to disclose to Securityholders and prospective purchasers of
the Capital Securities the name of the Company, the fact that the Company has
elected to begin an Extension Period and other information that the Placement
Agent, at its sole discretion, deems relevant to the Company's election to begin
an Extension Period. The Trustee shall give notice of the Company's election to
begin a new Extension Period to the Securityholders.

         SECTION 2.12.  CUSIP Numbers.
                        -------------

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

         SECTION 2.13.  Parent Guarantor
                        ----------------

                  Any other provision of this Indenture to the contrary
notwithstanding, it is understood that Parent Guarantor has guaranteed the
payment of all payments due from the Company hereunder and under the Debt
Securities pursuant to, and subject to the terms and conditions of, the Parent
Guarantee Agreement, and that the Parent Guarantor shall be obligated to make
all such payments otherwise due under the Debt Securities as and to the extent
provided in the Parent Guarantee.

                                      -19-
<PAGE>

         SECTION 2.14.  Income Tax Certification.
                        ------------------------

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

         SECTION 2.15.  Global Securities
                        -----------------

         (a)      Upon the election of the Holder after the Original Issue Date,
which election need not be in writing, the Securities owned by such Holder shall
be issued in the form of one or more Global Securities registered in the name of
the Depositary or its nominee. Each Global Security issued under this Indenture
shall be registered in the name of the Depositary designated by the Company for
such Global Security or a nominee thereof and held by the custodian therefor,
and each such Global Security shall constitute a single Security for all
purposes of this Indenture.

         (b)      Notwithstanding any other provision in this Indenture, no
Global Security may be exchanged in whole or in part for definitive, physical
Securities, and no transfer of a Global Security in whole or in part may be
registered, in the name of any Person other than the Depositary for such Global
Security or a nominee thereof unless (i) such Depositary advises the Trustee and
the Company in writing that such Depositary is no longer willing or able to
properly discharge its responsibilities as Depositary with respect to such
Global Security, and no qualified successor is appointed by the Company within
ninety (90) days of receipt by the Company of such notice, (ii) such Depositary
ceases to be a clearing agency registered under the Exchange Act and no
successor is appointed by the Company within ninety (90) days after obtaining
knowledge of such event, (iii) the Company executes and delivers to the Trustee
a Company Order stating that the Company elects to terminate the book-entry
system through the Depositary or (iv) an Event of Default shall have occurred
and be continuing. Upon the occurrence of any event specified in clause (i),
(ii), (iii) or (iv) above, the Trustee shall notify the Depositary and instruct
the Depositary to notify all owners of beneficial interests in such Global
Security of the occurrence of such event and of the availability of Securities
to such owners of beneficial interests requesting the same. The Trustee may
conclusively rely, and be protected in relying, upon the written identification
of the owners of beneficial interests furnished by the Depositary, and shall not
be liable for any delay resulting from a delay by the Depositary. Upon the
issuance of such Securities and the registration in the Debt Security Register
of such Securities in the names of the Holders of the beneficial interests
therein, the Trustees shall recognize such holders of beneficial interests as
Holders.

                                      -20-
<PAGE>

         (c)      Notwithstanding any provision to the contrary herein, so long
as a Global Security remains Outstanding and is held by or on behalf of the
Depositary, transfers of a Global Security or any interest therein, in whole or
in part, shall only be made in accordance with this Article II.

                  (i)      Transfers, Exchanges and Cancellations Generally. If
         (A) any Global Security is to be exchanged or transferred for other
         Securities or canceled in part, or (B) another Security is to be
         exchanged in whole or in part for a beneficial interest in any Global
         Security, then (i) such Global Security, in the case of clause (A), or
         such other Security, in the case of clause (B), shall be so surrendered
         for exchange, transfer or cancellation as provided in this Article II
         (ii) the principal amount of the Global Security shall be reduced or
         increased by an amount equal to (x) the portion thereof to be so
         exchanged or canceled, or (y) the principal amount of such other
         Security to be so exchanged for a beneficial interest therein, as the
         case may be, by means of an appropriate adjustment made on the records
         of the Securities Registrar, whereupon the Trustee, in accordance with
         the Applicable Depositary Procedures, shall instruct the Depositary or
         its authorized representative to make a corresponding adjustment to its
         records, and (iii) such transaction shall be subject to the additional
         provisions set forth herein. Upon any such surrender or adjustment of a
         Global Security by the Depositary, accompanied by registration
         instructions, the Company shall execute and the Trustee shall
         authenticate and deliver any Securities issuable in exchange for such
         Global Security (or any portion thereof) in accordance with the
         instructions of the Depositary. The Trustee shall not be liable for any
         delay in delivery of such instructions and may conclusively rely on,
         and shall be fully protected in relying on, such instructions.

                  (ii)     Rule 144A Global Security to Regulation S Global
         Security. If an owner of a beneficial interest in a Rule 144A Global
         Security deposited with the Depositary wishes at any time to exchange
         its interest in such Rule 144A Global Security for an interest in the
         corresponding Regulation S Global Security, or to transfer its interest
         in such Rule 144A Global Security to a Person who wishes to take
         delivery thereof in the form of an interest in the corresponding
         Regulation S Global Security, such owner, provided such owner or, in
         the case of a transfer to another Person, such Person is not a U.S.
         Person or a U.S. Resident, may, subject to the immediately succeeding
         sentence and the rules and procedures of the Depositary, exchange or
         transfer or cause the exchange or transfer of such interest for an
         equivalent beneficial interest in the Regulation S Global Security.
         Upon receipt by the Trustee, as Securities Registrar, of (A)
         instructions given in accordance with the Depositary's procedures from
         an Agent Member directing the Trustee to cause to be credited a
         beneficial interest in the Regulation S Global Security in an amount
         equal to the beneficial interest in the Rule 144A Global Security to be
         exchanged or transferred, but not less than the minimum denomination
         applicable to Securities held through Regulation S Global Securities,
         (B) a written order given in accordance with the Depositary's
         procedures containing information regarding the participant account of
         the Depositary and, in the case of a transfer or exchange pursuant to
         and in accordance with Regulation S, the account to be credited with
         such increase and (C) a certificate in the form of Exhibit C attached
         hereto, given by the owner of such beneficial interest (in the case of
         an exchange) or the transferee of such beneficial interest (in the case
         of a transfer) stating that the exchange or transfer of such interest
         has been made in compliance with the transfer restrictions applicable
         to the Global Securities,

                                      -21-
<PAGE>

         including in accordance with Regulation S, the Trustee, as Securities
         Registrar, shall instruct the Depositary to reduce the principal amount
         of the Rule 144A Global Security and to increase the principal amount
         of the Regulation S Global Security by the aggregate principal amount
         of the beneficial interest in the Rule 144A Global Security to be
         exchanged or transferred, and to credit or cause to be credited to the
         account of the Person specified in such instructions a beneficial
         interest in the Regulation S Global Security equal to the reduction in
         the principal amount of the Rule 144A Global Security.

                  (iii)    Regulation S Global Security to Rule 144A Global
         Security. If an owner of a beneficial interest in a Regulation S Global
         Security deposited with the Depositary wishes at any time to exchange
         its interest in such Regulation S Global Security for an interest in a
         corresponding Rule 144A Global Security or to transfer its interest in
         such Regulation S Global Security to a Person who wishes to take
         delivery thereof in the form of an interest in the corresponding Rule
         144A Global Security, such owner may, subject to the immediately
         succeeding sentence and the rules and procedures of the applicable
         Depositary, as the case may be, cause the exchange or transfer of such
         interest for an equivalent beneficial interest in the Rule 144A Global
         Security. To the extent that the Trustee, as Securities Registrar, has
         received (A) instructions from the applicable Depositary, as the case
         may be, directing the Trustee, as Securities Registrar, to cause to be
         credited a beneficial interest in the Rule 144A Global Security equal
         to the beneficial interest in the Regulation S Global Security to be
         exchanged or transferred but not less than the minimum denomination
         applicable to Securities held through Rule 144A Global Securities, such
         instructions to contain information regarding the participant account
         with the Depositary to be credited with such increase, and (B) a
         certificate in the form of Exhibit D attached hereto, given by the
         owner of such beneficial interest (in the case of an exchange) or the
         transferee of such beneficial interest (in the case of a transfer)
         stating that the Person acquiring such interest in the Rule 144A Global
         Security is a QIB/QP and is obtaining such beneficial interest in a
         transaction meeting the requirements of Rule 144A and in accordance
         with any applicable securities laws of any state of the U.S. or any
         other relevant jurisdiction, or that, in the case of an exchange, the
         owner is a QIB/QP, then the Trustee, as Securities Registrar, will
         instruct the Depositary to reduce the Regulation S Global Security by
         the aggregate principal amount of the beneficial interest in the
         Regulation S Global Security to be transferred or exchanged, and the
         Trustee, as Securities Registrar, shall instruct the Depositary,
         concurrently with such reduction, to credit or cause to be credited to
         the account of the Person specified in such instructions a beneficial
         interest in the Rule 144A Global Security equal to the reduction in the
         principal amount of the Regulation S Global Security.

                  (iv)     Other Exchanges.

                           (A)      Notwithstanding the foregoing, if an owner
                  of a beneficial interest in a Global Security wishes at any
                  time to transfer an interest in such Global Security to a
                  Person other than a QIB/QP or a Person that is not a U.S.
                  Person or U.S. Resident pursuant to Regulation S, such
                  transfer shall be effected, subject to the Applicable
                  Depositary Procedures, in accordance with the provisions of
                  this Article II and the transferee shall receive a definitive,
                  physical Securities certificate in connection with such
                  transfer upon delivery of a certificate in the form of
                  Exhibit E attached hereto to the Trustee.

                                      -22-
<PAGE>

                  A Holder of a definitive, physical Security certificate that
                  is a QIB/QP or that is not a U.S. Person or U.S. Resident
                  pursuant to Regulation S may, upon request, and in accordance
                  with the provisions of this Article II, exchange such
                  definitive, physical Security certificate for a beneficial
                  interest in a Global Security.

                           (B)      In the event that a Global Security is
                  exchanged for Securities in definitive, physical registered
                  form without interest coupons, such Securities may be
                  exchanged for one another only in accordance with such
                  procedures and restrictions as are substantially consistent
                  with the provisions above (including certification
                  requirements intended to ensure that such transfers comply
                  with Rule 144A or another exemption from the registration
                  requirements of the Securities Act, or are to non-U.S. Persons
                  and non-U.S. Residents, or otherwise comply with Regulation S,
                  as the case may be) and as may be from time to time adopted by
                  the Company and the Trustee.

                           (C)      Subject to compliance with the transfer
                  restrictions contained in Section 2.05 and Section
                  2.14(c)(iv), transfers of interests in a Global Security may
                  be made (x) by book-entry transfer of beneficial interests
                  within the relevant Depositary or (y)(i) in the case of
                  transfers of interests in a Rule 144A Global Security or in a
                  Regulation S Global Security, in accordance with this Article
                  II; provided, that, in the case of any such transfer of
                  interests pursuant to clause (x) or (y) above, such transfer
                  is made in accordance with subclause (D) below.

                           (D)      Restrictions on Transfers.

                                    (1)      Transfers of interests in a
Regulation S Global Security to a U.S. Person or a U.S. Resident that is a
QIB/QP shall be made by delivery of an interest in the corresponding Rule 144A
Global Security and shall be limited to transfers made pursuant to this Article
II. Beneficial interests in a Rule 144A Global Security may only be held through
the applicable Depositary.

                                    (2)      Any transfer of an interest in a
Security to a U.S. Person or a U.S. Resident that is not a QIB/QP and/or a
institutional "accredited investor" within the meaning of Rule 501(a)(1), (2),
(3) or (7) under the Securities Act shall be null and void ab initio and shall
not be given effect for any purpose hereunder, and the Trustee shall hold any
funds conveyed by the intended transferee of such interest in such Security in
trust for the transferor and shall promptly reconvey such funds to such Person
in accordance with the written instructions thereof delivered to the Trustee at
its address listed herein;

                                    (3)      Any transfer of an interest in a
Global Security to a U.S. Person or a U.S. Resident that is not a QIB/QP, but
who is an institutional "accredited investor", may and shall be made by delivery
of an interest in definitive, physical Securities and shall be limited to
transfers made pursuant to this Article II.

                                      -23-
<PAGE>

                                    (4)      Transfers of interests in a Rule
144A Global Security to a Person that is not a U.S. Person or U.S. Resident
shall be made by delivery of an interest in the corresponding Regulation S
Global Security and shall be limited to transfers made pursuant to this Article
II. Beneficial interests in a Regulation S Global Security may only be held
through the applicable Depositary.

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

         (e)      Execution of Global Securities Generally. The Company shall
execute and the Trustee shall, in accordance with this Section 2.14(e),
authenticate and deliver initially one or more Global Securities evidencing the
Securities that shall be (i) registered in the name of the Depositary for such
Global Security or Global Securities or its nominee and (ii) delivered by the
Trustee to such Depositary or pursuant to such Depositary instructions or held
by the Trustee, as custodian for the Depositary.

         (f)      Rights of Agent Members in Global Securities Generally.
Members of, or participants in, the Depositary ("Agent Members") shall have no
rights under this Indenture with respect to any interest in a Global Security
held on their behalf by the Depositary or under the Global Security, and the
Depositary may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the absolute owner of such Global Security for all
purposes whatsoever (except to the extent otherwise provided herein).
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any
Security.

         (g)      The rights of owners of beneficial interests in a Global
Security shall be exercised only through the Depositary and shall be limited to
those established by law and agreements between such owners and the Depositary
and/or its Depositary Participants.

         (h)      No owner of any beneficial interest in any Global Security
held on its behalf by a Depositary shall have any rights under this Indenture
with respect to such Global Security, and such Depositary may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the owner of
such Global Security for all purposes whatsoever. None of the Company, the
Trustee nor any agent of the Company or the Trustee will have any responsibility
or liability for any aspect of the records relating to or payments made on
account of beneficial ownership interests of a Global Security or maintaining,
supervising or reviewing any records relating to such beneficial ownership
interests. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee or any agent of the Company or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by a
Depositary or impair, as between a Depositary and such owners of beneficial
interests, the operation of customary practices governing the exercise of the
rights of the Depositary (or its nominee) as Holder of any Security.

                                      -24-
<PAGE>

         (i)      Each owner of a beneficial interest in a Rule 144A Global
Security will be deemed to have represented and agreed with the Company as
follows (except that in a transfer of a beneficial interest in a Regulation S
Global Security to a transferee that takes delivery in the form of an interest
in a Rule 144A Global Security, the transferee will be required to make the
required representations in a transfer certificate in the form set forth as
Exhibit C):

                  (i)      The owner is purchasing the Security for its own
         account or one or more accounts with respect to which it exercises sole
         investment discretion, in each case in minimum denominations of
         $100,000 and integral multiples of $1,000 in excess thereof, and both
         it and each such account (if any) and (A) is a QIB/QP, (B) is not a
         dealer of the type described in paragraph (a)(1)(ii) of Rule 144A
         unless it owns and invests on a discretionary basis not less than
         $25,000,000 in securities of issuers that are not Affiliated to it, (C)
         is not a participant-directed employee plan, such as a 401(k) plan, or
         any other type of plan referred to in paragraph (a)(1)(i)(D) or
         (a)(1)(i)(E) of Rule 144A, or a trust fund referred to in paragraph
         (a)(1)(i)(F) of Rule 144A that holds the assets of such a plan, unless
         investment decisions with respect to the plan are made solely by the
         fiduciary, trustee or sponsor of such plan, (D) was not formed for the
         purpose of investing in the Company (except where each beneficial owner
         of the owner is a QP) and (E) shall provide written notice to any
         transferee that any transferee taking delivery of the Security in the
         form of an interest in a Rule 144A Global Security must satisfy the
         foregoing qualifications.

                  (ii)     The owner agrees on its own behalf and on behalf of
         any account for which it is holding the Security to offer, sell or
         otherwise transfer such Security (or a beneficial interest therein)
         only (A) in the required minimum denomination, and (B)(1) in the U.S.,
         only in the form of an interest in a Rule 144A Global Security to a QP
         that the owner reasonably believes is a QIB, purchasing for its own
         account or one or more accounts, each of which is a QP that the owner
         reasonably believes is a QIB, in accordance with Rule l44A, and none of
         which are (i) a dealer of the type described in paragraph (a)(1)(ii) of
         Rule 144A unless it owns and invests on a discretionary basis not less
         than $25,000,000 in securities of issuers that are not Affiliated to
         it, (ii) a participant-directed employee plan, such as a 401(k) plan,
         or any other type of plan referred to in paragraph (a)(1)(i)(D) or
         (a)(1)(i)(E) of Rule 144A, or a trust fund referred to in paragraph
         (a)(1)(i)(F) of Rule 144A that holds the assets of such a plan, unless
         investment decisions with respect to the plan are made solely by the
         fiduciary, trustee or sponsor of such plan or (iii) formed for the
         purpose of investing in the Company (except where each beneficial owner
         is a QP) or (2) outside the U.S. in the form of an interest in a
         Regulation S Global Security to a Person that is neither a U.S. Person
         nor a U.S. Resident in an offshore transaction in accordance with
         Regulation S under the Securities Act. The owner understands and agrees
         that neither a U.S. Person nor a U.S. Resident may hold an interest in
         a Security in the form of a Regulation S Global Security at any time.
         The owner agrees to provide notice of such transfer restrictions to any
         subsequent transferee.

                  (iii)    The owner understands that the Company is entitled to
         require any Holder of Securities who is a U.S. Person or a U.S.
         Resident who is determined not to have been a QIB/QP at the time of
         acquisition of the Security (or interest therein) to (A) if such Person
         is an institutional "accredited investor" within the meaning of Rule
         501(a)(1), (2), (3) or (7) under the Securities Act, receive
         definitive, physical Securities or (B) sell such interest to a Person
         that is a QIB/QP or to a Person that is neither a U.S. Person nor a
         U.S. Resident in a transaction meeting the requirements of Regulation
         S.

                                      -25-
<PAGE>

                  (iv)     The owner understands that the Securities have not
         been approved or disapproved by the SEC or any other governmental
         authority or agency of any jurisdiction. Any representation to the
         contrary is a criminal offense.

                  (v)      The owner agrees that no Security (or any interest
         therein) may be sold, pledged or otherwise transferred in a
         denomination of less than $100,000 and integral multiples of $1,000 in
         excess thereof.

                  (vi)     The owner (A) has such knowledge and experience in
         financial and business matters that the owner is capable of evaluating
         the merits and risks (including for tax, legal, regulatory, accounting
         and other financial purposes) of its prospective investment in the
         Securities, (B) is financially able to bear such risk, (C) in making
         such investment is not relying on the advice or recommendations of the
         Company, the Trustee or any of their respective Affiliates (or any
         representative of any of the foregoing), (D) has determined that an
         investment in the Securities is suitable and appropriate for it, and
         (E) has had access to such financial and other information concerning
         the Company and the Securities as it has deemed necessary to make its
         own independent decision to purchase such Securities, including the
         opportunity, at a reasonable time prior to its purchase of such
         Securities, to ask questions and receive answers concerning the Company
         and the terms and conditions of the offering of the Securities.

                  (vii)    The owner understands that there is no market for the
         Securities and that no assurance can be given as to the liquidity of
         any trading market for the Securities and that it is unlikely that a
         trading market for the Securities will develop. Accordingly, the owner
         must be prepared to hold the Securities for an indefinite period of
         time or until their maturity.

                  (viii)   The owner agrees that no sale, pledge or other
         transfer of a Security (or any interest therein) may be made if such
         transfer would have the effect of requiring the Company to register as
         an investment company under the Investment Company Act.

                  (ix)     The owner will be deemed to represent, warrant and
         covenant, for the duration that it holds an interest in such Security,
         that either (A) it is not acquiring such Securities with the assets of
         a Person who is or will be an employee benefit, individual retirement
         account or other Plan or arrangement (each, a "Plan") 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") or (B) its acquisition, holding and disposition of
         such Securities, throughout the period that it holds such Securities,
         will not result in a non-exempt prohibited transaction under Section
         406 of ERISA or Section 4975 of the Code (or any substantially similar
         applicable law), because the acquisition, holding and disposition of
         such Securities by the holder is and will be eligible for relief under
         a prohibited transaction exemption, all of the conditions of which are
         and will be satisfied upon its acquisition of, and throughout the term
         that it holds, such Securities.

                                      -26-
<PAGE>

         Each owner of such Securities will be deemed to represent, warrant and
         covenant that it will not sell, pledge or otherwise transfer such
         Securities in violation of the foregoing. In addition, if the owner is,
         or is acting on behalf of, a Plan, the fiduciaries of such Plan
         represent, warrant and covenant that they have been informed of and
         understand the Company's investment objectives, policies and strategies
         and that the decision to invest such Plan's assets in such Securities
         was made with appropriate consideration of relevant investment factors
         with regard to such Plan and is consistent with the duties and
         responsibilities imposed upon fiduciaries with regard to their
         investment decisions under ERISA.

                  (x)      The owner agrees that (A) any sale, pledge or other
         transfer of a Security (or any interest therein) made in violation of
         the transfer restrictions contained in this Indenture, or made based
         upon any false or inaccurate representation made by the holder or a
         transferee to the Company, will be void and of no force or effect and
         (B) none of the Company, the Trustee or the Securities Registrar has
         any obligation to recognize any sale, pledge or other transfer of a
         Security (or any interest therein) made in violation of any such
         transfer restriction or made based upon any such false or inaccurate
         representation.

                  (xi)     The owner is not a member of the public in the Cayman
         Islands.

                  (xii)    The Rule 144A Global Securities will bear the
         applicable legends set forth herein.

                  (xiii)   The owner has the power and authority to enter into
         each agreement required to be executed and delivered by or on behalf of
         the owner in connection with its purchase of Securities and to perform
         its obligations thereunder and consummate the transactions contemplated
         thereby, and the Person signing any such documents on behalf of the
         owner has been duly authorized to execute and deliver such documents
         and each other document required to be executed and delivered by the
         owner in connection with its purchase of Securities. Such execution,
         delivery and compliance by the owner does not conflict with, or
         constitute a default under, any instruments governing the holder, any
         applicable law, regulation or order, or any material agreement to which
         the owner is a party or by which the owner is bound.

                  (xiv)    If the owner's permanent address is located in the
         U.S., the owner was offered the Securities in the state of such owner's
         permanent address and intends that the securities law of that state
         govern the owner's subscription for the Securities.

                  (xv)     The owner understands that the Company may require
         certification acceptable to it (i) to permit the Company to make
         payments to it without, or at a reduced rate of, withholding or (ii) to
         enable the Company to qualify for a reduced rate of withholding in any
         jurisdiction from or through which the Company receives payments on its
         assets. The owner agrees to provide any such certification that is
         requested by the Company.

                                      -27-
<PAGE>

                  (xvi)    The owner acknowledges that the Company, the Trustee
         and others will rely upon the truth and accuracy of the foregoing
         acknowledgments, representations and agreements and agrees that, if any
         of the acknowledgments, representations or warranties made or deemed to
         have been made by it in connection with its purchase of the Securities
         are no longer accurate, the owner will promptly notify the Company and
         the Trustee.

         (j)      Each owner of a beneficial interest in a Regulation S Global
Security shall be deemed to have represented and agreed with the Company as set
forth in clauses (ii) through (xvi) of clause (g) above (except that in a
transfer of an interest in a Rule 144A Global Security to a transferee that
takes delivery in the form of an interest in a Regulation S Global Security, the
transferee will be required to make the required representations in a transfer
certificate in the form set forth as Exhibit D). Each owner of a beneficial
interest in a Regulation S Global Security will also be deemed or required (as
applicable) to represent, warrant and agree as follows:

                  (i)      The owner is neither a U.S. Person nor a U.S.
         Resident purchasing for its own account or one or more accounts, each
         of which is neither a U.S. Person nor a U.S. Resident, and as to each
         of which the owner exercises sole investment discretion, in an offshore
         transaction pursuant to Regulation S and is aware that the sale of the
         Securities to it is being made in reliance on the exemption from
         registration provided by Regulation S.

                  (ii)     The Regulation S Global Securities will bear the
         applicable legends set forth herein.

                  (iii)    The owner understands and agrees that before a
         Security in the form of an interest in a Regulation S Global Security
         may be offered, sold, pledged or otherwise transferred to a transferee
         that takes delivery in the form of a Rule 144A Global Security, the
         transferee shall be required to provide the Trustee with a transfer
         certificate in the form attached hereto as Exhibit D to the effect that
         the transferee is a QIB/QP which is acquiring the interest in the
         Security in the form of a Rule 144A Global Security in a transaction
         meeting the requirements of Rule 144A and in accordance with any
         applicable securities laws of any state of the U.S. or any other
         relevant jurisdiction.

         (k)      Notwithstanding anything contained in this Indenture to the
contrary, and to the maximum extent permitted under applicable law, neither the
Trustee nor the Securities Registrar (nor any other Transfer Agent) shall be
responsible or liable for compliance with applicable federal or state securities
law (including the Securities Act, Rule 144A or Regulation S promulgated
thereunder), the Investment Company Act, ERISA or the Code (or any applicable
regulations thereunder); provided, however, that if a specified transfer
certificate or Opinion of Counsel is required by the express terms of this
Article II to be delivered to the Trustee or Securities Registrar prior to
registration of transfer of a Security, the Trustee and/or Securities Registrar,
as applicable, shall be under a duty to receive such certificate or Opinion of
Counsel and to examine the same to determine whether it conforms on its face to
the requirements hereof (and the Trustee or Securities Registrar, as the case
may be, shall promptly notify the party delivering the same if it determines
that such certificate or Opinion of Counsel does not so conform).

                                      -28-
<PAGE>

                                   ARTICLE III

                       PARTICULAR COVENANTS OF THE COMPANY

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

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

                  (b)      The Company will treat the Debt Securities as
indebtedness, and the interest payable in respect of such Debt Securities as
interest, for all U.S. federal income tax purposes. All interest payments in
respect of such Debt Securities will be made free and clear of U.S. withholding
tax to any beneficial owner thereof that has timely provided a properly
completed and original Internal Revenue Service Form W-9 (or applicable
successor form) or Form W-8 BEN (or any substitute or successor form)
establishing its non-U.S. status for U.S. federal income tax purposes.

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

         SECTION 3.02.  Offices for Notices and Payments, etc.
                        --------------------------------------

                  So long as any of the Debt Securities remain outstanding, the
Company will maintain in New York, New York an office or agency where the Debt
Securities may be presented for payment, an office or agency where the Debt
Securities may be presented for registration of transfer and for exchange as
provided in this Indenture and an office or agency where notices and demands to
or upon the Company in respect of the Debt Securities or of this Indenture may
be served. The Company hereby appoints the Trustee at Trustee at The Bank of New
York Trust Company, National Association, 101 Barclay Street, New York, New York
10286, 1st Floor, Corporate Trust Window, attention: Corporate Trust - CRM USA
Holdings Trust I (Houston) CRM USA Holdings Trust I as such office or agency. In
case the Company shall fail to maintain any such office or agency in New York,
New York or shall fail to give such notice of the location or of any change in
the location thereof, presentations and demands may be made and notices may be
served at the Principal Office of the Trustee.

                                      -29-
<PAGE>

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

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

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

         SECTION 3.04.  Provision as to Paying Agent.
                        ----------------------------

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

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

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

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

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

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

                                      -30-
<PAGE>

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

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

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

         SECTION 3.05.  Certificate to Trustee.
                        ----------------------

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

         SECTION 3.06.  Additional Interest.
                        -------------------

                  If and for so long as the Trust is the holder of all Debt
Securities and is subject to or otherwise required to pay, or is required to
withhold from distributions to holders of Trust Securities, any additional taxes
(including withholding taxes), duties, assessments or other governmental charges
as a result of a Tax Event, the Company will pay such additional amounts (the
"Additional Interest") on the Debt Securities as shall be required so that the
net amounts received and retained by the Trust for distribution to holders of
Trust Securities after paying all taxes (including withholding taxes on
distributions to holders of Trust Securities), duties, assessments or other
governmental charges will be equal to the amounts the Trust would have received
and retained for distribution to holders of Trust Securities after paying all
taxes (including withholding taxes on distributions to holders of Trust
Securities), duties, assessments or other governmental charges if no such
additional taxes, duties, assessments or other governmental charges had been
imposed.

                  Whenever in this Indenture or the Debt Securities there is a
reference in any context to the payment of principal of or premium, if any, or
interest on the Debt Securities, such mention shall be deemed to include mention
of payments of the Additional Interest provided for in this Section to the
extent that, in such context, Additional Interest is, was or would be payable in
respect thereof pursuant to the provisions of this Section and express mention
of the payment of Additional Interest (if applicable) in any provisions hereof
shall not be construed as excluding Additional Interest in those provisions
hereof where such express mention is not made; provided, however, that,
notwithstanding anything to the contrary contained in this Indenture or any Debt
Security, the deferral of the payment of interest during an Extension Period
pursuant to Section 2.11 shall not defer the payment of any Additional Interest
that may be due and payable.

                                      -31-
<PAGE>

         SECTION 3.07.  Compliance with Consolidation Provisions.
                        ----------------------------------------

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

         SECTION 3.08.  Limitation on Dividends.
                        -----------------------

         If Debt Securities are initially issued to the Trust or a trustee of
such Trust in connection with the issuance of Trust Securities by the Trust
(regardless of whether Debt Securities continue to be held by such Trust) and
(1) there shall have occurred and be continuing an Event of Default, (2) the
Company or the Parent Guarantor shall be in default with respect to its payment
of any obligations under the Capital Securities Guarantee or the Parent
Guarantee Agreement, respectively (3) the Company shall have given notice of its
election to defer payments of interest on the Debt Securities by extending the
interest payment period as provided herein and such period, or any extension
thereof, shall have commenced and be continuing, or (4) any insurance company
subsidiary of the Company (x) fails to renew more than 51 % of its net premiums
written in one or more transactions during any twelve (12) month period; (y)
sells more than 51% of its rights to renew net premiums written of its insurance
subsidiaries in one or more transactions over the course of a twelve (12) month
period; or (z) (A) any insurance company subsidiary of the Company is rated by
A.M. Best Company, Inc. is downgraded by A.M. Best Company to a rating below B-
or (B) withdraws its rating by A.M. Best Company, Inc., then the Company and the
Parent Guarantor shall not, and shall not permit any Affiliate of the Company
and the Parent Guarantor to, (i) declare or pay any dividends or distributions
on, or redeem, purchase, acquire, or make a liquidation payment with respect to,
any of the Company's, the Parent Guarantor's or such Affiliate's capital stock
(other than payments of dividends or distributions to the Company and the Parent
Guarantor) or make any guarantee payments with respect to the foregoing, (ii)
make any payment of principal of or interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Company, the Parent Guarantor or
any Affiliate that rank pari passu in all respects with or junior in interest to
the Debt Securities or (iii) make any payment under any guarantees of the
Company, the Parent Guarantor or any Affiliate that rank in all respects pari
passu with or junior in interest to the Capital Securities Guarantee (other
than, with respect to clauses (i), (ii) and (iii) above, (A) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company or
any subsidiary of the Company (I) in connection with any employment contract,
benefit plan or other similar arrangement with or for the benefit of one or more
employees, officers, directors or consultants, (II) in connection with a
dividend reinvestment or stockholder stock purchase plan and/or (III) in
connection with the issuance of capital stock of the Company or such subsidiary
(or securities convertible into or exercisable for such capital stock), as
consideration in an acquisition transaction entered into prior to the occurrence
of (i), (ii) or (iii) above, (B) as a result of any exchange, reclassification,
combination or conversion of any class or series of the Company's capital stock
(or any capital stock of a subsidiary of the Company) for any class or series of
the Company's capital stock (or in the case of a subsidiary of the Company, any
class or series of

                                      -32-
<PAGE>

such subsidiary's capital stock) or of any class or series of the Company's
indebtedness for any class or series of the Company's capital stock (or in the
case of indebtedness of a subsidiary of the Company, any class or series of such
subsidiary's indebtedness for any class or series of such subsidiary's capital
stock), (C) the purchase of fractional interests in shares of the Company's
capital stock (or the capital stock of any subsidiary of the Company) pursuant
to the conversion or exchange provisions of such capital stock or the security
being converted or exchanged, (D) any declaration of a dividend in connection
with any stockholder's rights plan, or the issuance of rights, stock or other
property under any stockholder's rights plan, or the redemption or repurchase of
rights pursuant thereto, (E) any dividend in the form of stock, warrants,
options or other rights where the dividend stock or the stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on
which the dividend is being paid or ranks pari passu with or junior to such
stock and any cash payments in lieu of fractional shares issued in connection
therewith, or (F) payments under the Capital Securities Guarantee or Parent
Guarantee Agreement), or (iv) enter into any contracts with shareholders holding
more than 10% of the outstanding shares of common stock of the Parent Guarantor
or the Company ((i), (ii), (iii) and (iv) above collectively, the "Block");
provided however, that the Block shall only apply to subsections 4(x) and (y)
above for so long as any insurance subsidiary is rated below A- by A.M. Best
Company, Inc.; provided further, that the Block shall only apply to subsection
4(z) above for so long as any such insurance subsidiary is rated below B- by
A.M. Best Company, Inc.

         SECTION 3.09.  Covenants as to the Trust.
                        -------------------------

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

                                   ARTICLE IV

                LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

         SECTION 4.01.  Securityholders' Lists.
                        ----------------------

                  The Company covenants and agrees that it will furnish or cause
to be furnished to the Trustee:

                  (a)      on each regular record date for an Interest Payment
Date, a list, in such form as the Trustee may reasonably require, of the names
and addresses of the Securityholders of the Debt Securities as of such record
date;

                                      -33-
<PAGE>

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

                  (c)      except that no such lists need be furnished under
this Section 4.01 so long as the Trustee is in possession thereof by reason of
its acting as Debt Security registrar.

         SECTION 4.02.  Preservation and Disclosure of Lists.
                        ------------------------------------

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

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

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

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

                  If the Trustee shall elect not to afford such applicants
access to such information, the Trustee shall, upon the written request of such
applicants, mail to each Securityholder of Debt Securities whose name and
address appear in the information preserved at the time by the Trustee in
accordance with the provisions of subsection (a) of this Section 4.02 a copy of
the form of proxy or other communication which is specified in such request with
reasonable promptness after a tender to the Trustee of the material to be mailed
and of payment, or provision for the payment, of the reasonable expenses of
mailing, unless within five days after such tender, the Trustee shall mail to
such applicants and file with the Securities and Exchange Commission, if
permitted or required by applicable law, together with a copy of the material to
be mailed, a written statement to the effect that, in the opinion of the
Trustee, such mailing would be contrary

                                      -34-
<PAGE>

to the best interests of the holders of all Debt Securities, as the case may be,
or would be in violation of applicable law. Such written statement shall specify
the basis of such opinion. If said Commission, as permitted or required by
applicable law, after opportunity for a hearing upon the objections specified in
the written statement so filed, shall enter an order refusing to sustain any of
such objections or if, after the entry of an order sustaining one or more of
such objections, said Commission shall find, after notice and opportunity for
hearing, that all the objections so sustained have been met and shall enter an
order so declaring, the Trustee shall mail copies of such material to all such
Securityholders with reasonable promptness after the entry of such order and the
renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

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

         SECTION 4.03.  Financial and Other Information.
                        -------------------------------

                  (a)      The Company and the Parent Guarantor shall deliver to
each holder of Debt Securities: (1) within 45 days after the end of each
quarterly fiscal period other than year end, unaudited consolidated financial
statements of the Company and the Parent Guarantor (including balance sheet and
income statement) covering such period; (2) within 60 days after year end,
unaudited consolidated financial statements of the Company (include balance
sheet and income statement) covering the related annual period; (3) within the
earlier of (y) 90 days after the end of each fiscal year and (z) such earlier
number of days prescribed by the Securities and Exchange Commission for the
filing with it of a Form 10-K by companies subject to the informational
reporting requirements of the Exchange Act, (i) audited consolidated financial
statements of the Company and the Parent Guarantor (including balance sheet and
income statement) covering such fiscal year, (ii) the report of the independent
accountants with respect to such financial statements and (iii) an Officer's
Certificate of the Company and the Parent Guarantor detailing any material
differences between the unaudited financial statements for such fiscal year
delivered pursuant to clause (2) above and those delivered pursuant to this
clause; (4) within 7 days after the filing thereof, each Form 10-K and Form 10-Q
that is prepared and filed by the Company with the Securities and Exchange
Commission in accordance with the Exchange Act, if any; (5) if the Company 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 information required
to be provided by Rule 144A(d)(4) under the Securities Act unless all of such
information has been previously delivered to holders of the Debt Securities
under clause (1), (2) or (3) above; and (6) within 30 days after the end of the
fiscal year of the Company and the Parent Guarantor, Form 1099 or such other
annual U.S. federal income tax information statement required by the Code
containing such information with regard to the Debt Securities held by such
holder as is required by the Code and the income tax regulations of the U.S.
Treasury thereunder.

                                      -35-
<PAGE>

                  (b)      The Company and the Parent Guarantor will cause
copies of the Statutory Financial Statements of the Company, the Parent
Guarantor and/or Affiliates that are filed with the Applicable Insurance
Regulatory Authority in each jurisdiction in which the Company, the Parent
Guarantor or any such Affiliate is incorporated to be delivered to the holder of
the Debt Securities promptly following their filing. The Company and the Parent
Guarantor shall furnish to the Trustee and, so long as the Property Trustee
holds any of the Debt Securities, the Company and the Parent Guarantor shall
furnish to the Property Trustee, Statutory Financial Statements promptly
following their filing with the applicable Insurance Regulatory Authority. The
delivery requirements under this Section 4.03(b) may be satisfied by compliance
with Section 4.03(c) hereof.

                  (c)      The Company and the Parent Guarantor shall furnish to
each of (i) the Trustee, (ii) the Holders at that time and to subsequent holders
of Debt Securities, (iii) Cohen & Company (at Cira Centre, 2929 Arch Street,
Suite 1703, Philadelphia, PA, 19104, Attn: Matthew Mueller or such other address
as designated by Cohen & Company), a duly completed and executed certificate
substantially and substantively in the form attached hereto as Exhibit B,
including the financial statements referenced in such exhibit, which certificate
and financial statements shall be so furnished by the Company and the Parent
Guarantor not later than forty-five (45) days after the end of each of the first
three fiscal quarters of each fiscal year of the Company and the Parent
Guarantor. The delivery requirements under this Section 4.03(c) may be satisfied
by compliance with Section 10.2(f) of the Declaration.

                                    ARTICLE V

      REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

         SECTION 5.01.  Events of Default. The following events shall be
                        -----------------
"Events of Default" with respect to Debt Securities:

                  (a)      the Company defaults in the payment of any interest
upon any Debt Security when it becomes due and payable, and continuance of such
default for a period of 30 days; for the avoidance of doubt, an extension of any
interest payment period by the Company in accordance with Section 2.11 of this
Indenture shall not constitute a default under this clause 5.01(a); or

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

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

                                      -36-
<PAGE>

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

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

                  (f)      the Trust shall have voluntarily or involuntarily
liquidated, dissolved, wound-up its business or otherwise terminated its
existence except in connection with (1) the distribution of the Debt Securities
to holders of the Trust Securities in liquidation of their interests in the
Trust, (2) the redemption of all of the outstanding Trust Securities or (3)
certain mergers, consolidations or amalgamations, each as permitted by the
Declaration;

                  (g)      any representation, warranty, certification or
statement of fact made by the Company or the Trust herein or in any other
Operative Document shall be incorrect or misleading in any material respect when
made; or

                  (h)      any Significant Subsidiary of the Company (i) fails
to renew more than 51% of its net premiums written in one or more transactions
during any twelve (12) month period; (ii) sells more than 51% of its rights to
renew insurance policies issued by its Significant Subsidiaries in one or more
transactions over the course of a twelve (12) month period; or (iii) which is
rated by A.M. Best Company, Inc. and which (A) is downgraded by A.M. Best
Company, Inc. to a rating below B- or (b) withdraws its rating by A.M. Best
Company, Inc.

                  If an Event of Default specified under clause (a), (b), (c),
(g) or (h) of this Section 5.01 occurs and is continuing with respect to the
Debt Securities, then, in each and every such case, unless the principal of the
Debt Securities shall have already become due and payable, either the Trustee or
the holders of not less than 25% in aggregate principal amount of the Debt
Securities then outstanding hereunder, by notice in writing to the Company (and
to the Trustee if given by Securityholders), may declare the entire principal of
the Debt Securities and any premium and interest accrued, but unpaid, thereon,
if any, to be due and payable immediately, and upon any such declaration the
same shall become immediately due and payable. If an Event of Default specified
under clause (d), (e) or (f) of this Section 5.01 occurs, then, in each and
every such case, the entire principal amount of the Debt Securities and any
premium and interest accrued, but unpaid, thereon shall ipso facto become
immediately due and payable without further action.

                                      -37-
<PAGE>

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

                  In case the Trustee shall have proceeded to enforce any right
under this Indenture and such proceedings shall have been discontinued or
abandoned because of such rescission or annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such case
the Company, the Trustee and the holders of the Debt Securities shall be
restored respectively to their several positions and rights hereunder, and all
rights, remedies and powers of the Company, the Trustee and the holders of the
Debt Securities shall continue as though no such proceeding had been taken.

                  In the event that either (a) an Event of Default has occurred
and is continuing or (b) the Company has elected to defer payments of interest
on the Debt Securities by extending the interest payment period (as provided for
in Section 2.11 hereof), Holders of not less than twenty five percent (25%) in
aggregate principal amount of the Outstanding Debt Securities may audit the
quarterly and annual financial statements and statutory statements of the
Company.

                  In the event that either (a) an Event of Default has occurred
and is continuing or (b) the Company has elected to defer payments of interest
on the Debt Securities by extending the interests payment period (as provided in
Section 2.11 hereof), the Company and the Parent Guarantor shall provide to the
Trustee and the Holders quarterly and annual statutory statements, as well as
quarterly updates on any of its subsidiaries or affiliates, which may be in
liquidation, under supervisory regulation or in runoff.

                                      -38-
<PAGE>

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

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

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

                  Nothing herein contained shall be construed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Debt Securities or the rights of any holder thereof or
to authorize the Trustee to vote in respect of the claim of any Securityholder
in any such proceeding.

                                      -39-
<PAGE>

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

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

         SECTION 5.03.  Application of Moneys Collected by Trustee.
                        ------------------------------------------

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

                  First: To the payment of costs and expenses incurred by, and
reasonable fees of, the Trustee, its agents, attorneys and counsel, and of all
other amounts due to the Trustee under Section 6.06;

                  Second: To the payment of all Senior Indebtedness of the
Company if and to the extent required by Article XV;

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

                  Fourth: The balance, if any, to the Company.

         SECTION 5.04.  Proceedings by Securityholders.
                        -------------------------------

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

                                      -40-
<PAGE>

                  Notwithstanding any other provisions in this Indenture,
however, the right of any holder of any Debt Security to receive payment of the
principal of, premium, if any, and interest on such Debt Security when due, or
to institute suit for the enforcement of any such payment, shall not be impaired
or affected without the consent of such holder. For the protection and
enforcement of the provisions of this Section, each and every Securityholder and
the Trustee shall be entitled to such relief as can be given either at law or in
equity. The rights of any Holder hereunder or under any other Operative Document
may be exercised by such Holder or any collateral manager thereof.

         SECTION 5.05.  Proceedings by Trustee.
                        ----------------------

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

         SECTION 5.06.  Remedies Cumulative and Continuing.
                        ----------------------------------

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

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

                  The holders of a majority in aggregate principal amount of the
Debt Securities affected at the time outstanding and, if the Debt Securities are
held by the Trust or a trustee of the Trust, the holders of a majority in
aggregate liquidation amount of the outstanding Capital Securities of the Trust
shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred on the Trustee with respect to such Debt Securities; provided,
however, that if the Debt Securities are held by the Trust or a trustee of the
Trust, such time, method and place or such exercise, as the case may be, may not
be so directed until the holders of a majority in aggregate liquidation amount
of the outstanding Capital Securities of the Trust shall have directed such
time, method and place or such exercise, as the case may be; provided, further,
that (subject to the provisions of Section 6.01)

                                      -41-
<PAGE>

the Trustee shall have the right to decline to follow any such direction if the
Trustee shall determine that the action so directed would be unjustly
prejudicial to the holders not taking part in such direction or if the Trustee
being advised by counsel determines that the action or proceeding so directed
may not lawfully be taken or if a Responsible Officer of the Trustee shall
determine that the action or proceedings so directed would involve the Trustee
in personal liability. Prior to any declaration of acceleration, or ipso facto
acceleration, of the maturity of the Debt Securities, the holders of a majority
in aggregate principal amount of the Debt Securities at the time outstanding may
on behalf of the holders of all of the Debt Securities waive (or modify any
previously granted waiver of) any past default or Event of Default and its
consequences, except a default (a) in the payment of principal of, premium, if
any, or interest on any of the Debt Securities, (b) in respect of covenants or
provisions hereof which cannot be modified or amended without the consent of the
holder of each Debt Security affected, or (c) in respect of the covenants
contained in Section 3.09; provided, however, that if the Debt Securities are
held by the Trust or a trustee of such trust, such waiver or modification to
such waiver shall not be effective until the holders of a majority in aggregate
liquidation amount of the outstanding Trust Securities of the Trust shall have
consented to such waiver or modification to such waiver; provided, further, that
if the consent of the holder of each outstanding Debt Security is required, such
waiver or modification to such waiver shall not be effective until each holder
of the outstanding Capital Securities of the Trust shall have consented to such
waiver or modification to such waiver. Upon any such waiver or modification to
such waiver, the Default or Event of Default covered thereby shall be deemed to
be cured for all purposes of this Indenture and the Company, the Trustee and the
holders of the Debt Securities shall be restored to their former positions and
rights hereunder, respectively; but no such waiver or modification to such
waiver shall extend to any subsequent or other Default or Event of Default or
impair any right consequent thereon. Whenever any default or Event of Default
hereunder shall have been waived as permitted by this Section 5.07, said Default
or Event of Default shall for all purposes of the Debt Securities and this
Indenture be deemed to have been cured and to be not continuing.

         SECTION 5.08.  Notice of Defaults.
                        ------------------

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

                                      -42-
<PAGE>

         SECTION 5.09.  Undertaking to Pay Costs.
                        ------------------------

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

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

         SECTION 6.01.  Duties and Responsibilities of Trustee.
                        --------------------------------------

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

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

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

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

                                      -43-
<PAGE>

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

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

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

                  (d)      the Trustee shall not be charged with knowledge of
any Default or Event of Default with respect to the Debt Securities unless
either (1) a Responsible Officer shall have actual knowledge of such Default or
Event of Default or (2) written notice of such Default or Event of Default shall
have been given to the Trustee by the Company or any other obligor on the Debt
Securities or by any holder of the Debt Securities, except with respect to an
Event of Default pursuant to Sections 5.01 (a) or 5.01 (b) hereof (other than an
Event of Default resulting from the default in the payment of Additional
Interest if the Trustee does not have actual knowledge or written notice that
such payment is due and payable), of which the Trustee shall be deemed to have
knowledge; and

                  (e)      in the absence of bad faith on the part of the
Trustee, the Trustee may seek and rely on reasonable instructions from the
Company.

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

         SECTION 6.02.  Reliance on Documents, Opinions, etc.
                        ------------------------------------

                  Except as otherwise provided in Section 6.01:

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

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

                                      -44-
<PAGE>

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

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

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

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

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

         SECTION 6.03.  No Responsibility for Recitals, etc.
                        -----------------------------------

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

                                      -45-
<PAGE>

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

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

         SECTION 6.05.  Moneys to be Held in Trust.
                        --------------------------

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

         SECTION 6.06.  Compensation and Expenses of Trustee.
                        ------------------------------------

                  The Company and the Parent Guarantor covenant and agree to pay
to the Trustee from time to time, and the Trustee shall be entitled to, such
compensation as shall be agreed to in writing between the Company and the
Trustee (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust), and the Company and the Parent
Guarantor will pay or reimburse the Trustee upon its written request for all
documented reasonable expenses, disbursements and advances incurred or made by
the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the reasonable expenses and
disbursements of its counsel and of all Persons not regularly in its employ)
except any such expense, disbursement or advance that arises from its negligence
or bad faith. The Company and the Parent Guarantor also covenant to indemnify
each of the Trustee (including in its individual capacity) and any predecessor
Trustee (and its officers, agents, directors and employees) for, and to hold it
harmless against, any and all loss, damage, claim, liability or expense
including taxes (other than taxes based on the income of the Trustee), except to
the extent such loss, damage, claim, liability or expense results from the
negligence or bad faith of such indemnitee, arising out of or in connection with
the acceptance or administration of this Trust, including the costs and expenses
of defending itself against any claim or liability in the premises. The
obligations of the Company and the Parent Guarantor under this Section 6.06 to
compensate and indemnify the Trustee and to pay or reimburse the Trustee for
documented expenses, disbursements and advances shall constitute additional
indebtedness hereunder. Such additional indebtedness shall be secured by (and
the Company hereby grants and pledges to the Trustee) a lien prior to that of
the Debt Securities upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the benefit of the holders of particular
Debt Securities.

                                      -46-
<PAGE>

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

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

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

         SECTION 6.07.  Officer's Certificate as Evidence.
                        ---------------------------------

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

         SECTION 6.08.  Eligibility of Trustee.
                        ----------------------

                  The Trustee hereunder shall at all times be a U.S. Person that
is a banking corporation or national association organized and doing business
under the laws of the United States of America or any state thereof or of the
District of Columbia and authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least fifty million U.S.
dollars ($50,000,000) and subject to supervision or examination by federal,
state, or District of Columbia authority. If such corporation or national
association publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section 6.08 the combined capital and surplus of such
corporation or national association shall be deemed to be its combined capital
and surplus as set forth in its most recent records of condition so published.

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

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

                                      -47-
<PAGE>

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

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

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

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

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

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

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

then, in any such case, the Company may remove the Trustee and appoint a
successor Trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor Trustee, or, subject to the
provisions of Section 5.09, if no successor Trustee shall have been so appointed
and have accepted appointment within 30 days of the occurrence of any of (1),
(2) or (3) above, any Securityholder who has been a bona fide holder of a Debt
Security or Debt Securities for at least six months may, on behalf of himself or
herself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, remove the Trustee and appoint a successor Trustee.

                                      -48-
<PAGE>

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

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

         SECTION 6.10.  Acceptance by Successor.
                        -----------------------

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

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

                                      -49-
<PAGE>

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

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

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

         SECTION 6.11.  Succession by Merger, etc.
                        -------------------------

                  Any Person into which the Trustee may be merged or converted
or with which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any Person
succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder without the execution
or filing of any paper or any further act on the part of any of the parties
hereto; provided, that such Person shall be otherwise eligible and qualified
under this Article.

                  In case at the time such successor to the Trustee shall
succeed to the trusts created by this Indenture any of the Debt Securities shall
have been authenticated but not delivered, any such successor to the Trustee may
adopt the certificate of authentication of any predecessor Trustee, and deliver
such Debt Securities so authenticated; and in case at that time any of the Debt
Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Debt Securities either in the name of any predecessor
hereunder or in the name of the successor Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Debt
Securities or in this Indenture provided that the certificate of the Trustee
shall have; provided, however, that the right to adopt the certificate of
authentication of any predecessor Trustee or authenticate Debt Securities in the
name of any predecessor Trustee shall apply only to its successor or successors
by merger, conversion or consolidation.

         SECTION 6.12.  Authenticating Agents.
                        ---------------------

                  There may be one or more Authenticating Agents appointed by
the Trustee upon the request of the Company with power to act on its behalf and
subject to its direction in the authentication and delivery of Debt Securities
issued upon exchange or registration of transfer thereof as fully to all intents
and purposes as though any such Authenticating Agent had been expressly
authorized to authenticate and deliver Debt Securities; provided, that the
Trustee shall have no liability to the Company for any acts or omissions of the
Authenticating Agent with respect to the authentication and delivery of Debt
Securities. Any such Authenticating Agent shall at all times be a Person
organized and doing business under the laws of the United States or of any state
or territory thereof or of the District of Columbia authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of at
least $50,000,000 and

                                      -50-
<PAGE>

being subject to supervision or examination by federal, state, territorial or
District of Columbia authority. If such Person publishes reports of condition at
least annually pursuant to law or the requirements of such authority, then for
the purposes of this Section 6.12 the combined capital and surplus of such
Person shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect herein specified in this Section.

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

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

                  The Company agrees to pay to any Authenticating Agent from
time to time reasonable compensation for its services. Any Authenticating Agent
shall have no responsibility or liability for any action taken by it as such in
accordance with the directions of the Trustee and shall receive such reasonable
indemnity as it may require against the costs, expenses and liabilities incurred
in furtherance of its duties under this Section 6.12.

                                   ARTICLE VII

                         CONCERNING THE SECURITYHOLDERS

         SECTION 7.01.  Action by Securityholders.
                        -------------------------

                  Whenever in this Indenture it is provided that the holders of
a specified percentage in aggregate principal amount of the Debt Securities or
aggregate liquidation amount of Capital Securities may take any action
(including the making of any demand or request, the giving of any notice,
consent or waiver or the taking of any other action), the fact that at the time
of taking any such action the holders of such specified percentage have joined
therein may be evidenced

                                      -51-
<PAGE>

(a) by any instrument or any number of instruments of similar tenor executed by
such Securityholders or holders of Capital Securities, as the case may be, in
person or by agent or proxy appointed in writing, or (b) by the record of such
holders of Debt Securities voting in favor thereof at any meeting of such
Securityholders duly called and held in accordance with the provisions of
Article VIII or of such holders of Capital Securities duly called and held in
accordance with the provisions of the Declaration, or (c) by a combination of
such instrument or instruments and any such record of such a meeting of such
Securityholders or holders of Capital Securities, as the case may be, or (d) by
any other method the Trustee deems satisfactory.

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

         SECTION 7.02.  Proof of Execution by Securityholders.
                        -------------------------------------

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

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

         SECTION 7.03.  Who Are Deemed Absolute Owners.
                        ------------------------------

                  Prior to due presentment for registration of transfer of any
Debt Security, the Company, the Trustee, any Authenticating Agent, any Paying
Agent, any transfer agent and any Debt Security registrar may deem the Person in
whose name such Debt Security shall be registered upon the Debt Security
Register to be, and may treat such Person as, the absolute owner of such Debt
Security (whether or not such Debt Security shall be overdue) for the purpose of
receiving payment of or on account of the principal of, premium, if any, and
interest

                                      -52-
<PAGE>

on such Debt Security and for all other purposes; and neither the Company nor
the Trustee nor any Authenticating Agent nor any Paying Agent nor any transfer
agent nor any Debt Security registrar shall be affected by any notice to the
contrary. All such payments so made to any holder for the time being or upon
such holder's order shall be valid, and, to the extent of the sum or sums so
paid, effectual to satisfy and discharge the liability for moneys payable upon
any such Debt Security.

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

                  In determining whether the holders of the requisite aggregate
principal amount of Debt Securities have concurred in any direction, consent or
waiver under this Indenture, Debt Securities which are owned by the Company or
any other obligor on the Debt Securities or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the
Company (other than the Trust) or any other obligor on the Debt Securities shall
be disregarded and deemed not to be outstanding for the purpose of any such
determination; provided, that for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver,
only Debt Securities which a Responsible Officer of the Trustee actually knows
are so owned shall be so disregarded. Debt Securities so owned which have been
pledged in good faith may be regarded as outstanding for the purposes of this
Section 7.04 if the pledgee shall establish to the satisfaction of the Trustee
the pledgee's right to vote such Debt Securities and that the pledgee is not the
Company or any such other obligor or Person directly or indirectly controlling
or controlled by or under direct or indirect common control with the Company or
any such other obligor. In the case of a dispute as to such right, any decision
by the Trustee taken upon the advice of counsel shall be full protection to the
Trustee.

         SECTION 7.05.  Revocation of Consents; Future Holders Bound.
                        --------------------------------------------

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

                                      -53-
<PAGE>

                                  ARTICLE VIII

                            SECURITYHOLDERS' MEETINGS

         SECTION 8.01.  Purposes of Meetings.
                        --------------------

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

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

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

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

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

         SECTION 8.02.  Call of Meetings by Trustee.
                        ---------------------------

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

         SECTION 8.03.  Call of Meetings by Company or Securityholders.
                        ----------------------------------------------

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

                                      -54-
<PAGE>

         SECTION 8.04.  Qualifications for Voting.
                        -------------------------

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

         SECTION 8.05.  Regulations.
                        -----------

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

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

                  Subject to the provisions of Section 7.04, at any meeting each
holder of Debt Securities with respect to which such meeting is being held or
proxy therefor shall be entitled to one vote for each $1,000 principal amount of
Debt Securities held or represented by such holder; provided, however, that no
vote shall be cast or counted at any meeting in respect of any Debt Security
challenged as not outstanding and ruled by the chairman of the meeting to be not
outstanding. The chairman of the meeting shall have no right to vote other than
by virtue of Debt Securities held by such chairman or instruments in writing as
aforesaid duly designating such chairman as the Person to vote on behalf of
other Securityholders. Any meeting of Securityholders duly called pursuant to
the provisions of Section 8.02 or 8.03 may be adjourned from time to time by a
majority of those present, whether or not constituting a quorum, and the meeting
may be held as so adjourned without further notice.

         SECTION 8.06.  Voting.
                        ------

                  The vote upon any resolution submitted to any meeting of
holders of Debt Securities with respect to which such meeting is being held
shall be by written ballots on which shall be subscribed the signatures of such
holders or of their representatives by proxy and the serial number or numbers of
the Debt Securities held or represented by them. The permanent chairman of the
meeting shall appoint two inspectors of votes who shall count all votes cast at
the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in triplicate of all
votes cast at the meeting. A record in duplicate of the proceedings of each
meeting of Securityholders shall be prepared by the

                                      -55-
<PAGE>

secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and
affidavits by one or more Persons having knowledge of the facts setting forth a
copy of the notice of the meeting and showing that said notice was mailed as
provided in Section 8.02. The record shall show the serial numbers of the Debt
Securities voting in favor of or against any resolution. The record shall be
signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one of the duplicates shall be delivered to the Company and the
other to the Trustee to be preserved by the Trustee, the latter to have attached
thereto the ballots voted at the meeting. Any record so signed and verified
shall be conclusive evidence of the matters therein stated.

         SECTION 8.07.  Quorum; Actions.
                        ---------------

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

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

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

                                      -56-
<PAGE>

         SECTION 8.08.  Written Consent Without a Meeting.
                        ---------------------------------

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

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

         SECTION 9.01.  Supplemental Indentures without Consent of
                        ------------------------------------------
Securityholders.
---------------

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

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

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

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

                                      -57-
<PAGE>

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

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

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

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

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

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

         SECTION 9.02.  Supplemental Indentures with Consent of Securityholders.
                        -------------------------------------------------------

                  With the consent (evidenced as provided in Section 7.01) of
the holders of not less than a majority in aggregate principal amount of the
Debt Securities at the time outstanding affected by such supplemental indenture,
the Company, when authorized by a Board Resolution, and the Trustee may from
time to time and at any time enter into an indenture or indentures supplemental
hereto (which shall conform to the provisions of the Trust Indenture Act, then
in effect, applicable to indentures qualified thereunder) for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying in
any manner the rights of the holders of the Debt Securities; provided, however,
that no such supplemental indenture shall without such consent of the holders of
each Debt Security then outstanding and affected thereby

                                      -58-
<PAGE>

(i) change the Maturity Date of any Debt Security, or reduce the principal
amount thereof or any premium thereon, or reduce the rate (or manner of
calculation of the rate) or extend the time of payment of interest thereon, or
reduce any amount payable on redemption thereof or make the principal thereof or
any interest or premium thereon payable in any coin or currency other than
United States Dollars or impair or affect the right of any Securityholder to
institute suit for payment thereof or impair the right of repayment, if any, at
the option of the holder, or (ii) reduce the aforesaid percentage of Debt
Securities the holders of which are required to consent to any such supplemental
indenture; and provided, further, that if the Debt Securities are held by the
Trust or a trustee of such trust, such supplemental indenture shall not be
effective until the holders of a majority in aggregate liquidation amount of the
outstanding Capital Securities shall have consented to such supplemental
indenture; provided, further, that if the consent of the Securityholder of each
outstanding Debt Security is required, such supplemental indenture shall not be
effective until each holder of the outstanding Capital Securities shall have
consented to such supplemental indenture.

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

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

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

         SECTION 9.03.  Effect of Supplemental Indentures.
                        ---------------------------------

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

                                      -59-
<PAGE>

         SECTION 9.04.  Notation on Debt Securities.
                        ---------------------------

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

         SECTION 9.05.  Evidence of Compliance of Supplemental Indenture to be
                        ------------------------------------------------------
Furnished to Trustee.
--------------------

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

                                    ARTICLE X

                            REDEMPTION OF SECURITIES

         SECTION 10.01.  Optional Redemption.
                         -------------------

                  The Company shall have the right, to redeem the Debt
Securities, in whole or (provided that all accrued and unpaid interest has been
paid on all Debt Securities for all Interest Periods terminating on or prior to
such date) from time to time in part, on any Interest Payment Date on or after
December 15, 2011 (each, a "Redemption Date"), at the Redemption Price,
provided, that the Company shall have received the prior approval of any
Applicable Insurance Regulatory Authorities with respect to such redemption if
then required.

         SECTION 10.02.  Special Event Redemption
                         ------------------------

                  If a Special Event shall occur and be continuing, the Company
shall have the right to redeem the Debt Securities, in whole but not in part, at
any time within 90 days following the occurrence of such Special Event (the
"Special Redemption Date"), at the Special Redemption Price, provided, that the
Company shall have received the prior approval of any Applicable Insurance
Regulatory Authority with respect to such redemption if then required. In the
event that the Special Redemption Date falls on a day prior to the LIBOR
Determination Date for any Interest Period, then the Company shall be required
to pay to Securityholders, on the Business Day following such LIBOR
Determination Date, any additional amount of interest that would have been
payable on the Special Redemption Date had the amount of interest determined on
such LIBOR Determination Date been known on the first day of such Interest
Period.

                                      -60-
<PAGE>

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

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

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

                  Prior to 10:00 a.m. New York City time on the Redemption Date
or the Special Redemption Date specified in the notice of redemption given as
provided in this Section, the Company will deposit with the Trustee or with one
or more Paying Agents (or, if the Company is acting as its own Paying Agent, the
Company will segregate and hold in trust as provided in Section 3.04) an amount
of money sufficient to redeem on the redemption date all the Debt Securities so
called for redemption at the appropriate redemption price, together with unpaid
accrued interest to the date fixed for redemption.

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

         SECTION 10.04.  Payment of Debt Securities Called for Redemption.
                         ------------------------------------------------

                  If notice of redemption has been given as provided in Section
10.03, the Debt Securities or portions of Debt Securities with respect to which
such notice has been given shall become due and payable on the related
Redemption Date or the Special Redemption Date (as the case may be) and at the
place or places stated in such notice at the applicable redemption price,
together with unpaid interest accrued thereon to said Redemption Date or the
Special Redemption Date (as the case may be) and on and after said Redemption
Date or the Special Redemption Date (as the case may be) (unless the Company
shall default in the payment of such Debt Securities at the redemption price,

                                      -61-
<PAGE>

together with unpaid interest accrued thereon to said date) interest on the Debt
Securities or portions of Debt Securities so called for redemption shall cease
to accrue. On presentation and surrender of such Debt Securities at a place of
payment specified in said notice, such Debt Securities or the specified portions
thereof shall be paid and redeemed by the Company at the applicable redemption
price, together with unpaid interest accrued thereon to said Redemption Date or
the Special Redemption Date (as the case may be).

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

                                   ARTICLE XI

                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

         SECTION 11.01.  Company or Parent Guarantor May Consolidate, etc., on
                         -----------------------------------------------------
Certain Terms.
-------------

         Neither the Company nor the Parent Guarantor shall, while any of the
Debt Securities remain outstanding, consolidate with or merge into any other
Person or sell, convey, transfer or lease all or substantially all of its
properties and assets or the assets of any of its Significant Subsidiaries (as
defined in Section 1-02(w) of Regulation S-X of the Securities Act (the
"Significant Subsidiaries")) as an entirety to any Person (including, but not
limited to, the sale, transfer, conveyance or lease of 51% of its rights to
renew insurance policies of any of its Significant Subsidiaries in one or more
transaction during any twelve (12) month period), and no person shall
consolidate with or merge into the Company or convey, transfer or lease its
properties and assets substantially as an entirety to the Company, unless:

                  (a)      if the Company or the Parent Guarantor shall
consolidate with or merge into another Person or convey, transfer or lease its
properties and assets substantially as an entirety to any Person, the entity
formed by such consolidation or into which the Company or the Parent Guarantor
is merged or the Person that acquires by conveyance or transfer, or that leases,
the properties and assets of the Company or the Parent Guarantor substantially
as an entirety shall be an entity organized and existing under the laws of the
United States of America or any State or Territory thereof or the District of
Columbia and shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, in form reasonably satisfactory to the
Trustee, the due and punctual payment of the principal of and any premium and
interest (including any Additional Interest) on all the Debt Securities and the
performance of every covenant of this Indenture on the part of the Company and
the Parent Guarantor to be performed or observed;

                                      -62-
<PAGE>

                  (b)      immediately after giving effect to such transaction,
no Event of Default, and no event that, after notice or lapse of time, or both,
would constitute an Event of Default, shall have happened and be continuing;

                  (c)      the Company and the Parent Guarantor have delivered
to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating
that such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, any such
supplemental indenture comply with this Article XI and that all conditions
precedent herein provided for relating to such transaction have been complied
with; and the Trustee may rely upon such Officers' Certificate and Opinion of
Counsel as conclusive evidence that such transaction complies with this
Section 11.01; and

                  (d)      in the case of a sale, transfer, conveyance or lease
of more than 51% of the Company's or a Significant Subsidiary's right to renew
insurance policies issued by a Significant Subsidiary, such sales, transfer,
conveyance or lease shall be made only with the consent of the holders of a
majority in aggregate principal amount of the Debt Securities at the time
outstanding.

         SECTION 11.02.  Successor Entity to be Substituted.
                         ----------------------------------

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

                                      -63-
<PAGE>

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

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

                                   ARTICLE XII

                     SATISFACTION AND DISCHARGE OF INDENTURE

         SECTION 12.01.  Discharge of Indenture.
                         ----------------------

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

                                      -64-
<PAGE>

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

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

         SECTION 12.03.  Paying Agent to Repay Moneys Held.
                         ---------------------------------

                  Upon the satisfaction and discharge of this Indenture, all
moneys then held by any Paying Agent of the Debt Securities (other than the
Trustee) shall, upon demand of the Company, be repaid to the Company or paid to
the Trustee, and thereupon such Paying Agent shall be released from all further
liability with respect to such moneys.

         SECTION 12.04.  Return of Unclaimed Moneys.
                         --------------------------

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

                                  ARTICLE XIII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

         SECTION 13.01.  Indenture and Debt Securities Solely Corporate
                         ----------------------------------------------
Obligations.
-----------

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

                                      -65-
<PAGE>

                                   ARTICLE XIV

                            MISCELLANEOUS PROVISIONS

         SECTION 14.01.  Successors.
                         ----------

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

         SECTION 14.02.  Official Acts by Successor Entity.
                         ---------------------------------

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

         SECTION 14.03.  Surrender of Company Powers.
                         ---------------------------

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

         SECTION 14.04.  Addresses for Notices, etc.
                         --------------------------

                  Any notice or demand which by any provision of this Indenture
is required or permitted to be given or served by the Trustee or by the
Securityholders on the Company and the Parent Guarantor may be given or served
in writing by being deposited postage prepaid by registered or certified mail in
a post office letter box addressed (until another address is filed by the
Company with the Trustee for such purpose) to the Company at:

                             CRM USA Holdings, Inc.
                              112 Delafield Street
                             Poughkeepsie, NY 12601
                          Attention: James J. Scardino

                         and to the Parent Guarantor at:

                               CRM Holdings, Ltd.
                           c/o CRM USA Holdings, Inc.
                              112 Delafield Street
                             Poughkeepsie, NY 12601
                            Facsimile: (845) 483-7389
                          Attention: James J. Scardino

                                      -66-
<PAGE>

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

                          600 Travis Street, 50th Floor
                                Houston, TX 77002
              Attention: Corporate Trust - CRM USA Holdings Trust I

         SECTION 14.05.  Governing Law.
                         -------------

                  This Indenture and each Debt Security shall be deemed to be a
contract made under the law of the State of New York, and for all purposes shall
be governed by and construed in accordance with the law of said State, without
regard to conflict of laws principles of said State other than Section 5-1401 of
the New York General Obligations Law.

         SECTION 14.06.  Evidence of Compliance with Conditions Precedent.
                         ------------------------------------------------

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

                  Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture (except certificates delivered pursuant to
Section 3.05) shall include (a) a statement that the person making such
certificate or opinion has read such covenant or condition and the definitions
relating thereto; (b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; (c) a statement that, in the opinion of
such person, he or she has made such examination or investigation as is
necessary to enable him or her to express an informed opinion as to whether or
not such covenant or condition has been complied with; and (d) a statement as to
whether or not, in the opinion of such person, such condition or covenant has
been complied with.

         SECTION 14.07.  Business Day Convention.
                         -----------------------

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

                                      -67-
<PAGE>

         SECTION 14.08.  Table of Contents, Headings, etc.
                         --------------------------------

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

         SECTION 14.09.  Execution in Counterparts.
                         -------------------------

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

         SECTION 14.10.  Severability.
                         ------------

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

         SECTION 14.11.  Assignment.
                         ----------

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

         SECTION 14.12.  Acknowledgment of Rights.
                         ------------------------

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

                                      -68-
<PAGE>

or principal on the Debt Securities on the date such interest (or premium, if
any) or principal is otherwise due and payable (or in the case of redemption, on
the Redemption Date or the Special Redemption date, as applicable), the Company
acknowledges that a holder of record of Capital Securities of the Trust may
directly institute a proceeding against the Company for enforcement of payment
to such holder directly of the principal of (or premium, if any) or interest on
the Debt Securities having an aggregate principal amount equal to the aggregate
Liquidation Amount of the Capital Securities of such holder on or after the
respective due date (or, in the case of redemption, on the Redemption Date or
the Special Redemption Date, as applicable) specified in the Debt Securities.

                                   ARTICLE XV

                        SUBORDINATION OF DEBT SECURITIES

         SECTION 15.01.  Agreement to Subordinate.
                         ------------------------

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

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

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

         SECTION 15.02.  Default on Senior Indebtedness.
                         ------------------------------

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

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

                                      -69-
<PAGE>

         SECTION 15.03.  Liquidation; Dissolution; Bankruptcy.
                         ------------------------------------

                  Upon any payment by the Company or distribution of assets of
the Company of any kind or character, whether in cash, property or securities,
to creditors upon any dissolution or winding- up or liquidation or
reorganization of the Company, whether voluntary or involuntary or in
bankruptcy, insolvency, receivership or other proceedings, all amounts due upon
all Senior Indebtedness of the Company shall first be paid in full, or payment
thereof provided for in money in accordance with its terms, before any payment
is made by the Company on the Debt Securities; and upon any such dissolution or
winding-up or liquidation or reorganization, any payment by the Company, or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, to which the Securityholders or the Trustee would be
entitled to receive from the Company, except for the provisions of this Article
XV, shall be paid by the Company, or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Securityholders or by the Trustee under this Indenture if received by
them or it, directly to the holders of Senior Indebtedness of the Company (pro
rata to such holders on the basis of the respective amounts of Senior
Indebtedness held by such holders, as calculated by the Company) or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent
necessary to pay such Senior Indebtedness in full, in money or money's worth,
after giving effect to any concurrent payment or distribution to or for the
holders of such Senior Indebtedness, before any payment or distribution is made
to the Securityholders.

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

                  For purposes of this Article XV, the words "cash, property or
securities" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment, the payment of which
is subordinated at least to the extent provided in this Article XV with respect
to the Debt Securities to the payment of all Senior Indebtedness of the Company,
that may at the time be outstanding, provided, that (a) such Senior Indebtedness
is assumed by the new corporation, if any, resulting from any such
reorganization or readjustment, and

                                      -70-
<PAGE>

(b) the rights of the holders of such Senior Indebtedness are not, without the
consent of such holders, altered by such reorganization or readjustment. The
consolidation of the Company with, or the merger of the Company into, another
corporation or the liquidation or dissolution of the Company following the
conveyance, transfer or other disposition of its property as an entirety, or
substantially as an entirety, to another corporation upon the terms and
conditions provided for in Article XI of this Indenture shall not be deemed a
dissolution, winding-up, liquidation or reorganization for the purposes of this
Section 15.03 if such other corporation shall, as a part of such consolidation,
merger, conveyance or transfer, comply with the conditions stated in Article XI
of this Indenture. Nothing in Section 15.02 or in this Section 15.03 shall apply
to claims of, or payments to, the Trustee under or pursuant to Section 6.06 of
this Indenture.

         SECTION 15.04.  Subrogation.
                         -----------

                  Subject to the payment in full of all Senior Indebtedness of
the Company, the Securityholders shall be subrogated to the rights of the
holders of such Senior Indebtedness to receive payments or distributions of
cash, property or securities of the Company applicable to such Senior
Indebtedness until all payments due on the Debt Securities shall be paid in
full; and, for the purposes of such subrogation, no payments or distributions to
the holders of such Senior Indebtedness of any cash, property or securities to
which the Securityholders or the Trustee would be entitled except for the
provisions of this Article XV, and no payment over pursuant to the provisions of
this Article XV to or for the benefit of the holders of such Senior Indebtedness
by Securityholders or the Trustee, shall, as between the Company, its creditors
other than holders of Senior Indebtedness of the Company, and the holders of the
Debt Securities be deemed to be a payment or distribution by the Company to or
on account of such Senior Indebtedness. It is understood that the provisions of
this Article XV are and are intended solely for the purposes of defining the
relative rights of the holders of the Debt Securities, on the one hand, and the
holders of such Senior Indebtedness, on the other hand.

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

                  Upon any payment or distribution of assets of the Company
referred to in this Article XV, the Trustee, subject to the provisions of
Article VI of this Indenture, and the Securityholders shall be entitled to
conclusively rely upon any order or decree made by any court of competent
jurisdiction in which such dissolution, winding- up, liquidation or
reorganization proceedings are pending, or a certificate of the receiver,
trustee in bankruptcy, liquidation trustee, agent or other Person making such
payment or distribution, delivered to the Trustee or to the Securityholders,

                                      -71-
<PAGE>

for the purposes of ascertaining the Persons entitled to participate in such
distribution, the holders of Senior Indebtedness and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article XV.

         SECTION 15.05.  Trustee to Effectuate Subordination.
                         -----------------------------------

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

         SECTION 15.06.  Notice by the Company.
                         ---------------------

                  The Company shall give prompt written notice to a Responsible
Officer of the Trustee at the Principal Office of the Trustee of any fact known
to the Company that would prohibit the making of any payment of moneys to or by
the Trustee in respect of the Debt Securities pursuant to the provisions of this
Article XV. Notwithstanding the provisions of this Article XV or any other
provision of this Indenture or any Additional Provisions, the Trustee shall not
be charged with knowledge of the existence of any facts that would prohibit the
making of any payment of moneys to or by the Trustee in respect of the Debt
Securities pursuant to the provisions of this Article XV, unless and until a
Responsible Officer of the Trustee at the Principal Office of the Trustee shall
have received written notice thereof from the Company or a holder or holders of
Senior Indebtedness or from any trustee therefor; and before the receipt of any
such written notice, the Trustee, subject to the provisions of Article VI of
this Indenture, shall be entitled in all respects to assume that no such facts
exist; provided, however, that if the Trustee shall not have received the notice
provided for in this Section 15.06 at least two Business Days prior to the date
upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of (or premium, if
any) or interest on any Debt Security), then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to
receive such money and to apply the same to the purposes for which they were
received, and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to such date.

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

                                      -72-
<PAGE>

         SECTION 15.07.  Rights of the Trustee. Holders of Senior Indebtedness.
                         -----------------------------------------------------

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

                  With respect to the holders of Senior Indebtedness of the
Company, the Trustee undertakes to perform or to observe only such of its
covenants and obligations as are specifically set forth in this Article XV, and
no implied covenants or obligations with respect to the holders

                  of such Senior Indebtedness shall be read into this Indenture
or any Additional Provisions against the Trustee. The Trustee shall not owe or
be deemed to owe any fiduciary duty to the holders of such Senior Indebtedness
and, subject to the provisions of Article VI of this Indenture, the Trustee
shall not be liable to any holder of such Senior Indebtedness if it shall pay
over or deliver to Securityholders, the Company or any other Person money or
assets to which any holder of such Senior Indebtedness shall be entitled by
virtue of this Article XV or otherwise.

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

         SECTION 15.08.  Subordination May Not Be Impaired.
                         ---------------------------------

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

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

                  The Bank of New York Trust Company, National Association, in
its capacity as Trustee, hereby accepts the trusts in this Indenture declared
and provided, upon the terms and conditions herein above set forth.

                                      -73-
<PAGE>

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

                                             CRM USA HOLDINGS, INC.

                                             By:    /s/ James J. Scardino
                                                    ----------------------------
                                             Name:  James J. Scardino
                                             Title: Chief Financial Officer

                                             CRM HOLDINGS, LTD.

                                             By:    /s/ Daniel G. Hickey, Jr.
                                                    ----------------------------
                                             Name:  Daniel G. Hickey, Jr.
                                             Title: Co-Chief Executive Officer

                                             THE BANK OF NEW YORK TRUST COMPANY,
                                             National Association, as Trustee

                                             By:    /s/ Maria D. Calzado
                                                    ----------------------------
                                             Name:  Maria D. Calzado
                                             Title: Vice President

                                      -74-
<PAGE>

                                    EXHIBIT A

                    FORM OF JUNIOR SUBORDINATED DEBT SECURITY
                              DUE DECEMBER 15, 2036

                           [FORM OF FACE OF SECURITY]
                            ------------------------

                  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY
OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY
PRIOR TO THE DATE WHICH IS THE LATER OF (i) TWO YEARS (OR SUCH SHORTER PERIOD OF
TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT) AFTER THE LATER OF
(Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE (AS DEFINED IN RULE 405 UNDER THE SECURITIES ACT) OF
THE COMPANY WAS THE HOLDER OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION
(OR ANY PREDECESSOR THERETO) AND (ii) SUCH LATER DATE, IF ANY, AS MAY BE
REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE COMPANY,
(B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON
THE HOLDER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED
IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN "ACCREDITED INVESTOR"
WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3), (7) or (8) OF RULE 501
UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR
FOR THE ACCOUNT OF AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO SALES TO A PERSON THAT IS
NEITHER A U.S. PERSON (AS DEFINED IN REGULATION S) NOR A U.S. RESIDENT (WITHIN
THE MEANING OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "INVESTMENT
COMPANY ACT")) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE
904 OF REGULATION S, ACTING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ONE OR
MORE PERSONS WITH RESPECT TO WHICH IT EXERCISES SOLE INVESTMENT DISCRETION, EACH
OF WHICH IS NEITHER A U.S. PERSON (AS DEFINED IN REGULATIONS S) NOR A U.S.
RESIDENT (WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT) OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO THE COMPANY'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (C), (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE
WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE HOLDER
OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE
FOREGOING RESTRICTIONS.

                                      A-1-1
<PAGE>

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

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

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

                                      A-1-2
<PAGE>

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

                                      A-1-3
<PAGE>

         Form of Junior Subordinated Debt Security due December 15, 2036

                                       of

                             CRM USA Holdings, Inc.

                  CRM USA Holdings, Inc., a company incorporated in Delaware
(the "Company"), for value received promises to pay to The Bank of New York
Trust Company, National Association, not in its individual capacity but solely
as Institutional Trustee for CRM USA Holdings Trust I, a Delaware statutory
trust (the "Holder"), or registered assigns, the principal sum of Thirty Six
Million Eighty Three Thousand Dollars on December 15, 2036 (or earlier upon any
Redemption Date or the Special Redemption Date, or any earlier date of
acceleration of maturity of this Debt Security and to pay interest on the
outstanding principal amount of this debt security from November 14, 2006, or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, quarterly (subject to deferral as set forth herein) in
arrears on March 15, June 15, September 15 and December 15 of each year
commencing December 15, 2006 (each such date, an "Interest Payment Date"), at
the rate of 8.65% (the "Fixed Rate") per annum until December 15, 2011 (the
Fixed Rate Period) and thereafter at a floating rate per annum equal to LIBOR
(as defined in the Indenture) plus 3.65% (the "Variable Rate" and together with
the Fixed Rate the "Interest Rate") until the principal hereof shall have become
due and payable, and on any overdue principal and (without duplication and to
the extent that payment of such interest is enforceable under applicable law) on
any overdue installment of interest at an annual rate equal to the Interest Rate
in effect for each such Extension Period compounded quarterly. The amount of
interest payable on any Interest Payment Date shall be computed during the Fixed
Rate Period on the basis of a 360-day year of twelve 30-day months and the
amount payable for any partial period shall be computed on the basis of the
number of days elapsed in a 360-day year of twelve 30-day months, and thereafter
on the basis of a 360-day year and the actual number of days elapsed in the
relevant interest period.

                  The interest installment so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person in whose name this Debt Security (or one or
more Predecessor Securities, as defined in said Indenture) is registered at the
close of business on the "regular record date" for such interest installment,
except that interest and any Deferred Interest payable on the Maturity Date
shall be paid to the Person to whom principal is paid. Any such interest
installment not punctually paid or duly provided for shall forthwith cease to be
payable to the registered holders on such regular record date and may be paid to
the Person in whose name this Debt Security (or one or more Predecessor Debt
Securities) is registered at the close of business on a special record date to
be fixed by the Trustee for the payment of such defaulted interest, notice
whereof shall be given to the registered holders of the Debt Securities not less
than 10 days prior to such special record date, all as more fully provided in
the Indenture.

                  The principal of and premium, if any, and interest on this
Debt Security shall be payable at the office or agency of the Trustee (or other
Paying Agent appointed by the Company) maintained for that purpose in any coin
or currency of the United States of America that at the time of payment is legal
tender for payment of public and private debts; provided, however, that

                                      A-1-4
<PAGE>

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

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

         Upon submission of Notice (as defined in the Indenture) and so long as
no Event of Default has occurred and is continuing, the Company shall have the
right, from time to time and without causing an Event of Default, to defer
payments of interest on the Debt Securities by extending the interest payment
period on the Debt Securities at any time and from time to time during the term
of the Debt Securities, for up to 20 consecutive quarterly periods (each such
extended interest payment period, together with all previous and further
consecutive extensions thereof, is referred to herein as an "Extension Period"),
during which Extension Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). During any Extension Period,
interest will continue to accrue on the Debt Securities, and interest on such
accrued interest (such accrued interest and interest thereon referred to herein
as "Deferred Interest") will accrue at an annual rate equal to the Interest Rate
in effect for each such Extension Period, compounded quarterly from the date
such Deferred Interest would have been payable were it not for the Extension
Period, to the extent permitted by law. No Extension Period may end on a date
other than an Interest Payment Date. At the end of any such Extension Period the
Company shall pay all Deferred Interest then accrued and unpaid on the Debt
Securities; together with Additional Interest to the holder hereof; provided,
however, that no Extension Period may extend beyond the Maturity Date, any
Redemption Date or the Special Redemption Date and provided, further, if (1)
there shall have occurred and be continuing an Event of Default, (2) the Company
or the Parent Guarantor shall be in default with respect to its payment of any
obligations under the Capital Securities Guarantee or the Parent Guarantee
Agreement, respectively (3) the Company shall have given notice of its election
to defer payments of interest on the Debt Securities by extending the interest
payment period as provided herein and such period, or any extension thereof,
shall have commenced and be continuing, or (4) any insurance company subsidiary
of the Company (x) fails to renew more than 51% of its net premiums

                                      A-1-5
<PAGE>

written in one or more transactions during any twelve (12) month period; (y)
sells more than 51% of its rights to renew net premiums written of its insurance
subsidiaries in one or more transactions over the course of a twelve (12) month
period; or (z) (A) any insurance company subsidiary of the Company is rated by
A.M. Best Company, Inc. is downgraded by A.M. Best Company to a rating below B-
or (B) withdraws its rating by A.M. Best Company, Inc., then the Company and the
Parent Guarantor shall not, and shall not permit any Affiliate of the Company
and the Parent Guarantor to, (i) declare or pay any dividends or distributions
on, or redeem, purchase, acquire, or make a liquidation payment with respect to,
any of the Company's, the Parent Guarantor's or such Affiliate's capital stock
(other than payments of dividends or distributions to the Company and the Parent
Guarantor) or make any guarantee payments with respect to the foregoing, (ii)
make any payment of principal of or interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Company, the Parent Guarantor or
any Affiliate that rank pari passu in all respects with or junior in interest to
the Debt Securities or (iii) make any payment under any guarantees of the
Company, the Parent Guarantor or any Affiliate that rank in all respects pari
passu with or junior in interest to the Capital Securities Guarantee (other
than, with respect to clauses (i), (ii) and (iii) above, (A) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company or
any subsidiary of the Company (I) in connection with any employment contract,
benefit plan or other similar arrangement with or for the benefit of one or more
employees, officers, directors or consultants, (II) in connection with a
dividend reinvestment or stockholder stock purchase plan and/or (III) in
connection with the issuance of capital stock of the Company or such subsidiary
(or securities convertible into or exercisable for such capital stock), as
consideration in an acquisition transaction entered into prior to the occurrence
of (i), (ii) or (iii) above, (B) as a result of any exchange, reclassification,
combination or conversion of any class or series of the Company's capital stock
(or any capital stock of a subsidiary of the Company) for any class or series of
the Company's capital stock (or in the case of a subsidiary of the Company, any
class or series of such subsidiary's capital stock) or of any class or series of
the Company's indebtedness for any class or series of the Company's capital
stock (or in the case of indebtedness of a subsidiary of the Company, any class
or series of such subsidiary's indebtedness for any class or series of such
subsidiary's capital stock), (C) the purchase of fractional interests in shares
of the Company's capital stock (or the capital stock of any subsidiary of the
Company) pursuant to the conversion or exchange provisions of such capital stock
or the security being converted or exchanged, (D) any declaration of a dividend
in connection with any stockholder's rights plan, or the issuance of rights,
stock or other property under any stockholder's rights plan, or the redemption
or repurchase of rights pursuant thereto, (E) any dividend in the form of stock,
warrants, options or other rights where the dividend stock or the stock issuable
upon exercise of such warrants, options or other rights is the same stock as
that on which the dividend is being paid or ranks pari passu with or junior to
such stock and any cash payments in lieu of fractional shares issued in
connection therewith, or (F) payments under the Capital Securities Guarantee or
Parent Guarantee Agreement), or (iv) enter into any contracts with shareholders
holding more than 10% of the outstanding shares of common stock of the Company
((i), (ii), (iii) and (iv) above collectively, the "Block"); provided however,
that the Block shall only apply to subsections 4(x) and (y) above for so long as
any insurance subsidiary is rated below A- by A.M. Best Company, Inc.; provided
further, that the Block shall only apply to subsection 4(z) above for so long as
any such insurance subsidiary is rated below B- by A.M. Best Company, Inc.,
provided, that such period together with all such previous and further
consecutive extensions thereof shall not exceed 20 consecutive quarterly
periods.

                                      A-1-6
<PAGE>

Upon the termination of any Extension Period and upon the payment of all
Deferred Interest, the Company may commence a new Extension Period, subject to
the foregoing requirements. No interest or Deferred Interest shall be due and
payable during an Extension Period, except at the end thereof, but Deferred
Interest shall accrue upon each installment of interest that would otherwise
have been due and payable during such Extension Period until such installment is
paid. The Company must give the Trustee notice of its election to begin or
extend such Extension Period not later than the related regular record date for
the next succeeding Interest Payment Date.

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

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

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

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

                                      A-1-7
<PAGE>

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

                                                  CRM USA Holdings, Inc.

                                                  By
                                                         -----------------------
                                                  Name:
                                                         -----------------------
                                                  Title:
                                                         -----------------------

Dated:_________________, 2006

                          CERTIFICATE OF AUTHENTICATION

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

                                     The Bank of New York Trust Company,
                                     National Association, not in its individual
                                     capacity but solely as the Trustee

                                     By:
                                         ---------------------------------------
                                         Authorized Officer

Dated:___________________, 2006

                                      A-1-8
<PAGE>
                          [FORM OF REVERSE OF SECURITY]

                  This Debt Security is one of a duly authorized series of Debt
Securities of the Company, all issued or to be issued pursuant to an Indenture
(the "Indenture"), dated as of November 14, 2006, duly executed and delivered
between the Company, CRM Holdings, Ltd. (the "Parent Guarantor") and The Bank of
New York Trust Company, National Association as Trustee (the "Trustee"), to
which Indenture and all indentures supplemental thereto and the Parent Guarantee
Agreement reference is hereby made for a description of the rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the
Company and the holders of the Debt Securities (referred to herein as the "Debt
Securities") of which this Debt Security is a part. The summary of the terms of
this Debt Security contained herein does not purport to be complete and is
qualified by reference to the Indenture.

                  Upon the occurrence and continuation of a Tax Event, an
Investment Company Event (each a "Special Event"), this Debt Security may become
due and payable, in whole but not in part, at any time, within 90 days following
the occurrence of such Tax Event or an Investment Company Event (the "Special
Redemption Date"), as the case may be, at the Special Redemption Price. In the
event that the Special Redemption Date falls on a day prior to the LIBOR
Determination Date for any Interest Period, then the Company shall be required
to pay to Securityholders, on the Business Day following such LIBOR
Determination Date, any additional amount of interest that would have been
payable on the Special Redemption Date had the amount of interest determined on
such LIBOR Determination Date been known on the first day of such Interest
Period.

                  The Company shall also have the right to redeem this Debt
Security at its option, in whole or (provided that all accrued and unpaid
interest has been paid on all Debt Securities for all Interest Period
terminating on or prior to such date) from time to time in part, on any Interest
Payment Date on or after December 15, 2011 (each, a Redemption Date"), at the
Redemption Price (as defined herein).

                  Any redemption pursuant to the preceding two paragraphs will
be made, upon not less than 30 days' nor more than 60 days' prior written
notice. If the Debt Securities are only partially redeemed by the Company, the
Debt Securities will be redeemed pro rata or by lot or by any other method
utilized by the Trustee.

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

                  "Special Redemption Price" means (1) if the Special Redemption
Date is before December 15, 2011 107.5% of the principal amount to be redeemed
plus any accrued and unpaid interest thereon to the date of such redemption and
(2) if the Special Redemption Date is on or after December 15, 2011, the
Redemption Price for such Special Redemption Date.

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

                                      A-1-9
<PAGE>

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

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

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

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

                                     A-1-10
<PAGE>

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

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

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

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

                  THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE
AND THE DEBT SECURITIES, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

                                     A-1-11
<PAGE>

                                    EXHIBIT B

                         OFFICER'S FINANCIAL CERTIFICATE

         The undersigned, the [Chairman/Vice Chairman/Chief Executive
Officer/President/Vice President/Chief Financial Officer/Treasurer/Assistant
Treasurer], hereby certifies pursuant to Section 4.03(c) of the Indenture, dated
as of November ____, 2006 (the "Indenture"), among CRM USA Holdings, Inc. (the
"Company"), CRM Holdings, Ltd. (the "Parent Guarantor"), The Bank of New York
Trust Company, National Association, as institutional trustee, The Bank of New
York (Delaware), as Delaware trustee, and the administrators named therein,
that, as of [date], [20__], the Company and the Parent Guarantor, if applicable,
and its Subsidiary Insurance Companies (as defined below) had the following
ratios and balances:

[For the Company and the Parent Guarantor, if applicable, and each Subsidiary
Insurance Company (as defined below) provide:]

[INSURANCE COMPANY]
As of [Quarterly/Annual Financial Date], 20__

NAIC Risk Based Capital Ratio (authorized control level)                 _____%

Total Policyholders' Surplus                                           $ _____

Consolidated Debt to Total Policyholders' Surplus                        _____%

Total Assets                                                           $ _____

NAIC Class 1 & 2 Rated Investments to Total Fixed Income Investments     _____%

NAIC Class 1 & 2 Rated Investments to Total Investments                  _____%

Return on Policyholders' Surplus                                         _____%

Net Premiums Written                                                   $ _____

               [For Property & Casualty Companies, also provide:]

Expense Ratio                                                            _____%

Loss and LAE Ratio                                                       _____%

Combined Ratio                                                           _____%

Net Premiums Written (annualized) to Policyholders' Surplus              _____%]

* A table describing the officer's financial certificate calculation procedures
is provided on page 3

                                      B-1-1
<PAGE>

The following is a complete list as of [Quarterly/Annual Financial Date] of the
Company's companies which are authorized to write insurance business or
otherwise conduct insurance or reinsurance business (the "Subsidiary Insurance
Companies"):

         [List of Subsidiary Insurance Companies]

[FOR FISCAL YEAR END: Attached hereto are the audited consolidated financial
statements (including the balance sheet, income statement and statement of cash
flows, and notes thereto, together with the report of the independent
accountants thereon) of the Company and its consolidated subsidiaries for the
three years ended _______, 20___] and the Statutory Financial Statements (as
defined in the Declaration) for the year ended [date] 20__.

Pursuant to Section 4.03(c) of the Indenture and Section 10.2(f) of the
Declaration, each of the undersigned hereby certifies that, to the knowledge of
the undersigned, neither the Company nor the Trust is default in the performance
or observance of any of the terms, provisions or conditions contained in the
Indenture or the ARTA (without regard to any period of grace or requirement of
notice provided under the Indenture or the ARTA, as the case may be), for the
calendar year ending on ________, 20__ [, except as follows: specify each such
default and the nature and status thereof].

[FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated and
consolidating financial statements (including the balance sheet and income
statement) of the Company and its consolidated subsidiaries and the Statutory
Financial Statements (as defined in the Declaration) for the fiscal quarter
ended [date], 20__.]

The financial statements fairly present in all material respects, in accordance
with U.S. generally accepted accounting principles ("GAAP"), the financial
position of the Company and its consolidated subsidiaries, and the results of
operations and changes in financial condition as of the date, and for the
[quarter] [annual] period ended [date], 20__, and such financial statements have
been prepared in accordance with GAAP consistently applied throughout the period
involved (expect as otherwise noted therein).

The Statutory Financial Statements fairly present in all material respects in
accordance with Applicable Accounting Principles (as defined in the Declaration)
the financial position of the subject insurance company and have been prepared
in accordance with Applicable Accounting Principles consistently applied
throughout the period involved.

         IN WITNESS WHEREOF, the undersigned has executed this Officer's
Financial Certificate as of this _____ day of _____________, 20__.

                                      B-1-2
<PAGE>

                                                 CRM USA Holdings, Inc.

                                                 By:
                                                       -------------------------
                                                 Name:
                                                       -------------------------

                                                 CRM USA Holdings, Inc.
                                                 112 Delafield Street
                                                 Poughkeepsie, NY 12601
                                                 (845) 452-4100

                                      B-1-3
<PAGE>

                 DEFINITIONS FOR OFFICER'S FINANCIAL CERTIFICATE

<TABLE>
<CAPTION>
                       REPORT ITEM                                             DESCRIPTION OF CALCULATION
----------------------------------------------------------   -----------------------------------------------------------
<S>                                                          <C>
            NAIC Risk Based Capital Ratio-P&C                      Total Adjusted Capital/Authorized Control Level
                                                                                 Risk-Based Capital

           NAIC Risk Based Capital Ratio-Life                          (Total Adjusted Capital-Asset Valuation
                                                                Reserve)/Authorized Control Level Risk-Based Capital

             Total Capital and Surplus-Life                       Common Capital Stock + Preferred Capital Stock +
                                                             Aggregate Write-Ins for other than special surplus funds +
                                                             Surplus Notes + Gross Paid-In and Contributed Surplus +
                                                                   Aggregate Write-Ins for Special Surplus Funds +
                                                                    Unassigned Funds (Surplus) - Treasury Stock.

              Total Capital and Surplus-P&C                    Aggregate Write-Ins for Special Surplus Funds + Common
                                                              Capital Stock + Preferred Capital Stock + Aggregate Write
                                                             Ins for other than special surplus funds + Surplus Notes
                                                                + Gross Paid-In and Contributed Surplus + Unassigned
                                                                          Funds (Surplus) - Treasury Stock

   Total Class 1 & 2 Rated Investments to Total Fixed          (Total Class 1 + Total Class 2 Rated Investments)/Total
                   Income Investments                                         Fixed Income Investments

Total Class 1 & 2 Rated Investments to Total Investments       (Total Class 1 + Total Class 2 Rated Investments)/Total
                                                                                      Investments

                      Total Assets                                                   Total Assets

            Return on Policyholders' Surplus                               Net Income/Policyholders' Surplus

                      Expense Ratio                           Other Underwriting Expenses Incurred/Net premiums Earned

                   Loss and LAE Ratio                          (Losses Incurred + Loss Expenses Incurred)/Net Premiums
                                                                                        Earned

                     Combined Ratio                                       Expense Ratio + Loss and LAE Ratio

   Net Premiums Written (annualized) to Policyholders'                Net Premiums Written/Policyholders' Surplus
                         Surplus
</TABLE>

                                      B-1-4
<PAGE>

                                                                       EXHIBIT C

FORM OF REGULATION S GLOBAL SECURITY TRANSFEREE CERTIFICATE

The Bank of New York Trust Company, National Association,
      as Trustee
600 Travis Street, 50th Floor
Houston, TX 77002
Attention:  Corporate Trust

Re: Floating Rate Deferrable Interest Subordinated Notes due [Maturity Year]
    (the "Securities")

                  Reference is hereby made to the Indenture, dated as of
[Closing Date] (the "Indenture"), among [Company], a company organized under
[laws of jurisdiction] (the "Company"), and The Bank of New York Trust Company,
National Association, as Trustee. Capitalized terms used but not defined herein
shall have the meanings assigned to them pursuant to the Indenture.

         This letter relates to U.S. $_______________ aggregate outstanding
principal amount of the Company's Floating Rate Deferrable Interest Subordinated
Notes due [Maturity Year] which are held in the form of an interest in a Rule
144A Global Security with the Depository (144A CUSIP NUMBER: [_______], ISIN
NUMBER.: [__________]) in the name of __________________ [name of transferor]
(the "Transferor") to effect the transfer of the Securities in exchange for an
equivalent beneficial interest in a Regulation S Global Security in the name of
__________________ [name of transferee] (the "Transferee").

         In connection with such request, and in respect of such Securities, the
Transferee does hereby certify that such Securities are being transferred (i) in
accordance with the transfer restrictions set forth in the Indenture relating to
the Securities and (ii) pursuant to an exemption from registration under the
United States Securities Act of 1933, as amended (the "Securities Act"), and in
accordance with any applicable securities laws of any state of the United States
or any other jurisdiction.

         In addition, the Transferee hereby represents, warrants and covenants
for the benefit of the Company and the Trustee that:

1.       the offer of the Securities was not made to a Person in the United
         States;

2.       at the time the buy order was originated, the Transferee was outside
         the United States and the transfer constitutes an offshore transaction
         (within the meaning of Regulation S);

3.       no directed selling efforts have been made in contravention of the
         requirements of Rule 903(a) or 904(a) of Regulation S, as applicable;

4.       the transaction is not part of a plan or scheme to evade the
         registration requirements of the Securities Act;

                                       C-1
<PAGE>

                                                                       EXHIBIT C

5.       Neither the Transferee nor any account for which it is acting is a U.S.
         Person nor a U.S. Resident (within the meaning of the Investment
         Company Act);

6.       if the sale is made during a restricted period and the provisions of
         Rule 903(b)(2) or (3) or Rule 904(b)(1) of Regulation S are applicable
         thereto, the Transferee confirms that such sale has been made in
         accordance with the applicable provisions of Rule 903(b)(2) or (3) or
         Rule 904(b)(1), as the case may be; and

7.       for the duration that it holds any interest in such Security, either
         (i) it is not acquiring such Security with the assets of a Plan or
         another employee benefit plan subject to applicable law that is
         substantially similar to Section 406 of ERISA or Section 4975 of the
         Code or (ii) the acquisition, holding or disposition of such Security
         by the Transferee, throughout the period that it holds such Security,
         will not result in a nonexempt prohibited transaction under Section 406
         of ERISA or Section 4975 of the Code (or, in the case of another
         employee benefit plan, any substantially similar applicable law),
         because the purchase, holding and disposition of such Security is and
         will be eligible for relief under a prohibited transaction exemption,
         all of the conditions of which are and will be satisfied upon its
         acquisition of, and throughout the term that it holds, such Security.
         The Transferee represents, warrants and covenants that it will not
         sell, pledge or otherwise transfer such Security in violation of the
         foregoing.

         In addition, the Transferee hereby represents, warrants and agrees with
the Company as to the provisions set forth in Article II of the Indenture.

         The Transferee understands that the Company, the Trustee and their
respective counsel will rely upon the accuracy and truth of the foregoing
representations, and the Transferee hereby consents to such reliance. Further,
the Transferee irrevocably authorizes the Company, the Trustee and their
respective counsel to produce this letter or a copy hereof to any interested
party in any administrative or legal proceeding or official inquiry with respect
to the matters covered hereby.

                                                   [Name of Transferee]

                                          By:
                                                 -------------------------------
                                          Name:
                                          Title:
Dated: ___________ __, ____

Taxpayer Identification Number:                            Address for Notices:
Wire Instructions for Payments:

        Bank: ____________________________
        Address:
        Bank ABA #:
        Account No.:                             Tel: ______________________
        FAO:                                     Fax: ______________________
        Attn.:                                   Attn: ______________________

Registered Name (if Nominee):

                                       C-2
<PAGE>

                                                                       EXHIBIT D

FORM OF RULE 144A GLOBAL SECURITY TRANSFEREE CERTIFICATE

The Bank of New York Trust Company, National Association,
      as Trustee
600 Travis Street, 50th Floor
Houston, TX 77002
Attention:  [Company]

Re:  Junior Subordinated Debt Securities due December 15, 2036
     (the "Securities")

                  Reference is hereby made to the Indenture, dated as of
[Closing Date] (the "Indenture"), among CRM USA Holdings, Inc., a company
organized under laws of the State of Delaware, and The Bank of New York Trust
Company, National Association, as Trustee. Capitalized terms used but not
defined herein shall have the meanings assigned to them pursuant to the
Indenture.

                  This letter relates to U.S. $_______________ aggregate
outstanding principal amount of the Company's Junior Subordinated Debt
Securities due December 15, 2036 which are held in the form of an interest in a
Regulation S Global Security deposited with the Depository (REG S CUSIP NUMBER:
[__________] ISIN NUMBER.: [__________]) in the name of __________________ [name
of transferor] (the "Transferor") and a request by the Transferor to effect the
transfer of the Securities in exchange for an equivalent beneficial interest in
a Rule 144A Global Security in the name of __________________ [name of
transferee] (the "Transferee").

                  In connection with such request, and in respect of such
Securities, the Transferee does hereby certify that such Securities are being
transferred in accordance with (i) the applicable transfer restrictions set
forth in the Indenture relating to the Securities and (ii) Rule 144A under the
United States Securities Act of 1933, as amended, and any applicable securities
laws of any state of the United States and any other relevant jurisdiction, and
that the Transferee is purchasing the Securities for its own account or one or
more accounts with respect to which the Transferee exercises sole investment
discretion, and the Transferee and any such account (A) are both Qualified
Institutional Buyers within the meaning of Rule 144A and Qualified Purchasers as
defined in the Indenture, (B) is not a dealer of the type described in paragraph
(a)(1)(ii) of Rule 144A unless it owns and invests on a discretionary basis not
less than $25,000,000 in securities of issuers that are not affiliated to it,
(C) is not a participant-directed employee plan, such as a 401(k) plan, or any
other type of plan referred to in paragraph (a)(1)(i)(D) or (a)(1)(i)(E) of Rule
144A, or a trust fund referred to in paragraph (a)(1)(i)(F) of Rule 144A that
holds the assets of such a plan, unless investment decisions with respect to the
plan are made solely by the fiduciary, trustee or sponsor of such plan, and (D)
was not formed for the purpose of investing in the Company (unless each of its
beneficial owners is a Qualified Purchaser).

                  The Transferee hereby represents, warrants and agrees with the
Issuer as to the provisions set forth in Article II of the Indenture.

                  Further, the Transferee hereby certifies, represents and
warrants that, for the duration that it holds any interest in such Securities,
either (i) it is not acquiring such Securities with the assets of a Plan or
another employee benefit plan subject to applicable law that is substantially
similar to Section 406 of ERISA or Section 4975 of the Code or (ii) the
acquisition, holding and disposition of such Securities by the Transferee,
throughout the period that it holds such Securities, will not result in a
nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of
the Code (or, in the case of another employee benefit plan, any substantially
similar applicable law), because the purchase, holding and disposition of such
Securities is and will be eligible for relief under a prohibited transaction
exemption, all of the conditions of which are and will be satisfied upon its
acquisition of, and throughout the term that it holds, such Securities. The
Transferee represents, warrants and covenants that it will not sell, pledge or
otherwise transfer such Securities in violation of the foregoing.

                                       D-1
<PAGE>

                                                                       EXHIBIT D

                  The Transferee understands that the Company, the Trustee and
their respective counsels will rely upon the accuracy and truth of the foregoing
representations, and the Transferee hereby consents to such reliance. Further,
the Transferee irrevocably authorizes the Company, the Trustee and their
respective counsel to produce this letter or a copy hereof to any interested
party in any administrative or legal proceeding or official inquiry with respect
to the matters covered hereby.

                                                   [Name of Transferee]

                                          By:
                                                 -------------------------------
                                          Name:
                                          Title:
Dated: ___________ __, ____

Taxpayer Identification Number:                            Address for Notices:
Wire Instructions for Payments:

        Bank: ____________________________
        Address:
        Bank ABA #:
        Account No.:                             Tel: ______________________
        FAO:                                     Fax: ______________________
        Attn.:                                   Attn: ______________________

Registered Name (if Nominee):

         The Transferor agrees to the foregoing and certifies that it reasonably
believes that such Transferee and its accounts, if any, are both Qualified
Institutional Buyers within the meaning of such Rule 144A and Qualified
Purchasers as defined in the Indenture.

                                                 [Name of Transferor]

                                                  By:
                                                      --------------------------

Date:  ___________________________

                                       D-2
<PAGE>

                                                                       EXHIBIT E
FORM OF NON-GLOBAL SECURITY TRANSFEREE CERTIFICATE

The Bank of New York Trust Company, National Association,
      as Trustee
600 Travis Street, 50th Floor
Houston, TX 77002
Attention:  CRM USA Holdings, Inc.

Re:  Junior Subordinated Debt Securities due December 15, 2036
     (the "Securities")

                  Reference is hereby made to the Indenture, dated as of
[Closing Date] (the "Indenture"), among [Company], a company organized under
laws of the State of Delaware, and The Bank of New York Trust Company, National
Association, as Trustee. Capitalized terms used but not defined herein shall
have the meanings assigned to them pursuant to the Indenture.

                  This letter relates to U.S. $_______________ aggregate
outstanding principal amount of the Company's Junior Subordinated Debt
Securities due December 15, 2036 in the name of __________________ [name of
transferor] (the "Transferor") and a request by the Transferor to effect the
transfer of the Securities in exchange for an equivalent beneficial interest in
Security in the name of __________________ [name of transferee] (the
"Transferee").

                  In connection with such request and our purchase of the
Securities, the Transferee does hereby certify that:

         1.       We understand that the Securities have not been registered
                  under the Securities Act and may not be offered or sold except
                  as permitted in the Indenture and in the following sentence.
                  We agree on our own behalf and on behalf of any investor
                  account for which we are purchasing the Securities that, if we
                  decide to offer, sell or otherwise transfer any such
                  Securities, (i) such offer, sale or transfer will be made only
                  (a) to the Company, (b) pursuant to Rule 144A to a person we
                  reasonably believe is a Qualified Institutional Buyer that
                  purchases such Securities for its own account or for the
                  account of a Qualified Institutional Buyer to whom notice is
                  given that the transfer is being made in reliance on Rule
                  144A, (c) to a person that is neither a U.S. Person (as
                  defined in Regulation S) nor a U.S. Resident (within the
                  meaning of the Investment Company Act) in an offshore
                  transaction in accordance with Rule 903 or Rule 904 of
                  Regulation S, acting for its own account or for the account of
                  one or more Persons with respect to which it exercises sole
                  investment discretion, each of which is neither a U.S. Person
                  (as defined in Regulation S) nor a U.S. Resident (within the
                  meaning of the Investment Company Act) (a "Regulation S
                  Purchaser"), or (d) pursuant to an exemption from the
                  registration requirements of the Securities Act to an
                  "accredited investor" within the meaning of subparagraph
                  (a)(1),(2), (3) or (7) of Rule 501 under the Securities Act
                  (an "Institutional Accredited Investor) that is acquiring such
                  Securities for its own account, or for the account of such an
                  Institutional Accredited Investor, for investment purposes and
                  not with a view to, or for offer or sale in connection with,
                  any distribution in violation of the Securities Act, subject
                  to the requirements of the Indenture and to the right of the
                  Company prior to any such offer, sale or transfer pursuant to
                  clause (d) above to require the delivery of an opinion of
                  counsel, certification and/or other information satisfactory
                  to the Company. We understand that the Certificates for any
                  security that we receive will bear a legend substantially to
                  the effect of the foregoing and agree to notify each
                  transferee of the resale restrictions referred to therein.

                                       E-1
<PAGE>

                                                                       EXHIBIT E

         2.       We acknowledge the matters specified in paragraph 1 above,
                  represent that we satisfy the conditions specified for
                  transferees in paragraph 1 above and certify that we are an
                  Institutional Accredited Investor. In addition, we represent
                  that we have such knowledge and experience in financial and
                  business matters as to be capable of evaluating the merits and
                  risks or our investment in the Securities, and we and any
                  account for which we are acting are each able to bear the
                  economic risks of our or its investment for an indefinite
                  period of time.

         3.       We are acquiring the Securities purchased by us for our own
                  account (or for one or more accounts as to each of which we
                  exercise sole investment discretion and have authority to
                  make, and do make, the statements contained in this
                  Certificate) and not with a view to any distribution of the
                  Securities, subject, nevertheless, to the understanding that
                  the disposition of our property will, at all times, be and
                  remain within our control.

         4.       In the even that we purchase any Securities, we will acquire
                  such Securities having an aggregate principal amount not less
                  than $100,000, for our own account and for each separate
                  account for which we are acting.

         5.       We acknowledge that we are not a fiduciary of (i) an employee
                  benefit, individual retirement account or other plan or
                  arrangement subject to Title I of ERISA or section 4975 of the
                  Code; of (ii) an entity whose underlying assets include "plan
                  assets" by reason of any Plan's investment in the entity, and
                  are not purchasing any of the Securities on behalf of or with
                  "plan assets" by reason of any Plan's investment in the
                  entity.

         6.       We acknowledge that the Company and others will rely upon the
                  truth and accuracy of the foregoing acknowledgments,
                  representations, warranties and agreements and agree that if
                  any of the acknowledgments, representations, warranties and
                  agreements deemed to have been made by our purchase of any of
                  the Securities are no longer accurate, we shall promptly
                  notify the Company. If we are acquiring any Securities as a
                  fiduciary or agent for one or more investor accounts, we
                  represent that we have sole discretion with respect to each
                  such investor account and that we have full power to make the
                  foregoing acknowledgments, representations, warranties and
                  agreements on behalf of each such investor account.

                                              [Name of Transferee]

                                              By:
                                                    ----------------------------
                                              Name:
                                              Title:

Dated: ___________ __, ____
Upon transfer, the Securities (having a principal amount of $[______________])
shall be registered in the name of the new beneficial owner as follows:

Name:     _________________________________

Address:  _________________________________

          _________________________________

Taxpayer ID Number:  ______________________

                                       E-2Exhibit 4.3

                           PARENT GUARANTEE AGREEMENT

                                     BETWEEN

                               CRM HOLDINGS, LTD.
                              AS PARENT GUARANTOR,

                                       AND

            THE BANK OF NEW YORK TRUST COMPANY, NATIONAL ASSOCIATION,
                              AS GUARANTEE TRUSTEE

                          DATED AS OF NOVEMBER 14, 2006

                            CRM USA HOLDINGS TRUST I

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                              PAGE
                                                                                                              ----
<S>                   <C>                                                                                       <C>
ARTICLE I             INTERPRETATION AND DEFINITIONS.............................................................1

         Section 1.1.          Interpretation....................................................................1

         Section 1.2.          Definitions.......................................................................2

ARTICLE II            REPORTS....................................................................................5

         Section 2.1.          Intentionally Omitted.............................................................5

         Section 2.2.          Periodic Reports to the Guarantee Trustee.........................................5

         Section 2.3.          Event of Default; Waiver..........................................................6

         Section 2.4.          Event of Default; Notice..........................................................6

ARTICLE III           POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE.........................................6

         Section 3.1.          Powers and Duties of the Guarantee Trustee........................................6

         Section 3.2.          Certain Rights of the Guarantee Trustee...........................................7

         Section 3.3.          Compensation......................................................................9

         Section 3.4.          Indemnity.........................................................................9

         Section 3.5.          Securities.......................................................................10

ARTICLE IV            GUARANTEE TRUSTEE.........................................................................10

         Section 4.1.          Guarantee Trustee; Eligibility...................................................10

         Section 4.2.          Appointment, Removal and Resignation of the Guarantee Trustee....................11

ARTICLE V             PARENT GUARANTEE..........................................................................11

         Section 5.1.          Parent Guarantee.................................................................11

         Section 5.2.          Waiver of Notice and Demand......................................................12

         Section 5.3.          Obligations Not Affected.........................................................12

         Section 5.4.          Rights of Holders and the Trust..................................................13

         Section 5.5.          Guarantee of Payment.............................................................13

         Section 5.6.          Subrogation......................................................................13

         Section 5.7.          Independent Obligations..........................................................14

         Section 5.8.          Enforcement......................................................................14

ARTICLE VI            SUBORDINATION.............................................................................14

         Section 6.1.          Intentionally Omitted............................................................14

         Section 6.2.          Subordination....................................................................14
</TABLE>
                                       -i-
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)
<TABLE>
<CAPTION>
                                                                                                              PAGE
                                                                                                              ----
<S>                   <C>                                                                                       <C>
ARTICLE VII           TERMINATION...............................................................................15

         Section 7.1.          Termination......................................................................15

ARTICLE VIII          MISCELLANEOUS.............................................................................15

         Section 8.1.          Successors and Assigns...........................................................15

         Section 8.2.          Amendments.......................................................................15

         Section 8.3.          Notices..........................................................................15

         Section 8.4.          Benefit..........................................................................16

         Section 8.5.          Governing Law....................................................................17

         Section 8.6.          Submission to Jurisdiction.......................................................17

         Section 8.7.          Counterparts.....................................................................17

         Section 8.8.          The Indenture....................................................................17

ARTICLE IX            CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE AND OWNERSHIP OF THE COMPANY.........17

         Section 9.1.          Parent Guarantor May Consolidate, etc., Only on Certain Terms....................17

         Section 9.2.          Limitation on Dividends..........................................................18

         Section 9.3.          Successor Company Substituted....................................................18

         Section 9.4.          Ownership of the Company.........................................................19

ARTICLE X             REPRESENTATIONS AND WARRANTIES............................................................19

         Section 10.1.         Representations and Warranties of Parent Guarantor...............................19
</TABLE>

                                      -ii-
<PAGE>

         This Parent Guarantee Agreement, dated as of November 14, 2006,
executed and delivered by CRM Holdings, Ltd., an exempted holding company
incorporated under the laws of Bermuda (the "Parent Guarantor") and The Bank of
New York Trust Company, National Association, a limited purpose national banking
association with trust powers, as trustee (in such capacity, the "Guarantee
Trustee"), for the benefit of the Trust (as defined herein) and the Holders (as
defined herein) from time to time of the Preferred Securities (as defined
herein) of the Trust.

                              W I T N E S S E T H :

         Whereas, pursuant to an Indenture, dated as of the date hereof (the
"Indenture"), among CRM USA Holdings, Inc., a Delaware corporation (the
"Company"), the Parent Guarantor and The Bank of New York Trust Company,
National Association, the Company is issuing Thirty Six Million Eighty Three
Thousand Dollars ($36,083,000) aggregate principal amount of its junior
subordinated debt securities (the "Debt Securities") having the terms set forth
in the Indenture to CRM USA Holdings Trust I, a Delaware statutory trust (the
"Trust"), and evidencing loans made to the Company by the Trust of proceeds from
the issuance of undivided preferred beneficial interests in the assets of the
Trust (the "Preferred Securities"), and undivided common beneficial interests in
the assets of the Trust (collectively, the "Trust Securities");

         Whereas, the Parent Guarantor owns one hundred percent (100%) of the
outstanding shares of capital stock of the Company, and will substantially
benefit from the issuance of the Debt Securities by the Company and the purchase
by the Holders of the Preferred Securities; and

         Whereas, as incentive for the Holders to purchase Preferred Securities
from the Trust and for the Trust to purchase the Debt Securities with the
proceeds from such purchase, the Parent Guarantor desires irrevocably and
unconditionally to agree, to the extent set forth herein, to pay to the Trust
the Parent Guarantee Payments (as defined herein) and to make certain other
payments on the terms and conditions set forth herein.

         Now, therefore, in consideration of the purchase by each Holder of
Preferred Securities and the purchase of the Debt Securities by the Trust, the
Parent Guarantor executes and delivers this Parent Guarantee Agreement to
provide as follows for the benefit of the Holders from time to time of the
Preferred Securities and the Trust:

                                    ARTICLE I

                         Interpretation and Definitions

         SECTION 1.1.  Interpretation.

         In this Parent Guarantee Agreement, unless the context otherwise
         requires:

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

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

<PAGE>

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

                  (d)      all references in this Parent Guarantee Agreement to
         articles and sections are to articles and sections of this Parent
         Guarantee Agreement unless otherwise specified;

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

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

                  (g)      a reference to the "Guarantor" shall be deemed to
         refer to the Parent Guarantor; and

                  (h)      the masculine, feminine or neuter genders used herein
         shall include the masculine, feminine and neuter genders.

         SECTION 1.2.  Definitions.

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

                  "Affiliate" has the meaning given to that term in Rule 405 of
         the Securities Act of 1933, as amended, or any successor rule
         thereunder.

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

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

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

                  "Debt" means, with respect to any Person, whether recourse is
         to all or a portion of the assets of such Person, whether currently
         existing or hereafter incurred, and whether or not contingent and
         without duplication, (i) every obligation of such Person for money
         borrowed; (ii) every obligation of such Person evidenced by bonds,
         debentures, debt securities or other similar instruments, including
         obligations incurred in connection with the acquisition of property,
         assets or businesses; (iii) every reimbursement obligation of such
         Person with respect to letters of credit, bankers' acceptances or
         similar facilities issued for the account of such Person; (iv) every
         obligation of such Person issued or assumed as the deferred purchase
         price of property or services (but excluding trade accounts payable
         arising in the ordinary course of business); (v) every capital lease
         obligation of such Person;

                                        2
<PAGE>

         (vi) all indebtedness of such Person, whether incurred on or prior to
         the date of this Parent Guarantee Agreement or thereafter incurred, for
         claims in respect of derivative products, including interest rate,
         foreign exchange rate and commodity forward contracts, options, swaps
         and similar arrangements; (vii) every obligation of the type referred
         to in clauses (i) through (vi) of another Person and all dividends of
         another Person the payment of which, in either case, such Person has
         guaranteed or is responsible or liable for, directly or indirectly, as
         obligor or otherwise; and (viii) any renewals, extensions, refundings,
         amendments or modifications of any obligation of the type referred to
         in clauses (i) through (vii).

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

                  "Guarantee Trustee" means The Bank of New York Trust Company,
         National Association, until a Successor Guarantee Trustee, as defined
         below, has been appointed and has accepted such appointment pursuant to
         the terms of this Parent Guarantee Agreement, and thereafter means each
         such Successor Guarantee Trustee.

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

                  "Indenture" means the Indenture, dated as of November 14,
         2006, among the Company, the Parent Guarantor and The Bank of New York
         Trust Company, National Association, not in its individual capacity but
         solely as trustee, and any indenture supplemental thereto pursuant to
         which the Debentures are to be issued to the Institutional Trustee.

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

                  "Majority in Liquidation Amount of the Preferred Securities"
         means Holder(s) of outstanding Preferred Securities, voting together as
         a class, but separately from the holders of Common Securities, of more
         than fifty percent (50%) of the aggregate liquidation amount (including
         the stated amount that would be paid on redemption, liquidation or
         otherwise, plus accrued and unpaid distributions to, but excluding, the
         date upon which the voting percentages are determined) of all Preferred
         Securities then outstanding.

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

                                        3
<PAGE>

                  "Officer's Certificate" means, with respect to any Person, a
         certificate signed by the Chief Executive Officer, Chief Financial
         Officer, President, the Treasurer or the Secretary of such Person, and
         delivered to the Guarantee Trustee. Any Officer's Certificate delivered
         with respect to compliance with a condition or covenant provided for in
         this Parent Guarantee Agreement (other than the certificate provided
         pursuant to Section 2.2) shall include:

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

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

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

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

                  "Parent Guarantee Payments" means the following payments or
         distributions, without duplication, with respect to the Debt
         Securities, to the extent not fully and promptly paid or made by the
         Company immediately after the expiration of any applicable grace or
         cure period applicable to the Company under the terms of the Indenture:
         (a) any accumulated and unpaid payments of interest or principal, or
         other amounts, required to be paid on the Debt Securities on the
         Maturity Date, Redemption Date or Special Redemption Date (each as
         defined in the Indenture), or upon expiration of the Extension Periods
         allowed under Section 2.11 of the Indenture; and (b) payment of any
         other amounts to be paid by the Company under the Indenture.

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

                  "Responsible Officer" means, with respect to the Guarantee
         Trustee, any Senior Vice President, any Vice President, any Assistant
         Vice President, the Secretary, any Assistant Secretary, the Treasurer,
         any Assistant Treasurer, any Trust Officer or Assistant Trust Officer
         or any other officer of the Corporate Trust Department of the Guarantee
         Trustee and also means, with respect to a particular corporate trust
         matter, any other officer to whom such matter is referred because of
         that officer's knowledge of and familiarity with the particular
         subject.

                                        4
<PAGE>

                  "Senior Debt" means the principal of and any premium and
         interest on (including interest accruing on or after the filing of any
         petition in bankruptcy or for reorganization relating to the Parent
         Guarantor whether or not such claim for post-petition interest is
         allowed in such proceeding) all Debt of the Parent Guarantor, whether
         incurred on or prior to the date of the Indenture or thereafter
         incurred, unless it is provided in the instrument creating or
         evidencing the same or pursuant to which the same is outstanding, that
         such obligations are subordinated in right of payment to the Preferred
         Securities.

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

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

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

                                   ARTICLE II

                                     Reports

         SECTION 2.1.  Intentionally Omitted.

         SECTION 2.2.  Periodic Reports to the Guarantee Trustee.

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

         (b)      The Parent Guarantor shall furnish (i) to the Guarantee
Trustee; (ii) Cohen & Company, 2929 Arch Street, Suite 1703, Philadelphia,
Pennsylvania 19104 or such other address as designated by Cohen & Company; and
(iii) any Holder of the Preferred Securities reasonably identified to the
Company and the Trust (which identification may be made either by such Holder or
Cohen & Company) a duly completed and executed certificate substantively and
substantially in the form attached hereto as Exhibit A, including the financial
statements referenced in such Exhibit, which certificate and financial
statements shall be so furnished by the Parent Guarantor not later than forty
five (45) days after the end of each of the first three fiscal quarters of each
fiscal year of the Parent Guarantor and not later than ninety (90) days after
the end of each fiscal year of the Parent Guarantor.

                                        5
<PAGE>

         SECTION 2.3.  Event of Default; Waiver.

         Neither the Trust nor holders of the Debt Securities shall have the
right to waive any past Event of Default without the consent of the Holders of a
Majority in Liquidation Amount of the Preferred Securities. The Holders of a
Majority in Liquidation Amount of the Preferred Securities may, on behalf of the
Holders, the Trust or the holders of Debt Securities waive any past Event of
Default and its consequences. Upon such waiver, any such Event of Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured, for every purpose of this Parent Guarantee Agreement, but no
such waiver shall extend to any subsequent or other default or Event of Default
or impair any right consequent therefrom.

         SECTION 2.4.  Event of Default; Notice.

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

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

                                   ARTICLE III

               Powers, Duties and Rights of the Guarantee Trustee

         SECTION 3.1.  Powers and Duties of the Guarantee Trustee.

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

                                        6
<PAGE>

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

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

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

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

         SECTION 3.2.  Certain Rights of the Guarantee Trustee.

         (a)      Subject to the provisions of Section 3.1:

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

                                        7
<PAGE>

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

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

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

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

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

                  (vii)    whenever in the administration of this Parent
         Guarantee Agreement the Guarantee Trustee shall deem it desirable to
         receive instructions with respect to enforcing any remedy or right
         hereunder, the Guarantee Trustee (A) may request instructions from the
         Trust and the Holders of a Majority in Liquidation Amount of the
         Preferred Securities, (B) may refrain from enforcing such remedy or
         right or taking such other action until such requested instructions are
         received and (C) shall be protected in acting in accordance with such
         instructions; provided, however, that the Guarantee Trustee must first
         obtain the consent of the Holders of a Majority in Liquidation Amount
         of the Preferred Securities prior to taking any action only upon only
         the direction of the Trust;

                                        8
<PAGE>

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

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

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

         SECTION 3.3.  Compensation.

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

         SECTION 3.4.  Indemnity.

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

                                        9
<PAGE>

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

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

         SECTION 3.5.  Securities.

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

                                   ARTICLE IV

                                Guarantee Trustee

         SECTION 4.1.  Guarantee Trustee; Eligibility.

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

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

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

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

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

                                       10
<PAGE>

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

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

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

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

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

                                    ARTICLE V

                                Parent Guarantee

         SECTION 5.1.  Parent Guarantee.

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

         (b)      The Parent Guarantor expressly agrees that the guarantee set
forth in the immediately preceding paragraph includes, but is not limited to,
the guarantee of the full and prompt payment of the Parent Guarantor's
obligation to make any and all interest payments on the Debt Securities which
would be required to be made by the Company under the Indenture including,
without limitation, any amounts of Additional Interest, the Redemption Price,
Special Redemption Price or any other amount set forth in the Indenture or the
Debt Security.

                                       11
<PAGE>

         (c)      The Parent Guarantor hereby also agrees to assume any and all
Obligations, and, in the event any such Obligation is not so assumed, subject to
the terms and conditions hereof, the Parent Guarantor hereby irrevocably and
unconditionally guarantees to each Beneficiary the full payment, when and as
due, of any and all Obligations to such Beneficiary. This Section 5.1 is
intended to be for the Beneficiaries who have received notice hereof.

         SECTION 5.2.  Waiver of Notice and Demand.

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

         SECTION 5.3.  Obligations Not Affected.

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

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

                  (b)      the extension of time for the payment by the Company
         of all or any portion of the obligations under the Debt Securities
         (other than the extension of any interest payment period on the Debt
         Securities as permitted under Section 2.11 of the Indenture) or any
         other sums payable under the terms of the Debt Securities or the
         extension of time for the performance of any other obligation under,
         arising out of, or in connection with, the Debt Securities;

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

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

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

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

                                       12
<PAGE>

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

There shall be no obligation of the Holders, the holders of the Debt Securities
or the Trust to give notice to, or obtain the consent of, the Parent Guarantor
with respect to the happening of any of the foregoing. No set-off, counterclaim,
reduction or diminution of any obligation, or any defense of any kind or nature
that the Parent Guarantor has or may have shall be available hereunder to the
Parent Guarantor against the Trust, any Holder or any holder of Debt Securities
to reduce the payments thereto under this Parent Guarantee Agreement.

         SECTION 5.4.  Rights of Holders and the Trust.

         The Parent Guarantor expressly acknowledges that: (a) this Parent
Guarantee Agreement will be deposited with the Guarantee Trustee to be held for
the benefit of the Holders, the holders of the Debt Securities and the Trust;
(b) the Guarantee Trustee has the right to enforce this Parent Guarantee
Agreement on behalf of the Holders, the holders of the Debt Securities and the
Trust; (c) the Holders of a Majority in Liquidation Amount of the Preferred
Securities, the holders of a Majority in Liquidation Amount of the Debt
Securities and the Trust have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Guarantee Trustee in
respect of this Parent Guarantee Agreement or exercising any trust or power
conferred upon the Guarantee Trustee under this Parent Guarantee Agreement
(provided, however, the Trust shall not exercise such right without the consent
of the Holders of a Majority in Liquidation Amount of the Preferred Securities);
and (d) the Trust, any holder of Debt Securities or any Holder may institute a
legal proceeding directly against the Parent Guarantor to enforce their
respective rights under this Parent Guarantee Agreement, without first
instituting a legal proceeding against the Guarantee Trustee, the Company or any
other Person.

         SECTION 5.5.  Guarantee of Payment.

         This Parent Guarantee Agreement creates a guarantee of payment and not
of collection. This Parent Guarantee Agreement will not be discharged except by
payment of the Parent Guarantee Payments in full (without duplication of amounts
theretofore paid by the Company) or upon payment in full of the Debt Securities
and all amounts owed by the Company under the Indenture to the holders of Debt
Securities or beneficiary thereof.

         SECTION 5.6.  Subrogation.

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

                                       13
<PAGE>

         SECTION 5.7.  Independent Obligations.

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

         SECTION 5.8.  Enforcement.

         A Beneficiary or a holder of Debt Securities may enforce the
Obligations of the Parent Guarantor contained in Section 5.1(c) directly against
the Parent Guarantor, and the Parent Guarantor waives any right or remedy to
require that any action be brought against the Company or any other person or
entity before proceeding against the Parent Guarantor.

                                   ARTICLE VI

                                  Subordination

         SECTION 6.1.  Intentionally Omitted.

         SECTION 6.2.  Subordination.

         (a)      The obligations of the Parent Guarantor under this Parent
Guarantee Agreement will constitute unsecured obligations of the Parent
Guarantor and will rank subordinate and junior in right of payment to all
present and future Senior Debt (as defined in the Indenture) of the Parent
Guarantor. By their acceptance hereof, each Holder agrees to the foregoing
provisions of this Parent Guarantee Agreement and other terms set forth herein.

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

                                       14
<PAGE>

                                   ARTICLE VII

                                   Termination

         SECTION 7.1.  Termination.

         This Parent Guarantee Agreement shall terminate and be of no further
force and effect upon (i) full payment of the Redemption Price or Special
Redemption Price, as applicable, of the Preferred Securities; (ii) upon the
distribution of all of the Debt Securities (as defined in the Indenture) to the
Holders; or (iii) full payment of the Debt Securities and all amounts payable in
accordance with the Indenture. Notwithstanding the foregoing, this Parent
Guarantee Agreement will continue to be effective or will be reinstated, as the
case may be, if at any time any Holder or the Trust must restore payment of any
sums paid with respect to Preferred Securities, the Debt Securities or this
Parent Guarantee Agreement. The obligations of the Parent Guarantor under
Sections 3.3 and 3.4 shall survive any such termination or the resignation and
removal of the Guarantee Trustee.

                                  ARTICLE VIII

                                  Miscellaneous

         SECTION 8.1.  Successors and Assigns.

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

         SECTION 8.2.  Amendments.

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

         SECTION 8.3.  Notices.

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

                                       15
<PAGE>

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

                           CRM Holdings, Ltd.
                           112 Delafield Street
                           Poughkeepsie, NY 12601
                           Facsimile No.: (845) 483-7389
                           Attention: James J. Scardino

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

                           CRM USA Holdings Trust I
                           112 Delafield Street
                           Poughkeepsie, NY 12601
                           Facsimile No.: (845) 483-7389
                           Attention:  James J. Scardino

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

                           The Bank of New York Trust Company, National
                           Association
                           600 Travis Street, 50th Floor
                           Houston, Texas 77002
                           Attention:  Corporate Trust -
                                       CRM USA Holdings Trust I
                           Telecopy:  (713) 216-5959
                           Telephone:  (713) 216-4648

                  (d)      if given to any holder of Debt Securities, at the
         address set forth in the books and records of the Institutional Trustee
         (as defined in the Indenture), and if to any Holder, at the address set
         forth on the books and records of the Trust.

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

         SECTION 8.4.  Benefit.

         This Parent Guarantee Agreement is solely for the benefit of the Trust,
the holders of the Debt Securities and the Holders, and is not separately
transferable from the Debt Securities.

                                       16
<PAGE>

         SECTION 8.5.  Governing Law.

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

         SECTION 8.6.  Submission to Jurisdiction.

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

         SECTION 8.7.  Counterparts.

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

         SECTION 8.8.  The Indenture.

         Each of the parties hereto hereby acknowledges that it is familiar with
the terms of the Indenture. The Indenture shall be deemed to be specifically
described in this Parent Guarantee Agreement.

                                   ARTICLE IX

            Consolidation, Merger, Conveyance, Transfer or Lease and
                            Ownership of the Company

         SECTION 9.1.  Parent Guarantor May Consolidate, etc., Only on Certain
Terms.

         The Parent Guarantor shall not consolidate with or merge into any other
Person or convey, transfer or lease its properties and assets substantially as
an entirety to any Person, and no Person shall consolidate with or merge into
the Parent Guarantor or convey, transfer or lease its properties and assets
substantially as an entirety to the Parent Guarantor, unless:

                                       17
<PAGE>

         (a)      if the Parent Guarantor shall consolidate with or merge into
another Person or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, the entity formed by such
consolidation or into which the Parent Guarantor is merged or the Person that
acquires by conveyance or transfer, or that leases, the properties and assets of
the Parent Guarantor substantially as an entirety shall be an entity organized
and existing under the laws of the United States of America or any State or
Territory thereof or the District of Columbia and shall expressly assume, in
writing, executed and delivered to the Guarantee Trustee, in form reasonably
satisfactory to the Guarantee Trustee, the due and punctual payment of the
Parent Guarantee Payments required hereunder and the performance of every
covenant and obligation of Parent Guarantor to be performed under this Parent
Guarantee Agreement on the part of the Parent Guarantor to be performed or
observed;

         (b)      immediately after giving effect to such transaction, no Event
of Default, and no event that, after notice or lapse of time, or both, would
constitute an Event of Default, shall have happened and be continuing; and

         (c)      the Parent Guarantor has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance, transfer or lease and, if a written agreement evidencing any
assignment or assumption is required in connection with such transaction, any
such agreement complies with this Article IX and that all conditions precedent
herein provided for relating to such transaction have been complied with; and
the Trustee may rely upon such Officers' Certificate and Opinion of Counsel as
conclusive evidence that such transaction complies with this Section 9.1.

         SECTION 9.2.  Limitation on Dividends.

         So long as the Debt Securities remain outstanding, if there shall have
occurred an Event of Default (as defined in the Indenture) or the Company shall
have elected to defer interest under Section 2.11 of the Indenture, then the
Parent Guarantor shall be subject to the payment restrictions set forth in
Section 3.08 of the Indenture.

         SECTION 9.3.  Successor Company Substituted.

         (a)      Upon any consolidation or merger by the Parent Guarantor with
or into any other Person, or any conveyance, transfer or lease by the Parent
Guarantor of its properties and assets substantially as an entirety to any
Person in accordance with Section 9.1 and the execution and delivery to the
Trustee of the written agreement described in Section 9.1(a), the successor
entity formed by such consolidation or into which the Parent Guarantor is merged
or to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Parent Guarantor
under this Parent Guarantee Agreement with the same effect as if such successor
Person had been named as the Parent Guarantor herein; and in the event of any
such conveyance, or transfer, or lease following the execution and delivery of
such written agreement, the Parent Guarantor shall be discharged from all
obligations and covenants under the Parent Guarantee Agreement and the Debt
Securities.

         (b)      In case of any such consolidation, merger, sale, conveyance,
transfer or lease, such changes in phraseology and form may be made in the Trust
Securities thereafter to be issued as may be appropriate to reflect such
occurrence, if necessary.

                                       18
<PAGE>

         SECTION 9.4.  Ownership of the Company.

         Except as provided in Article XI of the Indenture, at all times while
this Parent Guarantee Agreement is in effect and while any of the obligations of
the Parent Guarantor hereunder remain outstanding, one hundred percent (100%) of
the outstanding capital stock of the Company shall be owned by the Parent
Guarantor.

                                    ARTICLE X

                         Representations and Warranties

         SECTION 10.1. Representations and Warranties of Parent Guarantor.

         The Parent Guarantor hereby represents and warrants for the benefit of
the holders of Debt Securities and the Holders that:

         (a)      the Parent Guarantor is a corporation duly incorporated,
validly existing and in good standing under the laws of its jurisdiction of
incorporation;

         (b)      the Parent Guarantor has full corporate power, authority and
legal right to execute, deliver and perform its obligations under this Parent
Guarantee Agreement and has taken all necessary action to authorize the
execution, delivery and performance by it of this Parent Guarantee Agreement;

         (c)      this Parent Guarantee Agreement has been duly executed and
delivered by the Parent Guarantor and constitutes the legal, valid and binding
agreement of the Parent Guarantor enforceable against the Parent Guarantor in
accordance with its terms, subject to applicable bankruptcy, insolvency and
similar laws affecting creditors' rights generally and to general principles of
equity; and

         (d)      the execution, delivery and performance of this Parent
Guarantee Agreement have been duly authorized by all necessary corporate or
other action on the part of the Parent Guarantor and do not require any approval
of stockholders of the Parent Guarantor and such execution, delivery and
performance will not (i) violate the articles or certificate of incorporation or
by-laws (or other organizational documents) of the Parent Guarantor or (ii)
violate any applicable law, governmental rule or regulation governing the Parent
Guarantor, any material agreement to which it is a party or any material portion
of its property or any order, judgment or decree applicable to the Parent
Guarantor, or any material portion of its property.

                            [SIGNATURE PAGE FOLLOWS]

                                       19
<PAGE>

         In Witness Whereof, the undersigned have executed this Parent Guarantee
Agreement as of the date first above written.

                                            CRM Holdings, Ltd.

                                            By:    /s/ Daniel G. Hickey, Jr.
                                                   -----------------------------
                                            Name   Daniel G. Hickey, Jr.
                                            Title: Co-Chief Executive Officer

                                            The Bank of New York Trust Company,
                                            National Association, not in its
                                            individual capacity, but solely
                                            as Guarantee Trustee

                                            By:    /s/ Maria D. Calzado
                                                   -----------------------------
                                            Name:  Maria D. Calzado
                                            Title: Vice President

<PAGE>

                         OFFICER'S FINANCIAL CERTIFICATE

The undersigned, the [Chairman/Chief Executive Officer/President/Chief Financial
Officer], hereby certifies pursuant to Section 2.2(b) of the Parent Guarantee
Agreement, dated as of [date] (the "Parent Guarantee Agreement"), between CRM
Holdings, Ltd. (the "Parent Guarantor") and The Bank of New York Trust Company,
National Association, as guarantee trustee, that, as of [date], [20__].

[FOR FISCAL YEAR END: Attached hereto are the audited consolidated financial
statements (including the balance sheet, income statement and statement of cash
flows, and notes thereto, together with the report of the independent
accountants thereon) of the Parent Guarantor and its consolidated subsidiaries
for the three years ended _______, 20___].

[FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated and
consolidating financial statements (including the balance sheet and income
statement) of the Parent Guarantor and its consolidated subsidiaries for the
fiscal quarter ended [date], 20__.]

The financial statements fairly present in all material respects, in accordance
with U.S. generally accepted accounting principles ("GAAP"), the financial
position of the Parent Guarantor and its consolidated subsidiaries, and the
results of operations and changes in financial condition as of the date, and for
the [quarter] [annual] period ended [date], 20__, and such financial statements
have been prepared in accordance with GAAP consistently applied throughout the
period involved (expect as otherwise noted therein).

         IN WITNESS WHEREOF, the undersigned has executed this Officer's
Financial Certificate as of this _____ day of _____________, 20__.

                                                  CRM HOLDINGS, LTD.

                                                  By:
                                                        ------------------------
                                                  Name:
                                                        ------------------------

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