Document:

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                                                                   Exhibit 10(l)

                        BANKNORTH GROUP, INC. 401(K) PLAN

           AS AMENDED AND RESTATED GENERALLY EFFECTIVE JANUARY 1, 2001

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                                TABLE OF CONTENTS

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<S>           <C>                                                                                  <C>
ARTICLE I.     DEFINITIONS............................................................................1

ARTICLE II.    PARTICIPATION.........................................................................13

  2.01         ELIGIBILITY...........................................................................13
  2.02         TERMINATION OF PARTICIPATION..........................................................13
  2.03         SPECIAL RULE FOR INSIDERS.............................................................13
  2.04         SPECIAL PARTICIPATION RULE............................................................14

ARTICLE III.   PARTICIPANT CONTRIBUTIONS.............................................................14

  3.01         SALARY DEFERRALS......................................................................14
  3.02         ANNUAL LIMITATION ON SALARY DEFERRALS.................................................15
  3.03         TIME AND FORM OF SALARY DEFERRAL CONTRIBUTIONS........................................15
  3.04         LIMITATIONS ON ACTUAL DEFERRAL PERCENTAGE.............................................15
  3.05         RESTRICTIONS AND ADJUSTMENTS..........................................................17
  3.06         ROLLOVER CONTRIBUTIONS................................................................18

ARTICLE IV.    COMPANY CONTRIBUTIONS.................................................................19

  4.01         COMPANY CONTRIBUTIONS.................................................................19
  4.02         TIME AND FORM OF COMPANY CONTRIBUTIONS................................................19
  4.03         SPECIAL RULES FOR MATCHING CONTRIBUTIONS..............................................20
  4.04         RETURN OF CONTRIBUTIONS TO THE COMPANY................................................22
  4.05         MAXIMUM CONTRIBUTIONS.................................................................22

ARTICLE V.     ALLOCATIONS...........................................................................22

  5.01         SUSPENSE ACCOUNTS.....................................................................22
  5.02         ALLOCATION OF CONTRIBUTIONS...........................................................23
  5.03         ALLOCATION OF NET INCOME OR LOSS......................................................23
  5.04         LIMITATION ON ALLOCATIONS.............................................................24

ARTICLE VI.    INVESTMENT OF CONTRIBUTIONS IN GENERAL................................................26

  6.01         INVESTMENT FUNDS......................................................................26
  6.02         INVESTMENT OF CONTRIBUTIONS...........................................................27
  6.03         VALUATION OF INVESTMENT FUNDS.........................................................27

ARTICLE VII.   EMPLOYEE STOCK OWNERSHIP; ACQUISITION LOANS...........................................28

  7.01         ESOP ASSETS...........................................................................28
  7.02         ACQUISITION LOANS.....................................................................28

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<S>           <C>                                                                                  <C>
  7.03         PURCHASE OF STOCK.....................................................................29
  7.04         CUSTODY AND VOTING OF STOCK...........................................................30
  7.05         DIVIDENDS ON STOCK....................................................................30
  7.06         FORFEITURES OF STOCK..................................................................31
  7.07         STOCK SPLITS AND OTHER CAPITAL REORGANIZATIONS........................................31
  7.08         TENDER OF STOCK.......................................................................31
  7.09         SPECIAL RESTRICTIONS ON INSIDERS......................................................32
  7.10         OPTION TO REQUIRE EMPLOYER TO PURCHASE STOCK..........................................32
  7.11         NO OTHER RIGHTS TO PUT OR CALL STOCK..................................................33

ARTICLE VIII.  WITHDRAWALS AND LOANS.................................................................34

  8.01         IN-SERVICE WITHDRAWALS................................................................34
  8.02         HARDSHIP WITHDRAWALS..................................................................34
  8.03         LOANS.................................................................................35

ARTICLE IX.    VESTING...............................................................................38

  9.01         ACTIVE PARTICIPANTS ON AND AFTER JANUARY 1, 2002......................................38
  9.02         TERMINATED PARTICIPANTS...............................................................38
  9.03         FORFEITURES...........................................................................39

ARTICLE X.     BENEFITS AND DISTRIBUTIONS............................................................40

 10.01         NORMAL RETIREMENT BENEFIT.............................................................40
 10.02         DISABILITY BENEFIT....................................................................40
 10.03         BENEFIT ON TERMINATION OF EMPLOYMENT..................................................40
 10.04         DEATH BENEFIT.........................................................................40
 10.05         DISTRIBUTION OF BENEFITS TO A PARTICIPANT.............................................40
 10.06         DISTRIBUTION OF BENEFITS UPON DEATH...................................................43
 10.07         COMMENCEMENT OF BENEFITS..............................................................44
 10.08         PAYMENT UPON INCAPACITY...............................................................44
 10.09         PAYMENT UNDER QUALIFIED DOMESTIC RELATIONS ORDER......................................44
 10.10         DIRECT ROLLOVERS......................................................................44
 10.11         ANNUITIES.............................................................................46
 10.12         DISTRIBUTIONS TO QUALIFIED PARTICIPANTS...............................................47

ARTICLE XI.    ADMINISTRATION OF THE PLAN............................................................48

 11.01         PLAN ADMINISTRATOR....................................................................48
 11.02         POWERS AND DUTIES.....................................................................48
 11.03         DELEGATION OF MINISTERIAL DUTIES......................................................49
 11.04         INVESTMENT MANAGER....................................................................49
 11.05         BENEFIT CLAIM PROCEDURE...............................................................50
 11.06         CONCLUSIVENESS OF RECORDS.............................................................51
 11.07         CONCLUSIVENESS OF ACTIONS.............................................................51

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<S>           <C>                                                                                  <C>
ARTICLE XII.   ADMINISTRATION OF THE FUND............................................................51

 12.01         PAYMENT OF EXPENSES...................................................................51
 12.02         TRUST FUND PROPERTY...................................................................52
 12.03         DISBURSEMENTS AND DISTRIBUTIONS.......................................................52
 12.04         TRUST ACCOUNTING......................................................................52

ARTICLE XIII.  TRUSTEES..............................................................................52

 13.01         APPOINTMENT AND SUCCESSION............................................................53
 13.02         RESIGNATION AND REMOVAL...............................................................53
 13.03         TRUSTEE POWERS........................................................................53

ARTICLE XIV.   AMENDMENT AND TERMINATION.............................................................53

 14.01         AMENDMENTS............................................................................53
 14.02         DISCONTINUANCE OF CONTRIBUTIONS.......................................................54
 14.03         MERGER, CONSOLIDATION OR TRANSFER OF ASSETS...........................................55
 14.04         MANNER OF AMENDMENT OR TERMINATION....................................................55

ARTICLE XV.    PARTICIPATING EMPLOYERS...............................................................55

 15.01         ADOPTION BY PARTICIPATING EMPLOYERS...................................................55
 15.02         SINGLE PLAN...........................................................................55

ARTICLE XVI.   PREDECESSOR PLANS AND ACCOUNTS........................................................56

 16.01         ARTICLE CONTROLS......................................................................56
 16.02         PREDECESSOR PLANS.....................................................................56
 16.03         MERGER PROVISIONS.....................................................................56
 16.04         PREDECESSOR PLAN ACCOUNTS.............................................................56
 16.05         DISTRIBUTION OF PREDECESSOR PLAN ACCOUNTS.............................................56
 16.06         PREDECESSOR PLAN ACCOUNTS SUBJECT TO SURVIVOR ANNUITY REQUIREMENTS....................57
 16.07         PREDECESSOR PLAN ESOP ACCOUNTS........................................................58

ARTICLE XVII.  TOP HEAVY PROVISIONS..................................................................58

 17.01         ARTICLE CONTROLS......................................................................58
 17.02         DEFINITIONS...........................................................................58
 17.03         TOP-HEAVY STATUS......................................................................59
 17.04         TERMINATION OF TOP-HEAVY STATUS.......................................................60
 17.05         EFFECT OF ARTICLE.....................................................................61

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<S>           <C>                                                                                  <C>
ARTICLE XVIII. MISCELLANEOUS.........................................................................61

 18.01         NOT CONTRACT OF EMPLOYMENT............................................................61
 18.02         NON-ASSIGNABILITY OF THE RIGHT TO RECEIVE BENEFITS....................................61
 18.03         PAYMENTS SOLELY FROM TRUST FUND.......................................................62
 18.04         NO BENEFITS TO THE COMPANY............................................................62
 18.05         SEVERABILITY..........................................................................62
 18.06         GOVERNING LAW; INTERPRETATION.........................................................62
 18.07         HEADINGS OF SECTIONS..................................................................62
 18.08         EFFECT OF MISTAKE.....................................................................62
 18.09         BONDING...............................................................................62
 18.10         USERRA REQUIREMENTS...................................................................63
 18.11         EPCRS, ETC. ADJUSTMENTS...............................................................63
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                        BANKNORTH GROUP, INC. 401(K) PLAN

     The Banknorth Group, Inc. 401(k) Plan (the "Plan") set forth herein is
effective generally January 1, 2001 ("Effective Date"). The Plan is a
continuation of the Banknorth Group, Inc. Thrift Incentive Plan, which was last
amended and restated effective generally January 1, 1996, and the Banknorth
Group, Inc. Profit Sharing and Employee Stock Ownership Plan, which was last
amended and restated effective generally January 1, 1997, and reflects the
merger of such plans as of the Effective Date. The provisions of the Plan shall
apply to eligible employees who terminate employment with Banknorth Group, Inc.
and all affiliated companies on or after January 1, 2001, except as is otherwise
indicated herein or may be required in accordance with applicable law.

     The Plan is intended to qualify as a profit-sharing plan with a cash or
deferred arrangement under Section 401(a) and (k) of the Internal Revenue Code
of 1986, as amended ("Code"), as a stock bonus plan under Section 401(a) of the
Code, and as an employee stock ownership plan under Section 4975(e)(7) of the
Code. The related Trust is intended to be exempt from federal income tax under
Section 501(a) of the Code. The Plan and Trust are further intended to comply
with all applicable requirements of the Employee Retirement Income Security Act
of 1974, as amended ("ERISA"). The Plan and trust agreement shall be construed,
wherever possible, so as to maintain such qualified and tax-exempt status and to
satisfy the applicable requirements of ERISA.

ARTICLE I. DEFINITIONS

     When the following words and phrases appear in the Plan, they shall have
the respective meanings set forth below, unless their context clearly indicates
to the contrary. Additional words and phrases are defined in the text of the
Plan. Words in the masculine gender shall be construed to include the feminine
gender, and words in the singular shall be construed to included the plural and
vice versa, unless the context clearly indicates otherwise.

     1.01 "Acquisition Loan" means a loan (or other extension of credit) made to
the Trustee for the purpose of financing the acquisition of Stock or repaying a
prior Acquisition Loan pursuant to Article VII, which loan may constitute an
extension of credit to the Trustee and the Trust Fund from a Party in Interest
and is intended to fall within the scope of the exemptions set forth in ERISA
Section 408(b)(3) and Code Section 4975(d)(3).

     1.02 "Actual Deferral Percentage" means, for any Plan Year, the average of
the ratios, calculated separately for each Participant in a specified group of
Participants, of (a) the amount of the Salary Deferrals actually paid to the
Trust on behalf of each such Participant for such Plan Year, over (b) the total
Section 415 Compensation paid to each such Participant during such Plan Year.
Prior to computing such average, the ratio of each Participant shall be
expressed as a percentage that is rounded to the nearest one hundredth of one
percent (0.01%). If a Participant does not make any Salary Deferrals for the
Plan Year, such Participant's ratio for such year shall be zero. At the election
of the Plan Administrator, Matching Contributions and Qualified Nonelective
Contributions may be treated as Salary Deferrals in accordance with the
provisions of Treas. Reg. Sections 1.401(k)-l(b)(5), which is incorporated by
reference herein. Notwithstanding the foregoing, any Salary Deferrals or
Qualified Nonelective Contributions that are taken into

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account in determining the Average Contribution Percentage for a Plan Year shall
be disregarded in determining the Actual Deferral Percentage for such year.

     1.03 "Affiliate" means an organization that is a member of a "controlled
group" (as defined in Section 414(b) or (c) of the Code) or an "affiliated
service group" (as defined in Section 414(m) of the Code) with Banknorth Group,
Inc., and any other entity required to be aggregated with Banknorth Group, Inc.
under regulations promulgated under Section 414(o) of the Code; provided,
however, that for purposes of Section 5.04, the definitions prescribed by
Section 414(b) and (c) of the Code are to be modified as provided by Code
Section 415(h).

     1.04 "Aggregate Account" means the account established and maintained by
the Trustee for each Participant that reflects the Participant's share of the
Trust Fund and separately reflects the balance of the following sub-accounts:
Salary Deferral Contribution Account, Matching Contribution Account, ESOP
Account, Discretionary Contribution Account, Rollover Contribution Account, and
Predecessor Plan Account(s) (to the extent not included in the foregoing).

     1.05 "Annuity Starting Date" means the first day of the first period for
which an amount is paid as a benefit under the Plan.

     1.06 "Average Contribution Percentage" means, for any Plan Year, the
average of the ratios, calculated separately for each Participant in a specified
group of Participants, of (a) the amount of the Matching Contributions paid on
behalf of each such Participant for such Plan Year, over (b) the total Section
415 Compensation paid to each such Participant during such Plan Year. Prior to
computing such average, the ratio of each Participant shall be expressed as a
percentage that is rounded to the nearest one hundredth of one percent (0.01%).
At the election of the Plan Administrator, Salary Deferrals and Discretionary
Contributions shall be treated as Matching Contributions in accordance with the
provisions of Treas. Reg. sections 1.401(m)-l(b)(5), which is incorporated by
reference herein. Notwithstanding the foregoing, any Matching Contributions or
Discretionary Contributions that are taken into account in determining the
Actual Deferral Percentage for a Plan Year shall be disregarded in determining
the Average Contribution Percentage for such year.

     1.07 "Beneficiary" means the person, trust, estate or other entity last
designated by a Participant to receive benefits which may be payable on account
of the death of the Participant; provided, however, that in the case of a
married Participant, the Participant's spouse shall be the Beneficiary unless
the Participant's spouse waives his or her rights as the Beneficiary, the
Participant is legally separated or has been abandoned and the Participant has a
court order to such effect, or the Participant's current spouse cannot be
located. A Participant may at any time during his or her lifetime change or
revoke a Beneficiary designation, provided that such action may not be taken
without subsequent spousal consent unless the original consent expressly permits
designation by the Participant without any requirement of further spousal
consent. Any consent by the Participant's spouse to waive rights to death
benefits must be in writing, must acknowledge the effect of such waiver and must
be witnessed by a notary public. The Participant's spouse may not revoke consent
to a specific waiver of a joint and survivor form of benefit.

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     1.08 "Board" means the Board of Directors of Banknorth Group, Inc. (or,
before May 10, 2000, Peoples Heritage Financial Group, Inc.), as constituted
from time to time.

     1.09 "Break in Service" means a vesting computation period beginning on or
after January 1, 1976, during which an Employee is credited with no more than
five hundred (500) Hours of Service.

     (a) In determining whether an Employee has completed at least five hundred
(500) Hours of Service during a vesting computation period, an individual who is
absent from work for maternity or paternity reasons shall receive credit for the
Hours of Service which would otherwise have been credited to such individual but
for such absence, or in any case in which such hours cannot be determined, eight
(8) Hours of Service per day of such absence. An absence from work for maternity
or paternity reasons shall mean an absence by reason of the individual's
pregnancy, the birth of the individual's child, a child's placement with the
individual in connection with the individual's adoption of such child, or the
individual's caring for such child for a period beginning immediately following
such birth or placement. Hours of Service hereunder shall be credited to the
computation period in which the absence begins if such crediting is necessary to
prevent a Break in Service in that period, or in all other cases, in the
following computation period.

     (b) Notwithstanding anything to the contrary in this Section, employment
with the Company and its Affiliates shall not be deemed to have been interrupted
by a Break in Service solely by reason of a leave of absence granted by the
Company or an Affiliate on a uniform and nondiscriminatory basis for sickness,
military service, accident or other cause, provided that an Employee granted a
leave of absence who fails to return to active employment at or before the
expiration of such leave (other than on account of death, disability or
retirement) shall, for purposes of this Plan, be deemed to have terminated
employment as of the beginning of such Employee's leave of absence.

     1.10 "Calendar Quarter" means, for any Plan Year, the three-month period
beginning on January 1, April 1, July 1, and October 1.

     1.11 "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

     1.12 "Company" means Banknorth Group, Inc., known before May 10, 2000, as
Peoples Heritage Financial Group, Inc.

     1.13 "Company Contributions" means Fixed Contributions, Discretionary
Contributions and Qualified Nonelective Contributions.

     1.14 "Direct Rollover" means the direct transfer of all or a portion of an
Eligible Rollover Distribution from the Plan, as elected by an eligible
distributee, to an eligible retirement plan in accordance with the requirements
under Section 401(a)(31) of the Code and Section 10.10.

     1.15 "Disability" means that an injury or illness prevents a Participant
from engaging in any substantial gainful activity by reason of an illness or
injury that can be expected to result in death, or which has lasted (or can be
expected to last) a continuous period of not less than

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twelve (12) months. Notwithstanding the foregoing, a Participant shall be deemed
disabled upon becoming eligible to receive disability benefits under the terms
of a long-term disability plan maintained by Company or an Affiliate.

     1.16 "Discretionary Contributions" means contributions made to the Plan by
the Company under Section 4.01(b).

     1.17 "Discretionary Contribution Account" means a bookkeeping entry
maintained by the Plan Administrator for each Participant that records the
Discretionary Contributions allocated to the Participant under Article IV,
adjustments for allocations of income or loss, distributions and all other
information affecting the value of such account.

     1.18 "Earnings" means the total compensation paid by the Company to the
Employee for services rendered while a Participant that constitutes wages as
defined in Section 3401(a) of the Code and all other payments made by the
Company to an Employee for services rendered while a Participant for which the
Company is required to furnish the Employee a written statement under Sections
6041(d), 6051(a)(3) and 6052 of the Code without regard to any rules under
Section 3401(a) of the Code that limit the remuneration included in wages based
on the nature or location of the employment or service performed.
Notwithstanding the forgoing to the contrary, Earnings shall include (a)
effective January 1, 1998, elective contributions made by the Company on behalf
of an Employee that are not includable in income under Section 125, Section
402(e)(3), or Section 402(h) of the Code; and (b) effective January 1, 2001,
elective amounts that are not includable in the gross income of the Employee by
reason of Code Section 132(f). In all cases, Earnings shall be reduced by
reimbursements or other expense allowances, fringe benefits (cash and non-cash),
moving expenses, deferred compensation and welfare benefits.

     Notwithstanding the foregoing to the contrary, effective January 1, 1994,
the annual Earnings of any Employee in excess of one hundred fifty thousand
dollars ($150,000) (or such higher amount as may be prescribed by statute or
applicable guidance) shall not be taken into account under the Plan. In the
event Earnings are determined based on a period of time which contains fewer
than twelve (12) calendar months, the annual Earnings limit shall be an amount
equal to the annual Earnings limit for the calendar year in which the period
begins multiplied by a fraction, the numerator of which is the number of full
calendar months and the denominator of which is twelve (12).

     For purposes of the annual Earnings limit for any Plan Year beginning
before January 1, 1997, any Earnings paid to an Employee who is the spouse or a
lineal descendant (who has not attained age nineteen (19) by the close of the
Plan Year) of an Employee who is a 5-percent owner (within the meaning of Code
Section 416(i)(1)) or one of the ten (10) highly compensated employees (within
the meaning of Code Section 414(q) as in effect for such year) paid the highest
Section 415 Compensation for the Plan Year shall be treated as paid to or on
behalf of such 5-percent owner or highly compensated employee. If the annual
Earnings limit is exceeded as a result of the application of the preceding
sentence, then the limit shall be prorated among the affected Employees'
Earnings as determined prior to the application of the annual Earnings limit.

     1.19 "Effective Date" means January 1, 2001, as to this amendment and
restatement of the Plan, except as otherwise specifically provided herein or
required by applicable law.

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     1.20 "Eligible Employee" means each Employee of a Participating Employer.

     1.21 "Eligible Rollover Distribution" means any distribution to a
Participant or Beneficiary from the Plan in the amount of two hundred dollars
($200) or more, or any distribution to an Employee of all or any portion of his
or her benefit from another qualified trust, but excluding the following:

     (a) a distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for a specified period of ten
(10) years or longer, for the distributee's life expectancy (or the joint life
expectancy of the distributee and his or her designated Beneficiary), or for the
distributee's life (or the joint lives of the distributee and his or her
designated Beneficiary);

     (b) a required distribution pursuant to Section 401(a)(9) of the Code;

     (c) a return of Salary Deferrals pursuant to Section 5.04;

     (d) a corrective distribution pursuant to Section 3.02, 3.04, or 4.03;

     (e) the portion of any distribution that is not includable in gross income
(determined without regard to the exclusion for net unrealized appreciation
described in Section 402(e)(4) of the Code);

     (f) a loan pursuant to Section 8.03 that is treated as a deemed
distribution pursuant to Section 72(p) of the Code;

     (g) effective for distributions made after December 31, 1998, a hardship
withdrawal pursuant to Section 8.02;

     (h) any similar item designated by the Commissioner of Internal Revenue as
set forth in a Treasury regulation, revenue ruling, notice, or other document of
general applicability.

     1.22 "Employee" means any individual regularly employed, whether on a
full-time or part-time basis, by the Company or any Affiliate, excluding the
following: (a) any person serving solely as a director of the Company or any
Affiliate, (b) any person who is an independent contractor for whom neither the
Company nor any Affiliate is required to make FICA contributions, and (c) any
person who is a "leased employee" of the Company or an Affiliate within the
meaning of Section 414(n)(2) of the Code. The determination whether an
individual is a director or independent contractor under clauses (a) and (b)
shall be based upon the classification by the Employer (without regard to the
classification of such individual by a third party).

     1.23 "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

     1.24 "ESOP Account" means the bookkeeping entry maintained by the Plan
Administrator for each Participant that records the Participant's interest in
the Trust Fund attributable to the Separate ESOP for Plan Years ending before
the Effective Date and to

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allocations of Stock or cash on and after the Effective Date resulting from
payments of principal and interest on any Acquisition Loan under Article VII,
plus adjustments for allocations of income or loss, distributions and all other
information affecting the value of such account. Each Participant's ESOP Account
shall be divided into sub-accounts reflecting the part of the ESOP Account
consisting of Stock at any date of determination and the part of the ESOP
Account consisting of investments other than Stock at any date of determination.

     1.25 "Excess Aggregate Contributions" means, for any Plan Year, the excess
of (a) the aggregate amount of contributions actually taken into account in
computing the Average Contribution Percentage of the group of Participants who
are Highly Compensated Employees, over (b) the maximum amount of such
contributions permitted under Section 4.03.

     1.26 "Excess Salary Deferrals" means, for any Plan Year, the excess of (a)
the aggregate amount of Salary Deferrals actually taken into account in
computing the Actual Deferral Percentage of the group of Participants who are
Highly Compensated Employees, over (b) the maximum amount of such deferrals
permitted under Section 3.04.

     1.27 "Fair Market Value" means, with respect to shares of Stock, the sale
price at the time in question of such shares on the principal United States
securities exchange registered under the Securities Exchange of 1934, as
amended, on which such Stock is listed or, if such Stock is not listed on any
such exchange, the sale price with respect to a share of such Stock on the
NASDAQ National Market System or any system then in use; or if no quotations are
available, the Fair Market Value at the time in question of a share of Stock
shall be determined by independent appraisal in compliance with applicable
provisions of ERISA.

     1.28 "Financed Shares" means shares of Stock acquired by the Trust Fund
with the proceeds of an Acquisition Loan, whether or not pledged as collateral
to secure the repayment of that Acquisition Loan.

     1.29 "Fixed Contributions" means contributions made to the Plan by the
Company under Section 4.01(a).

     1.30 "Highly Compensated Employee" means effective January 1, 1997 (and, on
and after such date, for purposes of determining whether an employee was a
Highly Compensated Employee for the Plan Year beginning January 1, 1996), any
employee of the Company or any Affiliate who (a) at any time during the Plan
Year or the preceding Plan Year is a 5-percent owner (as defined in Section
416(i)(1) of the Code), or (b) for the preceding Plan Year received Section 415
Compensation from the Company or any Affiliate in excess of eighty thousand
dollars ($80,000) (or such higher amount as the Secretary of the Treasury may
prescribe) and, if the Company elects, was in the group consisting of the top
twenty percent (20%) of the employees of the Company and all Affiliates when
ranked on the basis of such compensation paid during the Plan Year. A former
employee of the Company or an Affiliate shall be treated as a Highly Compensated
Employee if that employee was a Highly Compensated Employee when he or she
separated from service or at any time after attaining age fifty-five (55). The
determination of who is a Highly Compensated Employee, including the number and
identity of employees in the group consisting of the top twenty percent (20%) of
employees described

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above, shall be made in accordance with Section 414(q) of the Code and the
regulations thereunder.

     1.31 "Hour of Service" means:

     (a) each hour during which an Employee is directly or indirectly paid, or
entitled to payment, for the performance of duties,

     (b) each hour during which an Employee is directly or indirectly paid, or
entitled to payment, on account of a period of time during which no duties are
performed due to vacation, holiday, illness, incapacity (including disability,
pregnancy and any other similar condition which prevents an employee from
performing duties), layoff, jury duty, military duty or leave of absence, and

     (c) each hour for which back pay, irrespective of mitigation of damages, is
either awarded or agreed to by the Company or an Affiliate and for which credit
is not otherwise counted.

     Notwithstanding the foregoing, no Hours of Service shall be recognized for
any payment made due to severance of employment or in compliance with worker's
compensation, unemployment compensation or disability insurance laws, or any
payments made solely to reimburse an Employee for medical or medically-related
expenses.

     (d) In the case of a payment described in Paragraph (b) above, during which
no duties are performed, the number of Hours of Service counted shall be
determined as follows:

          (i) If the payment for a period in which no duties are performed is
     calculated on the basis of a unit of time, the number of Hours of Service
     counted for such period shall be the number of hours regularly scheduled
     for performance of duties during such period.

          (ii) If the payment for a period in which no duties are performed is
     not calculated on the basis of a unit of time, the number of hours counted
     for such period shall be determined by dividing the total of such payments
     by the Employee's most recent hourly rate of compensation as determined
     under the provisions of Department of Labor Regulation Section
     2530.200b-2(b)(2)(ii), but shall not exceed the number of hours scheduled
     for performance of duties during such period.

     (e) Hours of service shall be credited to the computation period determined
under the provisions of paragraph (c) of Department of Labor Regulation Section
2530.200b-2, which is hereby incorporated by reference into this Plan.

     (f) Solely for determining whether a Break in Service has occurred, an
Employee who is absent from employment for maternity or paternity reasons shall
receive credit for the Hours of Service which would otherwise have been credited
but for such absence, or in any case in which such hours cannot be determined,
eight (8) Hours of Service per day of such absence; provided, however, that the
credit given under this Paragraph (d) for any such reason shall not exceed five
hundred one (501) hours. For purposes of this Paragraph (f), absence for
maternity

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or paternity reasons hereunder shall mean the Employee's absence on account of
pregnancy of the Employee, the birth of a child of the Employee, the placement
of a child with the Employee in connection with the adoption of such child by
such Employee, or for purposes of caring for such child for a period immediately
following such birth or placement. The Hours of Service to be credited under
this Paragraph (d) shall be credited in the Plan Year in which the absence
begins if the crediting is necessary to prevent a Break in Service in that
period, or in all other cases, in the following Plan Year.

     (g) Nothing in this Plan shall be construed to deny any employee credit for
an hour of service if such credit is otherwise required by federal law.

     1.32 "Insider" means a Participant who is subject to the provisions of
Section 16 of the Securities and Exchange Act of 1934 with respect to
transactions involving shares of Stock.

     1.33 "Matching Contributions" means Fixed Contributions made to the Plan by
the Company under Section 4.01(a) for the purpose of matching Salary Deferrals
in cash or stock at the rate specified in such subsection.

     1.34 "Matching Contribution Account" means a bookkeeping entry maintained
by the Plan Administrator for each Participant that records the Matching
Contributions allocated to the Participant under Article V, adjustments for
allocations of income or loss, distributions and all other information affecting
the value of such account.

     1.35 "Normal Retirement Age" means the first day of the month coincident
with or next following the date the Participant attains age sixty-five (65).

     1.36 "Participant" means any Eligible Employee who has met the requirements
of Article II and is participating in the Plan, or who is a former Eligible
Employee who has not received a distribution of his or her entire Vested
Interest. Notwithstanding the above, an Eligible Employee who would be a
Participant but for the failure to make Salary Deferrals shall be treated as a
Participant for purposes of Sections 3.04 and 4.03.

     1.37 "Participating Employer" means the Company and any Affiliate that
adopts this Plan in accordance with the provisions of Article XV.

     1.38 "Participation Agreement" means an election by the Participant that
(a) authorizes the Company to withhold a portion of such Participant's current
Earnings as a Salary Deferral under Section 3.01, (b) specifies the investment
funds under Article V in which the Participant's allocable share of the Trust
Fund shall be invested, and (c) designates the Beneficiary or Beneficiaries to
receive the death benefits provided under Article X, or any permitted
modification thereof. A Participation Agreement shall be made by such written,
electronic or telephonic means and at such time as the Plan Administrator shall
specify.

     1.39 "Plan" means the Banknorth Group, Inc. 401(k) Plan, as set forth
herein and as it may be amended from time to time.

     1.40 "Plan Administrator" means a committee of not less than four (4)
individuals appointed by the Board.

                                       8
<PAGE>

     1.41 "Plan Affiliation Date" means the date on which a Predecessor Plan was
merged into or consolidated with the Plan. The Plan Affiliation Date for each
Predecessor Plan shall be separately set forth in Appendix A attached to the
Plan and made a part hereof.

     1.42 "Plan Year" means the calendar year.

     1.43 "Predecessor Plan" means each plan listed in Appendix A attached to
the Plan and made a part hereof. Any defined contribution plan, maintained by a
corporation or other organization that becomes a Participating Employer after
the Effective Date, or of which some or all of the business and assets are
acquired by, merged with or consolidated with the Company or an Affiliate after
the Effective Date, shall be a Predecessor Plan if the Board of Directors
authorizes such plan to be merged with this Plan.

     1.44 "Predecessor Plan Account" means the aggregate value of a Predecessor
Plan Participant's interest in his or her account or accounts under a
Predecessor Plan, determined as of the Plan Affiliation Date.

     1.45 "Predecessor Plan Participant" means an individual who was a
participant in a Predecessor Plan on the day immediately preceding such plan's
Plan Affiliation Date.

     1.46 "Qualified Domestic Relations Order" means any judgment, decree, or
order (including approval of a property settlement agreement) relating to the
provision of child support, alimony payment, or marital property rights to a
spouse, former spouse, child, or other dependent of a Participant which (a) is
made pursuant to a State domestic relations law (including a community property
law), (b) creates or recognizes the existence of an alternate payee's right to,
or assigns to an alternate payee the right to, receive all or a portion of the
benefits or funds payable with respect to a Participant under the Plan, and (c)
satisfies the requirements of Section 414(p)(2) and (3) of the Code.

     1.47 "Qualified Nonelective Contributions" means a contribution, other than
a Salary Deferral Contribution, Fixed Contribution or Discretionary
Contribution, made to the Plan under Section 4.01(c) which (a) is treated as a
Salary Deferral Contribution, (b) is nonforfeitable when made, (c) is
distributable only in accordance with the provisions of Article X that apply to
Salary Deferral Contributions, and (d) satisfies the requirements of Section
401(a)(4) of the Code.

     1.48 "Rollover Contribution Account" means a bookkeeping entry maintained
by the Plan Administrator for each Participant who makes a rollover contribution
in accordance with Section 3.06, in which shall be recorded the amount of his or
her rollover contributions, adjustments for allocations of income or loss,
distributions and all other information affecting the value of such account.

     1.49 "Salary Deferrals" means amounts that a Participant elects to defer by
payroll withholding from current Earnings under a Participation Agreement, which
amounts are contributed to the Plan by the Company and allocated to such
Participant's Salary Deferral Contribution Account as described in Section 3.01.

     1.50 "Salary Deferral Contribution Account" means a bookkeeping entry
maintained by the Plan Administrator for each Participant who has elected to
make Salary Deferrals in

                                       9
<PAGE>

which shall be recorded the Salary Deferrals and Qualified Nonelective
Contributions to be allocated on the Participant's behalf under Articles III and
IV, adjustments for allocations of income or loss, distributions and all other
information affecting the value of such account.

     1.51 "Section 415 Compensation" means, with respect to a Plan Year, the
total compensation paid by the Company to an Employee for services rendered
while an Employee that constitutes wages as defined in Section 3401(a) of the
Code and all other payments by the Company to an Employee for services rendered
while an Employee for which the Company is required to furnish the Employee a
written statement under Sections 6041(d), 6051(a)(3) and 6052 of the Code
without regard to any rules under Section 3401(a) of the Code that limit the
remuneration included in wages based on the nature or location of the employment
or services performed.

     (a) For Limitation Years beginning after December 31, 1991, for purposes of
applying the limitations of Section 5.04, Section 415 Compensation for a
Limitation Year shall mean the compensation actually paid or includable in gross
income during such Limitation Year. Notwithstanding the preceding sentence,
Section 415 Compensation with respect to a Participant who is permanently and
totally disabled (within the meaning of Section 22(e)(3) of the Code) shall mean
the compensation such Participant would have received for the Limitation Year if
he or she had been paid at the rate of earnings paid immediately before becoming
permanently and totally disabled; provided such imputed earnings may be taken
into account only if the Participant is not a Highly Compensated Employee and
contributions made on behalf of such Participant are not forfeitable when made.

     (b) For purposes of applying the limitations of Section 5.04, computing the
Actual Deferral Percentage and/or computing the Average Contribution Percentage:

          (i) For Limitation Years beginning after December 31, 1997, Section
     415 Compensation for a year shall also include any elective deferrals
     within the meaning of Section 402(g)(3) of the Code and any amount that is
     contributed or deferred by the Employer or an Affiliate at the election of
     an Employee and which is not includable in the gross income of the Employee
     by reason of Section 125 of the Code, unless the Plan Administrator elects
     not to include such amounts; and

          (ii) For Limitation Years beginning after December 31, 2000, Section
     415 Compensation for a year shall also include any elective amounts that
     are not includable in gross income of the Employee by reason of Code
     Section 132(f).

     1.52 "Separate ESOP" means the Banknorth Group, Inc. Profit Sharing and
Employee Stock Ownership Plan as in effect on December 31, 2000.

     1.53 "Stock" means common stock, $.01 par value per share, of Banknorth
Group, Inc. (or, before May 10, 2000, Peoples Heritage Financial Group, Inc.),
that is readily tradable on an established securities market or that otherwise
constitutes "employer securities" within the meaning of Section 409(l) of the
Code and "qualifying employer securities" within the meaning of Section
4975(e)(8) of the Code and Section 407(d)(5) of ERISA.

                                       10
<PAGE>

     1.54 "Thrift Incentive Plan" means the Banknorth Group, Inc. Thrift
Incentive Plan, as in effect on December 31, 2000.

     1.55 "Trust" means the legal entity created under the Trust Agreement to
hold the Trust Fund.

     1.56 "Trust Agreement" means the separate agreement entered into by
Banknorth Group, Inc. and the Trustee for the purpose of holding the Trust Fund.

     1.57 "Trust Fund" means all monies, securities and assets held by the
Trustee for the benefit of Participants and Beneficiaries.

     1.58 "Trustee" means the trustee appointed by the Board under the Trust
Agreement.

     1.59 "Valuation Date" means, for any Plan Year, the last day of each
Calendar Quarter and such additional dates as the Plan Administrator may
designate.

     1.60 "Vested Interest" means the fair market value of the Participant's
nonforfeitable interest in his or her Aggregate Account determined as of the
next following Valuation Date.

     1.61 "Year of Service" means a computation period of twelve (12)
consecutive months during which an Employee is credited with at least one
thousand (1,000) Hours of Service.

     (a) For participation purposes, the initial computation period shall begin
with the date that the Employee first performs one Hour of Service upon
commencing employment or re-employment, as the case may be, with the Company or
an Affiliate. Upon completion of the initial computation period, the computation
period for participation shall shift to the Plan Year and shall include the Plan
Year in which the initial computation period is completed.

     (b) For vesting purposes, the computation period shall begin with the date
that the Employee first performs one Hour of Service upon commencing employment,
and each anniversary thereafter; provided, however, that if the Employee
terminates employment and is re-employed by the Company or an Affiliate, the
computation period for future service shall begin with the date that the
Employee first performs one Hour of Service upon re-commencing employment, and
each anniversary thereafter. Notwithstanding the foregoing to the contrary, in
the case of a Employee who commences participation in the Plan on or after
January 1, 1998, the computation period for vesting purposes shall be the Plan
Year.

     (c) All Years of Service prior to and following the Effective Date, with
the Company and any Affiliate, shall be recognized for participation and vesting
purposes under the Plan. In the case of any Participant who was a participant in
any Predecessor Plan, his or her years of service credited under the Predecessor
Plan shall be credited for participation and vesting purposes under this Plan.
In addition, in the case of any other Participant who was an employee of any of
the following banks or other organizations (including any affiliated
organizations the stock or assets of which were acquired by or merged or
consolidated with the Company) on the acquisition date identified below, years
of service with such bank or other organization shall be credited for
participation and vesting purposes under this Plan as of the effective date
stated below, provided that no year of service shall be counted more than once
under this Section:

                                       11
<PAGE>

<TABLE>
<CAPTION>
ORGANIZATION                          ACQUISITION DATE         EFFECTIVE DATE
------------                          ----------------         --------------
<S>                                  <C>                      <C>
Mid Maine Savings Bank/Hampton        July 31, 1994            August 1, 1994
Co-operative Savings Bank

North Conway Bank                     July 1, 1995             July 1, 1995

Bank of New Hampshire                 July 1, 1996             July 1, 1996 (except for purposes
                                                               of the allocation made under the
                                                               Separate ESOP for the plan year
                                                               ending December 31, 1996)

Family Bank, FSB                      December 6, 1996         January 1, 1997

Atlantic Bank                         October 1, 1997          October 1, 1997 (for purposes of
                                                               the Thrift Incentive Plan);
                                                               January 1, 1998 (for purposes of
                                                               the Separate ESOP)

CFX Corporation                       April 10, 1998           May 22, 1998 (for employees of
                                                               Safety Fund National Bank making
                                                               deferrals to the CFX 401(k) plan
                                                               on such date); July 1, 1998 (all
                                                               other CFX employees)

Concord Savings Bank                  April 10, 1998           July 1, 1998

Springfield Institution for Savings   January 1, 1999          September 30, 1999 (for purposes
                                                               of the Separate ESOP); December
                                                               31, 1999 (for purposes of the
                                                               Thrift Incentive Plan)

Pre-Merger Banknorth Group, Inc.      May 10, 2000             October 1, 2000

Morse, Payson & Noyes                 October 10, 1997         Later of May 1, 2001 and
                                                               commencement of employment for a
                                                               Participating Employer

Andover Savings Bank                  October 31, 2001         January 1, 2002

MetroWest Bank                        October 31, 2001         January 1, 2002
</TABLE>

     (d) For any other Eligible Employee who was an employee of any corporation
or other organization that becomes a Participating Employer after the Effective
Date, or some or all of the business and assets of which are acquired by or
merged or consolidated with the Participating Employer after such date, Years of
Service for purposes of eligibility for participation and vesting shall include
all years of service with such corporation or other organization prior to the
time it became a Participating Employer, or prior to the effective date of the
acquisition of its business and assets by or its merger or consolidation with
the Participating Employer, to the same extent as if employees of such
corporation or other organization had been employed by the Participating
Employer instead of by such corporation or other organization, if the Board of
Directors shall so provide by resolution or otherwise.

                                       12
<PAGE>

ARTICLE II. PARTICIPATION

     2.01 ELIGIBILITY. Each participant in the Thrift Incentive Plan or the
Separate ESOP immediately prior to the Effective Date who is an Eligible
Employee on the Effective Date shall be an active Participant in this Plan as of
the Effective Date. In the case of any other Eligible Employee on or after the
Effective Date:

     (a) SALARY DEFERRAL CONTRIBUTIONS. Effective October 1, 2000, each Eligible
Employee may commence participation with respect to Salary Reduction
Contributions on the first day of the month coincident with or next following
his or her completion of one month of service (measured from the date on which
he or she first performs an Hour of Service to the corresponding date in the
following month) ("initial entry date"), provided that a timely Participation
Agreement has been filed with the Plan Administrator. If the Eligible Employee
does not commence participation on his or her initial entry date, then he or she
may commence participation on the first day of any month thereafter by filing a
timely Participation Agreement. For purposes of the Plan, a Participation
Agreement is timely if it is filed with the Plan Administrator not later than
the fifteenth (15th) day of the month immediately preceding the date
participation is to begin.

     NOTWITHSTANDING THE FOREGOING TO THE CONTRARY, EFFECTIVE JANUARY 1, 2002,
THE INITIAL ENTRY DATE OF AN ELIGIBLE EMPLOYEE WHO IS CLASSIFIED ON THE PAYROLL
RECORDS OF THE EMPLOYER AS A TEMPORARY EMPLOYEE SHALL BE THE FIRST DAY OF THE
MONTH COINCIDENT OR NEXT FOLLOWING HIS OR HER COMPLETION OF ONE YEAR OF
SERVICE.(1)

     (b) COMPANY CONTRIBUTIONS. Each Eligible Employee shall become a
Participant with respect to Company Contributions on the first day of the
Calendar Quarter coincident with or next following his or her completion of one
Year of Service.

     2.02 TERMINATION OF PARTICIPATION. A Participant who fails to qualify as an
Eligible Employee for any reason shall be ineligible thereafter to make Salary
Deferrals for any succeeding payroll periods or to share in the allocation of
any future Company Contributions. Such individual again shall become a
Participant as of the first day of the Calendar Quarter immediately following
the date on which he or she again becomes an Eligible Employee, provided that a
Participation Agreement has been filed with the Plan Administrator by the
fifteenth (15th) day of the month immediately preceding such Calendar Quarter.

     2.03 SPECIAL RULE FOR INSIDERS. Notwithstanding any other provision of this
Article II, an Insider may not recommence participation in the Plan for at least
six (6) months after he or she ceases to participate in the Plan for any
reason.(2)

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

(1) This provision will be included if you decide to go ahead with this rule
for temps.

(2) Do you want to retain this rule in the Plan, or simply leave all
decisions involving Insiders and the Act to the Committee, as set forth in
Section 7.09?

                                       13
<PAGE>

     2.04 SPECIAL PARTICIPATION RULE. Each Employee who was previously employed
by CFX Corporation or any of its subsidiaries (collectively, "CFX") immediately
prior to the date on which CFX was acquired by the Company and -

     (a) is both employed by any former CFX subsidiary except Safety Fund
National Bank on June 30, 1998, and a participant receiving elective deferrals
under the CFX Corporation 401(k) Plan ("CFX Plan") or the Concord Savings Bank
401(k) Plan on such date, then his or her deferral election in effect under the
applicable plan on such date shall constitute his or her initial Participation
Agreement under this Plan, provided that any terms of such deferral election
that are not consistent with the provisions of this Plan shall be of no effect
hereunder, and provided further that the Employee may file a new Participation
Agreement by June 15, 1998.

     (b) is both employed by Safety Fund National Bank on May 22, 1998, and a
participant receiving elective deferrals under the CFX Plan on such date, then
such Employee shall be eligible to participate in this Plan as of May 22, 1998,
and his or her deferral election in effect under the CFX Plan on such date shall
constitute his or her initial Participation Agreement under this Plan, provided
that any terms of such deferral election that are not consistent with the
provisions of this Plan shall be of no effect hereunder.

ARTICLE III. PARTICIPANT CONTRIBUTIONS

     3.01 SALARY DEFERRALS. A Participant may elect, subject to the right of the
Plan Administrator to establish uniform and nondiscriminatory rules and, from
time to time, to modify or change such rules governing the manner and methods by
which Salary Deferrals shall be made, to reduce his or her current Earnings by a
deferral percentage, which amount the Company shall then contribute to the Trust
for allocation to the Participant's Salary Deferral Contribution Account in
accordance with the following provisions:

     (a) A Participant may elect to defer between one percent (1%) and fifteen
percent (15%) of his or her Earnings, in increments of one percent (1%).

     (b) A Participant may direct the Plan Administrator to cease Salary
Deferrals as soon as practicable after written notice to such effect has been
delivered by such Participant to the Plan Administrator. If a Participant ceases
to make Salary Deferrals, such Participant shall not be entitled to again make
Salary Deferrals until the first payroll period of the following Calendar
Quarter.

     (c) A Participant may increase or decrease the amount of his or her Salary
Deferrals during the Plan Year. Changes in the deferral percentage shall be
effective as of the first day of any Calendar Quarter coincident with or next
following the end of the thirty-day period beginning on the date that the Plan
Administrator receives such change.

     (d) The Plan Administrator may reduce or discontinue, as necessary, future
Salary Deferrals to some or all of the Participants who are Highly Compensated
Employees for the Plan Year in order to maintain the qualified status of the
Plan or to avoid subjecting the Highly Compensated Employees to Federal income
tax currently with respect to such Salary Deferrals. The amount by which a
Participant's Salary Deferrals are reduced or discontinued shall be paid to such
Participant in cash.

                                       14
<PAGE>

     3.02 ANNUAL LIMITATION ON SALARY DEFERRALS.

     (a) Effective January 1, 1997, the Salary Deferrals that may be allocated
to a Participant's Salary Deferral Contribution Account for any calendar year
shall not exceed nine thousand five hundred dollars ($9,500), reduced by the
amount of any employer contributions for such year on behalf of the Participant
pursuant to an election to defer compensation under any qualified cash or
deferred arrangement within the meaning of Section 401(k) of the Code, any
simplified employee pension cash or deferred arrangement within the meaning of
Section 402(h)(1)(B) of the Code, any eligible deferred compensation plan under
Section 457 of the Code, any plan within the meaning of Section 501(c)(18) of
the Code and a salary reduction agreement for the purchase of an annuity
contract under Section 403(b) of the Code. For purposes of this Section, any
Salary Deferrals returned to a Participant pursuant to Section 5.04 shall be
disregarded. The dollar limitation of this Section shall be automatically
adjusted to reflect any cost of living or other adjustment made under Section
402(g)(5) of the Code.

     (b) In the event that the limitation of Paragraph (a) is exceeded with
respect to any Participant, not later than April 15 of the following calendar
year, the Plan Administrator shall distribute the excess deferral (plus any
income and minus any loss allocable thereto), provided that the Plan
Administrator has received the notice prescribed in Paragraph (c). Excess
deferrals shall be adjusted for any income or loss up to the date of
distribution. The income or loss allocable to excess deferrals shall be
determined in the same manner in which income or loss is allocated to the
Participants' Aggregate Accounts under Article V of the Plan.

     The amount of excess deferral with respect to a Participant for any
calendar year shall be reduced by the amount of any contributions previously
distributed to such Participant under this Article for the Plan Year beginning
with or within the calendar year.

     (c) It shall be the responsibility of the Participant to notify the Plan
Administrator of any excess deferral for a calendar year. Such notice shall be
in writing; shall specify the amount of the excess deferral; shall state that if
the excess deferral is not distributed, such excess shall be includable in the
Participant's gross income under Section 402(g) of the Code; and shall be
submitted to the Plan Administrator not later than March 1 of the following
calendar year. A Participant shall be deemed to have notified the Plan
Administrator of an excess deferral to the extent such Participant has an excess
deferral for a calendar year, taking into account only Salary Deferrals under
the Plan and any other plans of the Company or its Affiliates subject to Section
402(g) of the Code.

     3.03 TIME AND FORM OF SALARY DEFERRAL CONTRIBUTIONS. The Company shall
contribute Salary Deferrals to the Trust as of the earliest date on which said
contributions can reasonably be segregated from the general assets of the
Participant's Employer; provided in no event shall the date determined pursuant
to this provision occur later than the fifteenth (15th) business day of the
month following the month in which such contributions would otherwise have been
payable to the Participant in cash (the "maximum time period"), unless the
Employer extends the maximum time period as provided in 29 C.F.R. Section
2510.3-102(d).

     3.04 LIMITATIONS ON ACTUAL DEFERRAL PERCENTAGE. In the event a Participant
who is a Highly Compensated Employee ("Highly Compensated Participant")
participates in two or more

                                       15
<PAGE>

cash or deferred arrangements (under Section 401(k) of the Code) that have
different plan years, for purposes of this Section, all such arrangements ending
with or within the same calendar year shall be treated as a single arrangement.
For purposes of this Section, this Plan and any other Code Section 401(k) plan
maintained by the Company or any of its Affiliates shall be treated as a single
plan if such plans are treated as one plan for purposes of Section 401(a)(4) or
Section 410(b) of the Code or if a Highly Compensated Employee participates in
such other plan. Plans may be aggregated to satisfy Section 401(k) of the Code
only if such plans have the same Plan Year.

     For purposes of this Section and Code Sections 401(a)(4) and 410(b), the
Salary Deferral Contribution portion of the Plan benefiting Participants who
have satisfied the greatest permissible age and service conditions may, at the
election of the Plan Administrator, be disaggregated from the Salary Deferral
Contribution portion of the Plan benefiting Participants who have not satisfied
such conditions ("early participants"). Effective January 1, 1999, for any Plan
Year for which the Plan Administrator elects to disregard early participants in
determining whether the Salary Deferral Contribution portion of the Plan
satisfies Code Section 401(k)(3)(A)(i), the Plan Administrator may elect to
disregard non-Highly Compensated early participants for purposes of this
Section.

     (a) The Actual Deferral Percentage for Highly Compensated Participants for
any Plan Year commencing after December 31, 1996, shall not exceed the greater
of:

          (i) the Actual Deferral Percentage for all other Participants for the
     preceding Plan Year multiplied by 1.25; or

          (ii) the lesser of the Actual Deferral Percentage for all other
     Participants for the preceding Plan Year multiplied by two (2), or the
     Actual Deferral Percentage for such Participants for the preceding Plan
     Year plus two percent (2%).

     (b) The sum of the Actual Deferral Percentage and the Average Contribution
Percentage for Highly Compensated Participants for any Plan Year commencing
after December 31, 1996, shall not exceed the greater of:

          (i) the sum of (A) the greater of the Actual Deferral Percentage for
     all other Participants for the preceding Plan Year multiplied by 1.25 or
     the Average Contribution Percentage for all other Participants for the
     preceding Plan Year multiplied by 1.25, and (2) the lesser of the Actual
     Deferral Percentage for all other Participants for the preceding Plan Year
     plus two (2) or the Average Contribution Percentage for all other
     Participants for the preceding Plan Year plus two (2), provided that in no
     event shall such percentage plus two (2) exceed such percentage multiplied
     by two (2).

          (ii) the sum of (1) the lesser of the Actual Deferral Percentage for
     all other Participants for the preceding Plan Year multiplied by 1.25 or
     the Average Contribution Percentage for all other Participants for the
     preceding Plan Year multiplied by 1.25, and (2) the greater of the Actual
     Deferral Percentage for all other Participants for the preceding Plan Year
     plus two (2) or the Average Contribution Percentage for all other

                                       16
<PAGE>

     Participants for the preceding Plan Year plus two (2), provided that in no
     event shall such percentage plus two (2) exceed such percentage multiplied
     by two (2).

     Paragraph (b) of this Section shall not apply if the respective Actual
Deferral Percentage and Average Contribution Percentage of the Highly
Compensated Participants for any Plan Year commencing after December 31, 1996,
does not exceed the respective Actual Deferral Percentage and Average
Contribution Percentage of all other Participants for the preceding Plan Year
multiplied by 1.25.

     Notwithstanding the foregoing provisions of this Section to the contrary,
with respect to the Plan Year commencing January 1, 1997, the Company may elect,
pursuant to IRS Notice 97-2, to apply Paragraphs (a) and (b) of this Section by
substituting the phrase "such Plan Year" for the phrase "the preceding Plan
Year" in said Paragraphs and in the sentence immediately following Paragraph
(b).

     For purposes of this Section, Salary Deferrals and Matching Contributions
must be made before the last day of the twelve (12) month period immediately
following the Plan Year to which such contributions relate. For purposes of this
Section, any Salary Deferrals returned to a Participant pursuant to Section 5.04
shall be disregarded.

     The Company shall maintain records sufficient to demonstrate compliance
with this Section and the amount of any Matching Contributions used to satisfy
this Section. The determination and treatment of the contributions on behalf of
any Participant that are taken into account for purposes of this Section shall
satisfy such other requirements as may be prescribed by the Secretary of the
Treasury.

     3.05 RESTRICTIONS AND ADJUSTMENTS. The Plan Administrator may restrict the
deferral percentages elected by Participants if the Plan Administrator
determines such restriction is necessary to comply with Section 3.02,
Section 3.04, Section 4.03 or Section 5.04.

     In the event that the Actual Deferral Percentage of the Highly Compensated
Participants for any Plan Year exceeds the limitations prescribed in Paragraph
3.6(a), the Plan Administrator shall, within two and one half (2 1/2) months
after the end of such year, distribute the Excess Salary Deferrals (plus any
income and minus any loss allocable thereto) to such Participants on the basis
of the respective portions of the Excess Salary Deferrals attributable to each
such Participant and shall designate such distribution as a distribution of
Excess Salary Deferrals (plus any income and minus any loss allocable thereto).
For Plan Years beginning before January 1, 1997, Excess Salary Deferrals shall
be allocated to Participants who are subject to the family aggregation rules of
Section 414(q)(6) of the Code in the manner prescribed by regulations.

     The amount of any Excess Salary Deferrals of a Highly Compensated
Participant shall be determined by reducing contributions on behalf of all such
Participants in the order of their respective amounts of Salary Deferrals,
beginning with the highest such amount. The amount of Excess Salary Deferrals
with respect to a Highly Compensated Participant for any Plan Year shall be
reduced by the amount of excess deferrals previously distributed to such
Participant under Section 3.02 for the calendar year ending with or within the
Plan Year; provided, however, that notwithstanding the distribution of an excess
deferral in accordance with Section 3.02 to a

                                       17
<PAGE>

Highly Compensated Participant, such distributed amount shall be taken into
account under Section 4.03.

     Excess Salary Deferrals shall be adjusted for any income or loss up to the
date of distribution. The income or loss allocable to Excess Salary Deferrals
shall be determined by the same manner in which income or loss is allocated to
Participants' Aggregate Accounts under Article V of the Plan.

     In the event that the sum of the Actual Deferral Percentage for Highly
Compensated Participants and the Average Contribution Percentage for Highly
Compensated Participants for any Plan Year exceeds the limitations prescribed in
Paragraph 3.04(b), the Plan Administrator shall, within two and one half (2 1/2)
months after the end of such year, reduce the Average Contribution Percentage
for Highly Compensated Participants in the manner prescribed in subsections (g)
through (j) of Section 4.03.

     Notwithstanding the foregoing provisions of this Section to the contrary,
in lieu of distributing Excess Salary Deferrals (plus any income and minus any
loss allocable thereto) or reducing the Average Contribution Percentage for
Highly Compensated Participants in the manner prescribed in subsections (g)
through (j) of Section 4.03 in order to comply with Paragraph 3.04(b) for any
Plan Year, the Company may make Qualified Nonelective Contributions to the Plan.

     3.06 ROLLOVER CONTRIBUTIONS. An Eligible Employee who has received an
Eligible Rollover Distribution may transfer all or any portion of such
distribution to the Trust, provided the transfer is made to the Trust not later
than the sixtieth (60th) day following the day on which he or she received such
distribution. In addition, an Employee who receives a distribution from an
individual retirement account (within the meaning of Section 408(a) of the Code)
that is attributable solely to an Eligible Rollover Distribution may transfer
the entire amount distributed to the Trust, provided the transfer is made to the
Trust not later than the sixtieth (60th) day following the day on which he or
she received such distribution. Notwithstanding the foregoing to the contrary,
an Employee who has received an Eligible Rollover Distribution solely by reason
of the death of his or her spouse, or a distribution from an individual
retirement account (as hereinabove defined) of amounts received by reason of the
death of his or her spouse, may not transfer any portion of such distribution to
the Trust. Before January 1, 1997, the amount transferred to the Trust under
this Section must be one thousand dollars ($1,000) or more.

     A rollover contribution shall be credited to a Rollover Contributions
Account on behalf of the contributing Employee, and such Employee shall have a
fully vested and nonforfeitable interest in his or her Rollover Contributions
Account.

     An Eligible Employee who has made a rollover contribution in accordance
with this Section who has not otherwise become a Participant shall become a
Participant coincident with such rollover contribution, provided that such
Participant shall not have a right to defer Earnings or to share in any Matching
Contributions until he or she has otherwise satisfied the eligibility
requirements imposed by Article II.

                                       18
<PAGE>

     Effective October 31, 2001, with respect to an Eligible Employee who was
employed on such date by MetroWest Bank or Andover Savings Bank, if the Employee
elects a direct rollover to this Plan of his or her vested interest in the SBERA
401(k) Plan as Adopted by MetroWest Bank or the SBERA 401(k) Plan as Adopted by
Andover Savings Bank, and his or her vested interested in the applicable plan
includes any outstanding loans that are not in default, then he or she may
transfer such unpaid loans to this Plan. The promissory note(s) evidencing such
loan(s) shall be assigned to this Plan, and the Participant's obligation
thereunder shall be as set forth in Section 8.03.

ARTICLE IV. COMPANY CONTRIBUTIONS

     4.01 COMPANY CONTRIBUTIONS. For each Plan Year, in addition to Salary
Deferral Contributions under Section 3.01, the Company shall contribute to the
Plan:

     (a) Fixed Contributions, in the amount required to allocate Matching
Contributions to each Participant entitled to receive such contributions for the
Plan Year at the rate of:

          (i) For pay periods ending before October 1, 2001, fifty percent (50%)
     of such Participant's Salary Deferrals under Section 3.01 not in excess of
     six percent (6%) of Earnings; and

          (ii) For pay periods ending on or after October 1, 2001, one dollar
     ($1.00) for each one dollar ($1.00) of Salary Deferrals made on behalf of
     the Participant up to three percent (3%) of his or her Earnings; plus fifty
     cents ($0.50) for each one dollar ($1.00) of Salary Deferrals made on his
     or her behalf in excess of three percent (3%) and not exceeding six percent
     (6%) of such Earnings;

provided, however, that no Matching Contribution shall be allocated with respect
to any excess deferral under Section 3.02, any Excess Salary Deferral under
Section 3.04, or any Salary Deferral that is returned to the Participant
pursuant to Section 5.04; and provided further that the Fixed Contributions for
a Plan Year shall not be less than the sum of any required principal and
interest payments on all Acquisition Loans.

     (b) Discretionary Contributions, if any, in such amount as may be
determined by the Board; and

     (c) the Qualified Nonelective Contributions, if any, to be made on behalf
of non-Highly Compensated Employees in an amount that enables the Plan to
satisfy the requirements set forth in Section 3.04 or 4.03.

     4.02 TIME AND FORM OF COMPANY CONTRIBUTIONS.

     (a) Fixed Contributions and Discretionary Contributions, if any, with
respect to any Plan Year shall be paid to the Trust at such time or times as may
be determined by the Company, but not later than the date prescribed by law for
filing the Company's federal income tax return for its taxable year which ends
with or within such Plan Year, including extensions which have been granted for
filing such return; provided that amounts contributed to allocate Matching
Contributions with respect to Salary Deferrals made during a Plan Year quarter
shall be paid to

                                       19
<PAGE>

the Trust no later than the last day of the following Plan Year
quarter. Qualified Nonelective Contributions, if any, with respect to any Plan
Year shall be paid to the Trust within twelve (12) months after the end of such
Plan Year.

     (b) Contributions shall be made in cash or in shares of Stock (including
Treasury shares or authorized by unissued shares) to the extent that
contributions are to be invested in the Company Stock Fund, as determined by the
Company in its sole discretion, provided that Fixed Contributions are paid in
cash in such amounts (and at such times, notwithstanding Paragraph (b)) as may
be needed to provide the Trust Fund with cash sufficient to pay any currently
maturing debt service obligation, including interest as well as principal, of
the Trust Fund with respect to any Acquisition Loan. If and to the extent that a
contribution is made in shares of Stock, the value of the shares of Stock for
purposes of determining the amount of the contribution shall be the Fair Market
Value of such shares on the trading day next following the day on which such
contributions are delivered to the Trustee.

     4.03 SPECIAL RULES FOR MATCHING CONTRIBUTIONS.

     (a) The Contribution Percentage for Highly Compensated Participants for any
Plan Year commencing after December 31, 1996, shall not exceed the greater of:

          (i) the Contribution Percentage for all other Participants for the
     preceding Plan Year multiplied by 1.25; or

          (ii) the lesser of the Contribution Percentage for all other
     Participants for the preceding Plan Year multiplied by 2, or the
     Contribution Percentage for such Participants for the preceding Plan Year
     plus two percent (2%).

Notwithstanding the foregoing provisions to the contrary, with respect to the
Plan Year beginning January 1, 1997, the Company may elect, pursuant to IRS
Notice 97-2, to apply this Paragraph (a) by substituting the phrase "such Plan
Year" for the phrase "the preceding Plan Year."

     (b) For purposes of this Section, if two or more qualified plans maintained
by the Company or any of its Affiliates are treated as one plan to meet the
requirements of Section 401(a)(4), Section 410(b) or Section 401(m) of the Code,
such plans shall be treated as a single plan. If a Highly Compensated
Participant participates in any other qualified plan maintained by the Company
to which Matching Contributions or Employee contributions are made, all such
contributions for Plan Years ending with or within the same calendar year shall
be aggregated for purposes of this Section. If a Highly Compensated Participant
participates in two or more cash or deferred arrangements that have different
plan years, all cash or deferred arrangements ending with or within the same
calendar year shall be treated as a single arrangement. For Plan Years beginning
after December 31, 1989, plans may be aggregated in order to satisfy Section
401(m) of the Code only if they have the same plan year.

     For purposes of this Section and Code Sections 401(a)(4) and 410(b), the
Matching Contributions portion of the Plan benefiting Participants who have
satisfied the greatest permissible age and service conditions may, at the
election of the Plan Administrator, be disaggregated from the Matching
Contributions portion of the Plan benefiting Participants who

                                       20
<PAGE>

have not satisfied such conditions ("early participants"). Effective January 1,
1999, for any Plan Year for which the Plan Administrator elects to disregard
early participants in determining whether the Matching Contribution portion of
the Plan satisfies Code Section 410(b), the Plan Administrator may elect to
disregard non-Highly Compensated early participants for purposes of this
Section.

     (c) To the extent Salary Deferrals are taken into account under this
Section, any Salary Deferrals returned to a Participant pursuant to Section 5.04
shall be disregarded for purposes of Paragraph (a).

     (d) Notwithstanding Article IX to the contrary, any Matching Contribution
that is attributable to an excess deferral under Section 3.02 or an Excess
Salary Deferral shall be forfeited and shall be disregarded for purposes of
Paragraph (a). Such forfeitures shall be used to reduce future Matching
Contributions.

     (e) For purposes of this Section, Matching Contributions shall be treated
as made for a Plan Year if such contributions are made no later than the end of
the twelve (12) month period beginning on the day after the close of the Plan
Year. The Company shall maintain records sufficient to demonstrate satisfaction
of this Section and the amount of any Salary Deferrals taken into account under
this Section. The determination and treatment of the individual contribution
percentage of any Participant shall satisfy such other requirements as may be
prescribed by the Secretary of the Treasury.

     (f) In the event that the Average Contribution Percentage of the Highly
Compensated Participants for any Plan Year on or after the Effective Date
exceeds the limitation of Paragraph (a) above, the Plan Administrator shall,
within two and one half (2 1/2) months after the end of such year, distribute
the Excess Aggregate Contributions (plus any income and minus any loss allocable
thereto) to such Participants on the basis of the respective portions of the
Excess Aggregate Contributions attributable to each such Participant and shall
designate such distribution as a distribution of Excess Aggregate Contributions
(plus any income and minus any loss allocable thereto).

     (g) Excess Aggregate Contributions shall be adjusted for any income or loss
up to the date of distribution. The income or loss allocable to Excess Aggregate
Contributions shall be determined in the same manner in which income or loss is
allocated to Participants' Aggregate Accounts under Article V.

     (h) The amount of Excess Aggregate Contributions of any Highly Compensated
Participant shall be determined by reducing contributions on behalf of all such
Participants in the order of their respective amounts, beginning with the
highest such amount. The determination of the amount of Excess Aggregate
Contributions with respect to the Plan shall be made after first determining the
amount of excess deferrals under Section 3.02 and second determining the amount
of Excess Salary Deferrals under Section 3.04.

     (i) Notwithstanding the foregoing provisions of this Section to the
contrary, in lieu of distributing Excess Aggregate Contributions (plus any
income and minus any loss allocable thereto) to Highly Compensated Participants
in order to comply with Paragraph (a) above for any Plan Year, the Company may
make Qualified Nonelective Contributions as provided in Section 4.01(c).

                                       21
<PAGE>

     4.04 RETURN OF CONTRIBUTIONS TO THE COMPANY. Notwithstanding any other
provisions of the Plan to the contrary:

     (a) Contributions to the Plan by the Company are contingent upon their
deductibility under Section 404 of the Code. To the extent that a deduction for
any contribution hereunder is disallowed, such contribution shall, upon the
written demand of the Company, be returned to the Company by the Trustee within
one year after the date of disallowance, reduced by any net losses of the Trust
Fund attributable thereto but not increased by any net earnings of the Trust
Fund attributable thereto.

     (b) If any contribution to the Plan is made as a result of a mistake of
fact, such contribution shall, upon the written demand of the Company, be
returned to the Company by the Trustee no later than one (1) year after the
payment thereof, reduced by any net losses of the Trust Fund attributable
thereto but not increased by any net earnings of the Trust Fund attributable
thereto. The portion of any contribution returned to the Company in accordance
with this Section that represents Salary Deferrals shall be paid promptly to the
Participants on whose behalf such deferrals were made.

     4.05 MAXIMUM CONTRIBUTIONS. In no event shall the contributions made by the
Company for any Plan Year exceed the maximum amount that the Company is
permitted to deduct for federal income tax purposes or cause the Annual Addition
(as defined in Section 5.04) for any Participant to exceed the amount permitted
under the Plan.

ARTICLE V. ALLOCATIONS

     5.01 SUSPENSE ACCOUNTS.

     (a) All contributions and net income (or net loss) of the Trust Fund shall
be held in a suspense account until allocated to Participants' Aggregate
Accounts under this Article or applied by the Trustee (as directed by the Plan
Administrator) to make payments of principal or interest on any Acquisition
Loan.

     (b) Any Financed Shares acquired with the proceeds of an Acquisition Loan
or a prior Acquisition Loan refinanced with a new Acquisition Loan, whether or
not pledged to secure repayment of an Acquisition Loan, must be credited to a
separate account (the "Acquisition Loan Suspense Account") and not to any
Participant's account. A number of shares of Stock equal to the number of
Financed Shares released from the pledge securing the repayment of an
Acquisition Loan (or, in the case of Financed Shares credited to the Acquisition
Loan Suspense Account that are not pledged to secure repayment of an Acquisition
Loan, that would have been so released had those Financed Shares been so
pledged), must be withdrawn from the Acquisition Loan Suspense Account as of the
Valuation Date next following the date on which the release occurs (or would
have occurred) and must be allocated to the ESOP Accounts of the Participants as
of that Valuation Date in the manner provided for in Section 5.02(b).

                                       22
<PAGE>

     5.02 ALLOCATION OF CONTRIBUTIONS.

     (a) Salary Deferral Contributions shall be allocated to each Participant's
Salary Deferral Contribution Account in an amount equal to each such
Participant's designated percentage of deferred Earnings effective no later than
the last day of the Calendar Quarter in which such contributions were paid to
the Trustee.

     (b) Fixed Contributions shall be allocated to each Participant's Matching
Contribution Account in the amount determined under Section 4.03(a) effective no
later than the last day of the Calendar Quarter in which such contributions were
paid to the Trustee. Notwithstanding the preceding sentence, in the event that
Fixed Contributions are applied by the Trustee to make payments of principal or
interest on any Acquisition Loan, a number of shares of Stock equal to the
number of Financed Shares released from the pledge securing repayment of the
Acquisition Loan by such application of Fixed Contributions shall be allocated
to each Participant's ESOP Account as such Matching Contributions, and the
remainder of such contributions, if any, shall be allocated in accordance with
Paragraph (c). The value of the shares of Stock for purposes of determining the
allocation of Matching Contributions and Discretionary Contributions, if any,
shall be the Fair Market Value of such shares on the trading day [NEED TO
SUPPLY].(3)

     (c) Discretionary Contributions shall be allocated to the Discretionary
Contributions Account of each Eligible Employee in the same proportion that his
or her Earnings for the applicable Plan Year bear to the total Earnings of all
Eligible Employees who are eligible to participate in allocations of
Discretionary Contributions under Section 2.01(b) for such Plan Year effective
no later than the last day of the Calendar Quarter in which such contributions
were paid to the Trustee.

     (d) Qualified Nonelective Contributions shall be allocated to the Salary
Deferral Contribution Account of each Participant who is a non-Highly
Compensated Employee in the same proportion that his or her Earnings for the
applicable Plan Year bear to the total Earnings of all Participants who are
non-Highly Compensated Employees for such Plan Year effective no later than the
last day of the Calendar Quarter in which such contributions were paid to the
Trustee.

     (e) Rollover Contributions made by a Participant under Section 3.06 shall
be allocated to his or her Rollover Contribution Account as of the Valuation
Date next following the receipt of such contribution by the Trustee.

     5.03 ALLOCATION OF NET INCOME OR LOSS.

     (a) As of each Valuation Date, the Trustee shall determine the fair market
value of the Trust Fund assets and the net income (or net loss) of the Trust
Fund. The net income (or net loss) of each investment fund within the Trust Fund
since the next preceding Valuation Date shall be ascertained by the Trustee and
shall be determined on the accrual basis of accounting;

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

(3) I would like to identify the day in a payroll period (if at all possible)
as of which shares are valued for purposes of matching contribution
allocations. In addition, if a rounding rule is applied for purposes of
allocations, it should be stated here.

                                       23
<PAGE>

provided, however, that such net income (or net loss) shall include any net
increase or net decrease in the value of the assets of each such Fund since the
next preceding Valuation Date to the extent not otherwise accrued. As soon as is
practicable after each Valuation Date, the Trustee shall deliver to the Plan
Administrator a written statement of such determination.

     (b) For purposes of allocations of net income (or net loss) of the Trust
Fund, a Participant's accounts shall be divided into subaccounts to reflect the
investment of such accounts under Article VI. As of each Valuation Date, the
Plan Administrator shall adjust such accounts of each Participant as follows:

          (i) The net income (or net loss) of each investment fund, separately
     and respectively, shall be allocated among the corresponding subaccounts of
     the Participants who had such corresponding subaccounts on the next
     preceding Valuation Date and each such corresponding subaccounts on such
     date; provided, however, that the value of such subaccounts as of the next
     preceding Valuation Date shall be reduced by the amount of any withdrawals
     or distributions made therefrom since the next preceding Valuation Date.

          (ii) The net appreciation (or net depreciation) in the value of the
     ESOP Assets (as defined in Section 7.01) shall be determined by taking into
     account expenses of the Plan with respect to such assets and excluding cash
     dividends with respect to shares of Stock allocated to the ESOP Accounts of
     the Participants as of the record date for which such dividends are
     declared, cash dividends with respect to shares of Stock allocated to the
     Acquisition Loan Suspense Account as of the record date for which such
     dividends are declared to the extent that such dividends are applied to pay
     principal and/or interest on an Acquisition Loan, and any other amount
     applied to pay principal and/or interest on an Acquisition Loan.

          (iii) Each Participant's accounts shall continue to receive
     allocations under this Section so long as there is a balance in such
     accounts; provided, however, that the value of such accounts as of the next
     preceding Valuation Date shall be reduced by the amount of any payments
     made therefrom since the next preceding Valuation Date.

     5.04 LIMITATION ON ALLOCATIONS.

     (a) For purposes of this Section, the following terms and phrases shall
have the meanings specified below:

          (i) "Annual Addition" means, with respect to each Participant for any
     Limitation Year, the sum of (A) the Salary Deferral Contributions allocated
     to the Participant's Aggregate Account for the year; (B) the Company
     Contributions allocated to the Participant's Aggregate Account for the
     year; provided that, to the extent permitted by Section 415(c)(6) of the
     Code, the portion, if any, of a Fixed Contribution applied to pay interest
     on one or more Acquisition Loans not later than the time prescribed by law
     (including permitted extensions of time) for filing the Company's federal
     income tax return for the fiscal year for which the contribution is made
     will not be taken into account for purposes of this clause (B); (C) any
     forfeitures allocated to the Participant's

                                       24
<PAGE>

     Aggregate Account for the year; provided that, to the extent permitted by
     Section 415(c)(6) of the Code, forfeitures will not be taken into account
     for purposes of this clause (C) to the extent that the forfeitures consist
     of shares of Stock purchased with the proceeds of one or more Acquisition
     Loans; and (D) any other amounts treated as an "annual addition" in
     accordance with Section 415(c)(2) of the Code.

          (ii) "Limitation Year" means the Plan Year.

          (iii) "Maximum Annual Additions" means, for any Participant for any
     Limitation Year, the lesser of (A) thirty thousand dollars ($30,000); or
     (B) twenty-five percent (25%) of such Participant's Section 415
     Compensation during such year, except the limitation in this Clause (B)
     shall not apply to any contribution for medical benefits (within the
     meaning of Section 419A(f)(2) of the Code) after a Participant's
     termination of employment with the Company or an Affiliate which is
     otherwise treated as an Annual Addition or to any amount otherwise treated
     as an Annual Addition under Section 415(l)(1) of the Code.

     (b) Notwithstanding any other provision in the Plan regarding the
allocation of contributions, under no circumstances shall the Annual Additions
credited to a Participant's Aggregate Account for any Limitation Year exceed the
Maximum Annual Additions for such Participant for such year. If, as a result of
a reasonable error in estimating a Participant's Earnings or because of other
limited facts and circumstances, the Annual Additions which would be credited to
a Participant's Aggregate Account for a Limitation Year would nonetheless exceed
the Maximum Annual Additions for such Participant for such year, the excess
Annual Additions which, but for this Section, would have been allocated to such
Participant's Aggregate Account shall be disposed of as follows:

          (i) Any such excess Annual Additions in the form of Salary Deferrals,
     shall, to the extent such amounts would have otherwise been allocated to
     such Participant's Salary Deferral Contribution Account, be returned to the
     Participant;

          (ii) Any such excess Annual Additions in the form of Fixed
     Contributions remaining in the Plan after the application of Paragraph
     (b)(i) above, shall, to the extent such amounts would have otherwise been
     allocated to such Participant as Matching Contributions, be allocated
     instead to a suspense account and shall be held therein until used to
     reduce future contributions in the same manner as a forfeiture;

          (iii) Any such excess Annual Additions in the form of Discretionary
     Contributions remaining in the Plan after the application of Paragraphs
     (b)(i) and (ii) above, shall, to the extent such amounts would have
     otherwise been allocated to such Participant's Discretionary Contribution
     Account, be allocated instead to a suspense account and shall be held
     therein until used to reduce future contributions in the same manner as a
     forfeiture; and

          (iv) Any such excess Annual Additions in the form of Qualified
     Nonelective Contributions remaining in the Plan after the application of
     Paragraphs (b)(i), (ii) and (iii) above, shall be allocated instead to a
     suspense account and shall be held therein until

                                       25
<PAGE>

     allocated to such Participant's Salary Deferral Contribution Account in
     future Limitation Years before any Salary Deferral Contributions or
     Qualified Nonelective Contributions are made to the Plan on behalf of such
     Participant.

     (c) If a suspense account is in existence at any time during a Limitation
Year pursuant to this Section, it will not participate in allocations of the net
income (or net loss) of the Trust Fund.

     (d) For purposes of determining whether the Annual Additions under this
Plan exceed the limitations herein provided, all defined contribution plans of
the Company and its Affiliates shall be treated as one defined contribution
plan. If the Annual Additions credited to a Participant's Aggregate Account for
any Limitation Year under this Plan plus the additions credited on his or her
behalf under other defined contribution plans required to be aggregated pursuant
to this Paragraph would exceed the Maximum Annual Additions for such Participant
for such Limitation Year, the Annual Additions under this Plan and the additions
under such other plans shall be reduced first, in this Plan, from Salary
Deferrals above six percent (6%) of Earnings and then, as necessary, on a pro
rata basis and allocated, reallocated or returned in accordance with applicable
plan provisions regarding Annual Additions in excess of Maximum Annual
Additions.

     (e) Effective for Limitation Years beginning before January 1, 2000, in the
case of a Participant who also participates in a defined benefit plan of the
Company or an Affiliate, the Annual Additions credited to the Aggregate Account
of such Participant shall be reduced to the extent necessary to prevent the
limitations set forth in Section 415(e) of the Code from being exceeded;
provided, however, that this Paragraph (e) shall not be operative to the extent
that such defined benefit plan provides for a reduction of benefits thereunder
to ensure that the limitation set forth in Section 415(e) of the Code is not
exceeded.

ARTICLE VI. INVESTMENT OF CONTRIBUTIONS IN GENERAL

     6.01 INVESTMENT FUNDS. The Trustee shall establish a Company Stock Fund and
one or more other Investment Funds, as the Plan Administrator shall from time to
time direct. Each Investment Fund, other than the Company Stock Fund, shall be
invested, as the Plan Administrator shall direct:

     (a) at the discretion of the Trustee in accordance with such investment
guidelines and objectives as may be established by the Plan Administrator for
such Investment Fund;

     (b) at the discretion of a duly appointed Investment Manager in accordance
with such investment guidelines and objectives as may be established by the Plan
Administrator; or

     (c) in such investments as the Plan Administrator may specify for such
Investment Fund.

     The Plan Administrator may from time to time change its direction with
respect to any Investment Fund and may, at any time, eliminate any Investment
Fund. Whenever an Investment Fund is eliminated, the Trustee shall promptly
liquidate the assets of such Investment

                                       26
<PAGE>

Fund and reinvest the proceeds thereof in accordance with the direction of the
Plan Administrator.

     The Trustee shall transfer to each Investment Fund such portion of the
assets of the Trust as the Plan Administrator may from time to time direct in
accordance with the terms of the Plan. All interest, dividends and other income
received with respect to, and any proceeds realized from the sale or other
disposition of, assets held in any Investment Fund shall be credited to and
reinvested in such Investment Fund, and all expenses properly attributable to
any Investment Fund shall be paid therefrom unless paid by the Company.

     6.02 INVESTMENT OF CONTRIBUTIONS.

     (a) On and after the Effective Date, each Participant may direct that
contributions made on his or her behalf shall be invested in any one or more of
the Investment Funds. An investment direction shall be made by such written,
telephonic or electronic means as shall be prescribed by the Plan Administrator.

     A Participant's investment direction, if received by the Plan Administrator
prior to the date he or she commences participation, shall be effective as of
said date. If a Participant does not make an investment direction or an
investment direction is not received by the Plan Administrator before the
Participant commences participation, contributions on behalf of such Participant
to his or her ESOP Account shall remain invested in Stock and all other
contributions shall be invested in the fund which presents the least risk of
loss as determined by the Plan Administrator. An investment direction received
by the Plan Administrator after the date a Participant commences participation
shall be effective as soon as practicable following receipt by the Plan
Administrator (or by the person or persons specified by the Plan Administrator).

     (b) A Participant may modify an investment direction to have future
contributions on his or her behalf invested in the Investment Funds in
proportions other than those previously elected, by such written, telephonic or
electronic means as shall be prescribed by the Plan Administrator. A
modification shall be effective as soon as practicable following receipt by the
Plan Administrator (or by the person or persons specified by the Plan
Administrator).

     (c) A Participant may elect to reinvest all or a portion of the balance
credited to one or more of his or her accounts in any one or more of the
Investment Funds; provided that he or she may not reinvest any portion of the
balance credited his or her ESOP Account that is attributable to periods before
the Effective Date; and provided further that no Participant shall be permitted
to reinvest any portion of such account if the Trustee determines that
reinvestment would cause the ESOP Assets (as defined in Section 7.01) to fail to
be invested primarily in Stock. An election to reinvest shall be made by such
written, telephonic or electronic means as shall be prescribed by the Plan
Administrator, and shall be effective as soon as practicable after receipt by
the Plan Administrator (or by the person or persons specified by the Plan
Administrator).

     6.03 VALUATION OF INVESTMENT FUNDS. As of each Valuation Date, the Trust
Fund, and each of the investment funds comprising the Trust Fund, shall be
valued on the basis of its current fair market value. For purposes of allocating
accruals pursuant to Section 5.03, the Trust

                                       27
<PAGE>

Fund and each of the investment funds of the Trust Fund shall be valued as of a
Valuation Date as if each contribution to, reallocation to, reallocation out of,
or benefit payment out of the Trust Fund made after the last preceding Valuation
Date had been made immediately following the valuation of the Trust Fund then
being made.

ARTICLE VII. EMPLOYEE STOCK OWNERSHIP; ACQUISITION LOANS

     7.01 ESOP ASSETS. The Trustee shall invest the assets of the Plan
attributable to Participants' ESOP Accounts and any Acquisition Loan Suspense
Account (collectively, "ESOP Assets") in accordance with the Plan and Trust
Agreement and the applicable provisions of the Code, ERISA, and any other laws
affecting tax qualified pension benefit plans designed to qualify as employee
stock ownership plans; provided that, in aggregate, the ESOP Assets shall be
invested primarily in Stock.

     7.02 ACQUISITION LOANS. The Company may direct the Trustee to incur
Acquisition Loans from time to time to finance the acquisition by the Trust Fund
of shares of Stock or to repay a prior Acquisition Loan. An Acquisition Loan may
be made by a Party in Interest and may be guaranteed by the Company or one or
more Affiliates. Any Acquisition Loan must be primarily for the benefit of the
Participants and their Beneficiaries. In furtherance of the foregoing:

     (a) The interest rate payable with respect to any Acquisition Loan and the
price of any Stock to be acquired with the proceeds thereof must not be such
that the Trust Fund might be "drained off" (as such term is used in the
applicable regulations under Section 4975 of the Code), and the terms of any
Acquisition Loan, whether or not the lender is a Party in Interest, must at the
time such Acquisition Loan is made be at least as favorable to the Trust Fund as
the terms of a comparable loan resulting from arm's length negotiations between
independent parties would be. An Acquisition Loan must be for a specific term,
must bear a reasonable rate of interest, and must not be payable upon demand
except in the event of a default; however, if the lender of the Acquisition Loan
is a "disqualified person" within the meaning of Section 4975(e)(2) of the Code,
the Acquisition Loan must be payable upon demand in the event of a default only
to the extent of any default in any required payments due and payable under that
Acquisition Loan (without regard to any rights of acceleration on the part of
the lender).

     (b) An Acquisition Loan may be secured by a collateral pledge of the
Financed Shares acquired with the proceeds of that Acquisition Loan (or any
prior Acquisition Loan repaid with the proceeds from the Acquisition Loan);
however, no lender or guarantor of an Acquisition Loan that is a Participating
Employer or an Affiliate may have any rights or recourse with respect to the
Financed Shares, if any, pledged as collateral to secure the repayment of that
Acquisition Loan. No other assets of the Trust Fund (including any other shares
of Stock held as part of the Trust Fund) may be pledged as collateral for an
Acquisition Loan, and no Acquisition Loan lender shall have recourse against the
Plan, the Trustee, or any assets of the Trust Fund, other than any Financed
Shares pledged to secure that Acquisition Loan and not released from that pledge
as provided for in the second sentence immediately after this sentence. Any
pledge of Financed Shares as collateral for an Acquisition Loan shall provide
that the value of the Financed Shares that are subject to that pledge and are
transferred in satisfaction of the Acquisition Loan upon a default on that
Acquisition Loan must not exceed the amount of that default.

                                       28
<PAGE>

     (c) Any pledge of Financed Shares as collateral for an Acquisition Loan
must also provide for the release of the Financed Shares so pledged on a
pro-rata basis as principal and interest on such Acquisition Loan is paid by the
Trustee. Unless the Trustee elects to apply the special rule for releasing
Financed Shares under Treasury Regulation Section 54.4975-7(b)(8)(ii), the
number of Financed Shares to be released from any such pledge in any Plan Year
is to be determined by multiplying (i) the total number of Financed Shares
subject to that pledge immediately prior to the release for such Plan Year by
(ii) a fraction, the numerator of which is the amount of principal and interest
paid on that Acquisition Loan for the Plan Year and the denominator of which is
the sum of the numerator plus all principal and interest to be paid with respect
to that Acquisition Loan for all future years of the term of that Acquisition
Loan (without regard to any possible extensions or renewal periods). In the
event that the interest rate payable with respect to such Acquisition Loan is
variable, the interest to be paid in future years must be determined for
purposes of the preceding sentence as if the interest rate that is applicable
for that Acquisition Loan at the end of such Plan Year were to remain in effect
over the remaining term of that Acquisition Loan. If the Trustee elects to apply
the special rule for releasing Financed Shares, the number of Financed Shares to
be released from encumbrance is determined solely with reference to principal
payments. If the Trustee elects to apply the special rule, however, three
additional rules apply: the Acquisition Loan must provide for annual payments of
principal and interest at a cumulative rate that is not less rapid at any time
than level annual payments of the amount for ten (10) years; the interest
included in any payment is disregarded only to the extent that it would be
determined to be interest under standard loan amortization tables; and the
special rule is inapplicable from the time that by reason of a renewal,
extension, or refinancing the sum of the expired duration of the Acquisition
Loan, the renewal period, the extension period, and the duration of a new
Acquisition Loan exceeds ten (10) years.

     (d) Payments of principal or interest on any Acquisition Loan must be made
by the Trustee (as directed by the Plan Administrator) only from Company
Contributions paid in cash to enable the Trustee to repay the Acquisition Loan,
any earnings of the Trust Fund attributable to such contributions, and any
earnings received by the Trust Fund on Financed Shares pledged to secure the
repayment of the Acquisition Loan. Payments of principal or interest for any
Acquisition Loan during any Plan Year must not exceed (i) the sum of the
following for that Plan Year and all prior Plan Years: the aggregate Company
Contributions paid in cash to enable the Trustee to repay one or more
Acquisition Loans; any earnings of the Trust Fund attributable to such
contributions; and any earnings attributable to Financed Shares pledged to
secure one or more Acquisition Loans; (ii) less all payments of principal or
interest made with respect to Acquisition Loans in earlier Plan Years.

7.03 PURCHASE OF STOCK.

     (a) Whenever required by the terms of the Plan or the Participants'
investment directions under Article VI, the Trustee shall purchase shares of
Stock from such source and in such manner as the Trustee may determine. If the
Trustee and the Company agree, any such shares may be purchased from the Company
and may either be treasury shares or authorized but unissued shares; provided,
however, that no shares of Stock purchased with the proceeds of an

                                       29
<PAGE>

Acquisition Loan shall be purchased from a Participating Employer (other than
the Company) or any Affiliate. If shares of Stock are acquired by the Plan other
than on an exchange or other national market system, such shares shall be
purchased at prices that do not exceed Fair Market Value.

     (b) For purposes of crediting cash contributions invested in the Company
Stock Fund, the credit shall be based on the average cost per share (including
brokerage fees and transfer fees) of Stock purchased by the Trustee for all
Participants for the month in which the contributions were made, and for this
purpose contributions of shares of Stock shall be valued at the closing price of
such stock for the date of contributions, or, if no sale occurred on such date,
for the next preceding day on which a sale occurred.

     (c) Notwithstanding any other provision of this Section, the Trustee shall
not purchase shares of Stock during any period in which such purchase is, in the
opinion of counsel for the Company or the Plan Administrator, restricted by any
law or regulation applicable thereto. During such period, amounts that would
otherwise be invested in shares of Stock shall be invested in such other assets
as the Trustee may in its discretion determine, or the Trustee may hold such
amounts uninvested for a reasonable period pending the designated investment.

     7.04 CUSTODY AND VOTING OF STOCK.

     (a) All shares of Stock acquired by the Trustee shall be held in the
possession of the Trustee or its designee until disposed of pursuant to
provisions of the Plan. Such shares may be registered in the name of the Trustee
or its nominee.

     (b) Each Participant (or, in the event of a Participant's death, the
Participant's Beneficiary) shall have the right, to the extent of shares of
Stock allocated to the Participant's Aggregate Account, to direct the Trustee in
writing as to the manner in which to vote with respect to such shares of Stock.
Before each annual or special meeting of the shareholders of the Company, the
Plan Administrator shall cause to be sent to each Participant a copy of the
proxy solicitation material for the meeting, together with a form requesting
confidential instructions to the Trustee as to the voting of the shares of Stock
allocated to each Participant's Aggregate Account, whether or not vested. The
Trustee, itself or by proxy, shall vote the shares of Stock in such Aggregate
Account in accordance with the instructions of the Participant; provided, that
if the Trustee determines (in its sole discretion) that adherence to any such
instructions is inconsistent with the discharge of its fiduciary duties under
ERISA, the Trustee shall vote the affected shares of Stock in a manner
consistent with the proper exercise of its fiduciary duties. If the Trustee
shall not have received instructions as to the manner in which to vote any
shares of Stock held in the Trust Fund (whether because instructions have not
been timely received or because the shares of Stock are not allocated to any
Participant's Aggregate Account), the Trustee, itself or by proxy, shall vote
all such shares in a manner consistent with the proper exercise of its fiduciary
duties under ERISA, as determined in its sole discretion.

     7.05 DIVIDENDS ON STOCK.

     (a) Any stock dividends received with respect to Stock must be credited pro
rata to the Participant accounts (or, in the case of Financed Shares securing
the repayment of an

                                       30
<PAGE>

Acquisition Loan, to the Acquisition Loan Suspense Account) to which the
corresponding shares of Stock on which the stock dividends are received are
allocated as of the record date for which the stock dividends are declared.

     (b) Any cash dividends received on shares of Stock allocated to Participant
accounts as of the record date on which the dividends are declared shall be
allocated to the accounts of the Participants to whose accounts those shares of
Stock are allocated as of the record date for which such cash dividends are
declared. Any cash dividends received on shares of Stock allocated to an
Acquisition Loan Suspense Account shall be allocated to such account; provided
that such cash dividends may be applied by the Trustee to pay principal or
interest on an Acquisition Loan as described in Code Section 404(k)(2)(c) Any
cash dividends received on shares of Stock either not allocated to Participant
accounts or not allocated to the Acquisition Loan Suspense Account as of the
record date for which the dividends are declared shall be included in the
computation of net income (or loss) of the Trust Fund and allocated as set forth
in Section 5.03.

     7.06 FORFEITURES OF STOCK. Notwithstanding any other provision of the Plan
to the contrary, any Stock that was acquired with the proceeds of an Acquisition
Loan and was forfeited during a Plan Year shall be allocated to the ESOP
Accounts, as of the last day of the Plan Year, as follows: first, an amount
sufficient to restore forfeitures as provided in Section 9.03 and second, the
remainder of such forfeitures among the ESOP Accounts in the same proportion
that each Participant's Compensation for the Plan Year bears to the total
Compensation of all Participants who either (a) are credited with one Year of
Service for the Plan Year and are employed by the Employer or an Affiliate on
the last day of the Plan Year or (b) terminated employment during the Plan Year
on account of death, retirement or Disability.

     7.07 STOCK SPLITS AND OTHER CAPITAL REORGANIZATIONS. Except to the extent
necessary to restore forfeitures, any shares of Stock received as a result of a
Stock split, reorganization or other recapitalization of the Company shall be
allocated in the same manner as the shares of Stock to which any proceeds in
such transaction are attributable.

     7.08 TENDER OF STOCK.

     (a) Each Participant (or, in the event of a Participant's death, the
Participant's Beneficiary) shall have the right, to the extent of shares of
Stock allocated to the Participant's Aggregate Account, to direct the Trustee in
writing as to the manner in which to respond to a tender or exchange offer with
respect to Stock. The Plan Administrator shall utilize its best efforts to
timely distribute or cause to be distributed to each Participant such
information as will be distributed to shareholders of the Company in connection
with any such tender or exchange offer. The Trustee shall respond to the tender
or exchange offer with respect to the shares of Stock in each Participant's
Aggregate Account in accordance with the instructions of the Participant;
provided, that if the Trustee determines (in its sole discretion) that adherence
to any such instructions is inconsistent with the discharge of its fiduciary
duties under ERISA, the Trustee shall respond to the tender or exchange offer
with respect to the affected shares of Stock in a manner consistent with the
proper exercise of its fiduciary duties. If the Trustee shall not have received
instructions as to the manner in which to respond to a tender or exchange offer
with respect to any shares of Stock held in the Trust Fund (whether because
instructions have not been timely received or because the shares of Stock are
not allocated to any Participant's

                                       31
<PAGE>

Aggregate Account), the Trustee, itself or by proxy, shall vote all such shares
in a manner consistent with the proper exercise of its fiduciary duties under
ERISA, as determined in its sole discretion.

     (b) Cash proceeds received by the Trustee from the sale or exchange of any
shares of Stock under this Section shall be invested by the Trustee in one or
more other Investment Funds in ten percent (10%) increments, in accordance with
directions obtained from Participants at the time of the receipt of such
proceeds, which directions shall be independent of the investment directions
made by the Participants pursuant to Section 6.02 hereof. If timely investment
direction is not received from a Participant, such Participant's interest in
such cash proceeds shall be invested in the fund that presents the least risk of
loss as determined by the Plan Administrator.

     (c) Any decision by a Participant to tender (or not tender) or to exchange
(or not exchange) under Paragraph (a) of this Section and any direction made by
a Participant under Paragraph (b) of this Section shall constitute an exercise
of control by the Participant over the assets credited to his or her Aggregate
Account within the meaning of Section 404(c) of ERISA. Each Participant who so
exercises such control shall, by such exercise, release and agree, on the
Participant's own behalf and on behalf of the Participant's Beneficiary, to
indemnify and hold harmless the Trustee, the Company and the Plan Administrator
from and against any claim, demand, loss, liability, cost or expense (including
reasonable attorney's fees) caused by or arising out of such exercise, including
without limitation any diminution in value or losses incurred from such
exercise.

     7.09 SPECIAL RESTRICTIONS ON INSIDERS. Notwithstanding any other provision
of the Plan to the contrary, each transaction involving shares of Stock
allocated to the Aggregate Account of an Insider (including any investment or
reinvestment election under the Plan) shall comply with all applicable
requirements of Section 16(b) of the Securities Exchange Act of 1934, as
amended, the regulations thereunder, and any successor thereto. The Committee
shall be responsible for developing administrative rules to carry out this
provision.

     7.10 OPTION TO REQUIRE EMPLOYER TO PURCHASE STOCK.

     (a) If any Stock distributed pursuant to this Plan is not "readily tradable
on an established securities market" at the time distributed, then the recipient
of those shares of Stock received pursuant to the distribution has the right
during the Put Option Period to require the Employer, by notice in writing to
the Employer within the applicable Put Option Period, to purchase the shares of
Stock at a price equal to the Fair Market Value of those shares, determined as
of the Valuation Date coinciding with or immediately preceding the date of the
purchase. In addition, the Plan shall have the option, but shall not be
required, to purchase the Stock from a Participant exercising his or her put
right.

     (b) For purposes of this Section:

          (i) The term "Put Option Period" means (A) the 60-day period beginning
     on the date following the date of the distribution of the shares of Stock,
     and (B) sixty (60) days during the following Plan Year, which second 60-day
     period is to be designated by

                                       32
<PAGE>

     the Employer in accordance with Section 409(h)(4) of the Code and the
     regulations thereunder, provided, however, that such second 60-day period
     must not begin before (X) the first Valuation Date following termination of
     the initial 60-day period set forth in (A) above and (Y) written notice to
     the Participant of the value of the shares of Stock determined as of the
     Valuation Date. The "Put Option Period" does not include any time during
     which the Employers are prohibited by applicable federal or state law from
     honoring their obligations under this Section.

          (ii) Shares of Stock will be considered not "readily tradable on an
     established securities market" if the shares either are not traded on a
     national securities exchange or quoted on a system sponsored by a national
     securities association, or are subject to a restriction under any federal
     or state securities law, any regulation thereunder, or any agreement
     affecting the shares that renders such shares less freely tradable than
     would be the case if the restriction did not exist.

     (c) The put option right provided for in this Section is exercisable only
by a Participant, the Participant's Beneficiary, the donee of a Participant or
Beneficiary (but only with respect to shares of Stock received as a gift by such
donee), or the person (including an estate or a distributee thereof) to whom
shares of Stock pass as the result of the death of the Participant or the
Participant's Beneficiary. The Plan has a first right of refusal (but no
obligation) to purchase any shares of Stock tendered to the Employer or the
Sponsor, pursuant to this Section. The Employer or the Sponsor (or the Plan, in
the event that the Plan exercises its right described in the immediately
preceding sentence) shall have the right, in its sole and absolute discretion,
to elect to pay the purchase price for any shares of Stock that were distributed
as part of a total distribution (within the meaning of Section 409(h)(5) of the
Code) and are purchased pursuant to this Section, in a single lump sum or in
substantially equal annual installments over a period beginning not later than
thirty (30) days after the exercise of the put option right provided for in this
Section and not exceeding five (5) years, with interest payable at a reasonable
rate (as determined by the Employer, or in the event the Plan elects to purchase
such shares, the Plan Administrator) on any unpaid installment balance. If a
Participating Employer or the Company (or the Plan, in the event that the Plan
exercises its right described in the second preceding sentence) is required to
purchase Stock pursuant to this Section that was distributed as part of an
installment distribution, the payment of the purchase price for the Stock must
occur in a single lump sum not later than thirty (30) days after the exercise of
the put option right provided for in this Section.

     7.11 NO OTHER RIGHTS TO PUT OR CALL STOCK. Except as set forth in Section
7.10, and except as otherwise required by applicable federal or state law, no
shares of Stock acquired with the proceeds of an Acquisition Loan are subject to
any put, call, or other option, or any buy-sell or similar agreement, either
while held by the Plan or when distributed by the Plan, irrespective of whether
or not the Plan then qualifies as an "employee stock ownership plan" under
Section 4975(e)(7) of the Code. Notwithstanding anything to the contrary
contained in this Plan, this Section 7.11 and the rights and protections
afforded Participants and Beneficiaries under Section 7.10 are not subject to
termination, amendment, or modification insofar as those provisions apply to
shares of Stock acquired with the proceeds of one or more Acquisition Loans.

                                       33
<PAGE>

ARTICLE VIII. WITHDRAWALS AND LOANS

     8.01 IN-SERVICE WITHDRAWALS. A Participant may withdraw all or a part of
his or her Vested Interest prior to his or her termination of employment with
the Company and all Affiliates as follows:

     (a) The Participant may withdraw all or any part his or Vested Interest
attributable to Salary Deferrals and Rollover Contributions after attaining
fifty-nine and one half (59 1/2) years of age.

     (b) Effective January 1, 1998, the Participant may withdraw all or any part
of his or her Vested Interest in his or her Aggregate Account after attaining
Normal Retirement Age.

     (c) Effective January 1, 2000, the Participant may withdraw all (but not
less than all) of his or her Vested Interest attributable to Rollover
Contributions at any time before attaining fifty-nine and one half (59 1/2)
years of age.

The Plan Administrator shall establish reasonable procedures for handling
withdrawal requests under this Section.

     8.02 HARDSHIP WITHDRAWALS. The Plan Administrator may direct the Trustee to
make a hardship withdrawal distribution to a Participant from the accounts
designated by the Participant, excluding the Participant's ESOP Account and
investment earnings allocated to the Participant's Salary Deferral Account after
December 31, 1988, subject to the following:

     (a) Each request for a hardship withdrawal shall be made by such written,
telephonic or electronic means as may be prescribed by the Plan Administrator.
The request shall specify the reason for such withdrawal and shall include such
other information and documentation as the Plan Administrator may request.

     (b) A hardship withdrawal may be made only in cash and may not exceed the
Participant's Vested Interest in his or her accounts, excluding the
Participant's ESOP Account and investment earnings allocated to the
Participant's Salary Deferral Account (or to the comparable portion of his or
her Predecessor Plan Account, as determined under the applicable Schedule) after
December 31, 1988.

     (c) A hardship withdrawal shall be permitted only if the distribution is on
account of an immediate and heavy financial need of the Participant and is
necessary to satisfy such financial need.

          (i) A financial need may qualify as immediate and heavy without regard
     to whether such need was foreseeable or voluntarily incurred by the
     Participant. The following shall be deemed immediate and heavy financial
     needs:

               (A) Payment of medical expenses described in Section 213(d) of
          the Code previously incurred by the Participant, his or her spouse or
          dependent (within the meaning of Section 152 of the Code) or payment
          necessary for such persons to obtain medical care as described in
          Section 213(d) of the Code;

                                       34
<PAGE>

               (B) Costs directly related to the purchase (excluding mortgage
          payments) of a principal residence of the Participant;

               (C) Payment of tuition, related educational fees and room and
          board expenses for the next twelve (12) months of post-secondary
          education for the Participant, his or her spouse or dependent (within
          the meaning of Section 152 of the Code);

               (D) Payment to prevent eviction of the Participant from his or
          her principal residence or foreclosure on the mortgage of the
          Participant's principal residence; and

               (E) Any other financial need deemed to be immediate and heavy by
          the Commissioner of Internal Revenue as set forth in a Treasury
          regulation, revenue ruling, notice, or other document of general
          applicability.

     The above list of deemed immediate and heavy financial needs shall not be
     exclusive, and other needs may qualify as immediate and heavy financial
     needs.

          (ii) A distribution shall be treated as necessary to satisfy an
     immediate and heavy financial need of the Participant only to the extent
     (A) the amount of such distribution does not exceed the amount required to
     relieve the financial need (including the amount of any federal, state or
     local income taxes or penalties reasonably anticipated to result from the
     distribution) and (B) the amount of such distribution is not reasonably
     available to the Participant from other resources. The Plan Administrator
     may reasonably rely (unless the Plan Administrator has actual knowledge to
     the contrary) on the Participant's written representations that the need
     cannot be relieved through reimbursement or compensation by insurance or
     otherwise; by reasonable liquidation of the Participant's assets; by
     cessation of Salary Deferral Contributions under the Plan; or by other
     distributions or nontaxable (at the time of the loan) loans from plans
     maintained by any present or former employer of the Participant or from
     commercial lenders. A Participant's resources shall be deemed to include
     those assets of his or her spouse and minor children that are reasonably
     available to the Participant.

          (iii) The amount of an immediate and heavy financial need may include
     any amounts necessary to pay any federal, state or local income taxes or
     penalties reasonably anticipated to result from the distribution.

     (d) A request for a hardship distribution shall be treated as a claim for
benefits under the Plan. A hardship withdrawal shall be made as soon as
practicable following approval of the request by the Plan Administrator.

     (e) The Plan Administrator may from time to time establish rules governing
withdrawals. Such rules shall be applied on a uniform and nondiscriminatory
basis.

     8.03 LOANS. The Plan Administrator may, upon the request of a Participant
or Beneficiary who is a "party in interest" as defined in Section 3(14) of
ERISA, direct the Trustee to make a loan to such Participant or Beneficiary from
the Participant's Salary Deferral

                                       35
<PAGE>

Contribution Account, Matching Contribution Account [(EXCLUDING AMOUNTS
ATTRIBUTABLE TO FINANCED SHARES)],(4) and Rollover Contribution Account, if
any, subject to the following:

     (a) The amount of each loan shall be determined with reference to the fair
market value of the Participant's Aggregate Account as of the most recent
Valuation Date for which valuation data has been received by the Plan
Administrator.

     (b) Any loan made on or after January 1, 1987, when added to the balance of
all other outstanding loans with respect to a Participant's Aggregate Account,
shall not exceed the lesser of:

          (i) Fifty thousand dollars ($50,000), reduced by the excess, if any,
     of the Participant's highest outstanding loan balance under the Plan for
     the one (1) year period ending on the day before such loan is made, over
     the Participant's loan balance under the Plan on the day such loan is made,
     or

          (ii) Fifty percent (50%) of the sum of the Participant's Salary
     Deferral Contribution Account, the nonforfeitable portion of his or her
     Matching Contribution Account, and his or her Rollover Contribution
     Account.

The total unpaid balance of all loans (including accrued but unpaid interest)
made with respect to a Participant's Aggregate Account under the Plan and all
other qualified plans maintained by his or her Employer shall not exceed the
maximum amount permitted under Section 72(p) of the Code.

     (c) Effective January 1, 1998, no loan shall be made in an amount less than
one thousand dollars ($1,000), nor shall a loan be made if a Participant has any
other loan outstanding with respect to his or her Aggregate Account under the
Plan. Notwithstanding the preceding sentence to the contrary, a loan may be made
in an amount less than one thousand dollars ($1,000) if the Participant is also
a participant or beneficiary who is a "party in interest" as defined in Section
3(14) of ERISA with respect to the SIS Bank Employees' Savings Incentive Plan
("SIS Plan"); his or her Aggregate Account balance under this Plan is not
sufficient to permit a loan to be made in the amount of at least one thousand
dollars ($1,000); and each of the following requirements is satisfied:

          (i) the sum of the Participant's account balance under the SIS Plan
     plus the Participant's Aggregate Account balance under this Plan would be
     sufficient to permit a loan to be made in the amount of at least one
     thousand dollars ($1,000) if the separate accounts were treated as a single
     account;

          (ii) the Participant does not have any other loan outstanding with
     respect to either his or her Aggregate Account under this Plan or his or
     her account under the SIS Plan;

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

(4) Please confirm that this restriction is correct.

                                       36
<PAGE>

          (iii) the loan is made during the period beginning July 15, 1999, and
     ending on the SIS Plan Affiliation Date; and

          (iv) the loan is made in compliance with all provisions of this
     Section except for the one thousand dollar ($1,000) minimum amount
     requirement.

     Each loan shall be evidenced by a promissory note bearing a reasonable rate
of interest as determined by the Plan Administrator, taking into consideration
interest rates currently being charged by commercial lenders for loans made
under similar circumstances, and shall be adequately secured in such manner as
the Plan Administrator may determine. Collateral for a loan may consist of an
assignment of not more than fifty percent (50%) of a Participant's Vested
Interest in his or her Aggregate Account, provided such collateral adequately
secures repayment of the loan. In the event of a default on a loan, the Plan
Administrator shall, after giving the Participant or Beneficiary written notice
of the default and an opportunity to cure the default, in accordance with the
terms and conditions of such loan, foreclose upon the collateral to the extent
necessary to satisfy the Participant's obligation. If the collateral for such
loan is the Participant's interest in his or her Aggregate Account, such
foreclosure may not occur prior to the Participant's termination of employment.

     (d) Each loan shall be made for such term and, subject to the foregoing,
upon such terms and conditions as the Plan Administrator shall determine;
provided that substantially level amortization, with payments not less
frequently than quarterly, shall be required over the term of any loan; and
further provided that the term shall not exceed five (5) years unless the loan
is used to acquire a principal residence for the Participant, in which case the
term shall not exceed fifteen (15) years.

     (e) Each loan to a Participant or Beneficiary shall be treated and
accounted for as an investment of such Participant's Aggregate Account, and
loans shall be charged against the Investment Funds in which the Participant's
Aggregate Account is invested as of the date such loan is made. Amounts of
principal and interest paid on any loan shall be transferred to the Investment
Funds in accordance with the Participant's investment direction in effect at the
time of payment.

     (f) No loan shall be made to any owner-employee or shareholder-employee.
For purposes of this subsection (g), an "owner-employee" means a self-employed
individual who is a sole proprietor or who is a partner in an Employer who owns
more than ten percent (10%) of either the capital or profits interest in such
Employer, and a "shareholder-employee" means an employee or officer of an
electing small business corporation (S corporation) who owns (or is considered
as owning within the meaning of Section 318(a)(1) of the Code), on any day
during the taxable year of such corporation, more than five percent (5%) of the
outstanding stock of the corporation.

     (g) No distribution (other than a deemed distribution under Section 72(p)
of the Code) shall be made to any Participant or Former Participant or to a
Beneficiary of any Participant until all unpaid loans with respect to the
Participant's Aggregate Account, including accrued interest thereon, have been
paid in full. In the event a Participant or Beneficiary becomes entitled to a
distribution of his or her Aggregate Account under the Plan, and at the

                                       37
<PAGE>

time of such distribution there remain outstanding any unpaid loans with respect
to his or her Aggregate Account, then

          (i) such unpaid loan shall be treated as due and payable immediately
     as of the date distribution is made or commences;

          (ii) the Aggregate Account of the Participant or Beneficiary shall be
     reduced prior to any such distribution by the amount of the principal and
     accrued interest outstanding on such loan;

          (iii) the loan shall be deemed to be paid in full as of the date the
     distribution is made or commences; and

          (iv) such Participant or Beneficiary shall be treated as receiving or
     commencing to receive a distribution of his or her entire Aggregate
     Account.

     (h) The Plan Administrator shall suspend the obligation to repay any loan
made to a Participant pursuant to this Section for any period during which such
Participant is performing service in the uniformed services (within the meaning
of the Uniformed Services Employment and Reemployment Rights Act), and such
suspension shall not be taken into account for purposes of Sections 72(p),
401(a), or 4975(d)(1) of the Code.

     (i) The Plan Administrator shall follow a uniform and nondiscriminatory
policy in making loans to assure that loans are available to all Participants
and Beneficiaries who are "parties in interest" on a reasonably equivalent basis
as required under 29 C.F.R. Section 2550.408b-1 and to further assure that the
Plan meets the requirements of Section 401(a)(4) of the Code.

     (j) The Plan Administrator shall establish, in writing, administrative
procedures to carry out the provisions of this Section. A request for a loan
shall be made by such written, telephonic or electronic means as may be
prescribed by the Plan Administrator.

     (k) The provisions of this Section shall be applicable to loans granted or
renewed under the Plan on or after January 1, 1998, and loans granted or renewed
prior to such date shall be governed by the provisions of the Plan as in effect
on the date of such grant or renewal; provided that, with respect to a
Predecessor Plan Account, the provisions of this Section shall be applicable to
loans granted or renewed after the Plan Affiliation Date, if later.

ARTICLE IX. VESTING

     9.01 ACTIVE PARTICIPANTS ON AND AFTER JANUARY 1, 2002. Each Participant who
is an Eligible Employee on or after the Effective Date shall have a fully vested
and nonforfeitable interest in all amounts credited to his or her Aggregate
Account.

     9.02 TERMINATED PARTICIPANTS. Each Participant who terminated employment
with the Company and all Affiliates before the Effective Date and is not an
Employee at any time after December 31, 2000, shall have a fully vested and
nonforfeitable interest in all amounts credited to his or her Salary Deferral
Contribution Account and Rollover Contribution Account. If the

                                       38
<PAGE>

Participant terminated employment on or after attainment of Normal Retirement
Age, or an account of Disability, or death, then all amounts credited to his or
her Aggregate Account shall be nonforfeitable. If the Participant terminated
employment for any other reason, the vested percentage of his or her Company
Contribution accounts shall be determined as follows:

YEARS OF SERVICE                              NONFORFEITABLE INTEREST
----------------                              -----------------------
Less than 1                                   0%
1                                             20%
2                                             40%
3                                             60%
4                                             80%
5                                             100%

If the Participant is subsequently reemployed by the Company on or after the
Effective Date, then the Participant's nonforfeitable interest in his or her
Aggregate Account on or after the reemployment date shall be determined in
accordance with Section 9.01.

     9.03 FORFEITURES. If a Participant terminated employment before the
Effective Date, the nonvested portion of a Participant's Company Contribution
accounts prior to such termination shall be forfeited as of the last day of the
Plan Year in which the Participant incurs a one-year Break in Service, or, if
earlier, upon a complete distribution of the nonforfeitable portion of such
accounts under Article X. If the Participant is reemployed by a Participating
Employer before incurring five (5) consecutive Breaks in Service:

     (a) If the Participant was not vested in any portion of his or her Company
Contribution accounts at the time he or she ceased to be employed, the
Participant shall be entitled to restoration of the amount previously forfeited,
unadjusted by any subsequent gains or losses, as of the Valuation Date
coincident with or next following the date of reemployment.

     (b) If the Participant was vested in any portion of his or her Company
Contribution accounts at the time he or she ceased to be employed, the
Participant shall be entitled to restoration of the amount previously forfeited
(unadjusted by any subsequent gains or losses) if he or she repays the full
amount of the vested portion of such accounts distributed to him or her in
accordance with Article X before the earlier of (i) five (5) years from the date
of reemployment, or (ii) the close of the first period of five (5) consecutive
Breaks in Service commencing after the date of distribution. Such restoration
shall be made as of the Valuation Date coincident with or next following the
date of repayment.(5)

     Any forfeiture under this Section shall be applied first to make
restorations hereunder and then, subject to Section 7.06, to reduce Fixed
Contributions. If forfeitures are insufficient to

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

(5) As drafted, if someone term'd before 1/1/2001, and subsequently returns
before a 5-year break, he or she is entitled to immediate 100% vesting and
restoration to the extent described. If he or she returns after 5 or more
years, there is no opportunity for restoration of any forfeited amounts but
he or she would immediately be 100% vested in any amounts still in the Plan
from the prior period of employment. Please confirm that this is correct.

                                       39
<PAGE>

restore the Participant's Company Contribution accounts, the Company shall
contribute such additional amounts as are required to make restoration.

ARTICLE X. BENEFITS AND DISTRIBUTIONS

     10.01 NORMAL RETIREMENT BENEFIT. A Participant shall be entitled to receive
his or her Vested Interest in one or more of the forms of payment provided under
Section 10.05(a) upon attaining Normal Retirement Age. If the Participant
remains employed with the Company past Normal Retirement Age, he or she shall be
entitled to continue active participation in the Plan, and no distribution shall
be made hereunder prior to a request for retirement benefits by such Participant
unless a distribution is required under Section 10.05(d).

     10.02 DISABILITY BENEFIT. A Participant shall be entitled to receive his or
her Vested Interest in or more of the forms of payment provided under Section
10.05(a) upon suffering a Disability prior to attaining Normal Retirement Age.

     10.03 BENEFIT ON TERMINATION OF EMPLOYMENT. A Participant shall be entitled
to receive his or her Vested Interest in one or more of the forms of payment
provided under Section 10.05(a) upon his or her termination of employment prior
to Normal Retirement Age for any reason other than Disability or death.

     10.04 DEATH BENEFIT. In the event of a Participant's death, the remaining
Vested Interest of such Participant, reduced by any security interest held by
the Plan by reason of a loan outstanding to such Participant, shall be paid to
the Participant's Beneficiary as provided under Section 10.06. If there is no
such Beneficiary, such Vested Interest shall be payable to the Participant's
estate. The Plan Administrator may require such proof of death and such evidence
of the right of any person to receive payment of the deceased Participant's
remaining Vested Interest as it deems necessary and appropriate.

     10.05 DISTRIBUTION OF BENEFITS TO A PARTICIPANT.

     (a) A Participant shall have the right to receive all or a portion of his
or her Vested Interest as a Retirement Benefit, Disability Benefit or Benefit on
Termination of Employment, as the case may be, as a single lump sum payment in
cash. Notwithstanding the preceding sentence:

          (i) a Participant may elect to receive payment of the Vested Interest
     in his or her ESOP Account in substantially equal annual installments over
     a specified period, which period may not exceed five (5) years; provided
     that the maximum period over which such distribution may be made is
     extended by one year (up to five (5) additional years) for each one hundred
     thousand dollars ($100,000) or fraction thereof by which the balance of the
     accounts exceeds five hundred thousand dollars ($500,000) (or such higher
     amount as the Secretary of the Treasury may prescribe);

          (ii) a Participant may elect to receive distribution in Stock of all
     or a portion of the Vested Interest in (A) his or her ESOP Account and (B)
     his or her Salary Deferral Contribution Account, Matching Contribution
     Account, Discretionary Contribution Account, Rollover Contribution Account,
     and/or Predecessor Plan Account(s), to the

                                       40
<PAGE>

     extent invested in Stock on the Annuity Starting Date. If a Participant
     elects to receive a distribution in Stock, cash must be distributed in lieu
     of any fractional shares of Stock allocated to the Participant's accounts
     that are to be distributed in Stock. The Participant may direct the
     Committee to issue shares of Stock in the sole name of the distributee or
     in the joint names of the distributee and his or her spouse, child, or
     other dependent; and

          (iii) a Participant may elect to receive all or a portion of the
     Vested Interest in his or her Salary Deferral Contribution Account,
     Matching Contribution Account, Discretionary Contribution Account and
     Rollover Contribution Account as an Annuity if the distribution is made or
     commences before January 1, 2002.

     (b) Notwithstanding Paragraph (a) to the contrary, if a Participant's
Vested Interest does not exceed the applicable cash-out amount as of the date
distribution is to commence, his or her Vested Interest shall be distributed in
a single lump sum as soon as administratively feasible after his or her
termination of employment for any reason. If the value of the Participant's
vested interest in his or her Company Contribution accounts upon terminating
employment is zero dollars ($0), such Participant shall be deemed to have
received an immediate distribution of such interest.

     For purposes of this Paragraph, the "applicable cash-out amount" means
three thousand five hundred dollars ($3,500) before January 1, 1998, and five
thousand dollars ($5,000) (or such higher amount as may be permitted by Code
Section 417(e)(1)) on or after January 1, 1998.

     For periods before March 22, 1999, this Paragraph shall not apply if the
Participant's Vested Interest exceeded the applicable cash-out amount at the
time of any prior distribution.

     (c) Any distribution to a Participant except a cash-out distribution under
Paragraph (b) shall require such Participant's written consent if such
distribution commences prior to Normal Retirement Age. With regard to such
consent:

          (i) The Participant shall receive the written notice described in
     Treas. Reg. Section 1.411(a)-11(c)(2)(i), including notice of his or her
     right to defer payment of benefits under this Article, no less than thirty
     days (30) and no more than ninety (90) days before the date on which such
     distribution is paid or commences to be paid. If a Participant declines or
     fails to consent, it shall be deemed to be an election to defer payment of
     such benefits. However, any election to defer payment shall not apply with
     respect to distributions that are required under Paragraph (d).

          (ii) Notwithstanding the foregoing to the contrary, if a Participant,
     after receiving written notice under Paragraph (c)(i), affirmatively elects
     a distribution, then the distribution may be paid or may commence to be
     paid less than thirty (30) days after the date such written explanation was
     given, provided the Plan Administrator has informed such Participant, in
     writing, of his or her right to a period of at least thirty (30) days to
     consider whether to consent to the distribution.

     (d) Notwithstanding any other provision of the Plan to the contrary, a
Participant's Vested Interest shall be distributed commencing not later than the
required beginning date or shall be distributed, beginning not later than the
required beginning date, over a period not

                                       41
<PAGE>

extending beyond the life expectancy of such Participant or the life expectancy
of the Participant and the joint annuitant of the Participant. For purposes of
this Paragraph, the "required beginning date" means the following, effective
January 1, 1998:

          (i) For a Participant who attains age seventy and one half (70 1/2)
     before January 1, 1999, April 1 of the calendar year following the calendar
     year in which the Participant attains age seventy and one half (70 1/2).

          (ii) For a Participant who attains age seventy and one half (70 1/2)
     after December 31, 1998, April 1 of the calendar year following the later
     of (A) the calendar year in which the Participant attains age seventy and
     one half (70 1/2), or (B) the calendar year in which the Participant
     retires; provided that this clause (B) shall not apply in the case of a
     Participant who is a five percent (5%) owner (within the meaning of Section
     416(i) of the Code) with respect to the Plan Year ending in the calendar
     year in which the Participant attains age seventy and one half (70 1/2);
     and provided further that in the case of a Participant to whom this clause
     (B) applies and who retires in a calendar year after the calendar year in
     which he or she attains age seventy and one half (70 1/2), the
     Participant's Accrued Benefit shall be actuarially increased, in the manner
     prescribed by the Secretary of the Treasury, to take into account the
     period after age seventy and one half (70 1/2) in which the Participant was
     not receiving any benefits under the Plan.

     (e) Notwithstanding any other provision of the Plan to the contrary,
distributions shall be made in accordance with the regulations under Section
401(a)(9) of the Code, including the minimum distribution incidental death
benefit requirements of Section 1.401(a)(9)-2, and shall be distributed over the
life of such Participant (or over the lives of such Participant and his or her
Beneficiary) or over a period not extending beyond the life expectancy of such
Participant (or the life expectancy of such Participant and his or her
Beneficiary). The provisions of Section 401(a)(9) of the Code and the
regulations thereunder shall override any distribution options inconsistent
therewith.

     For purposes of this Paragraph, before January 1, 2002 [2001], the life
expectancy of a Participant and a Participant's spouse shall be determined in
accordance with applicable Treasury Regulations without annual recalculation.
Life expectancies and joint and last survivor expectancy shall be determined
using the return multiples in Tables V and VI of Treas. Reg. Section 1.72-9.

     WITH RESPECT TO DISTRIBUTIONS UNDER THE PLAN MADE FOR CALENDAR YEARS
BEGINNING ON OR AFTER JANUARY 1, 2001 [2002] (INCLUDING DISTRIBUTIONS UNDER THIS
SECTION AND SECTION 10.06), THE PLAN WILL APPLY THE MINIMUM DISTRIBUTION
REQUIREMENTS OF SECTION 401(a)(9) OF THE INTERNAL REVENUE CODE IN ACCORDANCE
WITH THE REGULATIONS UNDER SECTION 401(a)(9) THAT WERE PROPOSED ON JANUARY 17,
2001, NOTWITHSTANDING ANY PROVISION OF THE PLAN TO THE CONTRARY. THIS AMENDMENT
SHALL CONTINUE IN EFFECT UNTIL THE END OF THE LAST CALENDAR YEAR BEGINNING
BEFORE THE EFFECTIVE DATE OF FINAL REGULATIONS UNDER SECTION 401(a)(9) OR SUCH
OTHER DATE AS MAY BE SPECIFIED IN GUIDANCE PUBLISHED BY THE INTERNAL REVENUE
SERVICE.

                                       42
<PAGE>

10.06 DISTRIBUTION OF BENEFITS UPON DEATH.

     (a) Subject to Paragraph (c) below, the death benefits payable under
Section 10.04 shall be paid to the Participant's Beneficiary within a reasonable
time after the Participant's death as a single lump sum payment in cash.
Notwithstanding the preceding sentence:

          (i) the Beneficiary may elect to receive payment of the Vested
     Interest in the Participant's ESOP Account in substantially equal annual
     installments over a specified period, which period may not exceed five (5)
     years; provided that the maximum period over which such distribution may be
     made is extended by one year (up to five (5) additional years) for each one
     hundred thousand dollars ($100,000) or fraction thereof by which the
     balance of the accounts exceeds five hundred thousand dollars ($500,000)
     (or such higher amount as the Secretary of the Treasury may prescribe);

          (ii) a Beneficiary may elect to receive distribution in Stock of all
     or a portion of the Vested Interest in (A) the Participant's ESOP Account
     and (B) the Participant's Salary Deferral Contribution Account, Matching
     Contribution Account, Discretionary Contribution Account, Rollover
     Contribution Account, and/or Predecessor Plan Account(s), to the extent
     invested in Stock on the Annuity Starting Date. If the Beneficiary elects
     to receive a distribution in Stock, cash must be distributed in lieu of any
     fractional shares of Stock allocated to the accounts that are to be
     distributed in Stock. The Beneficiary may direct the Committee to issue
     shares of Stock in the sole name of the distributee or in the joint names
     of the distributee and his or her spouse, child, or other dependent; and

          (iii) a Beneficiary may elect to receive all or a portion of the
     Vested Interest the Participant's Salary Deferral Contribution Account,
     Matching Contribution Account, Discretionary Contribution Account and
     Rollover Contribution Account as an Annuity if the distribution is made or
     commences before January 1, 2002.

     (b) Notwithstanding Paragraph (a) to the contrary, if a Participant's
Vested Interest does not exceed the applicable cash-out amount as of the date
distribution is to commence, his or her Vested Interest shall be distributed to
the Beneficiary in a single lump sum as soon as administratively feasible after
the Participant's death.

     For purposes of this Paragraph, the "applicable cash-out amount" means
three thousand five hundred dollars ($3,500) before January 1, 1998, and five
thousand dollars ($5,000) (or such higher amount as may be permitted by Code
Section 417(e)(1)) on or after January 1, 1998.

     For periods before March 22, 1999, this Paragraph shall not apply if the
Participant's Vested Interest exceeded the applicable cash-out amount at the
time of any prior distribution.

     (c) Notwithstanding any provision in the Plan to the contrary,
distributions upon the death of a Participant shall be made in accordance with
the following requirements and shall otherwise comply with Section 401(a)(9) and
the regulations thereunder, which are hereby incorporated by reference into this
Plan:

          (i) If the Participant dies after the distribution of his or her
     Vested Interest has begun and the Participant dies before his or her entire
     interest has been distributed to him,

                                       43
<PAGE>

     the remaining portion of such interest shall be distributed at least as
     rapidly as under the method of distribution selected under Section 10.05 as
     of his or her date of death.

          (ii) Subject to clause (iii) below, if a Participant dies before the
     distribution of his or her Vested Interest has begun, then the death
     benefits payable hereunder shall be distributed to such Participant's
     Beneficiary by the end of the calendar year in which the fifth (5th)
     anniversary of the Participant's date of death occurs.

          (iii) If the Participant's spouse (determined as of the Participant's
     date of death) is the Beneficiary, distributions must be made over a period
     not extending beyond the life expectancy of the spouse and must commence on
     or before the later of the end of the calendar year immediately following
     the calendar year in which the Participant died or would have attained
     seventy and one half (70 1/2) years of age. If the surviving spouse dies
     before distribution to such spouse has begun, then the five-year
     distribution requirement of clause (ii) shall apply as if the spouse was
     the Participant.

     10.07 COMMENCEMENT OF BENEFITS. Any payment of benefits from the Plan will
be made as soon as administratively feasible following the Valuation Date on
which the Participant's Vested Interest is to be determined. Notwithstanding the
foregoing, unless the Participant elects to defer the payment of benefits, the
payment of benefits will commence no later than the sixtieth (60th) day
following the close of the Plan Year in which the latest of the following events
occurs: (a) the date on which the Participant attains Normal Retirement Age, (b)
the tenth (10th) anniversary of the year in which the Participant commenced
participation in the Plan, and (c) the date the Participant terminates
employment with the Company.

     10.08 PAYMENT UPON INCAPACITY. The Plan Administrator may suspend the
payment of benefits under the Plan to any person if it determines in its sole
discretion that such person is incapacitated so as to be unable to manage his or
her financial affairs. In such case, the Plan Administrator shall direct the
Trustee to resume the payment of benefits under the Plan to the conservator or
other legal representative appointed for such incapacitated person.

     10.09 PAYMENT UNDER QUALIFIED DOMESTIC RELATIONS ORDER. All rights and
benefits provided to a Participant under this Plan shall be subject to the
rights of any alternate payee under a Qualified Domestic Relations Order. If
authorized by a Qualified Domestic Relations Order, an alternate payee may elect
to receive an immediate distribution of all or a portion of the Participant's
Vested Interest even if the affected Participant has not reached his or her
earliest retirement age. For purposes of this Section, "alternate payee" and
"earliest retirement age" shall have the meaning set forth in Section 414(p) of
the Code.

     10.10 DIRECT ROLLOVERS.

     (a) A Participant who is entitled to receive an Eligible Rollover
Distribution may elect to have such distribution (or a portion thereof not less
than five hundred dollars ($500)) made directly to an eligible retirement plan
("direct rollover election").

     An alternate payee who is entitled to receive an Eligible Rollover
Distribution pursuant to a Qualified Domestic Relations Order and who is the
spouse or a former spouse of a Participant may make a direct rollover election
as if such alternate payee were the Participant.

                                       44
<PAGE>

     A surviving spouse who is entitled to receive an Eligible Rollover
Distribution by reason of the Participant's death may make a direct rollover
election; provided that such election is restricted to an eligible retirement
plan that is an individual retirement account described in Section 408(a) of the
Code or an individual retirement annuity described in Section 408(b) of the
Code.

     (b) No earlier than ninety (90) days and no later than thirty (30) days
before an Eligible Rollover Distribution is to be made, the Plan Administrator
shall provide the Participant, alternate payee, or surviving spouse, as the case
may be, with a written explanation of:

          (i) the rules under which he or she may make a direct rollover
     election;

          (ii) the legal requirement that federal income tax be withheld from
     the distribution if he or she does not elect a direct rollover;

          (iii) the rules under which the amount that he or she actually
     receives will not be subject to federal income tax if such amount is
     transferred ("rolled over") within sixty (60) days after being received
     pursuant to Section 402(c) of the Code;

          (iv) the rules, if applicable, for receiving special income tax
     averaging, or capital gain treatment, under Section 402(d) of the Code; and

          (v) the Plan provisions under which a direct rollover election with
     respect to one payment in a series of periodic payments will apply to all
     subsequent payments until such election is changed.

     Notwithstanding the foregoing to the contrary, if an Eligible Rollover
Distribution is one of a series of periodic payments, the explanation required
by this Paragraph (b) shall be provided annually as long as such payments
continue.

     (c) A direct rollover election shall be made in such manner and at such
time as the Plan Administrator shall prescribe, and shall include:

          (i) the name of the eligible retirement plan;

          (ii) a statement that such plan is an eligible retirement plan; and

          (iii) any other information necessary to permit a direct rollover by
     the means selected by the Plan Administrator.

     An election to make a direct rollover with respect to one payment in a
series of periodic payments shall apply to all subsequent payments in the series
until such election is changed; such change with respect to subsequent payments
may be made at any time.

     (d) Notwithstanding Paragraph (b) to the contrary, if an individual, after
receiving the written explanation required by subsection (b) affirmatively
elects to make or not make a direct rollover, an eligible rollover distribution
may be made less than thirty (30) days after the date such written explanation
was given, provided the Plan Administrator has informed such

                                       45
<PAGE>

individual, in writing, of his or her right to a period of at least thirty (30)
days to make such election.

     (e) As used in this Section, the term "eligible retirement plan" means an
individual retirement account described in Section 408(a) of the Code; an
individual retirement annuity described in Section 408(b) of the Code (other
than an endowment contract); a trust described in Section 401(a) of the Code
which is exempt from tax under Section 501(a) of the Code and which is part of a
defined contribution plan described in Section 414(i) of the Code that permits
rollover contributions; or an annuity plan described in Section 403(a) of the
Code.

     (f) A direct rollover shall be made in cash; provided, however, with
respect to a Participant who ceases to be employed by the Company (and is no
longer employed by the Company or an Affiliate) as a result of the sale of
certain branches of Peoples Heritage Bank to Katahdin Trust Company on November
17, 2000, and who elects a direct rollover of his or her Vested Interest to the
Katahdin Trust Company 401(k) Plan ("Katahdin Plan"), and at the time of such
distribution there remain any outstanding loans with respect to his or her
Aggregate Account that are not in default, then, notwithstanding Section 8.03(g)
to the contrary, such unpaid loans shall not be treated as due and payable
immediately as of the date such distribution is made and instead shall be
transferred to the Katahdin Plan. The promissory note(s) evidencing such loan(s)
shall be assigned to the Katahdin Plan, and the Participant's obligation to this
Plan shall be deemed to be paid in full as of the date distribution is made.
Such a Participant shall be treated as receiving a distribution of his or her
entire Aggregate Account.

     10.11 ANNUITIES. A Participant who is entitled to and elects to receive all
or a portion of his or her Vested Interest as an Annuity shall receive an
annuity contract purchased from an insurance company, bank, or other similar
financial institution, subject to the following requirements:

     (a) Except for surrender to the issuer, the contract shall be
nontransferable, and no benefit thereunder may be sold, assigned, discounted, or
pledged.

     (b) The normal form of the annuity contract for a Participant who is
married on the Annuity Starting Date shall be a 50% joint and survivor annuity
with the Participant's spouse as joint annuitant. Any other Participant shall be
entitled to elect an annuity contract in the form of a single life annuity, a
ten (10) year certain and continuous annuity, or a 50% joint and survivor
annuity.

     (c) In lieu of a 50% joint and survivor annuity with the spouse as joint
annuitant, a married Participant may elect to receive a single life annuity, a
ten (10) year certain and continuous annuity or a 50% joint and survivor annuity
with another individual as joint annuitant, if the Participant's spouse consents
to such election. Such election may be made, with spousal consent, during the
ninety-day period ending on the Annuity Starting Date, provided, however, that
(1) if the written explanation required by Section 417(a)(3) of the Code has not
been furnished to the Participant at least thirty (30) days before the Annuity
Starting Date, the election period will be extended, if necessary, to include
the thirty-day period following the date on which such information is furnished
to the Participant, and (2) if the Participant requests additional information
described in Treas. Reg. Section 1.401(a)-11(c)(3)(iii), the election period
shall

                                       46
<PAGE>

be extended, if necessary, to include the thirty-day period following the day on
which such additional information is personally delivered or mailed to the
Participant.

     Notwithstanding the foregoing to the contrary, if a Participant, after
receiving the written explanation required by Section 417(a)(3) of the Code,
affirmatively elects a form of distribution, with spousal consent, an Annuity
may commence no less than seven (7) days after the date such written explanation
was given, provided the Plan Administrator has informed such Participant, in
writing, of his or her right to a period of at least thirty (30) days to make
such election.

     Any consent by the Participant's spouse to waive rights to survivor
benefits under a joint and survivor annuity must be in writing, must acknowledge
the effect of such waiver and must be witnessed by a notary public. Subject to
the spousal consent requirement above, the Participant may change an election
under this Paragraph (c) at any time and any number of times before the Annuity
Starting Date, in the form and the manner required by the Plan Administrator
from time to time. The Participant's spouse may not revoke consent to a specific
waiver of a joint and survivor form of benefit.

     10.12 DISTRIBUTIONS TO QUALIFIED PARTICIPANTS.

     (a) Each Qualified Participant may elect annually within ninety (90) days
after the close of each Plan Year in the Qualified Election Period withdraw not
more than twenty-five percent (25%) of the amounts credited to his or her ESOP
Account as of the last day of the Plan Year (taking into account in applying the
twenty-five percent (25%) limitation any amounts previously withdrawn pursuant
to this Section); provided, however, that in the case of the Plan Year with
respect to which the Qualified Participant can make his or her last withdrawal
election pursuant to this Section, this sentence shall be applied by
substituting "fifty percent (50%)" for "twenty-five percent (25%)." Any election
pursuant to this Section must be in writing, on a form or forms supplied by the
Committee, and must be received by the Employer not later than ninety (90) days
after the close of the Plan Year to which the election relates.

     (b) Unless otherwise elected by the Qualified Participant in accordance
with the following sentence, distributions of amounts withdrawn from the ESOP
Account of a Qualified Participant pursuant to this Section shall be made in
cash. A Qualified Participant may elect in writing on the election form
described in Paragraph (a) to receive all or a portion of the amounts withdrawn
from the Qualified Participant's ESOP Account pursuant to this Section in whole
shares of Stock, with cash distributed in lieu of any fractional shares.
Distributions of amounts withdrawn pursuant to this Section, whether in shares
of Stock or cash, shall be made no later than ninety (90) days after the close
of the period during which the withdrawal election may be made.

     (c) For purposes of this Section, the term "Qualified Participant" means
any Participant who has completed at least ten (10) years of participation under
the Plan and has attained age fifty-five (55), and the term "Qualified Election
Period" means the six (6) Plan Year period beginning with the first Plan Year in
which the Participant first became a Qualified Participant.

                                       47
<PAGE>

     (d) Notwithstanding the foregoing to the contrary, if the Fair Market Value
(determined as of the Valuation Date immediately preceding the first day on
which a Qualified Participant is otherwise eligible to make an election under
Paragraph (a) of the shares of Stock acquired by or contributed to the Plan and
allocated to the Qualified Participant's ESOP Account is five hundred dollars
($500) or less, then the Qualified Participant shall not be eligible to make an
election to receive a distribution under this Section; provided that, if the
Fair Market Value of the shares of Stock acquired by or contributed to the Plan
and allocated to the Qualified Participant's ESOP Account should thereafter
exceed five hundred dollars ($500) on a Valuation Date that falls within the
Qualified Election Period, then all shares of Stock allocated to such account
shall be subject to the election provided in this Section for the remainder of
the Qualified Election Period.

     (e) Notwithstanding the foregoing to the contrary, a Predecessor Plan
Participant shall be a Qualified Participant with respect to his or Predecessor
Plan Account attributable to the Separate ESOP if he or she has completed at
least ten (10) years of participation under the Plan and the Predecessor Plan
and has attained age fifty-five (55) (or such lesser number of years of
participation or lower age as is provided under the Predecessor Plan on its Plan
Affiliation Date).

ARTICLE XI. ADMINISTRATION OF THE PLAN

     11.01 PLAN ADMINISTRATOR. The general administration of the Plan shall be
vested in the Plan Administrator, who shall be a named fiduciary for purposes of
Section 402(a)(2) of ERISA. In performing its duties hereunder, the Plan
Administrator shall have the fullest discretion permitted by law and shall have
all powers granted by the provisions of the Plan except those specifically
granted or allocated to the Board, the Trustee and any investment manager.

     11.02 POWERS AND DUTIES. The Plan Administrator shall supervise the
administration and enforcement of the Plan according to the terms and provisions
hereof and shall have all powers necessary to accomplish these purposes,
including, but not by way of limitation, the right, power, authority and duty:

     (a) to make rules, regulations and bylaws for the administration of the
Plan which are not inconsistent with the terms and provisions hereof;

     (b) to construe all terms, provisions, conditions and limitations of the
Plan;

     (c) to correct any defect or supply any omission or reconcile any
inconsistency that may appear in the Plan, in such manner and to such extent as
it shall deem expedient to carry the Plan into effect for the greatest benefit
of all interested parties;

     (d) to employ and compensate such accountants, attorneys, investment
advisors and other agents and employees as the Plan Administrator may deem
necessary or advisable in the proper and efficient administration of the Plan;

     (e) to determine all factual and interpretation questions relating to
benefits under the Plan;

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<PAGE>

     (f) to prescribe procedures to be followed by Participants, Beneficiaries
and alternate payees when requesting benefits hereunder;

     (g) to prepare, file and distribute, in such manner as the Plan
Administrator determines to be appropriate, such information and material as is
required by the reporting and disclosure requirements of ERISA;

     (h) to make a determination as to the right of any person to a benefit
under the Plan;

     (i) to select any investment managers;

     (j) to receive and review reports from the Trustee and any investment
managers as to the financial condition of the Trust Fund, including its receipts
and disbursements;

     (k) to instruct the Trustee to grant loans as provided under Section 8.03,
above;

     (l) to determine and instruct the Trustee and any investment manager on the
funding and investment policies, methods and objectives of the Trust;

     (m) to designate those Trust assets over which the Trustee and each
investment manager shall have control; and

     (n) to prepare and submit all reports, notices, insurance premiums and
applications with respect to the Plan and the Trust required by law and for the
continued qualification of the Plan and Trust under Sections 401 and 501 of the
Code.

     11.03 DELEGATION OF MINISTERIAL DUTIES. The Plan Administrator may delegate
to any of its members or to any Employee or Employees, severally or jointly, the
authority to perform any ministerial act in connection with the administration
of the Plan.

     11.04 INVESTMENT MANAGER. The Plan Administrator may, in its sole
discretion, appoint an investment manager, with power to manage, acquire or
dispose of all or any portion of the Trust Fund who (a) is registered as an
investment adviser under the Investment Advisers Act of 1940; is not so
registered by reason of paragraph (1) of Section 203(A)(a) of such Act, is
registered as an investment adviser under the laws of the state (referred to in
such paragraph (1)) in which it maintains its principal office and place of
business, and at the time the fiduciary last filed the registration form most
recently filed by the fiduciary with such state in order to maintain the
fiduciary's registration under the laws of such state, also filed a copy of such
form with the Secretary; is a bank, as defined in said Act; or is an insurance
company qualified to manage, acquire, or dispose of all or any portion of the
Trust Fund under the laws of more than one state; and (b) has acknowledged, in
writing, that it is a fiduciary with respect to the Plan and Trust. Upon such
appointment, the Plan Administrator shall not be liable for the acts of the
investment manager. The Trustee shall follow the directions of such investment
manager and shall not be liable for the acts or omissions of such investment
manager. The investment manager may be removed by the Plan Administrator at any
time and within its sole discretion.

                                       49
<PAGE>

     11.05 BENEFIT CLAIM PROCEDURE.

     (a) A claim for a benefit under the Plan shall be submitted to the Plan
Administrator by the claimant or his or her authorized representative.
Submissions shall be made by such written, telephonic or electronic means as are
prescribed by the Plan Administrator and within the time period specified by the
Plan Administrator, provided, however that a claim for a Disability Benefit
shall be made within six (6) months from the date the Participant suffered a
Total and Permanent Disability, or his or her last full day of active
employment, whichever is later. Satisfactory proof of eligibility and
information necessary to determine the amount of such payments, including, where
appropriate, proof of age, Social Security status, death of an Employee or a
prior beneficiary, appointment as executor, administrator or guardian and such
other information as is reasonably required in the circumstances must be
submitted.

     (b) If a claim is wholly or partially denied, the Plan Administrator shall
furnish the claimant with written or electronic notification of the adverse
benefit determination. Any electronic notification shall comply with the
standards imposed by 29 C.F.R. sections 2520.104(b)-1(c)(i), (iii) and (iv). The
notification shall set forth in a manner calculated to be understood by the
claimant:

          (i) The specific reason or reasons for the adverse benefit
     determination;

          (ii) Reference to the specific Plan provisions on which the
     determination is based;

          (iii) A description of any additional material or information
     necessary for the claimant to perfect his or her claim and an explanation
     why such material or information is necessary; and

          (iv) A description of the Plan's procedures for review of an adverse
     benefit determination and the time limits applicable to such procedures,
     including, effective January 1, 2002, a statement of the claimant's right
     to bring a civil action under Section 502(a) of ERISA following an adverse
     benefit determination on review.

Such notification shall be furnished to the claimant within ninety (90) days
after receipt of his or her claim, unless special circumstances require an
extension of time for processing his or her claim. If an extension of time for
processing is required, the Plan Administrator shall, prior to the termination
of the initial ninety (90) day period, furnish the claimant with written notice
indicating the special circumstances requiring an extension and the date by
which the Plan Administrator expects to render the benefit determination. In no
event shall an extension exceed a period of ninety (90) days from the end of the
initial ninety (90) day period.

     (c) A claimant or his or her authorized representative may appeal an
adverse benefit determination by filing a written request for review with the
Plan Administrator. Such request must be delivered to the Plan Administrator
within sixty (60) days after receipt by the claimant of notification of the
adverse benefit determination. A claimant or his or her duly authorized
representative may review pertinent documents and submit issues and comments in
writing. In particular, effective January 1, 2002, a claimant and his or her
duly authorized representative:

                                       50
<PAGE>

          (i) May submit to the Plan Administrator written comments, documents,
     records, and other information relating to the claim for benefits; and

          (ii) Shall be provided, upon request and free of charge, reasonable
     access to, and copies of, all documents, records and other information
     relevant to the claimant's claim for benefits.

Effective January 1, 2002, the Plan Administrator's review of any adverse
benefit determination shall take into account all comments, documents, records
and other information submitted by the claimant or his or her authorized
representative relating to the claim, without regard to whether such information
was submitted or considered in the initial benefit determination.

     (d) The Plan Administrator shall provide the claimant with written or
electronic notification of the benefit determination on review not later than
sixty (60) days after receipt of a request for review, unless special
circumstances require an extension of time for processing. Any electronic
notification shall comply with the standards imposed by 29 C.F.R. sections
2520.104(b)-1(c)(i), (iii) and (iv). If an extension of time for processing is
required, the Plan Administrator shall, prior to the termination of the initial
60-day period, furnish the claimant with written notice indicating the special
circumstances requiring an extension of time and the date by which the Plan
Administrator expects to render the determination on review. In no event shall
such extension exceed a period of sixty (60) days from the end of the initial
60-day period.

     In the case of an adverse benefit determination on review, the notification
shall set forth in a manner calculated to be understood by the claimant:

          (i) The specific reason or reasons for the adverse determination;

          (ii) Reference to the specific Plan provisions on which the
     determination is based; and

          (iii) Effective January 1, 2002, (A) a statement that the claimant is
     entitled to receive, upon request and free of charge, reasonable access to,
     and copies of, all documents, records and other information relevant to the
     claimant's claim for benefits; and (B) a statement of the claimant's right
     to bring a civil action under Section 502(a) of ERISA.

     11.06 CONCLUSIVENESS OF RECORDS. In administering the Plan, the Plan
Administrator may conclusively rely upon the Company's payroll and personnel
records maintained in the ordinary course of business.

     11.07 CONCLUSIVENESS OF ACTIONS. Any action or determination taken or made
by the Plan Administrator in its discretion shall be conclusive and binding upon
all individuals.

ARTICLE XII. ADMINISTRATION OF THE FUND

     12.01 PAYMENT OF EXPENSES. All expenses incident to the administration of
the Plan and Trust, including but not limited to, legal, accounting, Trustee
fees, expenses of the Plan Administrator and the cost of furnishing any bond or
security required of the Plan Administrator

                                       51
<PAGE>

shall be paid by the Company; provided, however, that the Board in its
discretion may elect at any time to require the Trust Fund to pay part or all
thereof (excluding Trustee fees), and, until paid, shall constitute a claim
against the Trust Fund which is paramount to the claims of Participants and
Beneficiaries. Any election for payment of expenses from the Trust Fund by the
Board shall not bind the Board as to its right to elect, with respect to the
same or other expenses, to have such expenses paid directly by the Company.

     12.02 TRUST FUND PROPERTY. All income, profits, recoveries, contributions,
forfeitures and any and all moneys, securities and properties of any kind at any
time received or held by the Trustee hereunder shall be held for investment
purposes as a commingled Trust Fund. The Plan Administrator shall maintain a
Salary Deferral Contribution Account, Matching Contribution Account, ESOP
Account, Rollover Contribution Account, Predecessor Plan Account, and Aggregate
Account in the name of each Participant, but the maintenance of such accounts
shall not mean that such Participant shall have a greater or lesser interest
than that due him or her by operation of the Plan and shall not be considered as
segregating any funds or property from any other funds or property contained in
the commingled fund. No Participant shall have any title to any specific asset
in the Trust Fund.

     12.03 DISBURSEMENTS AND DISTRIBUTIONS. The Trustee shall make disbursements
for the purposes of investment as the Trustee in its sole discretion deems
advisable and proper. The Trustee shall make disbursements for the payment of
expenses upon approval by the Plan Administrator, and the Trustee shall have no
other responsibility with respect to such disbursements. The Trustee shall make
distributions to Participants and Beneficiaries in accordance with the
instructions of the Plan Administrator, observing the amounts, frequency of
payment, names, addresses and other similar instructions given by the Plan
Administrator, and the Trustee shall have no other responsibility with respect
to such distributions.

     12.04 TRUST ACCOUNTING. The Trustee shall keep full accounts of all its
receipts, disbursements, and investments in the Trust Fund. Within a reasonable
period following the close of each Plan Year or the termination of the Trust,
the Trustee shall render to the Plan Administrator an accounting of its
administration of the Trust during the preceding year or interim period. Said
accounting shall be made available at all reasonable times for inspection or
audit by any person designated by the Plan Administrator and by any other person
or entity to the extent required by law. The written approval of any accounting
by the Plan Administrator (or failure to except or object in writing to the
Trustee as to any matter or transaction stated therein within sixty (60) days
after receipt of any account) shall be final and binding upon them and upon all
persons who may be or become interested in this Trust as to all matters and
transactions stated in such account.

ARTICLE XIII. TRUSTEES

     13.01 APPOINTMENT AND SUCCESSION. The Company may appoint one or more
additional Trustees at any time. In the event of a vacancy in the office of
Trustee, whether by reason of the death, legal incapacity, resignation, or
removal of a Trustee, the Company may designate and appoint a successor Trustee,
but should there be no Trustee, then the Company shall designate one or more
successor Trustees. In the event that the Company shall go out of existence or
shall fail to appoint a required Trustee within a reasonable period of time,
then the remaining Trustee

                                       52
<PAGE>

or Trustees shall appoint a successor Trustee. The successor Trustee shall have
all the powers conferred herein upon an original Trustee, but shall not be
responsible for the acts, omissions, or accounts of his or her predecessor
Trustee. Any successor Trustee shall immediately and automatically vest in the
title to any property in the Trust Fund.

     13.02 RESIGNATION AND REMOVAL. Any Trustee may resign from this Trust by
sending written notice to the Company. The Company may remove a Trustee at any
time by sending written notice to the Trustee. Thereupon, the Trustee shall
render to the Company an accounting of his or her administration of this Trust
from the Trustee's last annual accounting to the date of resignation or removal
and shall perform all acts necessary to transfer the assets of this Trust to his
or her successor.

     13.03 TRUSTEE POWERS. The Trustee shall have the power to do all such acts,
take all such proceedings, and exercise all such rights and privileges as the
Trustee may deem necessary to administer the funds and to carry out the purposes
of the Plan and Trust.

ARTICLE XIV. AMENDMENT AND TERMINATION

     14.01 AMENDMENTS.

     (a) No amendment may be made which would vary the Plan's exclusive purpose
of providing benefits to Participants, and their beneficiaries, and defraying
reasonable expenses of administering the Plan or which would permit the
diversion of any part of the Trust Fund from that exclusive purpose. No
amendment shall, except to the extent permitted under Section 412(c)(8) of the
Code, decrease a Participant's Aggregate Account balance or, except to the
extent permitted by regulations, eliminate an optional form of benefit. In
addition, no amendment shall have the effect of decreasing a Participant's
Vested Interest determined without regard to such amendment as of the later of
the date such amendment is adopted or the date it becomes effective.

     (b) Subject to the limitations in Paragraph (a) of this Section and any
other limitations contained in ERISA or the Code, the Board may make any
amendment to the Plan including, but not limited to, an increase or decrease of
contributions, a change or modification of the method of allocation of
contributions or forfeitures, or a change of the provisions relating to the
administration of the Plan.

     (c) Nothing herein shall be construed as prohibiting any amendment or
modification of the Plan which is required in order to comply with provisions of
any law or regulation relating to the establishment or maintenance of the Plan,
including but not limited to the establishment and maintenance of the Plan as a
qualified retirement plan or trust under applicable provisions of the Code and
to comply with ERISA, even though such amendment or modification is made
retroactively or adversely affects the rights or interests of a Participant of
the Plan. Any such modifications or amendment shall be approved by the Plan
Administrator without further authorization from the Board.

     (d) If the vesting schedule in effect under the Plan is amended, each
Participant who has completed at least three (3) Years of Service may elect to
have the vested percentage of such portion of his or her Aggregate Account
determined without regard to such amendment. The

                                       53
<PAGE>

Plan Administrator shall promptly give each such Participant written notice of
the adoption of any such amendment and the availability of the election to have
the vested percentage of such portion of his or her Aggregate Account determined
without regard to such amendment. An election by a Participant shall be in
writing and shall be effective if filed with the Plan Administrator at any time
during the period beginning with the date such amendment is adopted and ending
on the later of (i) the date which is sixty (60) days after the day such
amendment is adopted, (ii) the date which is sixty (60) days after the day such
amendment becomes effective, or (iii) the date which is sixty (60) days after
the day the Participant receives written notice of such amendment. An election
once made shall be irrevocable. For purposes of this Section, a Participant
shall be considered to have completed three (3) Years of Service if the
Participant has completed three (3) Years of Service prior to the expiration of
the period in which an election could be made.

     14.02 DISCONTINUANCE OF CONTRIBUTIONS.

     (a) The Company has established the Plan with the bona fide intention and
expectation that from year to year it will be able to, and will deem it
advisable to, make its contributions as herein provided. However, the Company
realizes that circumstances not now foreseen, or circumstances beyond its
control, may make it either impossible or inadvisable to continue to make its
contributions to the Trust. Therefore, the Company shall have the power to
discontinue contributions to the Plan, terminate the Plan or partially terminate
the Plan at any time.

     (b) If the Plan is amended so as to permanently discontinue Company
contributions, or if Company contributions are in fact permanently discontinued,
each affected Participant shall have a fully Vested Interest in his or her
Aggregate Account effective as of the date of discontinuance. In case of
discontinuance, the Plan Administrator shall continue to administer the Plan and
all other provisions of the Plan which are necessary, in the opinion of the Plan
Administrator, for equitable operation of the Plan shall remain in force.

     (c) If the Plan is terminated or partially terminated, each affected
Participant shall have a fully Vested Interest effective as of the termination
date. Unless the Plan is otherwise amended prior to dissolution of the Company,
the Plan shall terminate as of the date of dissolution of the Company.

     (d) Upon discontinuance or termination, any previously unallocated
contributions, forfeitures and net income (or net loss) shall be allocated to
the accounts of Participants on such date of discontinuance or termination as if
such date of discontinuance or termination were a Valuation Date. Thereafter,
net income (or net loss) shall continue to be allocated to Participants'
accounts until the balances thereunder are distributed. In the event of
termination, the date of the final distribution shall be treated as a Valuation
Date.

     (e) In the case of a total or partial termination of the Plan, and in the
absence of a Plan amendment to the contrary, the Trustee shall be entitled in
its sole discretion to pay the balance of an affected Participant's Aggregate
Account in a single lump sum payment.

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<PAGE>

     14.03 MERGER, CONSOLIDATION OR TRANSFER OF ASSETS. In the event of any
merger or consolidation of the Plan with, or transfer in whole or in part of the
assets and liabilities of the Trust Fund to another trust fund held under any
other retirement or pension plan maintained or to be established for the benefit
of some or all of the Participants in this Plan, the assets of the Trust Fund
applicable to such Participants shall be transferred to the other trust fund
only if:

     (a) each Participant would (if either this Plan or the other plan
terminated) receive a benefit immediately after the merger, consolidation, or
transfer which is equal to or greater than the benefit he or she would have been
entitled to receive immediately before the merger, consolidation, or transfer
(if this Plan had been terminated);

     (b) the Board shall have authorized such merger, consolidation, or transfer
of assets, and the board of directors of any new or successor employer of the
affected Participants shall have agreed to an assumption of liabilities with
respect to such Participants' inclusion in the new or successor employer's plan;
and

     (c) such other plan and trust are qualified under Sections 401(a) and
501(a) of the Code.

     14.04 MANNER OF AMENDMENT OR TERMINATION. Except as otherwise provided in
the Plan, any amendment, modification, suspension, or termination of the Plan
shall be formally adopted or approved by the Board by resolution, unanimous
written consent, or any other method authorized under the by-laws of the
Company, and shall be effective on the date of its adoption or approval or such
other date as is specified therein; provided, however, the Board may delegate to
the Plan Administrator or other party (by formally-adopted or approved
resolution, unanimous written consent, or any other method authorized under the
by-laws of the Company) the authority to amend or modify the Plan.

ARTICLE XV. PARTICIPATING EMPLOYERS

     15.01 ADOPTION BY PARTICIPATING EMPLOYERS. The Board or its delegate, which
may be the Plan Administrator, may cause any Affiliate, whether or not presently
existing, to become a Participating Employer hereunder. The provisions of the
Plan shall apply separately and equally to each Participating Employer and its
employees in the same manner as is expressly provided for the Company and its
Employees, except to the extent specifically provided otherwise in the Plan and
except that provisions granting powers, rights and duties under the Plan to the
Board shall apply exclusively to the board of directors of Banknorth Group, Inc.
The Board may, in its discretion, terminate a Participating Employer's
participation in this Plan at any time. If such discontinuance of participation
is due to the establishment of a separate plan, the Trustee shall take whatever
action is necessary to effect a transfer of the applicable assets to such
separate plan. Otherwise, such assets shall continue to be held under this Plan
and the provisions hereof shall govern.

     15.02 SINGLE PLAN. For purposes of the Code and ERISA, the Plan as adopted
by the Participating Employers shall constitute a single plan rather than a
separate plan of each Participating Employer. All assets in the Trust Fund shall
be available to pay benefits to all Participants and their Beneficiaries.

                                       55
<PAGE>

ARTICLE XVI. PREDECESSOR PLANS AND ACCOUNTS

     16.01 ARTICLE CONTROLS. The provisions of this Article shall take
precedence over any conflicting provisions of any other Article of the Plan with
respect to the benefits, rights, and features of a Predecessor Plan remaining in
effect with respect to a Participant's Predecessor Plan Account.

     16.02 PREDECESSOR PLANS. The plans identified on Appendix A to the Plan
shall be Predecessor Plans as of their respective Plan Affiliation Dates stated
therein.

     16.03 MERGER PROVISIONS. The following provisions shall be applicable to
the merger of each Predecessor Plan with this Plan as of the applicable Plan
Affiliation Date:

     (a) All participant accounts, employer contributions accounts, suspense
accounts, outstanding forfeitures, and loans under the Predecessor Plan shall be
transferred to this Plan;

     (b) All of the Predecessor Plan's assets shall be transferred to this Plan;

     (c) All of the Predecessor Plan's benefit obligations shall be transferred
to this Plan and become the responsibility of the Plan;

     (d) On and after the Plan Affiliation Date, the rights of participants and
beneficiaries of participants under the Predecessor Plan shall be determined
strictly in accordance with the terms of this Plan; provided that, in accordance
with Paragraph (g), each such participant's Predecessor Plan Account shall be
invested and reinvested in accordance with the applicable provisions of the
Predecessor Plan until the date on which the Predecessor Plan's assets are
transferred to the trust under this Plan ("transfer date");

     (e) On the Plan Affiliation Date, the vested interest in the Plan of each
Participant whose account is transferred from the Predecessor Plan shall be no
less than his or her vested employer contributions account and his or her
participant contributions account under the Predecessor Plan on the date
preceding the merger;

     (f) The Trustee shall accept the Predecessor Plan's assets when transferred
and shall have all the rights, duties, powers and responsibilities with respect
to such assets as prescribed under Article XIII of the Plan; and

     (g) Pursuant to Article VI of the Plan, each Participant who has an account
transferred from the Predecessor Plan shall make an investment election with
respect to such Predecessor Plan Account which shall be applicable as of the
transfer date, and shall invest and reinvest his or her Predecessor Plan Account
in accordance with the provisions thereof.

     16.04 PREDECESSOR PLAN ACCOUNTS. Each Predecessor Plan Account shall
separately reflect the balance of each sub-account thereunder as of the Plan
Affiliation Date.

     16.05 DISTRIBUTION OF PREDECESSOR PLAN ACCOUNTS. Notwithstanding any other
provision of the Plan to the contrary, with respect to his or her Predecessor
Plan Account only, a Predecessor Plan Participant may elect an optional form of
payment made available under the

                                       56
<PAGE>

applicable Predecessor Plan as in effect immediately prior to the Plan
Affiliation Date if the distribution is made or commences before January 1, 2002
(or, if later, the earlier of: (i) the ninetieth (90th) day after the date such
Participant has been furnished a summary of material modifications (or summary
plan description) that reflects this provision, or (ii) the first day of Plan
Year following the Plan Year in which occurs the applicable Predecessor Plan
Affiliation Date). For purposes of this Section, an "optional form of payment"
is a distribution form with respect to a Predecessor Plan Account, including all
features relating to such form that are protected under Section 411(d)(6) of the
Code and Treasury Regulation Section 1.411(d)-4. Effective January 1, 1998, the
"required beginning date" for any distribution under this Section shall be
determined under Section 10.05(d)(i).

     16.06 PREDECESSOR PLAN ACCOUNTS SUBJECT TO SURVIVOR ANNUITY REQUIREMENTS.
The Plan shall be a "transferee plan" (within the meaning of Treasury Regulation
Section 1.401(a)-20) with respect to each Predecessor Plan Account attributable
to the SBERA 401(k) Plan As Adopted by Family Mutual Savings Bank, and each
other Predecessor Plan Account that may be held under this Plan as a result of a
merger, spinoff, or other transaction having the effect of a transfer that is
subject to the survivor annuity requirements of Sections 401(a)(11) and 417 of
the Code. Notwithstanding any other provision of the Plan to the contrary, if
the Plan is a transferee plan with respect to any portion of a Participant's
Aggregate Account, then his or her entire Aggregate Account (excluding his or
her ESOP Account) shall be subject to such survivor annuity requirements. With
respect to such requirements:

     (a) The Participant's Aggregate Account (excluding his or her ESOP Account)
shall be administered in accordance with the applicable Predecessor Plan as in
effect on the date immediately preceding the Plan Affiliation Date.

     (b) The Participant may elect an optional form of payment made available
under the applicable Predecessor Plan as in effect immediately prior to the Plan
Affiliation Date if the distribution is made or commences before January 1, 2002
(or, if later, the earlier of: (i) the ninetieth (90th) day after the date such
Participant has been furnished a summary of material modifications (or summary
plan description) that reflects this provision, or (ii) the first day of Plan
Year following the Plan Year in which occurs the applicable Predecessor Plan
Affiliation Date).

     (c) Effective for any distribution that is made or commences on or after
January 1, 2002 (or, if later, the earlier of: (i) the ninetieth (90th) day
after the date such Participant has been furnished a summary of material
modifications (or summary plan description) that reflects this provision, or
(ii) the first day of Plan Year following the Plan Year in which occurs the
applicable Predecessor Plan Affiliation Date), the normal form of payment shall
be determined in accordance with the applicable Predecessor Plan and the
survivor annuity requirements of Sections 401(a)(11) and 417 of the Code. The
Participant may elect, in the manner described in Section 10.11, to receive
payment of his or her Aggregate Account (excluding his or her ESOP Account) as a
single lump sum payment in cash that is otherwise identical (within the meaning
of subsection (e) of Q&A-2 of Treasury Regulation sections 1.411(d)-4) to the
optional forms of benefit that would have been available to the Participant
under the Predecessor Plan immediately prior to such date.

                                       57
<PAGE>

Each Aggregate Account (excluding the Predecessor Plan Participant's ESOP
Account) that is subject to survivor annuity requirements hereunder shall be
accounted for in the manner described in Treasury Regulation Section
1.401(a)-20, Q&A-5(b).

     16.07 PREDECESSOR PLAN ESOP ACCOUNTS. For periods before the Effective
Date, each Predecessor Plan Account or portion thereof that is an ESOP account
under the Banknorth Group, Inc. Employee Savings Plan (the "KSOP") immediately
prior to the Plan Affiliation Date of the KSOP, including a matching
contribution account under the KSOP that is attributable to any period beginning
on or after January 1, 1999, shall, notwithstanding any other provision of this
Plan to the contrary, be subject to all applicable provisions of Article XVII of
the KSOP and shall be administered in accordance with such Article XVII as in
effect on the date immediately preceding the Plan Affiliation Date.

ARTICLE XVII. TOP HEAVY PROVISIONS

     17.01 ARTICLE CONTROLS. Any Plan provisions to the contrary
notwithstanding, the provisions of this Article shall control to the extent
required to cause the Plan to comply with the requirements imposed under Section
416 of the Code.

     17.02 DEFINITIONS. For purposes of this Article, the following terms and
phrases shall have the respective meanings set forth below:

     (a) "Account Balance" means, as of any Valuation Date, the aggregate amount
credited to an individual's account or accounts under a qualified defined
contribution plan maintained by the Company or an Affiliate (excluding employee
contributions which were deductible within the meaning of Section 219 of the
Code and rollover or transfer contributions made after December 31, 1983, by or
on behalf of such individual to such plan from another qualified plan sponsored
by an entity other than the Company or an Affiliate), increased by (1) the
aggregate distributions made to such individual from such plan during a
five-year period ending on the Determination Date and (2) the amount of any
contributions due as of the Determination Date immediately following such
Valuation Date.

     (b) "Accrued Benefit" means, as of any Valuation Date, the present value
(computed on the basis of the Assumptions) of the cumulative accrued benefit
(excluding the portion thereof which is attributable to employee contributions
which were deductible pursuant to Section 219 of the Code, to rollover or
transfer contributions made after December 31, 1983, by or on behalf of such
individual to such plan from another qualified plan sponsored by an entity other
than the Company or an Affiliate, to proportional subsidies or to ancillary
benefits) of an individual under a qualified defined benefit plan maintained by
the Company or an Affiliate increased by (1) the aggregate distributions made to
such individual from such plan during a five-year period ending on the
Determination Date and (2) the estimated benefit accrued by such individual
between such Valuation Date and the Determination Date immediately following
such Valuation Date. Solely for the purpose of determining top-heavy status, the
Accrued Benefit of an individual shall be determined under (1) the method, if
any, that uniformly applies for accrual purposes under all qualified defined
benefit plans maintained by the Company and the Controlled Entities or (2) if
there is no such method, as if such benefit accrued not more rapidly than under
the slowest accrual rate permitted under Section 411(b)(1)(C) of the Code.

                                       58
<PAGE>

     (c) "Aggregation Group" means the group of qualified plans maintained by
the Company and each Affiliate consisting of (1) each plan in which a Key
Employee participates and each other plan which enables a plan in which a Key
Employee participates to meet the requirements of Sections 401(a)(4) or 410 of
the Code and any other plan which the Company elects to include as a part of
such group; provided, however, that the Company may not elect to include a plan
in such group if its inclusion would cause the group to fail to meet the
requirements of Sections 401(a)(4) or 410 of the Code.

     (d) "Assumptions" means the interest rate and mortality assumptions
specified for top-heavy status determination purposes in any defined benefit
plan included in the Aggregation Group including the Plan.

     (e) "Determination Date" means, for the first Plan Year of any plan, the
last day of such Plan Year and for each subsequent Plan Year of such plan, the
last day of the preceding Plan Year.

     (f) "Key Employee" means a "key employee" as defined in Section 416(i) of
the Code and the Treasury Regulations thereunder.

     (g) "Remuneration" means compensation within the meaning of Section
415(c)(3) of the Code, as limited by Section 401(a)(17) of the Code.

     (h) "Valuation Date" means, with respect to any Plan Year of any defined
contribution plan, the most recent date within the twelve-month period ending on
a Determination Date as of which the Trust Fund established under such plan was
valued and the net income (or loss) thereof allocated to participants' accounts.
With respect to any Plan Year of any defined benefit plan, the most recent date
within a twelve-month period ending on a Determination Date as of which the plan
assets were valued for purposes of computing plan costs for purposes of the
requirements imposed under Section 412 of the Code.

17.03 TOP-HEAVY STATUS.

     (a) The Plan shall be deemed to be top-heavy for a Plan Year, if, as of the
Determination Date for such Plan Year, (1) the sum of Account Balances of
Participants who are Key Employees exceeds sixty percent (60%) of the sum of
Account Balances of all Participants unless an Aggregation Group including the
Plan is not top-heavy or (2) an Aggregation Group including the Plan is
top-heavy. An Aggregation Group shall be deemed to be top-heavy as of a
Determination Date if the sum (computed in accordance with Section 416(g)(2)(B)
of the Code and the Treasury Regulations promulgated thereunder) of (1) the
Account Balances of Key Employees under all defined contribution plans included
in the Aggregation Group and (2) the Accrued Benefits of Key Employees under all
defined benefit plans included in the Aggregation Group exceeds sixty percent
(60%) of the sum of the Account Balances and the Accrued Benefits of all
individuals under such plans. Notwithstanding the foregoing, the Account
Balances and Accrued Benefits of individuals who are not Key Employees in any
Plan Year but who were Key Employees in any prior Plan Year shall not be
considered in determining the top-heavy status of the Plan for such Plan Year.
Further, notwithstanding the foregoing, the Account Balances and Accrued
Benefits of individuals who have not performed services for the Company

                                       59
<PAGE>

at any time during the five-year period ending on the applicable Determination
Date shall not be considered.

     (b) If the Plan is determined to be top-heavy for a Plan Year, the Company
shall contribute to the Plan for such Plan Year on behalf of each Participant
who is not a Key Employee and who has not terminated his or her employment as of
the last day of such Plan Year an amount equal to the lesser of (1) three
percent (3%) of such Participant's Remuneration for such Plan Year or (2) a
percent of such Participant's Remuneration for such Plan Year equal to the
greatest percent determined by dividing for each Key Employee the amounts
allocated to such Key Employee's Salary Deferral Contribution Account and
Company Contribution accounts for such Plan Year by such Key Employee's
Remuneration. The minimum contribution required to be made for a Plan Year
pursuant to this Paragraph for a Participant employed on the last day of such
Plan Year shall be made regardless of whether such Participant is otherwise
ineligible to receive an allocation of the Company's contributions for such Plan
Year. The minimum contribution required to be made pursuant to this Paragraph
shall also be made for an Employee who is not a Key Employee and who is excluded
from participation in the Plan for failing to make Salary Deferral
Contributions.

     Notwithstanding the foregoing, if the Plan is deemed to be top-heavy for a
Plan Year beginning before January 1, 2000, the Company's contribution for such
Plan Year pursuant to this Paragraph shall be increased by substituting "four
percent" in lieu of "three percent" in Clause (1) hereof to the extent that the
Board determines to so increase such contribution to comply with the provisions
of Section 416(h)(2) of the Code.

     Notwithstanding the foregoing, no contribution shall be made pursuant to
this Paragraph for a Plan Year with respect to a Participant who is a
participant in another defined contribution plan sponsored by the Company or an
Affiliate if such Participant receives under such other defined contribution
plan (for the Plan Year of such plan ending with or within the Plan Year of this
Plan) a contribution which is equal to or greater than the minimum contribution
required by Section 416(c)(2) of the Code. Notwithstanding the foregoing, no
contribution shall be made pursuant to this Paragraph for a Plan Year with
respect to a Participant who is a participant in a defined benefit plan
sponsored by the Company or an Affiliate if such Participant accrues under such
defined benefit plan (for the Plan Year of such plan ending with or within the
Plan Year of this Plan) a benefit which is at least equal to the benefit
described in Section 416(c)(1) of the Code. If the preceding sentence is not
applicable, the requirements of this Paragraph shall be met by providing a
minimum benefit under such defined benefit plan which, when considered with the
benefit provided under the Plan as an offset, is at least equal to the benefit
described in Section 416(c)(1) of the Code.

     17.04 TERMINATION OF TOP-HEAVY STATUS. If the Plan has been deemed to be
top-heavy for one or more Plan Years and thereafter ceases to be top-heavy, the
provisions of this Article shall cease to apply to the Plan effective as of the
Determination Date on which it is determined to no longer be top-heavy.
Notwithstanding the foregoing, the nonforfeitable interest of each Participant's
Aggregate Account as of such Determination Date shall not be reduced.

                                       60
<PAGE>

     17.05 EFFECT OF ARTICLE. Notwithstanding anything contained herein to the
contrary, the provisions of this Article shall automatically become inoperative
and of no effect to the extent not required by the Code or ERISA.

ARTICLE XVIII. MISCELLANEOUS

     18.01 NOT CONTRACT OF EMPLOYMENT. The adoption and maintenance of this Plan
shall not be deemed to be a contract between the Company and any person or to be
consideration for the employment of any person. Nothing herein contained shall
be deemed to give any person the right to be retained in the employ of the
Company or to restrict the right of the Company to discharge any person at any
time, nor shall the Plan be deemed to give the Company the right to require any
person to remain in the employ of the Company or to restrict any person's right
to terminate his or her employment at any time.

     18.02 NON-ASSIGNABILITY OF THE RIGHT TO RECEIVE BENEFITS.

     (a) Except with respect to the creation, assignment, or recognition of a
right to a benefit payable with respect to a Participant pursuant to a Qualified
Domestic Relations Order, and subject to Paragraph (b), no benefit payable under
the Plan to any person shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any
attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or
charge the same shall be void. No such benefit shall be in any manner liable
for, or subject to, the debts, contracts, liabilities, engagements, or torts of
any person nor shall it be subject to attachment or legal process for or against
any person, and the same shall not be recognized under the Plan, except to the
extent as may be provided pursuant to a Qualified Domestic Relations Order or an
order or requirement to pay described in Paragraph (b), or otherwise required by
law.

     (b) Effective August 5, 1997, Paragraph (a) shall not apply to any offset
of a Participant's Aggregate Account balance against an amount that the
Participant is ordered or required to pay to the Plan, and the Plan shall not be
treated as failing to meet the requirements of Code Sections 401(a)(13) or
409(d) solely by reason of such an offset, provided:

          (i) the order or requirement to pay arises (A) under a judgment of
     conviction for a crime involving the Plan; (B) under a civil judgment
     (including a consent order or decree) entered by a court in an action
     brought in connection with a violation (or alleged violation) of Part 4 of
     Subtitle B of Title I of ERISA; or (C) pursuant to a settlement agreement
     between the Secretary of Labor and the Participant, or a settlement
     agreement between the Pension Benefit Guaranty Corporation and the
     Participant, in connection with a violation (or alleged violation) of Part
     4 of Subtitle B of Title I of ERISA by a fiduciary or any other person;

          (ii) the judgment, order, decree or settlement agreement expressly
     provides for the offset of all or a part of the amount ordered or required
     to be paid to the Plan against the Participant's Aggregate Account balance;
     and

          (iii) in the event that the survivor annuity requirements of Code
     Section 401(a)(11) apply with respect to distribution of the Participant's
     Aggregate Account, if

                                       61
<PAGE>

     the Participant has a spouse at the time at which the offset is to be made,
     the requirements of Code Section 401(a)(13)(C)(iii) are satisfied.

     18.03 PAYMENTS SOLELY FROM TRUST FUND. All benefits payable under the Plan
shall be paid or provided for solely from the Trust Fund and neither the Company
nor the Trustee assumes any liability or responsibility for the adequacy
thereof. Each person entitled at any time to any payment hereunder shall look
solely for such payment to the Trust Fund. The Plan Administrator or the Trustee
may require execution and delivery of such instruments as are deemed necessary
to assure proper payment of any benefits.

     18.04 NO BENEFITS TO THE COMPANY. No part of the corpus or income of the
Trust Fund shall be used for any purpose other than the exclusive purpose of
providing benefits for the Participants and their beneficiaries and defraying
reasonable expenses of administering the Plan. Anything to the contrary herein
notwithstanding, the Plan shall never be construed to vest any rights in the
Company other than those specifically given herein.

     18.05 SEVERABILITY. If any provision of this Plan shall be held illegal or
invalid for any reason, said illegality or invalidity shall not affect the
remaining provisions hereof. Instead, each provision shall be fully severable
and the Plan shall be construed and enforced as if said illegal or invalid
provision had never been included herein.

     18.06 GOVERNING LAW; INTERPRETATION. The provisions of this Plan shall be
construed and enforced according to the laws of the State of Maine, to the
extent that such laws are not preempted by the laws of the United States of
America, and in such manner as will tend to carry out the purposes of the Plan.
Should this Plan be found or be held to contain contradictory clauses or should
there appear to be a conflict between different provisions hereof, the
interpretation that favors this Plan as a qualified plan under Section 401 of
the Code shall govern over any other interpretation; provided, however, that
neither the Trustee nor the Plan Administrator shall be under any liability or
responsibility for failure of this Plan or the Trust to qualify at any time or
for any period as a tax-exempt Plan and Trust under the provisions of the Code
or for any tax or increase in tax upon any Participant or Beneficiary by reason
of any benefits payable or contributions made hereunder.

     18.07 HEADINGS OF SECTIONS. The headings of sections and articles are
included solely for convenience of reference, and if there is any conflict
between such headings and the text of the Plan, the text shall control.

     18.08 EFFECT OF MISTAKE. In the event of a mistake or misstatement as to
age or eligibility of any individual, or the amount of accrued benefits
applicable to a Participant, or distributions made or to be made to a
Participant or other individual pursuant the Plan, the Plan Administrator shall,
to the extent it deems possible, make such adjustment in its sole discretion as
will in its judgment accord to such Participant or other individual the accrued
benefits or distributions to which he or she is properly entitled.

     18.09 BONDING. Unless exempted by ERISA, every fiduciary (as defined under
Section 3(21)(A) of ERISA) shall be bonded in an amount not less than ten
percent (10%) of the amount of the funds such fiduciary handles; provided,
however, that the minimum bond shall be

                                       62
<PAGE>

     one thousand dollars ($1,000) and the maximum bond five hundred thousand
     dollars ($500,000). The amount of funds handled shall be determined at the
     beginning of each Plan Year by the amount of funds handled by such persons,
     group, or class to be covered and their predecessors, if any, during the
     preceding Plan Year, or if there is no preceding Plan Year, then by the
     amount of the funds to be handled during the then current year. The bond
     shall provide protection to the Plan against any loss by reason of acts of
     fraud or dishonesty by the fiduciary alone or with others. The surety shall
     be a corporate surety company (as such term is used in Section 412(a)(2) of
     ERISA), and the bond shall be in a form approved by the Secretary of Labor.
     Notwithstanding anything in this Plan to the contrary, the cost of such
     bonds shall be paid from the Trust Fund, unless otherwise directed by the
     Plan Administrator.

     18.10 USERRA REQUIREMENTS. Notwithstanding any provision of this Plan to
the contrary, contributions, benefits and service credit with respect to
qualified military service will be provided in accordance with Section 414(u) of
the Code.

     18.11 EPCRS, ETC. ADJUSTMENTS. The Company, a Participating Employer, the
Plan Administrator, the Trustee, any Investment Manager and any other person
providing services to the Plan, acting jointly or singly, as the situation may
require, shall take such action, pursuant to the Employee Plans Compliance
Resolution System or any successor system, policy or program established by the
Internal Revenue Service as may be necessary or appropriate to correct any
operational failure occurring in the administration of the Plan.

     IN WITNESS WHEREOF, to record the adoption of the Plan, as amended and
restated herein, Banknorth Group, Inc. has caused this instrument to be executed
by its duly authorized officer to become effective as of January 1, 2001.

                                          BANKNORTH GROUP, INC.

                                          By
                                            ------------------------------------
                                          Its

Dated:                      , 2001
      ----------------------

                                       63
<PAGE>

     APPENDIX A PREDECESSOR PLANS

     Each of the following tables identifies Predecessor Plans that were merged
into either the Banknorth Group, Inc. Thrift Incentive Plan or the Banknorth
Group, Inc. Profit Sharing and Employee Stock Ownership Plan prior to the merger
of the two Banknorth Group, Inc. plans as of the Effective Date. The provisions
of each Predecessor Plan remaining in effect solely with respect to a
Participant's Predecessor Plan Account in accordance with Article XIV hereof
shall be the provisions of each such plan as of the Plan Affiliation Date set
forth below, as modified through the Effective Date, except as is otherwise
specifically provided in this Plan to the contrary.

PREDECESSOR PLANS MERGED INTO THE
BANKNORTH GROUP, INC. THRIFT INCENTIVE PLAN

<TABLE>
<CAPTION>
PREDECESSOR PLAN                                                                          PLAN AFFILIATION DATE
----------------                                                                          ---------------------
<S>                                                                                      <C>
Mid Maine Savings Bank, FSB 401(k) Savings Plan                                           January 1, 1996

Bank of New Hampshire Corporation Tax Deferred Savings & Investment Plan                  July 1, 1996

SBERA 401(k) Plan As Adopted By Family Mutual Savings Bank                                April 1, 1997

Atlantic Bank 401(k) Profit Sharing Plan                                                  December 1, 1997

Concord Savings Bank 401(k) Plan                                                          November 1, 1998

CFX Corporation 401(k) Plan                                                               December 15, 1998

SIS Bank Employees' Savings Incentive Plan                                                December 31, 1999

Individual Account Portion of the Peoples Heritage Financial Group, Inc. Retirement       March 1, 2000
Plan

Banknorth Group, Inc. Employee Savings Plan                                               October 1, 2000

</TABLE>

PREDECESSOR PLANS MERGED INTO THE BANKNORTH GROUP, INC.
PROFIT SHARING AND EMPLOYEE STOCK OWNERSHIP PLAN

<TABLE>
<CAPTION>
PREDECESSOR PLAN                                                                          PLAN AFFILIATION DATE
----------------                                                                          ---------------------
<S>                                                                                     <C>
Family Mutual Savings Bank Employee Stock Ownership Plan                                  October 31, 1997

Mid Maine Savings Bank, FSB Employee Stock Ownership Plan                                 December 1, 1997

Springfield Institution for Savings Employee Stock Ownership Plan                         September 30, 1999

</TABLE>

                                       64<Page>

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

           THE INDUSTRIAL DEVELOPMENT BOARD OF WHITE COUNTY, TENNESSEE

                                       AND

                            GENLYTE THOMAS GROUP, LLC

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

                                 LEASE AGREEMENT

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

                          Dated as of September 1, 2001

                  The interest of THE INDUSTRIAL DEVELOPMENT BOARD OF WHITE
COUNTY, TENNESSEE (the "Issuer") in this Lease Agreement has been assigned
(except for "Reserved Rights" defined in this Lease Agreement) pursuant to the
Indenture of Trust dated as of the date hereof from the Issuer to SUNTRUST BANK,
as trustee (the "Trustee"), and is subject to the security interest of the
Trustee thereunder.

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

<Page>

                                 LEASE AGREEMENT

                                TABLE OF CONTENTS

(This Table of Contents is not a part of the Lease Agreement and is only for
convenience of reference.)

<Table>
<S>                 <C>                                                                                      <C>
ARTICLE I.          DEFINITIONS...............................................................................2

         Section 1.1    Definitions...........................................................................2

         Section 2.2    Representations, Covenants and Warranties of the Company..............................4

         Section 2.3    Tax-Exempt Status of the Bonds........................................................5

         Section 2.4    Notice of Determination of Taxability.................................................5

ARTICLE III.        ACQUISITION AND CONSTRUCTION OF THE PROJECT; ISSUANCE OF THE BONDS........................6

         Section 3.1    Agreement to Acquire, Construct, Improve and Equip theProject.........................6

         Section 3.2    Agreement to Issue the Bonds; Application of Bond Proceeds............................6

         Section 3.3    Disbursements from the Project Fund...................................................6

         Section 3.4    Furnishing Documents to the Trustee...................................................6

         Section 3.5    Establishment of Completion Date......................................................6

         Section 3.6    Company Required to Pay in Event Project Fund Insufficient............................7

         Section 3.7    Special Arbitrage Certifications......................................................8

ARTICLE IV.         LEASE PROVISIONS; SUBSTITUTE CREDIT FACILITY............................................. 9

         Section 4.1    Lease of Project......................................................................9

         Section 4.2    Amounts Payable.......................................................................9

         Section 4.3    Obligations of Company Unconditional.................................................10

         Section 4.4    Substitute Credit Facility...........................................................10

         Section 4.5    Operation and Maintenance of Project by the Company..................................11

         Section 4.6    Taxes and Governmental and Utility Charges...........................................12

         Section 4.7    Provisions Respecting Insurance......................................................12

         Section 4.8    Termination..........................................................................12

ARTICLE V.          PREPAYMENT AND REDEMPTION................................................................13

         Section 5.1    Prepayment and Redemption............................................................13

ARTICLE VI.         SPECIAL COVENANTS........................................................................14
</Table>

                                        i
<Page>

<Table>
<S>                 <C>                                                                                      <C>
         Section 6.1    No Warranty of Condition or Suitability by Issuer....................................14

         Section 6.2    Access to the Project................................................................14

         Section 6.3    Further Assurances and Corrective Instruments........................................14

         Section 6.4    Issuer and Company Representatives...................................................14

         Section 6.5    Financing Statements.................................................................14

         Section 6.6    Covenant to Provide Ongoing Disclosure...............................................15

         Section 6.7    Notice of Control....................................................................15

ARTICLE VII.        ASSIGNMENT, SELLING, LEASING; INDEMNIFICATION; REDEMPTION................................16

         Section 7.1    Assignment, Selling and Leasing......................................................16

         Section 7.2    Release and Indemnification Covenants................................................16

         Section 7.3    Issuer to Grant Security Interest to Trustee.........................................17

         Section 7.4    Indemnification of Trustee...........................................................17

ARTICLE VIII.       DEFAULTS AND REMEDIES....................................................................18

         Section 8.1    Defaults Defined.....................................................................18

         Section 8.2    Remedies on Default..................................................................19

         Section 8.3    No Remedy Exclusive..................................................................19

         Section 8.4    Agreement to Pay Attorneys' Fees and Expenses........................................20

         Section 8.5    No Additional Waiver Implied by One Waiver...........................................20

ARTICLE IX.         MISCELLANEOUS............................................................................21

         Section 9.1    Term of Agreement....................................................................21

         Section 9.2    Notices..............................................................................21

         Section 9.3    Binding Effect.......................................................................22

         Section 9.4    Severability.........................................................................22

         Section 9.5    Amounts Remaining in Funds...........................................................22

         Section 9.6    Amendments, Changes and Modifications................................................23

         Section 9.7    Execution in Counterparts............................................................23

         Section 9.8    Applicable Law.......................................................................23

         Section 9.9    Captions.............................................................................23

ARTICLE X.          PAYMENTS IN LIEU OF TAXES................................................................24

         Section 10.1   Payment in Lieu of Taxes.............................................................24
</Table>

                                       ii
<Page>

EXHIBIT A - Project Description
EXHIBIT B - Form of Requisition

                                       iii
<Page>

                                 LEASE AGREEMENT

          THIS LEASE AGREEMENT, dated as of September 1, 2001, between THE
INDUSTRIAL DEVELOPMENT BOARD OF WHITE COUNTY, TENNESSEE, a nonprofit corporation
created and existing under the Constitution and Laws of the State of Tennessee
(the "Issuer") and GENLYTE THOMAS GROUP, LLC, a limited liability company
organized and existing under the laws of the State of Delaware (the "Company");

                              W I T N E S S E T H:

          That the parties hereto, intending to be legally bound hereby, and for
and in consideration of the premises and the mutual covenants hereinafter
contained, do hereby covenant, agree and bind themselves as follows: provided,
that any obligation of the Issuer created by or arising out of this Agreement
shall never constitute a debt or a pledge of the faith and credit or the taxing
power of the Issuer or any political subdivision or taxing district of the State
of Tennessee but shall be payable solely out of the Trust Estate (as defined in
the Indenture), anything herein contained to the contrary by implication or
otherwise notwithstanding:

<Page>

                                   ARTICLE I.

                                   DEFINITIONS

     SECTION 1.1 DEFINITIONS.

             All capitalized, undefined terms used herein shall have the same
meanings as used in ARTICLE I of the hereinafter defined Indenture. In addition,
the following words and phrases shall have the following meanings:

             "COST" with respect to the Project shall be deemed to include all
items permitted to be financed under the provisions of the Code and the Act.

             "DEFAULT" means any Default under this Agreement as specified in
and defined by SECTION 8.1 hereof.

             "INDENTURE" means the Indenture of Trust dated as of this date
between the Issuer and the Trustee, pursuant to which the Bonds are authorized
to be issued, and any amendments and supplements thereto.

             "ISSUANCE COSTS" means all costs that are treated as costs of
issuing or carrying the Bonds under existing Treasury Department regulations and
rulings, including, but not limited to, (a) underwriter's spread (whether
realized directly or derived through purchase of the Bonds at a discount below
the price at which they are expected to be sold to the public); (b) counsel fees
(including bond counsel, underwriter's counsel, Issuer's counsel and Company
counsel, as well as any other specialized counsel fees incurred in connection
with the issuance of the Bonds); (c) financial advisory fees incurred in
connection with the issuance of the Bonds; (d) rating agency fees; (e) Trustee
fees incurred in connection with the issuance of the Bonds; (f) paying agent and
certifying and authenticating agent fees related to issuance of the Bonds; (g)
accountant fees related to the issuance of the Bonds; (h) printing costs of the
Bonds and of the preliminary and final offering materials; (i) publication costs
associated with the financing proceedings; and (j) costs of engineering and
feasibility studies necessary to the issuance of the Bonds; provided, that bond
insurance premiums and certain credit enhancement fees, to the extent treated as
interest expense under applicable regulations, shall not be treated as "Issuance
Costs."

             "NET PROCEEDS" means the proceeds of the Bonds reduced by amounts
in a reasonably required reserve or replacement fund.

             "PROJECT" means the facilities described in EXHIBIT "A" hereto.

             "QUALIFIED PROJECT COSTS" means Costs and expenses of the Project
which constitute land costs or costs for property of a character subject to the
allowance for depreciation excluding specifically working capital and inventory
costs, provided, however, that (i) costs or expenses paid more than sixty (60)
days prior to the adoption by the Issuer of its resolution on June 7, 2001,
declaring its intent to reimburse Project expenditures with Bond proceeds, shall
not be deemed to be Qualified Project Costs; (ii) Issuance Costs shall not be
deemed to be Qualified

                                        2
<Page>

Project Costs; (iii) interest during the Construction Period shall be allocated
between Qualified Project Costs and other Costs and expenses to be paid from the
proceeds of the Bonds; (iv) interest following the Construction Period shall not
constitute a Qualified Project Cost; (v) letter of credit fees and municipal
bond insurance premiums which represent a transfer of credit risk shall be
allocated between Qualified Project Costs and other costs and expenses to be
paid from the proceeds of the Bonds; and (vi) letter of credit fees and
municipal bond insurance premiums which do not represent a transfer of credit
risk shall not constitute Qualified Project Costs.

             "REQUISITION" means a written request for a disbursement from the
Project Fund, signed by a Company Representative, substantially in the form
attached hereto as EXHIBIT "B" and satisfactorily completed as contemplated by
said form.

             "RESERVED RIGHTS" means amounts payable to the Issuer under
SECTIONS 4.2(b), 7.2 AND 8.4 hereof.

             "STATE" means the State of Tennessee.

             "TERM OF AGREEMENT" means the term of this Agreement as specified
in SECTION 9.1 hereof.

     SECTION 1.2 USES OF PHRASES.

             Words of the masculine gender shall be deemed and construed to
include correlative words of the feminine and neuter genders. Unless the context
shall otherwise indicate, the words "Bond," "Bondholder," "Owner," "registered
owner" and "person" shall include the plural as well as the singular number, and
the word "person" shall include corporations and associations, including public
bodies, as well as persons. Any percentage of Bonds, specified herein for any
purpose, is to be figured on the unpaid principal amount thereof then
Outstanding. All references herein to specific Sections of the Code refer to
such Sections of the Code and all successor or replacement provisions thereto.

                                        3
<Page>

                                   ARTICLE II.

                    REPRESENTATIONS, COVENANTS AND WARRANTIES

      SECTION 2.1 REPRESENTATIONS, COVENANTS AND WARRANTIES OF THE ISSUER.

             The Issuer represents, covenants and warrants that:

            (a) The Issuer is a nonprofit corporation. Under the provisions of
     the Act, the Issuer is authorized to enter into the transactions
     contemplated by this Agreement and the Indenture and to carry out its
     obligations hereunder and thereunder. The Issuer has been duly authorized
     to execute and deliver this Agreement and the Indenture.

            (b) The Issuer covenants that it will not pledge the amounts
     derived from this Agreement other than as contemplated by the Indenture.

     SECTION 2.2 REPRESENTATIONS, COVENANTS AND WARRANTIES OF THE COMPANY.

            The Company represents, covenants and warrants that:

            (a) The Company is a limited liability company duly organized and
     validly existing under the laws of the State of Delaware. The Company is
     not in violation of any provision of its Articles of Formation, as amended,
     has the corporate power to enter into this Agreement, and has duly
     authorized the execution and delivery of this Agreement, and is qualified
     to do business and is in good standing under the laws of the State.

            (b) The Company agrees that during the Term of Agreement it will
     maintain its existence, will not dissolve or otherwise dispose of all or
     substantially all of its assets and will not consolidate with or merge into
     another legal entity or permit one or more other legal entities to
     consolidate with or merge into it, without the prior written consent of the
     Credit Provider (during any Credit Facility Period) and the Trustee (during
     any Interest Period that is not a Credit Facility Period).

            (c) Neither the execution and delivery of this Agreement or the
     Remarketing Agreement, nor the consummation of the transactions
     contemplated hereby and thereby, nor the fulfillment of or compliance with
     the terms and conditions hereof or thereof conflicts with or results in a
     breach of the terms, conditions, or provisions of any agreement or
     instrument to which the Company is now a party or by which the Company is
     bound, or constitutes a default under any of the foregoing, or results in
     the creation or imposition of any lien, charge or encumbrance whatsoever
     upon any of the property or assets of the Company under the terms of any
     such instrument or agreement.

            (d) There is no action, suit, proceeding, inquiry or investigation,
     at law or in equity, before or by any court, public board or body, known to
     be pending or threatened against or affecting the Company, nor to the best
     knowledge of the Company is there any basis therefor, wherein an
     unfavorable decision, ruling, or finding would materially adversely affect
     the transactions contemplated by this Agreement or which would

                                        4
<Page>

     adversely affect, in any way, the validity or enforceability of the Bonds,
     this Agreement, the Credit Facility, the Remarketing Agreement, or any
     agreement or instrument to which the Company is a party, used or
     contemplated for use in the consummation of the transactions contemplated
     hereby.

            (e) The Project is of the type authorized and permitted by the Act,
     and its estimated Cost is not less than $5,000,000.

            (f) The proceeds from the sale of the Bonds will be used only for
     payment of Costs of the Project.

            (g) The Company will use due diligence to cause the Project to be
     operated in accordance with the laws, rulings, regulations and ordinances
     of the State and the departments, agencies and political subdivisions
     thereof. The Company has obtained or caused to be obtained all requisite
     approvals of the State and of other federal, state, regional and local
     governmental bodies for the acquisition, construction, improving and
     equipping of the Project.

            (h) The Company will fully and faithfully perform all the duties
     and obligations which the Issuer has covenanted and agreed in the Indenture
     to cause the Company to perform and any duties and obligations which the
     Company is required in the Indenture to perform. The foregoing shall not
     apply to any duty or undertaking of the Issuer which by its nature cannot
     be delegated or assigned.

            (i) The issuance of the Bonds by the Issuer and the use of the
     proceeds thereof to enable the Company to acquire, construct and install
     the Project have induced the Company to continue to locate the Project in
     White County, Tennessee which will directly result in an increase in
     employment opportunities in White County, Tennessee.

            (j) The Company does not "control" the Credit Provider, either
     directly or indirectly through one or more controlled companies, within the
     meaning of Section 2(a)(9) of the Investment Company Act of 1940.

     SECTION 2.3 TAX-EXEMPT STATUS OF THE BONDS.

            The Company hereby represents, warrants and agrees that the Tax
Certificate and Compliance Agreement executed and delivered by the Company
concurrently with the issuance and delivery of the Bonds is true, accurate and
complete in all material respects as of the date on which executed and
delivered.

     SECTION 2.4 NOTICE OF DETERMINATION OF TAXABILITY.

            Promptly after the Company first becomes aware of any Determination
of Taxability, the Company shall give written notice thereof to the Issuer and
the Trustee.

                                        5
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                                  ARTICLE III.

                          ACQUISITION AND CONSTRUCTION
                                 OF THE PROJECT;
                              ISSUANCE OF THE BONDS

     SECTION 3.1 AGREEMENT TO ACQUIRE, CONSTRUCT, IMPROVE AND EQUIP THE PROJECT.

            The Company agrees to make all contracts and do all things
necessary for the acquisition, construction, improving, and equipping of the
Project. The Company further agrees that it will acquire, construct, improve,
and equip the Project with all reasonable dispatch and use its best efforts to
cause acquisition, construction, improving and equipping of the Project to be
completed by March 1, 2003, or as soon thereafter as may be practicable, delays
caused by force majeure as defined in SECTION 8.1 hereof only excepted; but if
for any reason such acquisition, construction, improving and equipping is not
completed by said date there shall be no resulting liability on the part of the
Company and no diminution in or postponement of the payments required in SECTION
4.2 hereof to be paid by the Company.

     SECTION 3.2 AGREEMENT TO ISSUE THE BONDS; APPLICATION OF BOND PROCEEDS.

            In order to provide funds for the payment of the Cost of the
Project, the Issuer, concurrently with the execution of this Agreement, will
issue, sell, and deliver the Bonds and deposit the net proceeds thereof with the
Trustee in the Project Fund.

     SECTION 3.3 DISBURSEMENTS FROM THE PROJECT FUND.

            The Issuer has, in the Indenture, authorized and directed the
Trustee to make disbursements from the Project Fund to pay the Costs of the
Project, or to reimburse the Company for any Cost of the Project paid by the
Company. The Trustee shall not make any disbursement from the Project Fund until
the Company shall have provided the Trustee with a Requisition.

     SECTION 3.4 FURNISHING DOCUMENTS TO THE TRUSTEE.

            The Company agrees to cause such Requisitions to be directed to the
Trustee as may be necessary to effect payments out of the Project Fund in
accordance with SECTION 3.3 hereof.

     SECTION 3.5 ESTABLISHMENT OF COMPLETION DATE.

            (a) The Completion Date shall be evidenced to the Issuer and the
     Trustee by a certificate signed by a Company Representative stating that,
     except for amounts retained by the Trustee at the Company's direction to
     pay any Cost of the Project not then due and payable, (i) construction of
     the Project has been completed and all costs of labor, services, materials
     and supplies used in such construction have been paid, (ii) all equipment
     for the Project has been installed, such equipment so installed is suitable
     and sufficient for the operation of the Project, and all costs and expenses
     incurred in the

                                        6
<Page>

     acquisition and installation of such equipment have been paid, and (iii)
     all other facilities necessary in connection with the Project have been
     acquired, constructed, improved, and equipped and all costs and expenses
     incurred in connection therewith have been paid. Notwithstanding the
     foregoing, such certificate shall state that it is given without prejudice
     to any rights against third parties which exist at the date of such
     certificate or which may subsequently come into being. Forthwith upon
     completion of the acquisition, construction, improving, and equipping of
     the Project, the Company agrees to cause such certificate to be furnished
     to the Trustee. Upon receipt of such certificate, the Trustee shall retain
     in the Project Fund a sum equal to the amounts necessary for payment of the
     Costs of the Project not then due and payable according to such
     certificate. If any such amounts so retained are not subsequently used,
     prior to any transfer of said amounts to the General Account of the Bond
     Fund as provided below, the Trustee shall give notice to the Company of the
     failure to apply said funds for payment of the Costs of the Project. Any
     amount not to be retained in the Project Fund for payment of the Costs of
     the Project, and all amounts so retained but not subsequently used, shall
     be transferred by the Trustee into the General Account of the Bond Fund.

            (b) If at least ninety-five percent (95%) of the Net Proceeds of
     the Bonds have not been used to pay Qualified Project Costs, any amount
     (exclusive of amounts retained by the Trustee in the Project Fund for
     payment of Costs of the Project not then due and payable) remaining in the
     Project Fund shall be transferred by the Trustee into the General Account
     of the Bond Fund and used by the Trustee (a) to redeem, or to cause the
     redemption of, Bonds on the earliest redemption date permitted by the
     Indenture without a premium, (b) to purchase Bonds on the open market prior
     to such redemption date at prices not in excess of one hundred percent
     (100%) of the principal amount of such Bonds, or (c) for any other purpose
     provided that the Trustee is furnished with an opinion of Bond Counsel to
     the effect that such use is lawful under the Act and will not require that
     interest on the Bonds be included in gross income for federal income tax
     purposes. Until used for one or more of the foregoing purposes, such
     segregated amount may be invested as permitted by the Indenture provided
     that prior to any such investment the Trustee is provided with an opinion
     of Bond Counsel to the effect that such investment will not require that
     interest on the Bonds be included in gross income for federal income tax
     purposes.

     SECTION 3.6 COMPANY REQUIRED TO PAY IN EVENT PROJECT FUND INSUFFICIENT.

            In the event the moneys in the Project Fund available for payment
of the Costs of the Project should not be sufficient to pay the Costs of the
Project in full, the Company agrees to complete the Project and to pay that
portion of the Costs of the Project in excess of the moneys available therefor
in the Project Fund, The Issuer does not make any warranty, either express or
implied, that the moneys paid into the Project Fund and available for payment of
the Costs of the Project will be sufficient to pay all of the Costs of the
Project. The Company agrees that if after exhaustion of the moneys in the
Project Fund, the Company should pay any portion of the Costs of the Project
pursuant to the provisions of this Section, the Company shall not be entitled to
any reimbursement therefor from the Issuer, the Trustee or the Owners of any of
the Bonds, nor shall the Company be entitled to any diminution of the amounts
payable under Section 4.2 hereof.

                                        7
<Page>

     SECTION 3.7 SPECIAL ARBITRAGE CERTIFICATIONS.

            The Company and the Issuer covenant not to cause or direct any
moneys on deposit in any fund or account to be used in a manner which would
cause the Bonds to be classified as "arbitrage bonds" within the meaning of
Section 148 of the Code, and the Company certifies and covenants to and for the
benefit of the Issuer and the Owners of the Bonds that so long as there are any
Bonds Outstanding, moneys on deposit in any fund or account in connection with
the Bonds, whether such moneys were derived from the proceeds of the sale of the
Bonds or from any other sources, will not be used in a manner which will cause
the Bonds to be classified as "arbitrage bonds" within the meaning of Section
148 of the Code.

                                        8
<Page>

                                   ARTICLE IV.

                          LEASE PROVISIONS; SUBSTITUTE
                                 CREDIT FACILITY

     SECTION 4.1 LEASE OF PROJECT.

            The Issuer agrees, upon the terms and conditions contained in this
Agreement and the Indenture, to lease the Project to the Company. The Issuer
authorizes the Company to utilize the proceeds received by the Issuer from the
sale of the Bonds for the construction, acquisition and equipping of the
Project. Such proceeds shall be disbursed on behalf of the Issuer to the Company
as provided in SECTION 3.3 hereof. The Issuer shall be vested with title to the
Project subject to the terms of this Agreement.

     SECTION 4.2 AMOUNTS PAYABLE.

            (a) The Company hereby covenants and agrees to pay rent, as
     follows: on or before any Interest Payment Date for the Bonds or any other
     date that any payment of interest, premium, if any, or principal or
     Purchase Price is required to be made in respect of the Bonds pursuant to
     the Indenture, until the principal of, premium, if any, and interest on the
     Bonds shall have been fully paid or provision for the payment thereof shall
     have been made in accordance with the Indenture, in immediately available
     funds, a sum which, together with any other moneys available for such
     payment in any account of the Bond Fund, will enable the Trustee to pay the
     amount payable on such date as Purchase Price or principal of (whether at
     maturity or upon redemption or acceleration or otherwise), premium, if any,
     and interest on the Bonds as provided in the Indenture; provided, however,
     that the obligation of the Company to make any payment hereunder shall be
     deemed satisfied and discharged to the extent of the corresponding payment
     made by the Credit Provider to the Trustee under the Credit Facility.

            It is understood and agreed that all payments payable by the
     Company under subsection (a) of this SECTION 4.2 are assigned by the Issuer
     to the Trustee for the benefit of the Owners of the Bonds. The Company
     assents to such assignment. The Issuer hereby directs the Company and the
     Company hereby agrees to pay to the Trustee at the Principal Office of the
     Trustee all payments payable by the Company pursuant to this subsection.

            (b) The Company will also pay the reasonable expenses of the Issuer
     related to the issuance of the Bonds and incurred upon the written request
     of the Company.

            (c) The Company will also pay the reasonable fees and expenses of
     the Trustee under the Indenture and all other amounts which may be payable
     to the Trustee under SECTION 10.2 of the Indenture, such amounts to be paid
     directly to the Trustee for the Trustee's own account as and when such
     amounts become due and payable.

            (d) The Company covenants, for the benefit of the Owners of the
     Bonds, to pay or cause to be paid, to the Trustee, such amounts as shall be
     necessary to enable the Trustee

                                        9
<Page>

     to pay the Purchase Price of Bonds delivered to it for purchase, all as
     more particularly described in SECTIONS 4.01 AND 4.02 of the Indenture;
     PROVIDED, however, that the obligation of the Company to make any such
     payment under this SECTION 4.2(d) shall be reduced by the amount of moneys
     available for such payment described in SECTION 4.03(a) of the Indenture;
     and PROVIDED, FURTHER, that the obligation of the Company to make any
     payment under this subsection (d) shall be deemed to be satisfied and
     discharged to the extent of the corresponding payment made by the Credit
     Provider under the Credit Facility.

            (e) In the event the Company should fail to make any of the
     payments required in this SECTION 4.2, the item or installment so in
     default shall continue as an obligation of the Company until the amount in
     default shall have been fully paid, and the Company agrees to pay the same
     with interest thereon, to the extent permitted by law, from the date when
     such payment was due, at the rate of interest borne by the Bonds.

     SECTION 4.3 OBLIGATIONS OF COMPANY UNCONDITIONAL.

            The obligations of the Company to make the payments required in
Section 4.2 and to perform and observe the other agreements contained herein
shall be absolute and unconditional and shall not be subject to any defense or
any right of setoff, counterclaim or recoupment arising out of any breach by the
Issuer or the Trustee of any obligation to the Company, whether hereunder or
otherwise, or out of any indebtedness or liability at any time owing to the
Company by the Issuer or the Trustee, and, until such time as the principal of,
premium, if any, and interest on the Bonds shall have been fully paid or
provision for the payment thereof shall have been made in accordance with the
Indenture, the Company (i) will not suspend or discontinue any payments provided
for in SECTION 4.2 hereof, (ii) will perform and observe all other agreements
contained in this Agreement and (iii) except as otherwise provided herein, will
not terminate the Term of Agreement for any cause, including, without limiting
the generality of the foregoing, failure of the Company to complete the
acquisition, construction, improving and equipping of the Project, the
occurrence of any acts or circumstances that may constitute failure of
consideration, eviction or constructive eviction, destruction of or damage to
the Project, the taking by eminent domain of title to or temporary use of any or
all of the Project, commercial frustration of purpose, any change in the tax or
other laws of the United States of America or of the State or any political
subdivision of either thereof or any failure of the Issuer or the Trustee to
perform and observe any agreement, whether express or implied, or any duty,
liability or obligation arising out of or connected with this Agreement. Nothing
contained in this Section shall be construed to release the Issuer from the
performance of any of the agreements on its part herein contained, and in the
event the Issuer or the Trustee should fail to perform any such agreement on its
part, the Company may institute such action against the Issuer or the Trustee as
the Company may deem necessary to compel performance so long as such action does
not abrogate the obligations of the Company contained in the first sentence of
this Section.

     SECTION 4.4 SUBSTITUTE CREDIT FACILITY.

            Subject to the conditions set forth in this SECTION 4.4, the
Company may provide for the delivery to the Trustee of a Substitute Credit
Facility. The Company shall furnish written

                                       10
<Page>

notice to the Trustee, not less than twenty (20) days prior to the Mandatory
Purchase Date, (a) notifying the Trustee that the Company is exercising its
option to provide for the delivery of a Substitute Credit Facility to the
Trustee, (b) setting forth the Mandatory Purchase Date in connection with the
delivery of such Substitute Credit Facility, which shall in any event be an
Interest Payment Date that is not less than two (2) Business Days prior to the
expiration date of the Credit Facility then in effect with respect to the Bonds,
and (c) instructing the Trustee to furnish notice to the Bondholders regarding
the Mandatory Purchase Date at least fifteen days prior to the Mandatory
Purchase Date, as more fully described in SECTION 4.1(b) of the Indenture and
Exhibit "B" thereto. Any Substitute Credit Facility shall be delivered to the
Trustee prior to such Mandatory Purchase Date, shall be effective on and after
such Mandatory Purchase Date, and shall expire on a date which is fifteen days
after an Interest Payment Date for the Bonds. On or before the date of such
delivery of a Substitute Credit Facility to the Trustee, the Company shall
furnish to the Trustee (a) a written opinion of Bond Counsel stating that the
delivery of such Substitute Credit Facility will not adversely affect the
exclusion from gross income of interest on the Bonds for federal income tax
purposes; and (b) a written opinion of counsel to the Substitute Credit Provider
to the effect that the Substitute Credit Facility is a legal, valid, binding and
enforceable obligation of the Substitute Credit Provider in accordance with its
terms.

     SECTION 4.5 OPERATION AND MAINTENANCE OF PROJECT BY THE COMPANY.

            The Company agrees that this Lease is a net lease and that at all
times during the term of this Agreement, the Company will operate, maintain,
preserve and keep the Project or cause the Project to be maintained, preserved
and kept, with the appurtenances and every part and parcel thereof, in good
repair, working order and condition (ordinary wear and tear, condemnation,
replacement and casualty excepted), and that the Company will from time to time
make or cause to be made all repairs, replacements and renewals deemed proper
and necessary by it. Issuer shall have no responsibility in any of the matters
or for the making of improvements or additions to the Project or for any
operational expenses with respect thereto.

     SECTION 4.6 TAXES AND GOVERNMENTAL AND UTILITY CHARGES.

            The Company will pay or cause to be paid, during the term of this
Lease Agreement, as the same respectively become due, all taxes and governmental
charges of any kind whatsoever that may at any time be lawfully assessed or
levied against or with respect to the Project or any part thereof, including,
without limiting the generality of the foregoing, all ad valorem taxes levied
against the Project and any other taxes levied upon the Project. Notwithstanding
the foregoing, the Company may, at the Company's expense and in its name, in
good faith, contest any such taxes, assessments or other charges, and, in the
event of any such contest, may permit the taxes, assessments or other charges so
contested to remain unpaid during the period of such contest and any appeal
therefrom.

     SECTION 4.7 PROVISIONS RESPECTING INSURANCE.

            Company agrees to maintain all necessary insurance with respect to
the Project in accordance with its customary insurance practices.

                                       11
<Page>

     SECTION 4.8 TERMINATION.

             When no Bonds are outstanding, the Company and the Issuer will not
have any further obligations under this Agreement. The final payment on the
Bonds by the Company will constitute an exercise of its option to purchase the
Project and, upon such payment and upon the request of the Company, the Issuer
will convey to the Company (or its assignee) title (and all other rights, title
and interest held by the Issuer) to the Project (but shall not be obligated to
give or convey any better title) than the Issuer received when the Bonds were
issued) and the Company (or such assignee) will pay all costs and expenses,
including transfer fees, if any, arising out of such conveyance.

                                       12
<Page>

                                   ARTICLE V.

                            PREPAYMENT AND REDEMPTION

     SECTION 5.1 PREPAYMENT AND REDEMPTION.

            The Company shall have the option to prepay its obligations
hereunder at the times and in the amounts as necessary to exercise its option to
cause the Bonds to be redeemed as set forth in the Indenture and in the Bonds.
The Company hereby agrees that it shall prepay its obligations hereunder at the
times and in the amounts as necessary to accomplish the mandatory redemption of
the Bonds as set forth in the Indenture and in the Bonds. The Issuer, at the
request of the Company, shall forthwith take all steps (other than the payment
of the money required for such redemption) necessary under the applicable
redemption provisions of the Indenture to effect redemption of all or part of
the Outstanding Bonds, as may be specified by the Company, on the date
established for such redemption.

                                       13
<Page>

                                   ARTICLE VI.

                                SPECIAL COVENANTS

         SECTION 6.1 NO WARRANTY OF CONDITION OR SUITABILITY BY ISSUER.

            THE ISSUER MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO THE
PROJECT OR THE CONDITION THEREOF, OR THAT THE PROJECT WILL BE SUITABLE FOR THE
PURPOSES OR NEEDS OF THE COMPANY. THE ISSUER MAKES NO REPRESENTATION OR
WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO TITLE TO THE PROJECT, THAT THE
COMPANY WILL HAVE QUIET AND PEACEFUL POSSESSION OF THE PROJECT. THE ISSUER MAKES
NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE
MERCHANTABILITY, CONDITION OR WORKMANSHIP OF ANY PART OF THE PROJECT OR ITS
SUITABILITY FOR THE COMPANY'S PURPOSES.

     SECTION 6.2 ACCESS TO THE PROJECT.

            The Company agrees that the Issuer, the Credit Provider, the Trustee
and their duly authorized agents, attorneys, experts, engineers, accountants and
representatives shall have the right to inspect the Project at all reasonable
times and on reasonable notice. The Issuer, the Credit Provider, the Trustee and
their duly authorized agents shall also be permitted, at all reasonable times,
to examine the books and records of the Company with respect to the Project.

     SECTION 6.3 FURTHER ASSURANCES AND CORRECTIVE INSTRUMENTS.

            The Issuer and the Company agree that they will, from time to time,
execute, acknowledge and deliver, or cause to be executed, acknowledged and
delivered, such supplements hereto and such further instruments as may
reasonably be required for carrying out the expressed intention of this
Agreement.

     SECTION 6.4 ISSUER AND COMPANY REPRESENTATIVES.

            Whenever under the provisions of this Agreement the approval of the
Issuer or the Company is required or the Issuer or the Company is required to
take some action at the request of the other, such approval or such request
shall be given for the Issuer by an Issuer Representative and for the Company by
a Company Representative. The Trustee shall be authorized to act on any such
approval or request.

     SECTION 6.5 FINANCING STATEMENTS.

            The Company agrees to execute and file or cause to be executed and
filed any and all financing statements or amendments thereof or continuation
statements necessary to perfect and continue the perfection of the security
interests granted in the Indenture. The Company shall pay all costs of filing
such instruments.

                                       14
<Page>

     SECTION 6.6 COVENANT TO PROVIDE ONGOING DISCLOSURE.

            The Company hereby covenants and agrees that, upon the exercise by
the Company of the Conversion Option to elect a Long Term Period or a Commercial
Paper Period, the Company shall enter into a written undertaking for the benefit
of the holders of the Bonds, as required by Section (b)(5)(i) of Securities and
Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as
amended (17 CFR Part 240, Section.240.15c2-12) (the "Rule"); provided, however,
that the Company shall not be obligated to enter into such written undertaking
if the Company shall furnish to the Trustee, prior to the exercise of the
Conversion Option, an opinion of Bond Counsel that, notwithstanding such
election by the Company, the Rule is not applicable to the Bonds.

     SECTION 6.7 NOTICE OF CONTROL.

            The Company shall provide written notice to the Trustee and the
Remarketing Agent thirty days prior to the consummation of any transaction that
would result in the Company controlling the Credit Provider or being controlled
by the Credit Provider within the meaning of Section 2(a)(9) of the Investment
Company Act of 1940.

                                       15
<Page>

                                  ARTICLE VII.

                          ASSIGNMENT, SELLING, LEASING;
                           INDEMNIFICATION; REDEMPTION

     SECTION 7.1 ASSIGNMENT, SELLING AND LEASING.

            This Agreement may be assigned and the Project may be sold or
subleased, as a whole or in part, with the prior written consent of the Credit
Provider, but without the necessity of obtaining the consent of either the
Issuer or the Trustee; PROVIDED, however, that no such assignment, sale or lease
shall, in the opinion of Bond Counsel, result in interest on any of the Bonds
becoming includable in gross income for federal income tax purposes, or shall
otherwise violate any provisions of the Act; PROVIDED FURTHER, however, that no
such assignment, sale or lease shall relieve the Company of any of its
obligations under this Agreement.

     SECTION 7.2 RELEASE AND INDEMNIFICATION COVENANTS.

            (a) The Company shall and hereby agrees to indemnify and save the
     Issuer and the Trustee harmless against and from all claims by or on behalf
     of any person, firm, corporation or other legal entity arising from the
     conduct or management of, or from any work or thing done on, the Project
     during the Term of Agreement, including without limitation, (i) any
     condition of the Project, (ii) any breach or default on the part of the
     Company in the performance of any of its obligations under this Agreement,
     (iii) any act or negligence of the Company or of any of its agents,
     contractors, servants, employees or licensees or (iv) any act or negligence
     of any assignee or lessee of the Company, or of any agents, contractors,
     servants, employees or licensees of any assignee or lessee of the Company.
     The Company shall indemnify and save the Issuer and the Trustee harmless
     from any such claim arising as aforesaid, or in connection with any action
     or proceeding brought thereon, and upon notice from the Issuer or the
     Trustee, the Company shall defend them or either of them in any such action
     or proceeding.

            (b) Notwithstanding the fact that it is the intention of the
     parties hereto that the Issuer shall not incur any pecuniary liability by
     reason of the terms of this Agreement or the undertakings required of the
     Issuer hereunder, by reason of the issuance of the Bonds, by reason of the
     execution of the Indenture or by reason of the performance of any act
     requested of the Issuer by the Company, including all claims, liabilities
     or losses arising in connection with the violation of any statutes or
     regulation pertaining to the foregoing; nevertheless, if the Issuer should
     incur any such pecuniary liability, then in such event the Company shall
     indemnify and hold the Issuer harmless against all claims, demands or
     causes of action whatsoever, by or on behalf of any person, firm or
     corporation or other legal entity arising out of the same or out of any
     offering statement or lack of offering statement in connection with the
     sale or resale of the Bonds and all costs and expenses incurred in
     connection with any such claim or in connection with any action or
     proceeding brought thereon, and upon notice from the Issuer, the Company
     shall defend the Issuer in any such action or proceeding. All references to
     the Issuer in this

                                       16
<Page>

     SECTION 7.2 shall be deemed to include its commissioners, directors,
     officers, employees, and agents.

            Notwithstanding anything to the contrary contained herein, the
Company shall have no liability to indemnify the Issuer against claims or
damages resulting from the Issuer's own gross negligence or willful misconduct.

     SECTION 7.3 ISSUER TO GRANT SECURITY INTEREST TO TRUSTEE.

            The parties hereto agree that pursuant to the Indenture, the Issuer
shall assign to the Trustee, in order to secure payment of the Bonds, all of the
Issuer's right, title and interest in and to this Agreement, except for Reserved
Rights.

     SECTION 7.4 INDEMNIFICATION OF TRUSTEE.

            The Company shall and hereby agrees to indemnify the Trustee for,
and hold the Trustee harmless against, any loss, liability or expense (including
the costs and expenses of defending against any claim of liability) incurred
without gross negligence or willful misconduct by the Trustee and arising out of
or in connection with its acting as Trustee under the Indenture.

                                       17
<Page>

                                  ARTICLE VIII.

                              DEFAULTS AND REMEDIES

     SECTION 8.1 DEFAULTS DEFINED.

            The following shall be "Defaults" under this Agreement and the term
"Default" shall mean, whenever it is used in this Agreement, any one or more of
the following events:

            (a) Failure by the Company to pay any amount required to be paid
     under SECTION 4.2(a) OR (d) hereof.

            (b) Failure by the Company to observe and perform any covenant,
     condition or agreement on its part to be observed or performed, other than
     as referred to in SECTION 8.1(a) hereof, for a period of thirty (30) days
     after written notice specifying such failure and requesting that it be
     remedied shall have been given to the Company by the Issuer or the Trustee,
     unless the Issuer and the Trustee shall agree in writing to an extension of
     such time prior to its expiration; PROVIDED, however, if the failure stated
     in the notice cannot be corrected within the applicable period, the Issuer
     and the Trustee will not unreasonably withhold their consent to an
     extension of such time if corrective action is instituted by the Company
     within the applicable period and diligently pursued until such failure is
     corrected.

            (c) The dissolution or liquidation of the Company, except as
     authorized by hereof, or the voluntary initiation by the Company of any
     proceeding under any federal or state law relating to bankruptcy,
     insolvency, arrangement, reorganization, readjustment of debt or any other
     form of debtor relief, or the initiation against the Company of any such
     proceeding which shall remain undismissed for sixty (60) days, or failure
     by the Company to promptly have discharged any execution, garnishment or
     attachment of such consequence as would impair the ability of the Company
     to carry on its operations at the Project, or assignment by the Company for
     the benefit of creditors, or the entry by the Company into an agreement of
     composition with its creditors or the failure generally by the Company to
     pay its debts as they become due.

            (d) The occurrence of a Default under the Indenture.

The provisions of subsection (b) of this Section are subject to the following
limitation: if by reason of FORCE MAJEURE the Company is unable in whole or in
part to carry out any of its agreements contained herein (other than its
obligations contained in ARTICLE IV hereof), the Company shall not be deemed in
Default during the continuance of such inability. The term "FORCE MAJEURE" as
used herein shall mean, without limitation, the following: acts of God; strikes
or other industrial disturbances; acts of public enemies; orders or restraints
of any kind of the government of the United States of America or of the State or
of any of their departments, agencies or officials, or of any civil or military
authority; insurrections; riots; landslides; earthquakes; fires; storms;
droughts; floods; explosions; breakage or accident to machinery, transmission
pipes or canals; and any other cause or event not reasonably within the control
of

                                       18
<Page>

the Company. The Company agrees, however, to remedy with all reasonable
dispatch the cause or causes preventing the Company from carrying out its
agreement, provided that the settlement of strikes and other industrial
disturbances shall be entirely within the discretion of the Company and the
Company shall not be required to settle strikes, lockouts and other industrial
disturbances by acceding to the demands of the opposing party or parties when
such course is in the judgment of the Company unfavorable to the Company.

     SECTION 8.2 REMEDIES ON DEFAULT.

            Whenever any Default referred to in SECTION 8.1 hereof shall have
happened and be continuing, the Trustee, or the Issuer with the written consent
of the Trustee, may take one or any combination of the following remedial steps:

            (a) If the Trustee has declared the Bonds immediately due and
     payable pursuant to SECTION 9.2 of the Indenture, by written notice to the
     Company, declare an amount equal to all amounts then due and payable on the
     Bonds, whether by acceleration of maturity (as provided in the Indenture)
     or otherwise, to be immediately due and payable as liquidated damages under
     this Agreement and not as a penalty, whereupon the same shall become
     immediately due and payable;

            (b) Have reasonable access to and inspect, examine and make copies
     of the books and records and any and all accounts, data and income tax and
     other tax returns of the Company during regular business hours of the
     Company if reasonably necessary in the opinion of the Trustee; or

            (c) Take whatever action at law or in equity may appear necessary
     or desirable to collect the amounts then due and thereafter to become due,
     or to enforce performance and observance of any obligation, agreement or
     covenant of the Company under this Agreement.

             Any amounts collected pursuant to action taken under this Section
shall be paid into the Bond Fund and applied in accordance with the provisions
of the Indenture.

     SECTION 8.3 NO REMEDY EXCLUSIVE.

            Subject to SECTION 9.2 of the Indenture, no remedy herein conferred
upon or reserved to the Issuer or the Trustee is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy shall be
cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity. No delay or omission
to exercise any right or power accruing upon any Default shall impair any such
right or power or shall be construed to be a waiver thereof, but any such right
or power may be exercised from time to time and as often as may be deemed
expedient. In order to entitle the Issuer or the Trustee to exercise any remedy
reserved to it in this Article, it shall not be necessary to give any notice,
other than such notice as may be required in this Article. Such rights and
remedies as are given the Issuer hereunder shall also extend to the Trustee, and
the Trustee and the Owners of the Bonds, subject to the provisions of the
Indenture, shall be entitled to the benefit of all covenants and agreements
herein contained.

                                       19
<Page>

     SECTION 8.4 AGREEMENT TO PAY ATTORNEYS' FEES AND EXPENSES.

            In the event the Company should default under any of the provisions
of this Agreement and the Issuer should employ attorneys or incur other expenses
for the collection of payments required hereunder or the enforcement of
performance or observance of any obligation or agreement on the part of the
Company herein contained, the Company agrees that it will on demand therefor pay
to the Issuer the reasonable fee of such attorneys and such other expenses so
incurred by the Issuer.

     SECTION 8.5 NO ADDITIONAL WAIVER IMPLIED BY ONE WAIVER.

            In the event any agreement contained in this Agreement should be
breached by either party and thereafter waived by the other party, such waiver
shall be limited to the particular breach so waived and shall not be deemed to
waive any other breach hereunder.

                                       20
<Page>

                                   ARTICLE IX.

                                  MISCELLANEOUS

     SECTION 9.1 TERM OF AGREEMENT.

            This Agreement shall remain in full force and effect from the date
hereof to and including September 1, 2016 or until such time as all of the Bonds
and the fees and expenses of the Issuer and the Trustee and all amounts payable
to the Credit Provider under the Credit Agreement shall have been fully paid or
provision made for such payments, whichever is later; PROVIDED, however, that
this Agreement may be terminated prior to such date pursuant to ARTICLE V of
this Agreement, but in no event before all of the obligations and duties of the
Company hereunder have been fully performed, including, without limitation, the
payments of all costs and fees mandated hereunder.

     SECTION 9.2 NOTICES.

            All notices, certificates or other communications hereunder shall be
sufficiently given and shall be deemed given when delivered or mailed by
registered mail, postage prepaid, addressed as follows:

If to the Issuer:            The Industrial Development Board of
                              White County, Tennessee
                             c/o William Mitchell, Esq.
                             112 South Main Street
                             Sparta, Tennessee 38583

If to the Trustee:           Principal Office:
                             SunTrust Bank
                             424 Church Street, 6th Floor
                             Nashville, Tennessee 37219
                             Attention: Corporate Trust Department

If to the Company:           Genlyte Thomas Group, LLC
                             4360 Brownsboro Road, Suite 300
                             Louisville, Kentucky 40207
                             Attention: Terry Lange, Treasurer

If to the Credit Provider:   Bank of America, N.A.
                             100 North Tryon Street
                             MAIL CODE NC1-007-17-12
                             Charlotte, North Carolina 28255
                             Attention: Richard Parkhurst

                                       21
<Page>

If to the Remarketing Agent: SunTrust Capital Markets, Inc.
                             303 Peachtree Street, 24th Floor
                             Atlanta, Georgia 30303
                             Attention: Municipal Desk

If to Fitch:                 Fitch IBCA, Inc.
                             One State Street Plaza
                             New York, New York 10004
                             Attention: Structured Finance

If to Moody's:               Moody's Investors Service, Inc.
                             99 Church Street
                             New York, New York 10007
                             Attention:  Corporate Department,
                                         Structured Finance Group

If to S&P:                   Standard & Poor's Ratings Services, a division of
                             The McGraw-Hill  Companies, Inc.
                             55 Water Street
                             New York, New York 10041
                             Attention:  Corporate Finance Department

A duplicate copy of each notice, certificate or other communication given
hereunder by the Issuer or the Company shall also be given to the Trustee and
the Credit Provider. The Issuer, the Company, the Trustee, and the Credit
Provider may, by written notice given hereunder, designate any further or
different addresses to which subsequent notices, certificates or other
communications shall be sent.

     SECTION 9.3 BINDING EFFECT.

            This Agreement shall inure to the benefit of and shall be binding
upon the Issuer, the Company, the Credit Provider, the Trustee, the Owners of
Bonds and their respective successors and assigns, subject, however, to the
limitations contained in SECTION 2.2(b) hereof.

     SECTION 9.4 SEVERABILITY.

            In the event any provision of this Agreement shall be held invalid
or unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provision hereof.

     SECTION 9.5 AMOUNTS REMAINING IN FUNDS.

            Subject to the provisions of SECTION 6.11 of the Indenture, it is
agreed by the parties hereto that any amounts remaining in any account of the
Bond Fund, the Project Fund, or any other fund (other than the Rebate Fund)
created under the Indenture upon expiration or earlier termination of this
Agreement, as provided in this Agreement, after payment in full of the Bonds (or
provision for payment thereof having been made in accordance with the provisions
of

                                       22
<Page>

the Indenture) and the fees and expenses of the Trustee in accordance with
the Indenture, shall belong to and be paid to the Company by the Trustee.

     SECTION 9.6 AMENDMENTS, CHANGES AND MODIFICATIONS.

            Subsequent to the issuance of Bonds and prior to their payment in
full (or provision for the payment thereof having been made in accordance with
the provisions of the Indenture), and except as otherwise herein expressly
provided, this Agreement may not be effectively amended, changed, modified,
altered or terminated without the written consent of the Trustee and, prior to
the Credit Facility Termination Date and payment of all amounts payable to the
Credit Provider under the Credit Agreement, the consent of the Credit Provider,
in accordance with the provisions of the Indenture.

     SECTION 9.7 EXECUTION IN COUNTERPARTS.

            This Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

     SECTION 9.8 APPLICABLE LAW.

            This Agreement shall be governed by and construed in accordance with
the laws of the State.

     SECTION 9.9 CAPTIONS.

            The captions and headings in this Agreement are for convenience only
and in no way define, limit or describe the scope or intent of any provisions or
Sections of this Agreement.

                                       23
<Page>

                                   ARTICLE X.

                            PAYMENTS IN LIEU OF TAXES

     SECTION 10.1 PAYMENTS IN LIEU OF TAXES.

            (a)      It is recognized that under current law, including
particularly the Act, the Project is exempt form White County, Tennessee (the
"County") and City of Sparta, Tennessee (the "City") ad valorem property
taxation so long as the same is owned by the Issuer.

            (b)      Subject to Section 10.01(c) below, the Lessee shall make
annual payments in lieu of tax ("PILOTS") to the City and the County, not later
than March 1 of the year following the Lease Year to which such PILOTS relate,
in the amount of One Hundred Dollars ($100). To the extent such fee is paid
under any other lease with the Issuer for PILOTS, the Company will receive a
credit towards the payment due herein.

            (c)      In the event that the Company shall fail to achieve the
Employment Targets for any Lease Years, as set forth in Section 10.01(d) below
(the "Employment Targets"), then the PILOTS for all Lease Years shall be equal
to 100% of the City and County real and personal property taxes which would have
been payable to the City and the County with respect to the Project ("Estimated
Property Taxes") by the Company if the Company were the owner of the fee simple
title to the Project, retroactive to January 1, 2002. The Employment Targets
shall be met for a Lease Year if the Lessee employs that number of full-time
employees at the Project on any day during such Lease Year.

            (d)      The Employment Targets for Lease Years 2002 through 2006
are as follows:

<Table>
<Caption>
         LEASE YEAR                                 EMPLOYMENT TARGETS (FTE'S)
         ----------                                 --------------------------
         <S>                                                 <C>
         2002                                                200
         2003                                                235
         2004                                                245
         2005                                                245
         2006                                                245
</Table>

            (e)      PILOTS for Lease Years 2001 and 2007 (each a "Lease Year")
shall be equal to 100% of the City and County real and personal property taxes
which would have been payable to the City and the County with respect to the
Project by the Company if the Company were the owner of the fee simple title to
the Project.

            (f)      "Estimated Property Taxes" shall be determined in the same
manner as ad valorem property taxes would have been determined with respect to
the Project if the Project were owned by the Company, utilizing the City and
County tax rates in effect in the Lease Year for which the calculation is made.
In the event that the Company disagrees with the appraised value of the Project
as determined by the County Property Assessor, the Company shall have the right
to pursue an appeal of such appraisal as permitted by law in the name of the
Issuer.

                                       24
<Page>

            (g)      PILOTS will be in lieu of all AD VALOREM taxes on all real
and personal property of any nature including, without limitation,
work-in-progress with respect to the Project, and including improvements and
replacements through June 30, 2007, and including taxes on the leasehold estate
through June 30, 2007. The Lessee shall be entitle to a credit against such
PILOTS for any ad valorem taxes payable by Lessee with respect to the Project or
Lessee's leasehold estate therein, any beneficial use taxes payable by Lessee
with respect to this Lease or the Project, or any other similar taxes.

                                       25
<Page>

            IN WITNESS WHEREOF, the Issuer and the Company have caused this
Agreement to be executed by their duly authorized officers, all as of the date
first above written.

(SEAL)                                          THE INDUSTRIAL DEVELOPMENT BOARD
                                                OF WHITE COUNTY, TENNESSEE

Attest:                                         By:  /s/ George Savage
                                                     ---------------------------
                                                     Title: Chairman

By: /s/ Carolyn Hobson
    -------------------------------------
    Title:  Secretary

                         (Signature Page-Loan Agreement)

<Page>

                                                GENLYTE THOMAS GROUP, LLC

                                                By: /s/ Terry L. Lange
                                                    ----------------------------
                                                    Title: Treasurer

                         (Signature Page-Loan Agreement)

<Page>

                                    EXHIBIT A

                               PROJECT DESCRIPTION

     Equipment, fixtures and personal property for a Strip Fixture facility
(including press feeders, presses, roll formers, conveyors, tooling, packaging
and labeling equipment) and all related costs and expenses and for a Troffer
Fixture facility (including fabrication, roll form, tooling, packing and fork
lift equipment, warehouse improvements, sorting systems and paint wash/dryer
equipment) and all related costs and expenses and all other manufacturing
equipment related thereto.

<Page>
                                    EXHIBIT B

                              REQUISITION NO. ____

Amount Requested:

Total Disbursements to Date:

            1   Each obligation for which a disbursement is hereby
requested is described in reasonable detail in Exhibit A hereto together with
the name and address of the person, firm or corporation to whom payment is due.

            2   The bills, invoices or statements of account for each
obligation referenced in Exhibit A are on file with the Company.

            3   The Company hereby certifies that:

            (a) each obligation mentioned in Exhibit A has been properly
     incurred, is a proper charge against the Project Fund and has not been the
     basis of any previous disbursement;

            (b) no part of the disbursement requested hereby will be used to
     pay for materials not yet incorporated into the Project or for services not
     yet performed in connection therewith;

            (c) the expenditure of the amount requested under this Requisition,
     when added to all disbursements under previous Requisitions, will result in
     at least ninety-five percent (95%) of the total of such disbursements,
     other than disbursements for reasonable expenses incurred in connection
     with the issuance of the Bonds, having been used to pay Qualified Project
     Costs; and

            (d) the expenditures of the amount requested under this
     Requisition, when added to all disbursements under previous Requisitions,
     will result in no more than two percent (2%) of the aggregate face amount
     of the Bonds being used for payment of Issuance Costs.

            4   All capitalized terms herein shall have the meanings
assigned to them in the Lease Agreement dated as of September 1, 2001 between
The Industrial Development Board of White County, Tennessee and Genlyte Thomas
Group, LLC.

<Page>

                    This _______ day of ___________, 20____.

                                                GENLYTE THOMAS GROUP, LLC

                                                By:
                                                   -----------------------------
                                                   Company Representative

                                        2
<Page>

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

                       THE INDUSTRIAL DEVELOPMENT BOARD OF
                             WHITE COUNTY, TENNESSEE

                                       AND

                                 SUNTRUST BANK,
                                   as Trustee

                              --------------------
                               INDENTURE OF TRUST
                              --------------------

                          Dated as of September 1, 2001

                                   Relating to

                                   $5,000,000
           The Industrial Development Board of White County, Tennessee
                      Industrial Development Revenue Bonds
                       (Genlyte Thomas Group, LLC Project)
                                   Series 2001

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

                                                This instrument was prepared by:

                                                         Stites & Harbison, PLLC
                                                               424 Church Street
                                                                      Suite 1800
                                                      Nashville, Tennessee 37219

                                                       Telephone: (615) 244-5200

<Page>

                                TABLE OF CONTENTS

(This Table of Contents is not a part of the Indenture of Trust and is only for
convenience of reference.)
<Table>
<Caption>
                                                                                                           PAGE
<S>                                                                                                         <C>
ARTICLE I DEFINITIONS........................................................................................3

     Section 1.01 Definitions................................................................................3

     Section 1.02 Uses of Phrases............................................................................9

ARTICLE II THE BONDS.........................................................................................9

     Section 2.01 Authorized Amount of Bonds.................................................................9

     Section 2.02 Issuance and Terms of Bonds................................................................9

     Section 2.03 Daily Period..............................................................................10

     Section 2.04 Weekly Period.............................................................................10

     Section 2.05 Commercial Paper Period...................................................................11

     Section 2.06 Long Term Period..........................................................................12

     Section 2.07 Conversion Option.........................................................................13

     Section 2.08 Execution; Limited Obligations............................................................14

     Section 2.09 Authentication............................................................................14

     Section 2.10 Form of Bonds.............................................................................14

     Section 2.11 Authentication and Delivery of Bonds......................................................14

     Section 2.12 Mutilated, Lost, Stolen or Destroyed Bonds................................................15

     Section 2.13 Transfer of Bonds; Persons Treated as Owners..............................................15

     Section 2.14 Destruction of Bonds......................................................................16

     Section 2.15 Temporary Bonds...........................................................................16

     Section 2.16 Book-Entry System.........................................................................17

ARTICLE III REDEMPTION OF BONDS BEFORE MATURITY.............................................................19

     Section 3.01 Extraordinary Redemption..................................................................19

     Section 3.02 Optional Redemption by the Company........................................................19

     Section 3.03 Notice of Redemption......................................................................20

     Section 3.04 Redemption Payments.......................................................................21

     Section 3.05 Cancellation..............................................................................21

     Section 3.06 Partial Redemption of Bonds...............................................................21

ARTICLE IV MANDATORY PURCHASE DATE; DEMAND PURCHASE OPTION..................................................22

     Section 4.01 Mandatory Purchase of Bonds on Mandatory Purchase Date....................................22
</Table>

                                       -i-
<Page>

                                TABLE OF CONTENTS
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                           PAGE
<S>                                                                                                         <C>
     Section 4.02 Demand Purchase Option....................................................................22

     Section 4.03 Funds for Purchase of Bonds...............................................................23

     Section 4.04 Delivery of Purchased Bonds...............................................................23

     Section 4.05 Delivery of Proceeds of Sale of Purchased Bonds...........................................24

     Section 4.06 Duties of Trustee with Respect to Purchase of Bonds.......................................24

     Section 4.07 Remarketing of Bonds......................................................................25

     Section 4.08 Purchase by Credit Provider in Lieu of Redemption or Acceleration.........................25

ARTICLE V GENERAL COVENANTS.................................................................................26

     Section 5.01 Payment of Principal, Premium, if any, and Interest.......................................26

     Section 5.02 Performance of Covenants..................................................................26

     Section 5.03 Instruments of Further Assurance..........................................................26

     Section 5.04 Recording and Filing......................................................................27

     Section 5.05 Inspection of Books.......................................................................27

     Section 5.06 List of Owners of Bonds...................................................................27

     Section 5.07 Rights Under Agreement....................................................................27

     Section 5.08 Issuer's Election to Issue Bonds Pursuant to Section 144(a)(4)............................27

     Section 5.09 Undertaking to Provide Ongoing Disclosure.................................................28

     Section 5.10 Notice Of Control.........................................................................28

ARTICLE VI REVENUES AND FUNDS...............................................................................29

     Section 6.01 Creation of the Bond Fund.................................................................29

     Section 6.02 Payments into the Bond Fund...............................................................29

     Section 6.03 Use of Moneys in the Bond Fund............................................................29

     Section 6.04 Payment of Bonds with Proceeds of Refunding Bonds.........................................30

     Section 6.05 Project Fund..............................................................................30

     Section 6.06 Payments into the Project Fund; Disbursements.............................................30

     Section 6.07 Use of Money in the Project Fund Upon Default.............................................30

     Section 6.08 Completion of the Project.................................................................30

     Section 6.09 Nonpresentment of Bonds...................................................................31

     Section 6.10 Moneys to be held in Trust................................................................31
</Table>

                                      -ii-
<Page>

<Table>
<Caption>
                                                                                                           PAGE
<S>                                                                                                         <C>
     Section 6.11 Repayment to the Credit Provider and the Company from the Bond Fund or the Project
                    Fund....................................................................................31

     Section 6.12 Credit Facility...........................................................................32

     Section 6.13 Creation of Rebate Fund; Duties of Trustee; Amounts Held in Rebate Fund...................32

ARTICLE VII INVESTMENT OF MONEYS............................................................................34

     Section 7.01 Investment of Moneys......................................................................34

ARTICLE VIII DISCHARGE OF INDENTURE.........................................................................37

     Section 8.01 Discharge of Indenture....................................................................37

     Section 8.02 Defeasance of Bonds.......................................................................37

ARTICLE IX DEFAULTS AND REMEDIES............................................................................40

     Section 9.01 Defaults..................................................................................40

     Section 9.02 Acceleration..............................................................................40

     Section 9.03 Other Remedies; Rights of Owners of Bonds.................................................41

     Section 9.04 Right of Owners of Bonds to Direct Proceedings............................................41

     Section 9.05 Appointment of Receivers..................................................................41

     Section 9.06 Waiver....................................................................................42

     Section 9.07 Application of Moneys.....................................................................42

     Section 9.08 Remedies Vested in Trustee................................................................44

     Section 9.09 Rights and Remedies of Owners of Bonds....................................................44

     Section 9.10 Termination of Proceedings................................................................44

     Section 9.11 Waivers of Default........................................................................45

     Section 9.12 Notice of Defaults under Section 9.01(e) or (f); Opportunity to Cure Such Defaults........45

     Section 9.13 Subrogation Rights of Credit Provider.....................................................46

ARTICLE X TRUSTEE...........................................................................................47

     Section 10.01 Acceptance of Trusts.....................................................................47

     Section 10.02 Fees, Charges and Expenses of the Trustee................................................50

     Section 10.03 Notice to Owners of Bonds if Default Occurs..............................................50

     Section 10.04 Intervention by the Trustee..............................................................50

     Section 10.05 Successor Trustee........................................................................51
</Table>

                                      -iii-
<Page>

<Table>
<Caption>
                                                                                                           PAGE
<S>                                                                                                         <C>
     Section 10.06 Resignation by the Trustee...............................................................51

     Section 10.07 Removal of the Trustee...................................................................51

     Section 10.08 Appointment of Successor Trustee by Owners of Bonds......................................51

     Section 10.09 Acceptance by Successor Trustee..........................................................52

     Section 10.10 Appointment of Co-Trustee................................................................52

     Section 10.11 Successor Remarketing Agent..............................................................53

     Section 10.12 Notice to Rating Agencies................................................................54

ARTICLE XI SUPPLEMENTAL INDENTURES..........................................................................55

     Section 11.01 Supplemental Indentures Not Requiring Consent of Owners of Bonds.........................55

     Section 11.02 Supplemental Indentures Requiring Consent of Owners of Bonds.............................56

     Section 11.03 Consent of the Company...................................................................57

     Section 11.04 Amendment without Consent of Issuer......................................................57

     Section 11.05 Execution of Amendments and Supplements by Trustee.......................................57

ARTICLE XII AMENDMENT OF AGREEMENT..........................................................................58

     Section 12.01 Amendments to Agreement Not Requiring Consent of Owners of Bonds.........................58

     Section 12.02 Amendments to Agreement Requiring Consent of Owners of Bonds.............................58

ARTICLE XIII MISCELLANEOUS                                                                                  59

     Section 13.01 Consents of Owners of Bonds..............................................................59

     Section 13.02 Limitation of Rights.....................................................................59

     Section 13.03 Severability.............................................................................59

     Section 13.04 Notices..................................................................................59

     Section 13.05 Payments Due on Saturdays, Sundays and Holidays..........................................61

     Section 13.06 Counterparts.............................................................................61

     Section 13.07 Applicable Provisions of Law.............................................................61

     Section 13.08 Rules of Interpretation..................................................................61

     Section 13.09 Captions.................................................................................61

     Section 13.10 No Personal Liability....................................................................61
</Table>

                                      -iv-
<Page>

<Table>
<Caption>
                                                                                                           PAGE
<S>                                                                                                         <C>
     Section 13.11 Certain References Ineffective Except During a Credit Facility Period....................62
</Table>

                                       -v-
<Page>

                               INDENTURE OF TRUST

     THIS INDENTURE OF TRUST, dated as of September 1, 2001, between THE
INDUSTRIAL DEVELOPMENT BOARD OF WHITE COUNTY, TENNESSEE, a nonprofit corporation
created and existing under the Constitution and Laws of the State of Tennessee
(the "Issuer") and SUNTRUST BANK, a Georgia banking corporation (the "Trustee");

                              W I T N E S S E T H :

     WHEREAS, the Issuer is empowered pursuant to Chapter 53 of Title 7 of
Tennessee Code Annotated (the "Act"), to issue its bonds for the purpose of
financing industrial facilities; and

     WHEREAS, in furtherance of the public purpose for which the Issuer was
created, the Issuer proposes to issue its $5,000,000 in principal amount
Industrial Development Revenue Bonds (Genlyte Thomas Group, LLC Project) Series
2001 (the "Bonds") pursuant to this Indenture, to finance the acquisition,
construction and equipping of manufacturing equipment and other personal
property located at an existing manufacturing facility located in White County,
Tennessee (the "Project") and to lease the Project acquired with the proceeds of
the sale of the Bonds to Genlyte Thomas Group, LLC, a Delaware limited liability
company (the "Company"), pursuant to a Lease Agreement (the "Agreement") of even
date herewith between the Issuer and the Company; and

     WHEREAS, it has been determined that the estimated amount necessary to
finance the cost of the acquisition, construction and equipping of the Project,
including necessary expenses incidental to the issuance of the Bonds, will
require the issuance, sale and delivery of Bonds in the aggregate principal
amount of $5,000,000, as hereinafter provided; and

     WHEREAS, all things necessary to make the Bonds when authenticated by the
Trustee and issued as in this Indenture provided, the valid, binding and legal
obligations of the Issuer according to the import thereof, and to constitute
this Indenture a valid assignment and pledge of the payments under the Agreement
(except for "Reserved Rights" as hereinafter defined) for payment of the
principal or Purchase Price of, premium, if any, and interest on the Bonds, and
to constitute this Indenture a valid assignment of the rights of the Issuer
under the Agreement except as otherwise stated herein, have been done and
performed, and the creation, execution and delivery of this Indenture, and the
issuance of the Bonds, subject to the terms hereof, have in all respects been
duly authorized;

                   NOW, THEREFORE, THIS INDENTURE WITNESSETH:

                                GRANTING CLAUSES

     That the Issuer, in consideration of the premises and the acceptance by the
Trustee of the trusts hereby created and of the purchase and acceptance of the
Bonds by the Owners thereof, and of the sum of one dollar, lawful money of the
United States of America, to it duly paid by the Trustee at or before the
execution and delivery of these presents, and for other good and

<Page>

valuable consideration, the receipt of which is hereby acknowledged, in order to
secure the payment of the principal of, premium, if any, and interest on the
Bonds according to their tenor and effect and to secure the performance and
observance by the Issuer of all the covenants expressed herein and in the Bonds,
does hereby assign and grant a security interest in the following to the
Trustee, and its successors in trust and assigns forever, for the securing of
the performance of the obligations of the Issuer hereinafter set forth:

                              GRANTING CLAUSE FIRST

     All right, title and interest of the Issuer in and to the Agreement (except
for Reserved Rights), including, but not limited to, the present and continuing
right to make claim for, collect, receive and receipt for any of the sums,
amounts, income, revenues, issues and profits and any other sums of money
payable or receivable under the Agreement, to bring actions and proceedings
thereunder or for the enforcement thereof, and to do any and all things which
the Issuer is or may become entitled to do under the Agreement.

                             GRANTING CLAUSE SECOND

     All right, title and interest of the Issuer in and to all moneys and
securities from time to time held by the Trustee under the terms of this
Indenture, other than moneys for the payment of the Purchase Price and moneys
held in the Rebate Fund.

                              GRANTING CLAUSE THIRD

     Any and all other property rights and interests of every kind and nature
from time to time hereafter by delivery or by writing of any kind granted,
bargained, sold, alienated, demised, released, conveyed, assigned, transferred,
mortgaged, pledged, hypothecated or otherwise subjected hereto, as and for
additional security herewith, by the Company or any other person on its behalf
or with its written consent or by the Issuer or any other person on its behalf
or with its written consent, and the Trustee is hereby authorized to receive any
and all such property at any and all times and to hold and apply the same
subject to the terms hereof.

     TO HAVE AND TO HOLD all and singular the Trust Estate, whether now owned or
hereafter acquired, unto the Trustee and its respective successors in said trust
and assigns forever;

     IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth (a)
first, for the equal and proportionate benefit, security and protection of all
present and future Owners of the Bonds, from time to time, issued under and
secured by this Indenture without privilege, priority or distinction as to the
lien or otherwise of any of the Bonds over any of the other Bonds except in the
case of funds held hereunder for the benefit of particular Owners of Bonds, and
(b) second, for the benefit of the Credit Provider to the extent provided
herein;

     PROVIDED, HOWEVER, that if the Issuer, its successors or assigns shall well
and truly pay, or cause to be paid, the principal of, premium, if any, and
interest on the Bonds due or to become due thereon, at the times and in the
manner set forth in the Bonds according to the true intent and meaning thereof,
and shall cause the payments to be made on the Bonds as required hereunder, or
shall provide, as permitted hereby, for the payment thereof by depositing with
the

                                        2
<Page>

Trustee the entire amount due or to become due thereon, and shall well and truly
cause to be kept, performed and observed all of its covenants and conditions
pursuant to the terms of this Indenture, and shall pay or cause to be paid to
the Trustee all sums of money due or to become due to it in accordance with the
terms and provisions hereof, then upon the final payment thereof this Indenture
and the rights hereby granted shall cease, determine and be void, except to the
extent specifically provided in Article VIII hereof; otherwise this Indenture
shall remain in full force and effect.

     THIS INDENTURE FURTHER WITNESSETH, and it is declared, that all Bonds
issued and secured hereunder are to be issued, authenticated and delivered and
all said property, rights and interests, including, without limitation, the
amounts payable under the Agreement and any other amounts hereby assigned and
pledged are to be dealt with and disposed of under, upon and subject to the
terms, conditions, stipulations, covenants, agreements, trusts, uses and
purposes as herein expressed, and the Issuer has agreed and covenanted, and does
hereby agree and covenant with the Trustee and with the respective Owners of the
Bonds as follows:

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.01 DEFINITIONS.

     All capitalized, undefined terms used herein shall have the meanings
ascribed to such terms in Article II of the Agreement (as defined below). In
addition, unless the context shall otherwise require, the following words and
phrases when used in this Indenture shall have the meanings specified in this
Section:

     "Act" means Chapter 53 of Title 7 of Tennessee Code Annotated, as amended.

     "Act of Bankruptcy" means the filing of a petition in bankruptcy (or any
other commencement of a bankruptcy or similar proceeding) by or against the
Company or any affiliate of the Company under any applicable bankruptcy,
insolvency, reorganization or similar law, now or hereafter in effect.

     "Agreement" means the Lease Agreement dated as of this date between the
Issuer and the Company, and any amendments and supplements thereto.

     "Bond Counsel" means a firm of nationally recognized standing in the field
of municipal finance law whose opinions are generally accepted by purchasers of
public obligations and who is acceptable to the Trustee.

     "Bond Fund" means the fund created in Section 6.01 hereof, in which there
is established a General Account, a Credit Facility Account and a Remarketing
Account.

     "Bond Register" means the books of the Issuer kept by the Trustee to
evidence the registration and transfer of the Bonds.

                                        3
<Page>

     "Bonds" means The Industrial Development Board of White County, Tennessee
Industrial Development Revenue Bonds (Genlyte Thomas Group, LLC Project) Series
2001 issued by the Issuer pursuant to this Indenture.

     "Book-Entry System" means the system maintained by the Securities
Depository described in Section 2.16 herein.

     "Business Day" means any day other than (a) a Saturday or Sunday, (b) a day
on which the Trustee or the Credit Provider is required or permitted by law to
close, and (c) a day on which the New York Stock Exchange is closed.

     "Calculation Period" is defined in Section 2.05 hereof.

     "Code" means the Internal Revenue Code of 1986, as amended from time to
time, including, when appropriate, the statutory predecessor thereof, or any
applicable corresponding provisions of any future laws of the United States of
America relating to federal income taxation, and except as otherwise provided
herein or required by the context hereof, includes interpretations thereof
contained or set forth in the applicable regulations of the Department of the
Treasury (including applicable final or temporary regulations and also including
regulations issued pursuant to the statutory predecessor of the Code, the
applicable rulings of the Internal Revenue Service (including published Revenue
Rulings and private letter rulings), and applicable court decisions).

     "Commercial Paper Period" is defined in Section 2.05 hereof.

     "Commercial Paper Rate" means an interest rate on the Bonds set under
Section 2.05 hereof.

     "Company" means (i) Genlyte Thomas Group, LLC, a Delaware limited liability
company, and (ii) any surviving, resulting, or transferee entity as provided in
the Agreement.

     "Company Representative" means the person or persons at the time designated
to act on behalf of the Company by written certificate furnished to the Issuer
and the Trustee containing the specimen signatures of such person or persons and
signed on behalf of the Company by its [President or Vice President]. Such
certificate may designate an alternate or alternates.

     "Conversion Date" means the date established for the conversion of the
interest rate on the Bonds from one type of Interest Period to another type of
Interest Period pursuant to Section 2.07 hereof (whether or not such conversion
actually occurs), which date shall be an Interest Payment Date.

     "Conversion Option" means the option granted to the Company in Section 2.07
hereof to convert from one type of Interest Period to another type of Interest
Period.

     "Credit Agreement" means the Credit Agreement dated as of August 28, 1998,
as amended by a First Amendment to Credit Agreement dated as of August 30, 1998,
a Second Amendment to Credit Agreement dated as of June 29, 1999, a Third
Amendment to Credit Agreement dated as of August 19, 1999, a Fourth Amendment to
Credit Agreement dated as of

                                        4
<Page>

February 7, 2000, between the Company and the initial Credit Provider, as agent
for the various lenders named therein and as issuing bank with respect to the
Credit Facility, and any amendments or supplements thereto, together with any
letter of credit, reimbursement or similar agreement between the Company and any
subsequent Credit Provider, and any amendments and supplements thereto.

     "Credit Facility" means the Letter of Credit and any Substitute Credit
Facility provided by the Company pursuant to Section 4.04 of the Agreement.

     "Credit Facility Period" shall mean any Interest Period during which
payment of the principal and Purchase Price of, and the interest and redemption
premium (if any) on, the Bonds are secured by a Credit Facility.

     "Credit Facility Termination Date" means the later of (a) that date upon
which the Credit Facility shall expire or terminate pursuant to its terms, or
(b) that date to which the expiration or termination of the Credit Facility may
be extended, from time to time, either by extension or renewal of the existing
Credit Facility.

     "Credit Provider" means the provider of any Credit Facility.

     "Daily Period" is defined in Section 2.03 hereof.

     "Daily Rate" means an interest rate on the Bonds set under Section 2.03
hereof.

     "Default" means any Default under this Indenture as specified in and
defined by Section 9.01 hereof.

     "Demand Purchase Option" means the option granted to Owners of Bonds, while
the Bonds bear interest at the Daily Rate or the Weekly Rate, to require that
Bonds be purchased pursuant to Section 4.02 hereof.

     "Determination of Taxability" means a final decree or judgment of any
Federal court or a final action of the Internal Revenue Service determining that
interest paid or payable on any Bond is or was includable in the gross income of
an Owner of the Bonds for Federal income tax purposes (other than an Owner who
is a "substantial user" or "related person" to a "substantial user" within the
meaning of Section 147(a) of the Code); provided, that no such decree, judgment,
or action will be considered final for this purpose, however, unless the Company
has been given written notice and, if it is so desired and is legally allowed,
has been afforded the opportunity to contest the same, either directly or in the
name of any Owner of a Bond, and until the conclusion of any appellate review,
if sought.

     "First Optional Redemption Date" means, with respect to a Long Term Period
less than or equal to 5 years, the first day of the 24th calendar month from the
beginning of such Long Term Period, with respect to a Long Term Period greater
than 5 years but less than or equal to 10 years, the first day of the 60th
calendar month from the beginning of such Long Term Period, and with respect to
a Long Term Period greater than 10 years, the first day of the 72nd calendar
month from the beginning of such Long Term Period.

                                        5
<Page>

     "Fitch" means Fitch IBCA, Inc., its successors and their assigns, and, if
such corporation shall be dissolved or liquidated or shall no longer perform the
functions of a securities rating agency, "Fitch" shall be deemed to refer to any
other nationally recognized securities rating agency designated by the Company,
with the consent of the Remarketing Agent and the Credit Provider, by written
notice to the Trustee.

     "Government Obligations" means direct general obligations of, or
obligations the payment of the principal of and interest on which are
unconditionally guaranteed as to full and timely payment by, the United States
of America, which obligations are noncallable.

     "Indenture" means this Indenture of Trust, and any amendments or
supplements hereto.

     "Independent Counsel" means an attorney duly admitted to practice law
before the highest court of any state and who is not a full-time employee,
director, officer, or partner of the Issuer or the Company.

     "Interest Payment Date" is defined in the form of the Bonds appearing in
Exhibit "A" hereto.

     "Interest Period" means each Daily Period, Weekly Period, Commercial Paper
Period and Long Term Period.

     "Issuer" means The Industrial Development Board of White County, Tennessee,
and its successors and assigns.

     "Issuer Representative" means the person or persons at the time designated
to act on behalf of the Issuer by written certificate furnished to the Company
and the Trustee containing the specimen signatures of such person or persons and
signed on behalf of the Issuer by its duly authorized agent. Such certificate
may designate an alternate or alternates.

     "Letter of Credit" means that certain letter of credit, dated the date of
issuance of the Bonds, issued by Bank of America, N.A.

     "Long Term Period" is defined in Section 2.06 hereof.

     "Long Term Rate" means an interest rate on the Bonds set under Section 2.06
hereof.

     "Mandatory Purchase Date" means (a) each Conversion Date, (b) each day
immediately following the end of a Calculation Period, (c) the first day of any
Long Term Period, (d) the Interest Payment Date immediately before the Credit
Facility Termination Date (which shall be at least one Business Day prior to
such Credit Facility Termination Date), (e) the Interest Payment Date concurrent
with the effective date of a Substitute Credit Facility, and (f) the first
Interest Payment Date following the occurrence of a Determination of Taxability
for which the Trustee can give notice pursuant to the provisions of Section
4.01(b) hereof.

     "Maximum Rate" means an interest rate per annum equal to the lesser of the
maximum rate permitted by law and 12%. The Maximum Rate may be adjusted, after
the date of initial issuance and delivery of the Bonds, provided that (a) such
Maximum Rate shall at no time

                                        6
<Page>

exceed the maximum rate permitted by law, and (b) such adjustment to the Maximum
Rate shall not become effective unless and until the Trustee shall receive (i)
satisfactory evidence that the stated amount of the Credit Facility (if any) has
been adjusted to reflect the adjusted Maximum Rate and (ii) an opinion of Bond
Counsel satisfactory to the Trustee to the effect that such adjustment will not
adversely affect the exclusion of interest on the Bonds from gross income for
Federal income tax purposes.

     "Moody's" means Moody's Investors Service, Inc., a corporation organized
and existing under the laws of the State of Delaware, its successors and
assigns, and, if such corporation shall be dissolved or liquidated or shall no
longer perform the functions of a securities rating agency, "Moody's" shall be
deemed to refer to any other nationally recognized securities rating agency
designated by the Company, with the consent of the Remarketing Agent and the
Credit Provider, by written notice to the Trustee.

     "Outstanding" or "Bonds Outstanding" means all Bonds which have been
authenticated and delivered by the Trustee under this Indenture, except:

          (a) Bonds canceled after purchase in the open market or because of
     payment at, or redemption prior to, maturity;

          (b) Bonds paid or deemed paid pursuant to article viii hereof;

          (c) Bonds in lieu of which others have been authenticated under
     section 2.12 or section 2.13 hereof; and

          (d) Bonds deemed tendered hereunder and for which another bond has
     been issued.

     "Owner" means the person or persons in whose name or names a Bond shall be
registered on the books of the Issuer kept by the Trustee for that purpose in
accordance with provisions of this Indenture.

     "Par" means one hundred percent (100%) of the principal amount of any Bond,
or of the aggregate principal amount of the Bonds Outstanding, as the context
may require, exclusive of accrued interest.

     "Participant" means one of the entities which is a member of the Securities
Depository and deposits securities, directly or indirectly, in the Book-Entry
System.

     "Pledge Agreement" means that certain Pledge and Security Agreement dated
as of September 1, 2001 by and among the Company, the Credit Provider and the
Trustee, and any amendments thereto or restatements thereof.

     "Pledged Bonds" means any Bonds which shall, at the time of determination
thereof, be pledged to the Credit Provider pursuant to the Credit Agreement.

     "Project Fund" means the fund created in Section 6.05 hereof.

                                        7
<Page>

     "Purchase Price" means an amount equal to 100% of the principal amount of
any Bond tendered or deemed tendered pursuant to Section 4.01 or 4.02 hereof,
plus, in the case of purchase pursuant to Section 4.02 hereof, accrued and
unpaid interest thereon to the date of purchase.

     "Record Date" is defined in the form of the Bonds attached as Exhibit "A"
hereto.

     "Remarketing Agent" means the Remarketing Agent acting as such under the
Remarketing Agreement. The Remarketing Agent must be a Participant in the
Book-Entry System with respect to the Bonds. "Principal Office" of the
Remarketing Agent means the principal office of the Remarketing Agent designated
in the Remarketing Agreement.

     "Remarketing Agreement" means the Remarketing Agreement dated as of this
date between the Company and SunTrust Equitable Securities Corporation, its
successors and assigns, and any amendments or supplements thereto, together with
any similar agreement entered into between the Company and any successor
Remarketing Agent.

     "Reserved Rights" means amounts payable to the Issuer under Sections
4.02(b), 7.02 and 8.04 of the Agreement and the right of the Issuer to receive
notices.

     "Responsible Officer" when used with respect to the Trustee, means any
officer within the corporate trust administrative department of the Trustee,
including any vice president, any assistant vice president, any trust officer,
or any other officer 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 his or her knowledge of and familiarity with the
particular subject.

     "Securities Depository" means The Depository Trust Company, New York, New
York, or its nominee, and its successors and assigns.

     "State" means the State of Tennessee.

     "S&P" means Standard & Poor's Ratings Services, a Division of The
McGraw-Hill Companies, Inc., a corporation organized and existing under the laws
of the State of New York, its successors and assigns, and, if such corporation
shall be dissolved or liquidated or shall no longer perform the functions of a
securities rating agency, "S&P" shall be deemed to refer to any other nationally
recognized securities rating agency designated by the Company, with the consent
of the Remarketing Agent and the Credit Provider, during any Credit Facility
Period, by written notice to the Trustee.

     "Substitute Credit Facility" means a letter of credit, line of credit,
insurance policy or other credit facility securing the payment of the principal
and Purchase Price of, redemption premium (if any) and interest on the Bonds,
delivered to the Trustee in accordance with Section 4.04 of the Agreement.

     "Tender Date" means (a) during any Daily Period, any Business Day and (b)
during any Weekly Period, the seventh day (unless such day is not a Business
Day, in which case the next

                                        8
<Page>

succeeding Business Day) following receipt by the Trustee of notice from the
Owner that such Owner has elected to tender bonds (as more fully described in
Section 4.02 hereof).

     "Trustee" means SunTrust Bank, a banking corporation organized and existing
under the laws of the State of Georgia and its successors and any corporation
resulting from or surviving any consolidation or merger to which it or its
successors may be a party and any successor Trustee at the time serving as
successor Trustee hereunder. "Principal Office" of the Trustee means the address
specified in Section 12.04 hereof or such other address as may be designated in
writing to the Remarketing Agent, the Issuer and the Company.

     "Trust Estate" means the property conveyed to the Trustee pursuant to the
Granting Clauses hereof.

     "Weekly Period" is defined in Section 2.04 hereof.

     "Weekly Rate" means an interest rate on the Bonds set under Section 2.04
hereof.

     SECTION 1.02 USES OF PHRASES.

     Words of the masculine gender shall be deemed and construed to include
correlative words of the feminine and neuter genders. Unless the context shall
otherwise indicate, the words "Bond," "Bondholder," "Owner," "registered owner"
and "person" shall include the plural as well as the singular number, and the
word "person" shall include corporations and associations, including public
bodies, as well as persons. Any percentage of Bonds, specified herein for any
purpose, is to be figured on the unpaid principal amount thereof then
Outstanding. All references herein to specific Sections of the Code refer to
such Sections of the Code and all successor or replacement provisions thereto.

                                   ARTICLE II

                                    THE BONDS

     SECTION 2.01 AUTHORIZED AMOUNT OF BONDS.

     The total principal amount of Bonds that may be issued hereunder is hereby
expressly limited to $5,000,000.

     SECTION 2.02 ISSUANCE AND TERMS OF BONDS.

          (a) The Bonds shall be designated "$5,000,000 The Industrial
     Development Board of White County, Tennessee Industrial Development Revenue
     Bonds (Genlyte Thomas Group, LLC Project) Series 2001." The Bonds shall be
     in substantially the form of Exhibit "A," which is part of this Indenture,
     in the denominations provided for in the Bonds.

          (b) The Bonds shall be dated the date of initial authentication and
     delivery, shall bear interest from such date, and shall mature (subject to
     prior redemption) on September 1, 2016. The Bonds shall bear interest at
     the Daily Rate, the Weekly Rate, the

                                        9
<Page>

     Commercial Paper Rate or the Long Term Rate, as more fully described in
     this Article II. Anything herein contained to the contrary notwithstanding,
     the interest rate shall not exceed the Maximum Rate. The Company may direct
     a change in the type of Interest Period pursuant to the provisions of
     Section 2.07 hereof. Interest on the Bonds will initially be determined and
     payable at the Weekly Rate.

          (c) The principal and Purchase Price of and premium, if any, and
     interest on the Bonds shall be payable as provided for in the Bonds.

     SECTION 2.03 DAILY PERIOD.

          (a) From any Conversion Date after which the Bonds will bear interest
     at the Daily Rate until the next following Conversion Date (the "Daily
     Period"), the Bonds shall bear interest at the Daily Rate, as hereinafter
     described.

          (b) The Daily Rate will be determined by the Remarketing Agent (and
     the authority to so determine the rate is hereby delegated by the Issuer to
     the Remarketing Agent) as follows: the interest rate for each day shall be
     established at a rate equal to the interest rate per annum that, in the
     sole judgment of the Remarketing Agent, taking into account prevailing
     financial market conditions, would be the minimum interest rate required to
     sell the Bonds at a price of Par on such date. Upon determining the Daily
     Rate for each date, the Remarketing Agent shall notify the Trustee and the
     Company of such rate by telephone or such other manner as may be
     appropriate on the date of such determination, which notice shall be
     promptly confirmed in writing. Such notice shall be provided by not later
     than 9:30 A.M. New York City time on each Business Day for that Business
     Day. The Daily Rate for any non-Business Day will be the rate for the last
     day on which a rate was set.

          (c) The determination of the Daily Rate (absent manifest error) shall
     be conclusive and binding upon the Issuer, the Company, the Trustee, the
     Credit Provider (if any), and the Owners of the Bonds. If for any reason
     the Remarketing Agent shall fail to establish the Daily Rate, the Bonds
     shall bear interest at the Daily Rate in effect on the last day for which a
     rate was set.

     SECTION 2.04 WEEKLY PERIOD.

          (a) From the date of issuance of the Bonds until the next following
     Conversion Date, and from any subsequent Conversion Date after which the
     Bonds will bear interest at the Weekly Rate until the next following
     Conversion Date (the "Weekly Period"), the Bonds shall bear interest at the
     Weekly Rate, as hereinafter described.

          (b) The Weekly Rate will be determined by the Remarketing Agent (and
     the authority to so determine the rate is hereby delegated by the Issuer to
     the Remarketing Agent) on each Wednesday for the period beginning on such
     Wednesday and ending on the following Tuesday, as follows: the interest
     rate shall be established at a rate equal to the interest rate per annum
     that, in the sole judgment of the Remarketing Agent, taking into account
     prevailing financial market conditions, would be the minimum interest rate
     required to sell the Bonds at a price of Par on such date. Upon determining
     the Weekly

                                       10
<Page>

     Rate, the Remarketing Agent shall notify the Trustee and the Company of
     such rate by telephone or such other manner as may be appropriate on the
     date of such determination, which notice shall be promptly confirmed in
     writing. Such notice shall be provided by not later than 2:00 P.M. New York
     City time. If any Wednesday is not a Business Day, then the Weekly Rate
     shall be established on the next preceding Business Day.

          (c) The determination of the Weekly Rate (absent manifest error) shall
     be conclusive and binding upon the Issuer, the Company, the Trustee, the
     Credit Provider (if any), and the Owners of the Bonds. If for any reason
     the Remarketing Agent shall fail to establish the Weekly Rate, the Bonds
     shall bear interest at the Weekly Rate last in effect.

     SECTION 2.05 COMMERCIAL PAPER PERIOD.

          (a) From any Conversion Date after which the Bonds will bear interest
     at a Commercial Paper Rate (the "Commercial Paper Period") until the next
     following Conversion Date, the Bonds will bear interest at the various
     Commercial Paper Rates for periods of not less than one (1) day and not
     more than 270 days (each, a "Calculation Period"), as hereinafter
     described. During any Commercial Paper Period, any Bond may have a
     different Calculation Period and a different Commercial Paper Rate from any
     other Bond.

          (b) At or prior to 12:00 noon New York City time on any Conversion
     Date after which the Bonds will bear interest at the Commercial Paper Rate
     and the day immediately after the end of such Calculation Period, the
     Remarketing Agent shall establish Calculation Periods with respect to Bonds
     for which no Calculation Period is currently in effect. The Remarketing
     Agent shall, and the Issuer hereby delegates to the Remarketing Agent the
     authority to, select the Calculation Periods and the applicable Commercial
     Paper Rates that, together with all other Calculation Periods and related
     Commercial Paper Rates, in the sole judgment of the Remarketing Agent, will
     result in the lowest overall borrowing cost on the Bonds or are otherwise
     in the best financial interests of the Company, as determined in
     consultation with the Company. Any Calculation Period established hereunder
     may not extend beyond (i) any Conversion Date, (ii) during any Credit
     Facility Period, the Business Day next preceding the scheduled Credit
     Facility Termination Date, or (iii) the day prior to the maturity date of
     the Bonds.

          (c) On the first day of each Calculation Period, the Remarketing Agent
     shall, and the Issuer hereby delegates to the Remarketing Agent the
     authority to, set rates by 12:00 Noon New York City time for the Bonds for
     such Calculation Period. With respect to each Calculation Period, the
     interest rate shall be established at a rate equal to the interest rate per
     annum that, in the sole judgment of the Remarketing Agent, taking into
     account prevailing financial market conditions, would be the minimum
     interest rate required to sell the Bonds at a price of Par on the date of
     such determination. Upon determining the rate for each Calculation Period,
     the Remarketing Agent shall notify the Trustee and the Company of such
     rates and the related Calculation Periods by telephone or such other manner
     as may be appropriate by not later than 2:00 P.M. New York City

                                       11
<Page>

     time on the date of such determination, which notice shall be promptly
     confirmed in writing.

          (d) The determination of the Commercial Paper Rates and Calculation
     Periods (absent manifest error) shall be conclusive and binding upon the
     Issuer, the Company, the Trustee, the Credit Provider (if any), and the
     Owners of the Bonds. If for any reason the Remarketing Agent shall fail to
     establish the Commercial Paper Rates or the Calculation Periods for any
     Bonds during the Commercial Paper Period, or in the event no Calculation
     Period may be established pursuant to the terms of Section 2.05(b), then
     the Calculation Period for any such Bond shall be a period of 30 days and
     the Commercial Paper Rate for such Calculation Period shall be 70% of the
     interest rate applicable to 91-day United States Treasury bills determined
     on the basis of the average per annum discount rate at which 91-day United
     States Treasury bills shall have been sold at the most recent Treasury
     auction conducted during the preceding 30 days.

     SECTION 2.06 LONG TERM PERIOD.

          (a) From any Conversion Date after which the Bonds will bear interest
     at a Long Term Rate (the "Long Term Period") until the next following
     Conversion Date or the maturity date of the Bonds, the Bonds will bear
     interest at a Long Term Rate, as hereinafter described.

          (b) The Long Term Rate will be determined by the Remarketing Agent and
     the authority to so determine the Long Term Rate, as follows: the interest
     rate for each Long Term Period shall be established at a rate equal to the
     interest rate per annum that, in the sole judgment of the Remarketing
     Agent, taking into account prevailing financial market conditions, would be
     the minimum interest rate required to sell the Bonds at a price of Par on
     the date on which the Long Term Period begins. The Long Term Rate shall be
     determined by the Remarketing Agent not later than the fifth day preceding
     the commencement of such Long Term Period, and the Remarketing Agent shall
     notify the Trustee and the Company thereof by telephone or such other
     manner as may be appropriate by not later than 2:00 P.M. New York City time
     on such date, which notice shall be promptly confirmed in writing.

          (c) The Issuer hereby delegates to the Company the authority to
     determine the duration of each Long Term Period. In that connection, the
     Company shall instruct the Remarketing Agent, not later than the 20th day
     prior to the commencement of such Long Term Period, to determine the Long
     Term Rate on the basis of a Long Term Period ending on a specified date
     that is the last day of any calendar month that is an integral multiple of
     six (6) calendar months from the beginning of such Long Term Period or the
     maturity of the Bonds. In the event the Company elects at the end of a Long
     Term Period to have another Long Term Period applicable to the Bonds, the
     Company shall notify the Trustee and the Remarketing Agent in writing, not
     later than the 20th day prior to the commencement of such new Long Term
     Period, of such an election with respect to the Long Term Period and of the
     date on which such new Long Term Period shall begin. If the duration of the
     Long Term Period will change from an interval of 365 days or less to an
     interval of more than 365 days, or vice versa, then the Company shall
     furnish to the

                                       12
<Page>

     Trustee, with such notification, an opinion of Bond Counsel to the effect
     that such election of such Long Term Period will not adversely affect the
     exclusion from gross income for Federal income tax purposes of interest on
     the Bonds. The delivery by the Company to the Trustee of a letter from Bond
     Counsel confirming the opinion accompanying the Company notification
     described above on the first day of such Long Term Period is a condition
     precedent to the beginning of such Long Term Period. In the event that the
     Company fails to deliver to the Trustee the letter of Bond Counsel referred
     to in the preceding sentence, the Bonds shall be deemed to bear interest at
     the Weekly Rate, which Weekly Rate shall be 70% of the interest rate for
     30-day taxable commercial paper (prime paper placed through dealers)
     announced by the Federal Reserve Bank of New York on the day on which the
     Long Term Rate on the Bonds was to be set.

          (d) The determination of the Long Term Rate (absent manifest error)
     shall be conclusive and binding upon the Issuer, the Company, the Trustee,
     the Credit Provider (if any), and the Owners of the Bonds. If for any
     reason the Remarketing Agent shall fail to establish the Long Term Rate for
     any Long Term Period, the Bonds shall be deemed to bear interest at the
     Weekly Rate, which Weekly Rate shall be 70% of the interest rate for 30-day
     taxable commercial paper (prime paper placed through dealers) announced by
     the Federal Reserve Bank of New York on the day on which the Long Term Rate
     on the Bonds was to be set.

     SECTION 2.07 CONVERSION OPTION

          (a) With the written consent of a Credit Provider (if a Credit
     Facility Period) the Company shall have the option (the "Conversion
     Option") to direct a change in the type of Interest Period to another type
     of Interest Period by delivering to the Trustee and the Remarketing Agent
     written instructions setting forth (i) the Conversion Date, (ii) the new
     type of Interest Period and (iii) whether such Interest Period will be a
     Credit Facility Period. If the new Interest Period is a Commercial Paper
     Period or a Long Term Period and will be a Credit Facility Period, such
     instructions will be accompanied by a Substitute Credit Facility, or by an
     amendment to the existing Credit Facility, providing for the payment of
     such additional interest and redemption premium (if any) on the Bonds as
     may be required. The sufficiency of any such Substitute Credit Facility, or
     of any amendment to an existing Credit Facility, shall be conclusively
     established by receipt of written confirmation, in form and substance
     satisfactory to the Trustee, from any rating agency providing a rating on
     the Bonds, or if the Bonds are not then rated, then from the Remarketing
     Agent. Such instructions shall be delivered at least 20 days prior to the
     first day of such Interest Period. If the duration of the Interest Period
     will change from an interval of 365 days or less to an interval of more
     than 365 days, or vice versa, then with such instructions the Company shall
     furnish to the Trustee (and the Credit Provider if a Credit Facility
     Period) an opinion of Bond Counsel to the effect that such change in
     Interest Period will not adversely affect the exclusion from gross income
     for Federal income tax purposes of interest on the Bonds. The delivery by
     the Company to the Trustee of a letter from Bond Counsel confirming the
     opinion accompanying the Company notification described above on the
     Conversion Date is a condition precedent to the change in the type of
     Interest Period. In the event that the Company fails to deliver to the
     Trustee the letter of Bond Counsel referred to in the preceding sentence,
     the Bonds

                                       13
<Page>

     shall continue in the Interest Period in place at the time of exercise of
     the Conversion Option.

          (b) Any change in the type of Interest Period must comply with the
     following: (i) the Conversion Date must be an Interest Payment Date for the
     Interest Period then in effect (and, with respect to a Long Term Period,
     must be the last Interest Payment Date for such Long Term Period) and (ii)
     no change in Interest Period shall occur after an Event of Default shall
     have occurred and be continuing.

     SECTION 2.08 EXECUTION; LIMITED OBLIGATIONS.

     The Bonds shall be executed on behalf of the Issuer with the manual or
facsimile signature of the Chairman of the Issuer and the Issuer's corporate
seal shall be affixed thereto or printed or otherwise reproduced thereon and
attested by the manual or facsimile signature of its Secretary or Treasurer. All
authorized facsimile signatures shall have the same force and effect as if
manually signed. The Bonds shall not be general obligations of the Issuer but
limited and special obligations payable solely from the amounts payable under
the Agreement and other amounts specifically pledged therefor under this
Indenture, and shall be a valid claim of the respective Owners thereof only
against the Trust Estate, which amounts are hereby pledged, assigned and
otherwise secured for the equal and ratable payment of the Bonds and shall be
used for no other purpose than to pay the principal of, premium, if any, and
interest on the Bonds, except as may be otherwise expressly authorized in this
Indenture. No Owner of any Bonds has the right to compel any exercise of taxing
power (if any) of the Issuer to pay the Bonds or the interest thereon, and the
Bonds do not constitute an indebtedness of the Issuer or a loan of credit
thereof within the meaning of any constitutional or statutory provisions.

     SECTION 2.09 AUTHENTICATION.

     No Bond shall be valid or obligatory for any purpose or entitled to any
security or benefit under this Indenture unless and until a certificate of
authentication on such Bond substantially in the form set forth in the form of
Bond attached hereto as Exhibit "A" shall have been duly executed by the
Trustee, and such executed certificate of authentication upon any such Bond
shall be conclusive evidence that such Bond has been authenticated and delivered
under this Indenture. The certificate of authentication on any Bond shall be
deemed to have been executed by the Trustee if signed by an authorized signatory
of the Trustee but it shall not be necessary that the same signatory execute the
certificate of authentication on all of the Bonds.

     In the event that any Bond is deemed tendered to the Trustee as provided in
Section 4.01 or 4.02 hereof but is not physically so tendered, the Issuer shall
execute and the Trustee shall authenticate a new Bond of like denomination of
that deemed tendered.

     SECTION 2.10 FORM OF BONDS.

     The Bonds and the certificate of authentication to be endorsed thereon are
to be in substantially the form set forth in Exhibit "A" attached hereto, with
appropriate variations, omissions and insertions as permitted or required by
this Indenture.

     SECTION 2.11 AUTHENTICATION AND DELIVERY OF BONDS.

                                       14
<Page>

     Prior to the authentication and delivery by the Trustee of the Bonds, there
shall be filed or deposited with the Trustee:

          (a) a copy, certified by the Chairman or Vice Chairman of the Issuer,
     of all resolutions adopted and proceedings had by the Issuer authorizing
     the issuance of the Bonds, including the resolution authorizing the
     execution, delivery and performance of this Indenture and the Agreement;

          (b) the original executed Letter of Credit;

          (c) the opinion of Bond Counsel approving the validity of the Bonds
     and confirming the exclusion from gross income of interest on the Bonds;
     and

          (d) a request and authorization to the Trustee on behalf of the Issuer
     and signed by an authorized officer of the Issuer to authenticate and
     deliver the Bonds in such specified denominations as permitted herein to
     purchasers thereof upon payment to the Trustee, but for the account of the
     Issuer, of a specified sum of money. Upon payment of the proceeds to the
     Trustee, the Trustee shall deposit the proceeds pursuant to Article VI
     hereof.

     SECTION 2.12 MUTILATED, LOST, STOLEN OR DESTROYED BONDS.

     In the event any Bond is mutilated, lost, stolen, or destroyed, the Issuer
shall execute and the Trustee shall authenticate a new Bond of like date and
denomination as that mutilated, lost, stolen or destroyed, provided that, in the
case of any mutilated Bond, such mutilated Bond shall first be surrendered to
the Issuer or the Trustee, and in the case of any lost, stolen, or destroyed
Bond, there first shall be furnished to the Issuer and the Trustee evidence of
such loss, theft or destruction satisfactory to the Issuer and the Trustee,
together with an indemnity satisfactory to them. In the event any such Bond
shall have matured, the Trustee, instead of issuing a duplicate Bond, may pay
the same without surrender thereof, making such requirements as it deems fit for
its protection, including a lost instrument bond. The Issuer and the Trustee may
charge the Owner of such Bond with their reasonable fees and expenses for such
service. In authenticating a new Bond, the Trustee may conclusively assume that
the Issuer is satisfied with the adequacy of the evidence presented concerning
the mutilation, loss, theft or destruction of any Bond or with any indemnity
furnished in connection therewith if, after notification of the same, the
Trustee has not received within two days following such notification written
notice from the Issuer to the contrary.

     SECTION 2.13 TRANSFER OF BONDS; PERSONS TREATED AS OWNERS.

     The Trustee shall keep books for the transfer of the Bonds as provided in
this Indenture. Upon surrender for transfer of any Bond at the Principal Office
of the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Owner or his attorney duly authorized in writing, the Issuer
shall execute and the Trustee shall authenticate and deliver in the name of the
transferee or transferees a new Bond or Bonds in authorized denominations for a
like aggregate principal amount. Subject to the provisions of Section 2.16
hereof relating to the transfer of ownership of Bonds held in the Book-Entry
System, any Bond, upon surrender thereof at the Principal Office of the Trustee
duly endorsed for transfer or accompanied by an

                                       15
<Page>

assignment duly executed by the Owner or its attorney duly authorized in
writing, may, at the option of the Owner thereof, be exchanged for an equal
aggregate principal amount of Bonds of any denominations authorized by this
Indenture in an aggregate principal amount equal to the principal amount of such
Bond. In each case, the Trustee may require the payment by the Owner of the Bond
requesting exchange or transfer of any tax or other governmental charge required
to be paid with respect to such exchange or transfer.

     The Trustee shall not be required to exchange or register a transfer of (a)
any Bonds during the fifteen day period next preceding the selection of Bonds to
be redeemed and thereafter until the date of the mailing of a notice of
redemption of Bonds selected for redemption, or (b) any Bonds selected, called
or being called for redemption in whole or in part except, in the case of any
Bond to be redeemed in part, the portion thereof not so to be redeemed; provided
that the foregoing shall not apply to the registration or transfer of any Bond
which has been tendered to the Trustee pursuant to Section 4.02 hereof, and in
any such case, for purposes of selection for redemption, the Bond so tendered
and the Bond issued to the transferee thereof pursuant to Section 4.04 hereof
shall be deemed and treated as the same Bond. If any Bond shall be transferred
and delivered pursuant to Section 4.04(a) hereof after such Bond has been (i)
called for redemption, (ii) accelerated pursuant to Section 9.02, or (iii)
tendered pursuant to Sections 4.01 or 4.02, the Trustee shall deliver to such
transferee a copy of the applicable redemption notice, acceleration notice, or
tender notice indicating that the Bond delivered to such transferee has
previously been called for redemption, acceleration or tender, and such Bonds
shall not be delivered by the Trustee to the transferee until the transferee
shall acknowledge receipt of such notice in writing.

     Subject to the provisions of Section 2.16 hereof relating to Bonds held in
the Book-Entry System, the Trustee and the Issuer may treat the person in whose
name a Bond is registered as the absolute Owner thereof for all purposes, and
neither the Issuer nor the Trustee shall be bound by any notice or knowledge to
the contrary, but such registration may be changed as hereinabove provided. All
payments made to the Owner shall be valid and effectual to satisfy and discharge
the liability upon such Bond to the extent of the sum or sums so paid.

     SECTION 2.14 DESTRUCTION OF BONDS.

     Subject to the provisions of Section 2.16 hereof relating to Bonds held in
the Book-Entry System, whenever any Outstanding Bond shall be delivered to the
Trustee for cancellation pursuant to this Indenture, or for replacement pursuant
to Section 2.12 hereof, such Bond shall be promptly cancelled and cremated or
otherwise destroyed by the Trustee, and, upon the request of the Company and the
Issuer, counterparts of a certificate of destruction evidencing such cremation
or other destruction shall be furnished by the Trustee to the Issuer and the
Company.

     SECTION 2.15 TEMPORARY BONDS.

     Until Bonds in definitive form are ready for delivery, the Issuer may
execute, and upon the request of the Issuer, the Trustee shall authenticate and
deliver, subject to the provisions, limitations and conditions set forth above,
one or more Bonds in temporary form, whether printed, typewritten, lithographed
or otherwise produced, substantially in the form of the definitive Bonds, with
appropriate omissions, variations and insertions, and in authorized

                                       16
<Page>

denominations. Until exchanged for Bonds in definitive form, such Bonds in
temporary form shall be entitled to the liens and benefits of this Indenture.

     Upon presentation and surrender of any Bond or Bonds in temporary form, the
Issuer shall, at the request of the Trustee, execute and deliver to the Trustee,
and the Trustee shall authenticate and deliver, in exchange therefor, a Bond or
Bonds in definitive form. Such exchange shall be made by the Trustee without
making any charge therefor to the Owner of such Bond in temporary form.
Notwithstanding the foregoing, Bonds in definitive form may be issued hereunder
in typewritten form.

     SECTION 2.16 BOOK-ENTRY SYSTEM.

     Upon the initial issuance and delivery of the Bonds, the Bonds shall be
issued in the name of the Securities Depository or its nominee, as registered
owner of the Bonds, and held in the custody of the Securities Depository or its
designee. A single certificate (or such number of certificates required by the
procedures of the Securities Depository) will be issued and delivered to the
Securities Depository (or its designee) for the Bonds, and the Beneficial Owners
will not receive physical delivery of Bond certificates except as provided
herein. For so long as the Securities Depository shall continue to serve as
securities depository for the Bonds as provided herein, all transfers of
beneficial ownership interests will be made by book-entry only, and no investor
or other party purchasing, selling or otherwise transferring beneficial
ownership of Bonds is to receive, hold or deliver any Bond certificate. The
Issuer, the Company and the Trustee will recognize the Securities Depository or
its nominee as the Owner for all purposes, including notices.

     The Issuer, the Company, the Trustee and the Remarketing Agent may rely
conclusively upon (i) a certificate of the Securities Depository as to the
identity of the Participants in the Book-Entry System with respect to the Bonds
and (ii) a certificate of any such Participant as to the identity of, and the
respective principal amount of Bonds beneficially owned by, the Beneficial
Owners.

     Whenever, during the term of the Bonds, the beneficial ownership thereof is
determined by a Book-Entry System at the Securities Depository, the requirements
in this Indenture of holding, delivering or transferring Bonds shall be deemed
modified to require the appropriate person to meet the requirements of the
Securities Depository as to registering or transferring the book-entry Bonds to
produce the same effect. Any provision hereof permitting or requiring delivery
of Bonds shall, while the Bonds are in the Book-Entry System, be satisfied by
the notation on the books of the Securities Depository in accordance with
applicable state law.

     Except as otherwise specifically provided in this Indenture and the Bonds
with respect to the rights of Participants and Beneficial Owners, when a
Book-Entry System is in effect, the Issuer, the Trustee, the Remarketing Agent
and the Company may treat the Securities Depository (or its nominee) as the sole
and exclusive owner of the Bonds registered in its name for the purposes of (i)
payment of the principal or Purchase Price of, premium, if any, and interest on
the Bonds or portion thereof to be redeemed or purchased, (ii) giving any notice
permitted or required to be given to Bondholders under this Indenture, and (iii)
the giving of any direction or consent or the making of any request by the
Bondholders hereunder, and none of the Issuer, the

                                       17
<Page>

Trustee, the Remarketing Agent nor the Company shall be affected by any notice
to the contrary. None of the Issuer, the Company, the Trustee or the Remarketing
Agent will have any responsibility or obligations to the Securities Depository,
any Participant, any Beneficial Owner or any other person which is not shown on
the Bond Register, with respect to (i) the accuracy of any records maintained by
the Securities Depository or any Participant; (ii) the payment by the Securities
Depository or by any Participant of any amount due to any Beneficial Owner in
respect of the principal amount or redemption or Purchase Price of, or interest
on, any Bonds; (iii) the delivery of any notice by the Securities Depository or
any Participant; (iv) the selection of the Participants or the Beneficial Owners
to receive payment in the event of any partial redemption of the Bonds; or (v)
any consent given or any other action taken by the Securities Depository or any
Participant. The Trustee shall pay all principal of, premium, if any, and
interest on the Bonds registered in the name of a nominee of the Securities
Depository only to or "upon the order of" the Securities Depository (as that
term is used in the Uniform Commercial Code as adopted in Tennessee), and all
such payments shall be valid and effective to fully satisfy and discharge the
Company's obligations with respect to the principal of, premium, if any, and
interest on such Bonds to the extent of the sum or sums so paid.

     The Book-Entry System may be discontinued by the Trustee and the Issuer, at
the direction and expense of the Company, and the Issuer and the Trustee will
cause the delivery of Bond certificates to such Beneficial Owners of the Bonds
and registered in the names of such Beneficial Owners as shall be specified to
the Trustee by the Securities Depository in writing, under the following
circumstances:

          (a) The Securities Depository determines to discontinue providing its
     service with respect to the Bonds and no successor Securities Depository is
     appointed as described above. Such a determination may be made at any time
     by giving 30 days' notice to the Issuer, the Company and the Trustee and
     discharging its responsibilities with respect thereto under applicable law.

          (b) The Company determines not to continue the Book-Entry System
     through a Securities Depository.

     In the event the Book-Entry System is discontinued, the Trustee shall mail
a notice to the Securities Depository for distribution to the Beneficial Owners
stating that the Securities Depository will no longer serve as securities
depository, the procedures for obtaining Bonds and the provisions of this
Indenture which govern the Bonds, including, but not limited to, provisions
regarding authorized denominations, transfer and exchange, principal and
interest payment and other related matters.

     When the Book-Entry System is not in effect, all references herein to the
Securities Depository shall be of no further force or effect and the Trustee
shall, at the expense of the Company, issue Bonds directly to the Beneficial
Owners.

     The Trustee reserves the right to initially issue the Bonds directly to the
Beneficial Owners of the Bonds if the Trustee receives an opinion of Bond
Counsel that determines that use of the Book-Entry System would cause the
interest on the Bonds to be included in gross income of the Owners for federal
income tax purposes.

                                       18
<Page>

                                   ARTICLE III

                       REDEMPTION OF BONDS BEFORE MATURITY

     SECTION 3.01 EXTRAORDINARY REDEMPTION.

     During any Long Term Period, the Bonds are subject to redemption in whole
by the Issuer, at the option of the Company, at a redemption price of 100% of
the Outstanding principal amount thereof plus accrued interest to the redemption
date, in the event all or substantially all of the Project shall have been
damaged or destroyed, or there occurs the condemnation of all or substantially
all of the Project or the taking by eminent domain of such use or control of the
Project as to render it, in the judgment of the Company, unsatisfactory for its
intended use for a period of time longer than one year.

     SECTION 3.02 OPTIONAL REDEMPTION BY THE COMPANY.

     During any Daily Period or Weekly Period, the Bonds are subject to
redemption by the Issuer, at the option of the Company, in whole at any time or
in part on any Interest Payment Date, less than all of such Bonds to be selected
by lot or in such other manner as the Trustee shall determine (except as
otherwise provided in Section 3.06 hereof), at a redemption price of 100% of the
Outstanding principal amount thereof plus accrued interest to the redemption
date.

     On any Conversion Date or on the day following the end of the Calculation
Period if such day is the end of the Calculation Period for all Bonds, the Bonds
are subject to redemption by the Issuer, at the option of the Company, in whole
or in part, less than all of such Bonds to be selected by lot or in such manner
as the Trustee shall determine (except as otherwise provided in Section 3.06
hereof), at a redemption price of 100% of the Outstanding principal amount
thereof plus accrued interest to the redemption date.

     During any Long Term Period, the Bonds are subject to redemption by the
Issuer, at the option of the Company, on or after the First Optional Redemption
Date, in whole at any time or in part on any Interest Payment Date, less than
all of such Bonds to be selected by lot or in such other manner as the Trustee
shall determine (except as otherwise provided in Section 3.06 hereof), at the
redemption prices (expressed as percentages of principal amount) set forth in
the following table plus accrued interest to the redemption date:

<Table>
<Caption>
          REDEMPTION DATES                                                REDEMPTION PRICES
<S>                                                                             <C>
First Optional Redemption Date through
the last day of the twelfth calendar month
following such First Optional Redemption Date                                   102%

First anniversary of the First Optional
Redemption Date through the last day of the
twelfth calendar month following such first anniversary                         101%
</Table>

                                       19
<Page>

<Table>
<S>                                                                             <C>
Second anniversary of the First Optional
Redemption Date and thereafter                                                  100%
</Table>

     SECTION 3.03 NOTICE OF REDEMPTION.

          (a) Notice of the call for redemption, identifying the Bonds or
     portions thereof to be redeemed, shall be given by the Trustee by mailing a
     copy of the redemption notice by first class mail at least 30 days but not
     more than 60 days prior to the date fixed for redemption to the Owner of
     each Bond to be redeemed in whole or in part at the address shown on the
     registration books. Any notice mailed as provided in this Section 3.03
     shall be conclusively presumed to have been duly given, whether or not the
     Owner receives the notice.

          Failure to mail any such notice, or the mailing of defective notice,
     to any Owner, shall not affect the proceeding for redemption as to any
     Owner to whom proper notice is mailed. Notwithstanding the foregoing
     provisions of this Section 3.03, delivery by the Trustee of a copy of a
     redemption notice to a transferee of a Bond which has been called for
     redemption, pursuant to the requirements of Section 2.12 hereof, shall be
     deemed to satisfy the requirements of the first sentence of this Section
     3.03 with respect to any such transferee.

          (b) In addition to the foregoing notice, further notice shall be given
     by the Trustee as set out below, but no defect in said further notice nor
     any failure to give all or any portion of such further notice shall in any
     manner defeat the effectiveness of a call for redemption if notice thereof
     is given as prescribed in (a) above. Each further notice of redemption
     given hereunder shall contain the information required in (a) above for an
     official notice of redemption plus (i) the CUSIP numbers of all Bonds being
     redeemed; (ii) the date of issue of the Bonds as originally issued; (iii)
     the rate of interest borne by each Bond being redeemed; (iv) the maturity
     date of each Bond being redeemed; and (v) any other descriptive information
     needed to identify accurately the Bonds being redeemed. Each further notice
     of redemption shall be sent at least 30 days before the redemption date by
     registered or certified mail, or overnight delivery service, to all of the
     following registered securities depositories then in the business of
     holding substantial amounts of bonds of the type comprising the Bonds (such
     depositories now being The Depository Trust Company of New York, New York;
     Midwest Securities Trust Company of Chicago, Illinois; and Philadelphia
     Depository Trust Company of Philadelphia, Pennsylvania) and to one or more
     national information services that disseminate notices of redemption of
     bonds such as the Bonds (such as Financial Information Inc.'s Financial
     Daily Called Bond Service, Interactive Data Corporation's Bond Service,
     Kenny Information Service's Called Bond Service, Moody's Investors
     Service's Municipal and Government and Standard & Poor's Called Bond
     Record). Upon the payment of the redemption price of Bonds being redeemed,
     each check or other transfer of funds issued for such purpose shall bear
     the CUSIP number identifying, by issue and maturity, the Bonds being
     redeemed with the proceeds of such check or other transfer.

                                       20
<Page>

     SECTION 3.04 REDEMPTION PAYMENTS.

     Pursuant to Section 6.12 hereof, during any Credit Facility Period, the
Trustee is authorized and directed to draw upon the Credit Facility in order to
provide for the payment of the redemption price of the Bonds called for
redemption, and is hereby authorized and directed to apply such funds to the
payment of the principal of the Bonds or portions thereof called, together with
accrued interest thereon to the redemption date. In the event the Bonds called
for redemption are not secured by a Credit Facility, then if on or prior to the
date fixed for redemption, sufficient moneys shall be on deposit with the
Trustee to pay the redemption price of the Bonds called for redemption, the
Trustee is hereby authorized and directed to apply such funds to the payment of
the principal of the Bonds or portions thereof called, together with accrued
interest thereon to the redemption date and any required premium. Upon the
giving of notice and the deposit of moneys for redemption at the required times
on or prior to the date fixed for redemption, as provided in this Article,
interest on the Bonds or portions thereof thus called shall no longer accrue
after the date fixed for redemption.

     SECTION 3.05 CANCELLATION.

     All Bonds which have been redeemed shall not be reissued but shall be
canceled and cremated or otherwise destroyed by the Trustee in accordance with
Section 2.14 hereof.

     SECTION 3.06 PARTIAL REDEMPTION OF BONDS.

          (a) Upon surrender of any Bond for redemption in part only, the Issuer
     shall execute and the Trustee shall authenticate and deliver to the Owner
     thereof a new Bond or Bonds of authorized denominations, in an aggregate
     principal amount equal to the unredeemed portion of the Bond surrendered.

          (b) During any Daily Period, Weekly Period or Commercial Paper Period,
     during which the authorized denominations are $100,000 or integral
     multiples of $5,000 in excess thereof, in the event a Bond is of a
     denomination larger than $100,000, a portion of such Bond may be redeemed,
     but Bonds shall be redeemed only in an amount that causes the unredeemed
     portion to be in the principal amount of $100,000 or any integral multiple
     of $5,000 in excess thereof.

          (c) During any Long Term Period, in case a Bond is of a denomination
     larger than $5,000, a portion of such Bond ($5,000 or any integral multiple
     thereof) may be redeemed, but Bonds shall be redeemed only in the principal
     amount of $5,000 or any integral multiple thereof.

          (d) Notwithstanding anything to the contrary contained in this
     Indenture, whenever the Bonds which are not held in a Book-Entry System are
     to be redeemed in part, such Bonds which are Pledged Bonds at the time of
     selection of Bonds for redemption shall be selected for redemption prior to
     the selection of any other Bonds. If the aggregate principal amount of
     Bonds to be redeemed exceeds the aggregate principal amount of Pledged
     Bonds at the time of selection, the Trustee may select for redemption Bonds
     in an aggregate principal amount equal to such excess by lot or in such
     other manner as the Trustee may determine.

                                       21
<Page>

                                   ARTICLE IV

                 MANDATORY PURCHASE DATE; DEMAND PURCHASE OPTION

     SECTION 4.01 MANDATORY PURCHASE OF BONDS ON MANDATORY PURCHASE DATE.

          (a) The Bonds shall be subject to mandatory tender by the Owners
     thereof for purchase on each Mandatory Purchase Date.

          (b) Except when the Bonds are subject to mandatory tender on a day
     immediately following the end of a Calculation Period, the Trustee shall
     deliver or mail by first class mail a notice in substantially the form of
     Exhibit "B" attached hereto at least fifteen days prior to the Mandatory
     Purchase Date to the Owners of the Bonds at the address shown on the
     registration books of the Issuer. When the Bonds are subject to mandatory
     tender on the day immediately following the end of a Calculation Period,
     the Trustee is not required to deliver or mail any notice to the Owners of
     the Bonds. Any notice given by the Trustee as provided in this Section
     shall be conclusively presumed to have been duly given, whether or not the
     Owner receives the notice. Failure to mail any such notice, or the mailing
     of defective notice, to any Owner, shall not affect the proceeding for
     purchase as to any Owner to whom proper notice is mailed. The Trustee shall
     provide the Company (and any Credit Provider) with a copy of any notice
     delivered to the Owners of the Bonds pursuant to this Section 4.01.

          (c) Owners of Bonds shall be required to tender their Bonds to the
     Trustee for purchase at the Purchase Price, no later than 10:30 A.M. New
     York City time on the Mandatory Purchase Date, and any such Bonds not so
     tendered by such time on the Mandatory Purchase Date ("Untendered Bonds")
     shall be deemed to have been purchased pursuant to this Section 4.01. In
     the event of a failure by an Owner of Bonds to tender its Bonds on or prior
     to the Mandatory Purchase Date, said Owner shall not be entitled to any
     payment (including any interest to accrue subsequent to the Mandatory
     Purchase Date) other than the Purchase Price for such Untendered Bonds, and
     any Untendered Bonds shall no longer be entitled to the benefits of this
     Indenture, except for the purpose of payment of the Purchase Price
     therefor.

     SECTION 4.02 DEMAND PURCHASE OPTION.

     Any Bond bearing interest at the Daily Rate or the Weekly Rate shall be
purchased from the Owners thereof on any Tender Date at the Purchase Price, as
provided below:

          (a) While the Book-Entry System is not in effect:

               (i) delivery to the Trustee at its Principal Office and to the
          Remarketing Agent at its Principal Office of a written notice (said
          notice to be irrevocable and effective upon receipt) which (1) states
          the aggregate principal amount and Bond numbers of the Bonds to be
          purchased; and (2) states the date on which such Bonds are to be
          purchased; and

                                       22
<Page>

               (ii) delivery to the Trustee at its Delivery Office at or prior
          to 10:30 A.M. New York City time on the date designated for purchase
          in the notice described in (i) above of such Bonds to be purchased,
          with an appropriate endorsement for transfer or accompanied by a bond
          power endorsed in blank.

          (b) While the Book-Entry System is in effect, the ownership interest
     of any Beneficial Owner of a Bond or portion thereof in an authorized
     denomination shall be purchased at the Purchase Price if such Beneficial
     Owner causes the Participant through whom such Beneficial Owner holds such
     Bonds to (i) deliver to the Trustee at its Principal Office and to the
     Remarketing Agent at its Principal Office a notice which (1) states the
     aggregate amount of the beneficial ownership interest to be purchased, and
     (2) states the date on which such beneficial interest is to be purchased;
     and (ii) on the same date as delivery of the notice referred to in (i)
     above, deliver a notice to the Securities Depository irrevocably
     instructing it to transfer on the registration books of the Securities
     Depository the beneficial ownership interests in such Bond or portion
     thereof to the account of the Trustee, for settlement on the purchase date
     on a "free delivery" basis with a copy of such notice delivered to the
     Trustee on the same date.

          (c) With respect to Bonds bearing interest at the Daily Rate, the
     written notices described in Section 4.02(a) or (b), above, shall be
     delivered not later than 10:30 A.M., New York City time on the Tender Date
     and, if the Book-Entry System is not in effect, shall be accompanied by the
     Bonds referenced in such notices.

     SECTION 4.03 FUNDS FOR PURCHASE OF BONDS.

     On the date Bonds are to be purchased pursuant to Sections 4.01 or 4.02
hereof, such Bonds shall be purchased at the Purchase Price only from the funds
listed below. Subject to the provisions of Section 6.12(c) hereof, funds for the
payment of the Purchase Price shall be derived from the following sources in the
order of priority indicated:

          (a) the proceeds of the sale of such Bonds which have been remarketed
     by the Remarketing Agent and which proceeds are on deposit with the Trustee
     prior to 12:00 Noon New York City time on the Tender Date but, during any
     Credit Facility Period, only if such Bonds were purchased by an entity
     other than the Company or the Issuer, or any affiliate of the foregoing;

          (b) moneys drawn by the Trustee under the Credit Facility, during any
     Credit Facility Period, pursuant to Section 6.12 hereof; and

          (c) any other moneys furnished to the Trustee and available for such
     purpose.

     SECTION 4.04 DELIVERY OF PURCHASED BONDS.

          (a) Bonds purchased with moneys described in Section 4.03(a) hereof
     shall be delivered by the Trustee, at its Delivery Office, to or upon the
     order of the purchasers thereof and beneficial interests so purchased shall
     be registered on the books of the Securities Depository in the name of the
     Participant through whom the new Beneficial Owner has purchased such
     beneficial interest; provided, however, that during any Credit

                                       23
<Page>

     Facility Period, the Trustee shall not deliver any Bonds and there shall
     not be registered any beneficial ownership as with respect to Bonds as
     described in this paragraph with respect to Bonds which were Pledged Bonds
     until the Credit Provider has confirmed that the Credit Facility has been
     reinstated in full.

          (b) Bonds purchased with moneys described in Section 4.03(b) hereof
     shall be delivered by the Trustee to or upon the order of the Credit
     Provider and shall, if requested by the Credit Provider, be marked with a
     legend indicating that they are Pledged Bonds.

          (c) Bonds purchased with moneys described in Section 4.03(c) hereof
     shall, at the direction of the Company, (i) be delivered as instructed by
     the Company, or (ii) be delivered to the Trustee for cancellation;
     provided, however, that any Bonds so purchased after the selection thereof
     by the Trustee for redemption shall be delivered to the Trustee for
     cancellation.

          (d) While the Book-Entry System is in effect with respect to the
     Bonds, delivery of Bonds for purchase shall be deemed to have occurred upon
     transfer of ownership interests therein to the account of the Trustee on
     the books of the Securities Depository.

          (e) While the Book-Entry System is in effect, payment of the Purchase
     Price of beneficial ownership interests tendered pursuant to Section
     4.02(b) hereof shall be made by payment to the Participant from whom the
     notice of tender is received from the sources provided herein for the
     purchase of Bonds. The Trustee shall hold beneficial ownership interests of
     Bonds delivered to it pursuant to Section 4.02(b) hereof pending settlement
     in trust for the benefit of the Participant from whom the beneficial
     interests in the Bonds are received.

     Except as provided above, Bonds delivered as provided in this Section shall
be registered in the manner directed by the recipient thereof.

     SECTION 4.05 DELIVERY OF PROCEEDS OF SALE OF PURCHASED BONDS.

     Except in the case of the sale of any Pledged Bonds, the proceeds of the
sale of any Bonds delivered to the Trustee pursuant to Section 4.01 or 4.02
hereof, to the extent not required to pay the Purchase Price thereof in
accordance with Section 4.03 hereof, shall be paid to or upon the order of the
Credit Provider, to the extent required to satisfy the obligations of the
Company under the Credit Agreement, and the balance, if any, shall be paid to or
upon the order of the Company.

     SECTION 4.06 DUTIES OF TRUSTEE WITH RESPECT TO PURCHASE OF BONDS.

          (a) The Trustee shall hold all Bonds delivered to it pursuant to
     Section 4.01 or 4.02 hereof in trust for the benefit of the respective
     Owners of Bonds which shall have so delivered such Bonds until moneys
     representing the Purchase Price of such Bonds shall have been delivered to
     or for the account of or to the order of such Owners of Bonds;

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          (b) The Trustee shall hold all moneys delivered to it pursuant to this
     Indenture for the purchase of Bonds in a separate account, in trust for the
     benefit of the person or entity which shall have so delivered such moneys
     until the Bonds purchased with such moneys shall have been delivered to or
     for the account of such person or entity, and after such delivery, in trust
     for the benefit of the person or entity who have not tendered or received
     payment for their Bonds;

          (c) The Trustee shall deliver to the Company, the Remarketing Agent
     and, during any Credit Facility Period, the Credit Provider, a copy of each
     notice delivered to it in accordance with Section 4.02 hereof and,
     immediately upon the delivery to it of Bonds in accordance with said
     Section 4.02, give telephonic or telegraphic notice to the Company, the
     Remarketing Agent and the Credit Provider, during any Credit Facility
     Period, specifying the principal amount of the Bonds so delivered; and

          (d) During any Credit Facility Period, the Trustee shall draw moneys
     under the Credit Facility as provided in Section 6.12 hereof to the extent
     required to provide for timely payment of the Purchase Price of Bonds in
     accordance with the provisions of Section 4.03 hereof.

     SECTION 4.07 REMARKETING OF BONDS.

     The Remarketing Agent shall remarket, in accordance with the terms of the
Remarking Agreement, Bonds or beneficial interests tendered pursuant to the
terms of Sections 4.01 and 4.02 hereof at a price equal to the principal amount
thereof plus accrued interest thereon from the last previous Interest Payment
Date upon which interest has been paid to the date of such remarketing. The
Trustee shall not authenticate and release Bonds or beneficial interests in
Bonds prior to 12:00 Noon New York City time on the date of any remarketing.

     Section 4.08 Purchase by Credit Provider in Lieu of Redemption or
Acceleration.

     Notwithstanding any provisions herein to the contrary, upon any draw upon
the Credit Facility which would cause the Bonds to be called for redemption or
to be paid, the Credit Provider shall have the option to purchase such Bonds in
lieu of such redemption or payment, such purchase to occur on the date otherwise
scheduled for such redemption or payment, at a purchase price equal to 100% of
the principal amount of the Bonds, plus accrued interest and premium, if any, to
the purchase date.

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                                    ARTICLE V

                                GENERAL COVENANTS

     SECTION 5.01 PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST.

     The Issuer covenants that it will promptly pay or cause to be paid the
principal of, premium, if any, and interest on every Bond issued under this
Indenture at the place, on the dates, and in the manner provided herein and in
said Bonds according to the true intent and meaning thereof, but solely from the
amounts pledged therefor which are from time to time held by the Trustee in the
various accounts of the Bond Fund. The principal of, premium, if any, and
interest on the Bonds are payable from the amounts to be paid under the
Agreement and otherwise as provided herein and in the Agreement, which amounts
are hereby specifically pledged to the payment thereof in the manner and to the
extent herein specified, and nothing in the Bonds or in this Indenture shall be
construed as pledging any other funds or assets of the Issuer.

     Neither the Issuer, the State, nor any political subdivision of the State
shall in any event be liable for the payment of the principal of, premium, if
any, or interest on any of the Bonds or for the performance of any pledge,
obligation or agreement undertaken by the Issuer except to the extent that the
moneys pledged herein are sufficient therefor. No Owner of any Bonds has the
right to compel any exercise of taxing power of the State or any political
subdivision thereof to pay the Bonds or the interest thereon, and the Bonds do
not constitute an indebtedness of the Issuer, the State or any political
subdivision of the State, or a loan of credit of any of the foregoing within the
meaning of any constitutional or statutory provision.

     SECTION 5.02 PERFORMANCE OF COVENANTS.

     The Issuer covenants that it will faithfully perform at all times any and
all covenants, undertakings, stipulations and provisions contained in this
Indenture and in the Agreement, in any and every Bond executed, authenticated
and delivered hereunder and in all of its proceedings pertaining hereto. The
Issuer covenants that it is duly authorized under the Constitution and laws of
the State, including particularly and without limitation the Act, to issue the
Bonds authorized hereby and to execute this Indenture, to assign the Agreement,
and to pledge the amounts to be paid under the Agreement and other amounts
hereby pledged in the manner and to the extent herein set forth, that all action
on its part for the issuance of the Bonds and the execution and delivery of this
Indenture has been duly and effectively taken, and that the Bonds in the hands
of the Owners thereof are and will be valid and enforceable limited obligations
of the Issuer according to the terms thereof and hereof.

     SECTION 5.03 INSTRUMENTS OF FURTHER ASSURANCE.

     The Issuer will do, execute, acknowledge and deliver or cause to be done,
executed, acknowledged and delivered, such indentures supplemental hereto and
such further acts, instruments and transfers as the Trustee may reasonably
require for the better assuring, transferring, conveying, pledging, assigning
and confirming unto the Trustee all and singular the

                                       26
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amounts pledged hereby to the payment of the principal of, premium, if any, and
interest on the Bonds. The Issuer, except as herein and in the Agreement
provided, will not sell, convey, mortgage, encumber or otherwise dispose of any
part of the amounts, revenues and receipts payable under the Agreement or its
rights under the Agreement.

     SECTION 5.04 RECORDING AND FILING.

     The Company has agreed pursuant to the Agreement that it will cause all
financing statements related to this Indenture and all supplements hereto and
all continuations thereof to be recorded and filed in such manner and in such
places as may from time to time be required by law in order to preserve and
protect fully the security of the Owners of the Bonds and the rights of the
Trustee hereunder, and to take or cause to be taken any and all other action
necessary to perfect the security interest created by this Indenture.

     SECTION 5.05 INSPECTION OF BOOKS.

     All books and records, if any, in the Issuer's possession relating to the
Project and the amounts derived from the Project shall at all reasonable times
be open to inspection by such accountants or other agents as the Trustee may
from time to time designate.

     SECTION 5.06 LIST OF OWNERS OF BONDS.

     The Trustee will keep on file a list of names and addresses of the Owners
of all Bonds as from time to time registered on the registration books
maintained by the Trustee, together with the principal amount and numbers of
such Bonds owned by each such Owner. At reasonable times and under reasonable
regulations established by the Trustee, said list may be inspected and copied
for any purpose by the Company or by the Owners (or a designated representative
thereof) of fifteen percent (15%) or more in aggregate principal amount of
Outstanding Bonds, such possession or ownership and the authority of such
designated representative to be evidenced to the satisfaction of the Trustee.

     SECTION 5.07 RIGHTS UNDER AGREEMENT.

     The Agreement, a duly executed counterpart of which has been filed with the
Trustee, sets forth the covenants and obligations of the Issuer and the Company,
and reference is hereby made to the Agreement for a detailed statement of said
covenants and obligations of the Company thereunder, and the Issuer agrees that
the Trustee in its name or in the name of the Issuer may enforce all rights of
the Issuer (other than Reserved Rights) and all obligations of the Company under
and pursuant to the Agreement for and on behalf of the Owners of Bonds, whether
or not the Issuer is in default hereunder.

     SECTION 5.08 ISSUER'S ELECTION TO ISSUE BONDS PURSUANT TO
SECTION 144(a)(4).

     The Issuer hereby elects to have the $10,000,000 limitation set forth in
Section 144(a)(4) of the Code apply to the Bonds and agrees to take all actions
necessary to assure compliance with the provisions of said Section.

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     SECTION 5.09 UNDERTAKING TO PROVIDE ONGOING DISCLOSURE.

     If the Conversion Option to elect a Long Term Period or a Commercial Paper
Period is elected, the Company has undertaken to provide ongoing disclosure for
the benefit of the Bondholders pursuant to Section (b)(5)(i) of Securities and
Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as
amended (17 CFR Part 240 Section. 240.15C2-12) in Section 6.06 of the Agreement,
which undertaking is hereby assigned bY the Issuer to the Trustee for the
benefit of the Owners. Such assignment is a present absolute assignment and not
the assignment of a security interest. Section 6.06 of the Agreement shall be
enforceable by any Owner and the Trustee.

     SECTION 5.10 NOTICE OF CONTROL.

     The Trustee agrees to provide written notice to the Bondholders promptly
following receipt of any notice from the Company pursuant to Section 6.07 of the
Agreement.

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                                   ARTICLE VI

                               REVENUES AND FUNDS

     SECTION 6.01 CREATION OF THE BOND FUND.

     There is hereby created and established with the Trustee a trust fund to be
designated "The Industrial Development Board of White County, Tennessee - Bond
Fund, Genlyte Thomas Group, LLC Project," which shall be used to pay when due
the principal and Purchase Price of, premium, if any, and interest on the Bonds.
Within the Bond Fund there is hereby created and established certain trust
accounts, to be designated the "General Account," the "Credit Facility Account,"
and the "Remarketing Account." Moneys drawn under the Credit Facility (if any)
shall be deposited in the Credit Facility Account and shall be held separate and
apart from moneys derived from any other source. Moneys received from the
Remarketing Agent shall be deposited in the Remarketing Account and shall be
held separate and apart from moneys derived from any other source. Unless
otherwise specified, all moneys received by the Trustee for deposit into the
Bond Fund shall be credited to the General Account. Any reference herein to the
"Bond Fund" without further qualification or explanation shall, unless the
context indicates otherwise, constitute a reference to the General Account.

     SECTION 6.02 PAYMENTS INTO THE BOND FUND.

     There shall be deposited into the Bond Fund from time to time the
following:

          (a) in the Credit Facility Account, moneys drawn under the Credit
     Facility (during any Credit Facility Period);

          (b) in the Remarketing Account, moneys received by the Trustee from
     the proceeds of the remarketing of the Bonds; and

          (c) in the General Account, all other moneys received by the Trustee
     under and pursuant to any of the provisions hereof or of the Agreement
     which are required to be or which are accompanied by directions that such
     moneys are to be paid into the Bond Fund.

     SECTION 6.03 USE OF MONEYS IN THE BOND FUND.

     Except as provided in Sections 4.03, 4.05, 4.06 and 6.11 hereof, moneys in
the various accounts of the Bond Fund shall be used solely for the payment of
the principal of, premium, if any, and interest on the Bonds and for the
redemption of the Bonds prior to maturity. Subject to the provisions of Section
6.12 hereof, funds for such payments of the principal of and premium, if any,
and interest on the Bonds shall be derived from the following sources in the
order of priority indicated:

          (a) moneys drawn by the Trustee under the Credit Facility during any
     Credit Facility Period;

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<Page>

          (b) moneys deposited into the Remarketing Account of the Bond Fund
     pursuant to Section 4.05 hereof, representing the accrued interest paid by
     the purchaser of Pledged Bonds; and

          (c) any other moneys furnished to the Trustee and available for such
     purpose.

     SECTION 6.04 PAYMENT OF BONDS WITH PROCEEDS OF REFUNDING BONDS.

     The principal of and interest on the Bonds may be paid from the proceeds of
the sale of refunding obligations if, in the opinion of nationally recognized
counsel experienced in bankruptcy matters, which opinion shall be satisfactory
to the rating agency (if any) then providing the rating borne by the Bonds, the
application of such refunding proceeds will not constitute a voidable preference
in the event of the occurrence of an Act of Bankruptcy.

     SECTION 6.05 PROJECT FUND.

     There is hereby created and established with the Trustee a trust fund to be
designated "The Industrial Development Board of White County, Tennessee -
Project Fund, Genlyte Thomas Group, LLC Project," which shall be expended in
accordance with the provisions of the Agreement.

     SECTION 6.06 PAYMENTS INTO THE PROJECT FUND; DISBURSEMENTS.

     The net proceeds of the issuance and delivery of the Bonds shall be
deposited in the Project Fund and shall not be commingled with any other funds.
The Trustee is hereby authorized and directed to make each disbursement from the
Project Fund required by the provisions of the Agreement. The Trustee shall keep
and maintain adequate records pertaining to the Project Fund and all
disbursements therefrom, including records of all Requisitions made pursuant to
the Agreement, and after the Project has been completed and a completion
certificate has been filed as provided in Section 6.08 hereof, the Trustee
shall, upon request of the Company, file an accounting thereof with the Issuer
and the Company.

     SECTION 6.07 USE OF MONEY IN THE PROJECT FUND UPON DEFAULT.

     If the principal of the Bonds shall have become due and payable pursuant to
Article IX hereof, any balance remaining in the Project Fund shall without
further authorization be transferred into the General Account of the Bond Fund.

     SECTION 6.08 COMPLETION OF THE PROJECT.

     The completion of the Project and payment or provision for payment of all
Costs of the Project shall be evidenced by the filing with the Trustee of the
completion certificate required by the Agreement. As soon as practicable and in
any event not more than sixty (60) days from the date of the certificate
referred to in the preceding sentence, any balance remaining in the Project Fund
(except amounts the Company shall have directed the Trustee to retain for any
Cost of the Project not then due and payable) shall without further
authorization be transferred into the General Account of the Bond Fund and
thereafter applied in the manner provided in the Agreement; provided, that
during any Credit Facility Period, in the event that a portion of the

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Bonds is to be redeemed with any balance remaining in the Project Fund and
transferred to the General Account of the Bond Fund, the Trustee is authorized
and directed to draw upon the Credit Facility to the extent of the redemption
price of the Bonds so called for redemption, and promptly thereafter to transfer
any amounts on deposit in the General Account of the Bond Fund to the Credit
Provider, to the extent necessary to reimburse the Credit Provider for such
drawing upon the Credit Facility.

     SECTION 6.09 NONPRESENTMENT OF BONDS.

     In the event any Bond shall not be presented for payment when the principal
thereof becomes due, either at maturity, or at the date fixed for redemption
thereof, or otherwise, if moneys sufficient to pay any such Bond shall have been
deposited with the Trustee for the benefit of the Owner thereof, all liability
of the Issuer to the Owner thereof for the payment of such Bond shall forthwith
cease, determine and be completely discharged, and thereupon it shall be the
duty of the Trustee to hold such funds, uninvested or invested in Government
Obligations maturing overnight, but in any event without liability for interest
thereon, for the benefit of the Owner of such Bond which shall thereafter be
restricted exclusively to such funds for any claim of whatever nature on its
part under this Indenture with respect to such Bond.

     Subject to the provisions of Section 6.11 hereof, any moneys so deposited
with and held by the Trustee not so applied to the payment of Bonds within two
(2) years after the date on which the same shall have become due shall be repaid
by the Trustee to the Company upon written direction of a Company Representative
(with a copy of such written direction to the Credit Provider, if any), and
thereafter Owners of Bonds shall be entitled to look only to the Company for
payment, and then to the extent of the amount so repaid, and all liability of
the Trustee with respect to such money shall thereupon cease, and the Company
shall not be liable for any interest thereon and shall not be regarded as a
trustee of such money.

     SECTION 6.10 MONEYS TO BE HELD IN TRUST.

     All moneys required to be deposited with or paid to the Trustee for the
account of any fund or account referred to in any provision of this Indenture or
the Agreement shall be held by the Trustee in trust, and shall, while held by
the Trustee, constitute part of the Trust Estate and be subject to the lien and
security interest created hereby, except as otherwise specifically provided
herein.

     SECTION 6.11 REPAYMENT TO THE CREDIT PROVIDER AND THE COMPANY FROM THE
BOND FUND OR THE PROJECT Fund.

     Any amounts remaining in any account of the Bond Fund, the Project Fund, or
any other fund or account created hereunder (other than the Rebate Fund) after
payment in full of the principal of, premium, if any, and interest on the Bonds,
the fees, charges and expenses of the Trustee and all other amounts required to
be paid hereunder, shall be paid immediately to the Credit Provider to the
extent of any indebtedness of the Company to the Credit Provider under the
Credit Agreement, and, after repayment of all such indebtedness, to the Company.
Moneys remaining in the Rebate Fund after all payments to the United States of
America required by the terms of Section 6.13 hereof shall also be applied as
provided in the foregoing sentence. In

                                       31
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making any payment to the Credit Provider under this Section, the Trustee may
rely conclusively upon a written statement provided by the Credit Provider as to
the amount payable to the Credit Provider under the Credit Agreement.

     SECTION 6.12 CREDIT FACILITY.

          (a) During any Credit Facility Period, the Trustee shall timely draw
     moneys under the Credit Facility in accordance with the terms thereof (i)
     to pay when due (whether by reason of maturity, the occurrence of an
     Interest Payment Date, redemption, acceleration or otherwise) the principal
     of, premium, if any, and interest on the Bonds, and (ii) to the extent
     moneys described in Section 4.03(a) hereof are not available therefor prior
     to 12:00 Noon New York City time on the Tender Date, to pay when due the
     Purchase Price of Bonds.

          (b) In the event of a drawing under the Credit Facility to pay the
     Purchase Price of Bonds upon a Mandatory Purchase Date relating to the
     issuance and delivery of a Substitute Credit Facility, the Trustee shall
     draw moneys under the Credit Facility in effect on and prior to such
     Mandatory Purchase Date and shall not draw upon the Substitute Credit
     Facility that will become effective on or after such Mandatory Purchase
     Date.

          (c) Notwithstanding any provision to the contrary which may be
     contained in this Indenture, including, without limitation, Section 6.12(a)
     hereof, (i) in computing the amount to be drawn under the Credit Facility
     on account of the payment of the principal or Purchase Price of, or
     premium, if any, or interest on the Bonds, the Trustee shall exclude any
     such amounts in respect of any Bonds which a Responsible Officer knows are
     Pledged Bonds on the date such payment is due, and (ii) amounts drawn by
     the Trustee under the Credit Facility shall not be applied to the payment
     of the principal or Purchase Price of, or premium, if any, or interest on,
     any Bonds which a Responsible Officer knows are Pledged Bonds on the date
     such payment is due.

     SECTION 6.13 CREATION OF REBATE FUND; DUTIES OF TRUSTEE; AMOUNTS HELD IN
REBATE FUND.

          (d) There is hereby created and established with the Trustee a trust
     fund to be held in trust to be designated "The Industrial Development Board
     of White County, Tennessee Rebate Fund -- Genlyte Thomas Group, LLC
     Project."

          (e) The Trustee shall make information regarding the Bonds and the
     investments hereunder available to the Company upon request, shall make
     deposits to and disbursements from the Rebate Fund in accordance with the
     directions received from the Company or a designated representative of the
     Company, shall invest moneys in the Rebate Fund pursuant to said directions
     and shall deposit income from such investments pursuant to said directions,
     and shall make payments to the United States of America in accordance with
     directions received from the Company.

          (f) Notwithstanding any provision of this Indenture to the contrary,
     the Trustee shall not be liable or responsible for any calculation or
     determination which may

                                       32
<Page>

     be required in connection with or for the purpose of complying with
     Section 148 of the Code or any applicable Treasury regulation (the
     "Arbitrage Rules"), including, without limitation, the calculation of
     amounts required to be paid to the United States under the provisions of
     the Arbitrage Rules, the maximum amount which may be invested in
     "nonpurpose obligations" as defined in the Code and the fair market value
     of any investment made hereunder, it being understood and agreed that the
     sole obligation of the Trustee with respect to investments of funds
     hereunder shall be to invest the moneys received by the Trustee pursuant to
     the instructions of the Company Representative given in accordance with
     Article VII hereof. The Trustee shall have no responsibility for
     determining whether or not the investments made pursuant to the direction
     of the Company Representative or any of the instructions received by the
     Trustee under this Section 6.13 comply with the requirements of the
     Arbitrage Rules and shall have no responsibility for monitoring the
     obligations of the Company or the Issuer for compliance with the provisions
     of the Indenture with respect to the Arbitrage Rules.

                                       33
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                                   ARTICLE VII

                              INVESTMENT OF MONEYS

     SECTION 7.01 INVESTMENT OF MONEYS.

          (a) Any moneys held as a part of the Project Fund or any fund other
     than the Bond Fund or the Rebate Fund shall be invested or reinvested by
     the Trustee, to the extent permitted by law, at the written request of and
     as directed by a Company Representative, in any of the following qualified
     investments:

               (i) Bonds or obligations of counties, municipal corporations,
          school districts, political subdivisions, authorities, or bodies of
          the State;

               (ii) Bonds or other obligations of the United States or of
          subsidiary corporations of the United States Government which are
          fully guaranteed by such government;

               (iii) Obligations of agencies of the United States Government
          issued by the Federal Land Bank, the Federal Home Loan Bank, the
          Federal Intermediate Credit Bank, and the Central Bank for
          Cooperatives;

               (iv) Bonds or other obligations issued by any Public Housing
          Agency or Municipal Corporation in the United States, which such bonds
          or obligations are fully secured as to the payment of both principal
          and interest by a pledge of annual contributions under an annual
          contributions contract or contracts with the United States Government,
          or project notes issued by any public housing agency, urban renewal
          agency, or municipal corporation in the United States which are fully
          secured as to payment of both principal and interest by a requisition,
          loan, or payment agreement with the United States Government;

               (v) Certificates of deposit of national or state banks located
          within the state which have deposits insured by the Federal Deposit
          Insurance Corporation and certificates of deposit of federal savings
          and loan associations and state building and loan associations located
          within this state which have deposits insured by the Savings
          Association Insurance Fund of the Federal Deposit Insurance
          Corporation, including the certificates of deposit of any bank,
          savings and loan association, or building and loan association acting
          as depositary, custodian, or trustee for any such bond proceeds. The
          portion of such certificates of deposit in excess of the amount
          insured by the Federal Deposit Insurance Corporation, the Savings
          Association Insurance Fund of the Federal Deposit Insurance
          Corporation, if any, shall be secured by deposit, with the Federal
          Reserve Bank, or with any national or state bank or federal savings
          and loan association or state building and loan or savings and loan
          association located within this state, of one or more the following
          securities in an aggregate principal amount equal at least to the
          amount of such excess; direct and general obligations

                                       34
<Page>

          of this state or of any county or municipal corporation in this state,
          obligations of the United States or subsidiary corporations included
          in paragraph (ii) hereof, obligations of the agencies of the United
          States Government included in paragraph (iii) hereof, or bonds,
          obligations, or project notes of public housing agencies, urban
          renewal agencies, or municipalities included in paragraph (iv) hereof;

               (vi) Repurchase agreements with respect to obligations included
          in (i), (ii), (iii), (iv) or (v) above and any other investments to
          the extent at the time permitted by then applicable law for the
          investment of public funds; and

               (vii) Securities of or other interests in any no-load, open-end
          management type investment company or investment trust registered
          under the Investment Company Act of 1940, as from time to time
          amended, or any common trust fund maintained by any bank or trust
          company which holds such proceeds as trustee or by an affiliate
          thereof so long as:

                    (A) the portfolio of such investment company or investment
               trust or common trust fund is limited to the obligations
               referenced in paragraph (ii) hereof and repurchase agreements
               fully collateralized by any such obligations;

                    (B) such investment company or investment trust or common
               trust fund takes delivery of such collateral either directly or
               through an authorized custodian;

                    (C) such investment company or investment trust or common
               trust fund is managed so as to maintain its shares at a constant
               net asset value; and

                    (D) securities of or other interests in such investment
               company or investment trust or common trust fund are purchased
               and redeemed only through the use of national or state banks
               having corporate trust powers and located within this State.

               (viii) Sweep accounts maintained by the Trustee which consist of
          investments permitted by (i) through (vii) or secured by such
          investments.

          (b) Any moneys held as a part of any account of the Bond Fund or the
     Rebate Fund shall be invested or reinvested by the Trustee, at the
     direction of the Company, in Government Obligations with such maturities as
     shall be required in order to assure full and timely payment of amounts
     required to be paid from the Bond Fund or the Rebate Fund, which maturities
     shall (in the case of the Bond Fund), in any event, extend no more than
     thirty (30) days from the date of acquisition thereof; provided, that any
     moneys held pursuant to the provisions of Section 6.09 either shall be held
     uninvested or shall be invested in Government Obligations maturing on the
     next Business Day.

                                       35
<Page>

          (c) The Trustee may make any and all such investments through its own
     bond or investment department or the bond or investment department of any
     bank or trust company under common control with the Trustee. All such
     investments shall at all times be a part of the fund or account from which
     the moneys used to acquire such investments shall have come and all income
     and profits on such investments shall be credited to, and losses thereon
     shall be charged against, such fund. All investments hereunder shall be
     registered in the name of the Trustee, as Trustee under the Indenture. All
     investments hereunder shall be held by or under the control of the Trustee.
     The Trustee shall sell and reduce to cash a sufficient amount of
     investments of funds in any account of the Bond Fund whenever the cash
     balance in such account of the Bond Fund is insufficient, together with any
     other funds available therefor, to pay the principal or Purchase Price of,
     premium, if any, and interest on the Bonds when due. The Trustee shall not
     be responsible for any reduction of the value of any investments made in
     accordance with the directions of the Company or a Company Representative
     or any losses incurred in the sale of such investments.

          (d) The Issuer covenants and certifies to and for the benefit of the
     Owners of the Bonds from time to time Outstanding that so long as any of
     the Bonds remain Outstanding, the Issuer shall not direct that moneys on
     deposit in any fund or account in connection with the Bonds (whether or not
     such moneys were derived from the proceeds of the sale of the Bonds or from
     any other sources), be used in a manner which will cause the Bonds to be
     classified as "arbitrage bonds" within the meaning of Section 148 of the
     Code. Pursuant to such covenants, the Issuer obligates itself to comply
     throughout the term of the Bonds with any request of the Company regarding
     the requirements of Section 148 of the Code, and any regulations
     promulgated thereunder.

          (e) Unless an opinion is rendered by Bond Counsel to the effect that
     the following actions are not required in order to maintain the exclusion
     of the interest on the Bonds from gross income for federal income tax
     purposes, the Issuer hereby covenants that it will make payments as
     directed by the Company (but only from moneys provided to the Issuer by or
     on behalf of the Company for such purposes), if any, required to be made to
     the United States pursuant to the Code in order to establish or maintain
     the exclusion of the interest on the Bonds from gross income for federal
     income tax purposes.

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                                  ARTICLE VIII

                             DISCHARGE OF INDENTURE

     SECTION 8.01 DISCHARGE OF INDENTURE.

     If the Issuer shall pay or cause to be paid, in accordance with the
provisions of this Indenture, to the Owners of the Bonds, the principal of,
premium, if any, and interest due or to become due thereon at the times and in
the manner stipulated therein, and if the Issuer shall not then be in default in
any of the other covenants and promises in the Bonds and in this Indenture
expressed as to be kept, performed and observed by it or on its part and if the
Issuer shall pay or cause to be paid to the Trustee all sums of money due or to
become due according to the provisions hereof, then these presents and the
estate and rights hereby granted shall cease, determine and be void, whereupon
the Trustee shall cancel and discharge the lien of this Indenture, and execute
and deliver to the Issuer such instruments in writing as shall be requisite to
release the lien hereof and reconvey, release, assign and deliver unto the
Issuer any and all of the estate, right, title and interest in and to any and
all rights or property conveyed, assigned or pledged to the Trustee or otherwise
subject to the lien of this Indenture, except (i) amounts in any account of the
Bond Fund or Project Fund required to be paid to the Credit Provider or the
Company under Section 4.05 or 6.11 hereof, (ii) cash held by the Trustee for the
payment of the principal or Purchase Price of, premium, if any, or interest on
particular Bonds and (iii) amounts in the Rebate Fund required to be paid to the
United States.

     SECTION 8.02 DEFEASANCE OF BONDS.

     The following provisions of this Section 8.02 shall apply only during a
Long Term Period.

     Any Bond shall be deemed to be paid within the meaning of this Article and
for all purposes of this Indenture when (a) payment of the principal of and
premium, if any, on such Bond, plus interest thereon to the due date thereof
(whether such due date is by reason of maturity or upon redemption as provided
herein) either (i) shall have been made or caused to be made in accordance with
the terms thereof, or (ii) shall have been provided for by irrevocably
depositing with the Trustee, in trust and irrevocably set aside exclusively for
such payment, (1) moneys sufficient to make such payment or (2) Government
Obligations maturing as to principal and interest in such amounts and at such
times as will insure, without further investment or reinvestment thereof, in the
opinion of an independent certified public accounting firm of national
reputation (a copy of which opinion shall be furnished to the rating agency then
providing the rating borne by the Bonds), the availability of sufficient moneys
to make such payment, (b) all necessary and proper fees, compensation and
expenses of the Trustee and the Issuer pertaining to the Bonds with respect to
which such deposit is made, shall have been paid or the payment thereof provided
for to the satisfaction of the Trustee, and (c) during any Credit Facility
Period, the Issuer shall have given to the Trustee in form satisfactory to the
Trustee an opinion of nationally recognized counsel experienced in bankruptcy
matters, which opinion shall be satisfactory to the rating agency (if any) then
providing the rating borne by the Bonds, to the effect that the application of
such moneys will not constitute a voidable preference in the event

                                       37
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of the occurrence of an Act of Bankruptcy. At such time as a Bond shall be
deemed to be paid hereunder, as aforesaid, such Bond shall no longer be secured
by or entitled to the benefits of this Indenture, except for the purposes of any
such payment from such moneys or Government Obligations.

     Notwithstanding the foregoing, no deposit under clause (a)(ii) of the
immediately preceding paragraph shall be deemed payment of such Bonds as
aforesaid until (a) proper notice of redemption of such Bonds shall have been
previously given in accordance with Article III of this Indenture, or in the
event said Bonds are not by their terms subject to redemption within the next
succeeding sixty (60) days, until the Company shall have given the Trustee, in
form satisfactory to the Trustee, irrevocable instructions to notify, as soon as
practicable, the Owners of the Bonds, that the deposit required by (a)(ii) above
has been made with the Trustee and that said Bonds are deemed to have been paid
in accordance with this Section 8.02 and stating the maturity or redemption date
upon which moneys are to be available for the payment of the principal of and
the applicable redemption premium, if any, on said Bonds, plus interest thereon
to the due date thereof; or (b) the maturity of such Bonds.

     Before accepting or using any moneys to be deposited pursuant to this
Section 8.02, the Trustee may require that the Company furnish to it (i) an
opinion of Bond Counsel to the effect that such deposit will not adversely
affect the exclusion from gross income for Federal income tax purposes of
interest on the Bonds and that all conditions hereunder have been satisfied, and
(ii) a certificate of an independent certified public accountant to the effect
that a deposit will be sufficient to defease the Bonds as provided in this
Section 8.02. The Trustee shall be fully protected in relying upon such Bond
Counsel opinion and/or accountant's certificate in accepting or using any moneys
deposited pursuant to this Article VIII.

     All moneys so deposited with the Trustee as provided in this Section 8.02
may also be invested and reinvested, at the direction of the Company, in
noncallable Government Obligations, maturing in the amounts and times as
hereinbefore set forth, and all income from all Government Obligations in the
hands of the Trustee pursuant to this Section 8.02 which is not required for the
payment of the Bonds and interest and premium, if any, thereon with respect to
which such moneys shall have been so deposited shall be deposited in the General
Account of the Bond Fund as and when realized and collected for use and
application as are other moneys deposited in the General Account of the Bond
Fund; provided, however, unless the opinion of Bond Counsel specifically permits
any such reinvestment, the Company shall furnish to the Trustee an opinion of
Bond Counsel to the effect that such reinvestment will not adversely affect the
exclusion from gross income for Federal income tax purposes of interest on the
Bonds.

     The Issuer hereby covenants that no deposit will knowingly be made or
accepted and no use knowingly made of any such deposit which would cause the
Bonds to be treated as arbitrage bonds within the meaning of Section 148 of the
Code.

     Notwithstanding any provision of any other article of this Indenture which
may be contrary to the provisions of this Section 8.02, all moneys or Government
Obligations set aside and held in trust pursuant to the provisions of this
Section 8.02 for the payment of Bonds (including interest and premium thereon,
if any) shall be applied to and used solely for the

                                       38
<Page>

payment of the particular Bonds (including the interest and premium thereon, if
any) with respect to which such moneys or Government Obligations have been so
set aside in trust.

                                       39
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                                   ARTICLE IX

                              DEFAULTS AND REMEDIES

     SECTION 9.01 DEFAULTS.

     If any of the following events occur, it is hereby declared to constitute a
"Default":

          (a) Default in the due and punctual payment of interest on any Bond;

          (b) Default in the due and punctual payment of the principal of or
     premium, if any, on any Bond, whether at the stated maturity thereof, or
     upon proceedings for redemption thereof, or upon the maturity thereof by
     declaration;

          (c) Default in the due and punctual payment of the Purchase Price of
     any Bond at the time required by Section 4.01 or 4.02 hereof;

          (d) At any time during the Credit Facility Period, receipt by the
     Trustee of written notice from the Credit Provider that an Event of Default
     has occurred under the Credit Agreement and instructing the Trustee to
     accelerate the Bonds;

          (e) At any time other than during a Credit Facility Period, the
     occurrence of a Default under the Agreement; and

          (f) At any time other than during a Credit Facility Period, default in
     the performance or observance of any other of the covenants, agreements or
     conditions on the part of the Issuer in this Indenture or in the Bonds
     contained and failure to remedy the same after notice thereof pursuant to
     Section 9.12 hereof.

     SECTION 9.02 ACCELERATION.

     Upon the occurrence of (i) any Default other than under Section 9.01(d),
the Trustee may, and at the written request of the Owners of not less than fifty
percent (50%) in aggregate principal amount of Outstanding Bonds shall, or (ii)
any Default under Section 9.01(d), the Trustee shall, by notice in writing
delivered to the Issuer, the Credit Provider and the Company (or, if the
Book-Entry System is in effect, the Securities Depository), declare the
principal of all Bonds and the interest accrued thereon to the date of such
acceleration immediately due and payable. Upon any declaration of acceleration
hereunder, the Trustee shall immediately declare all payments required to be
made by the Company under the Agreement to be immediately due and payable and,
during the Credit Facility Period, shall draw moneys under the Credit Facility
to pay the principal of all Outstanding Bonds and the accrued interest thereon
to the date of acceleration to the extent required by Section 6.12(a) hereof.
Interest shall cease to accrue on the Bonds on the date of declaration of
acceleration under this Section 9.02.

                                       40
<Page>

     SECTION 9.03 OTHER REMEDIES; RIGHTS OF OWNERS OF BONDS.

     Subject to the provisions of Section 9.02 hereof, upon the occurrence of a
Default, the Trustee may pursue any available remedy at law or in equity to
enforce the payment of the principal of, premium, if any, and interest on the
Outstanding Bonds.

     Subject to the provisions of Section 9.02 hereof, if a Default shall have
occurred and be continuing and if requested so to do by the Owners of not less
than fifty percent (50%) in aggregate principal amount of Outstanding Bonds and
provided the Trustee is indemnified as provided in Section 10.01(l) hereof, the
Trustee shall be obligated to exercise such one or more of the rights and powers
conferred by this Section and by Section 9.02 hereof, as the Trustee, being
advised by counsel, shall deem most expedient in the interests of the Owners of
Bonds.

     Subject to the provisions of Section 9.02 hereof, no remedy by the terms of
this Indenture conferred upon or reserved to the Trustee (or to the Owners of
Bonds) is intended to be exclusive of any other remedy, but each and every such
remedy shall be cumulative and shall be in addition to any other remedy given to
the Trustee or to the Owners of Bonds hereunder or now or hereafter existing at
law or in equity.

     No delay or omission to exercise any right or power accruing upon any
Default shall impair any such right or power or shall be construed to be a
waiver of any such Default or acquiescence therein; such right or power may be
exercised from time to time as often as may be deemed expedient.

     No waiver of any Default hereunder, whether by the Trustee or by the Owners
of Bonds, shall extend to or shall affect any subsequent Default or shall impair
any rights or remedies consequent thereon.

     SECTION 9.04 RIGHT OF OWNERS OF BONDS TO DIRECT PROCEEDINGS.

     Subject to the provisions of Section 9.02 hereof, anything in this
Indenture to the contrary notwithstanding, the Owners of at least a majority in
aggregate principal amount of the Outstanding Bonds shall have the right, at any
time, by an instrument or instruments in writing executed and delivered to the
Trustee, to direct the method and place of conducting all proceedings to be
taken in connection with the enforcement of the terms and conditions of this
Indenture, or for the appointment of a receiver or any other proceedings
hereunder provided that such direction shall not be otherwise than in accordance
with the provisions of law and of this Indenture.

     SECTION 9.05 APPOINTMENT OF RECEIVERS.

     Upon the occurrence of a Default, and upon the filing of a suit or other
commencement of judicial proceedings to enforce the rights of the Trustee and of
the Owners of Bonds under this Indenture, the Trustee shall be entitled, as a
matter of right, to the appointment of a receiver or receivers of the Trust
Estate and of the revenues, earnings, income, products and profits thereof,
pending such proceedings, with such powers as the court making such appointment
shall confer.

                                       41
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     SECTION 9.06 WAIVER.

     Upon the occurrence of a Default, to the extent that such rights may then
lawfully be waived, neither the Issuer nor anyone claiming through or under it,
shall set up, claim or seek to take advantage of any appraisement, valuation,
stay, extension or redemption laws of any jurisdiction now or hereafter in
force, in order to prevent or hinder the enforcement of this Indenture, and the
Issuer, for itself and all who may claim through or under it, hereby waives, to
the extent that it lawfully may do so, the benefit of all such laws.

     SECTION 9.07 APPLICATION OF MONEYS.

     All moneys received by the Trustee pursuant to any right given or action
taken under the provisions of this Article (other than moneys drawn under the
Credit Facility, which shall be deposited directly into the Credit Facility
Account of the Bond Fund, proceeds of any remarketing of Bonds, which shall be
deposited directly into the Remarketing Account of the Bond Fund, or moneys
deposited with the Trustee and held in accordance with Section 6.09 hereof)
shall, after payment of the costs and expenses of the proceedings resulting in
the collection of such moneys and of the fees, expenses, liabilities and
advances owing to or incurred or made by the Trustee, be deposited in the
General Account of the Bond Fund and the moneys in each account of the Bond Fund
shall be applied as follows:

          (a) Unless the principal of all the Bonds shall have become or shall
     have been declared due and payable, all such moneys shall be applied:

                    FIRST - To the payment to the persons entitled thereto of
               all installments of interest then due on the Bonds, in the order
               of the maturity of the installments of such interest (with
               interest on overdue installments of such interest, to the extent
               permitted by law, at the rate of interest borne by the Bonds)
               and, if the amount available shall not be sufficient to pay in
               full any particular installment, then to the payment ratably,
               according to the amounts due on such installment, to the persons
               entitled thereto, without any discrimination or privilege; and

                    SECOND - To the payment to the persons entitled thereto of
               the unpaid principal of and premium, if any, on any of the Bonds
               which shall have become due (other than Bonds matured or called
               for redemption for the payment of which moneys are held pursuant
               to the provisions of this Indenture), (with interest on overdue
               installments of principal and premium, if any, to the extent
               permitted by law, at the rate of interest borne by the Bonds)
               and, if the amount available shall not be sufficient to pay in
               full all Bonds due on any particular date, then to the payment
               ratably according to the amount of principal due on such date, to
               the persons entitled thereto without any discrimination or
               privilege; and

                    THIRD - To the payment to the persons entitled thereto as
               the same shall become due of the principal of and premium, if
               any, and interest on the Bonds which may thereafter become due
               and, if the amount

                                       42
<Page>

               available shall not be sufficient to pay in full Bonds due on any
               particular date, together with interest and premium, if any, then
               due and owing thereon, payment shall be made ratably according to
               the amount of interest, principal and premium, if any, due on
               such date to the persons entitled thereto without any
               discrimination or privilege.

          (b) If the principal of all the Bonds shall have become due or shall
     have been declared due and payable, all such moneys shall be applied to the
     payment of the principal and interest then due and unpaid upon the Bonds,
     without preference or priority of principal over interest or of interest
     over principal, or of any installment of interest over any other
     installment of interest, or of any Bond over any other Bond, ratably,
     according to the amounts due, respectively, for principal and interest, to
     the persons entitled thereto without any discrimination or privilege, with
     interest on overdue installments of interest or principal, to the extent
     permitted by law, at the rate of interest borne by the Bonds.

          (c) If the principal of all the Bonds shall have been declared due and
     payable and if such declaration shall thereafter have been rescinded and
     annulled under the provisions of this Article, then, subject to the
     provisions of Section 9.07(b) hereof, in the event that the principal of
     all the Bonds shall later become due or be declared due and payable, the
     moneys shall be applied in accordance with the provisions of Section
     9.07(a) hereof.

     Whenever moneys are to be applied pursuant to the provisions of this
Section, such moneys shall be applied at such times, and from time to time, as
the Trustee shall determine, having due regard to the amount of such moneys
available for application and the likelihood of additional moneys becoming
available for such application in the future. Whenever the Trustee shall apply
such funds, it shall fix the date (which shall be an Interest Payment Date
unless it shall deem another date more suitable) upon which such application is
to be made and upon such date interest on the amounts of principal to be paid on
such dates shall cease to accrue; provided, that upon an acceleration of Bonds
pursuant to Section 9.02, interest shall cease to accrue on the Bonds on and
after the date of such acceleration. The Trustee shall give such notice as it
may deem appropriate of the deposit with it of any such moneys and of the fixing
of any such date, and shall not be required to make payment to the Owner of any
Bond until such Bond shall be presented to the Trustee for appropriate
endorsement or for cancellation if fully paid.

     Whenever the principal of, premium, if any, and interest on all Bonds have
been paid under the provisions of this Section and all expenses and charges of
the Trustee have been paid, any balance remaining in any account of the Bond
Fund shall be paid to the Company or the Credit Provider as provided in
Section 6.11 hereof.

     Notwithstanding anything to the contrary herein or otherwise, moneys drawn
under the Credit Facility shall be applied only to the payment of principal or
Purchase Price of and accrued interest on the Bonds.

                                       43
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     SECTION 9.08 REMEDIES VESTED IN TRUSTEE.

     All rights of action (including the right to file proof of claims) under
this Indenture or under any of the Bonds may be enforced by the Trustee without
the possession of any of the Bonds or the production thereof in any trial or
other proceeding relating thereto, and any such suit or proceeding instituted by
the Trustee shall be brought in its name as Trustee without the necessity of
joining as plaintiffs or defendants any Owners of the Bonds, and any recovery of
judgment shall be for the equal and ratable benefit of the Owners of the
Outstanding Bonds.

     SECTION 9.09 RIGHTS AND REMEDIES OF OWNERS OF BONDS.

     No Owner of any Bond shall have any right to institute any suit, action or
proceeding at law or in equity for the enforcement of this Indenture or for the
execution of any trust hereof or for the appointment of a receiver or any other
remedy hereunder, unless (subject to the provisions of Section 9.02 hereof) (i)
a Default has occurred of which the Trustee has been notified as provided in
Section 10.01(h) hereof, or of which by said subsection it is deemed to have
notice, (ii) the Owners of not less than fifty percent (50%) in aggregate
principal amount of Outstanding Bonds shall have made written request to the
Trustee and shall have offered it reasonable opportunity either to proceed to
exercise the powers hereinbefore granted or to institute such action, suit or
proceeding and shall have offered to the Trustee indemnity as provided in
Section 10.01(1), and (iii) the Trustee shall thereafter fail or refuse to
exercise the powers hereinbefore granted, or to institute such action, suit or
proceeding. Such notification, request and offer of indemnity are hereby
declared in every case at the option of the Trustee to be conditions precedent
to the execution of the powers and trusts of this Indenture, and to any action
or cause of action for the enforcement of this Indenture, or for the appointment
of a receiver or for any other remedy hereunder; it being understood and
intended that no one or more Owners of the Bonds shall have any right in any
manner whatsoever to affect, disturb or prejudice the lien of this Indenture by
their action or to enforce any right hereunder except in the manner herein
provided, and that all proceedings at law or equity shall be instituted, had and
maintained in the manner herein provided and for the equal and ratable benefit
of the Owners of all Outstanding Bonds. However, nothing contained in this
Indenture shall affect or impair the right of any Owner of Bonds to enforce the
payment of the principal or Purchase Price of, premium, if any, and interest on
any Bond at and after the maturity thereof, or the obligation of the Issuer to
pay the principal of, premium, if any, and interest on each of the Bonds issued
hereunder to the respective Owners thereof at the time and place, from the
source and in the manner in the Bonds expressed. No Owner of any Bond shall have
any right to institute any suit, action or proceeding at equity or at law to
enforce a drawing under the Credit Facility.

     SECTION 9.10 TERMINATION OF PROCEEDINGS.

     In case the Trustee shall have proceeded to enforce any right under this
Indenture by the appointment of a receiver or otherwise, and such proceedings
shall have been discontinued or abandoned for any reason, or shall have been
determined adversely, then and in every such case, the Issuer, the Trustee and
the Owners of Bonds shall be restored to their former positions and rights
hereunder, respectively, with regard to the property subject to this Indenture,
and all rights, remedies and powers of the Trustee shall continue as if no such
proceedings had been taken.

                                       44
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     SECTION 9.11 WAIVERS OF DEFAULT.

     The Trustee shall waive any Default hereunder and its consequences and
rescind any declaration of acceleration of principal upon the written request of
the Owners of (1) at least a majority in aggregate principal amount of all
Outstanding Bonds in respect of which default in the payment of principal or
interest, or both, exists or (2) at least a majority in aggregate principal
amount of Outstanding Bonds in the case of any other Default; provided, however,
that there shall not be waived any Default hereunder unless and until the
Trustee shall have received written notice from the Credit Provider that the
Credit Facility has been reinstated in full; and provided further that any
Default under subsection (d) of Section 9.01 hereof may only be waived upon the
written request of the Credit Provider (and in such case the consent of the
Owners of the Bonds shall not be required); and provided further that there
shall not be waived any Default specified in subsection (a) or (b) of
Section 9.01 hereof unless prior to such waiver or rescission, the Company shall
have caused to be paid to the Trustee (i) all arrears of principal and interest
(other than principal of or interest on the Bonds which became due and payable
by declaration of acceleration), with interest at the rate then borne by the
Bonds on overdue installments, to the extent permitted by law, and (ii) all fees
and expenses of the Trustee in connection with such Default. In case of any
waiver or rescission described above, or in case any proceeding taken by the
Trustee on account of any such Default shall have been discontinued or concluded
or determined adversely, then and in every such case the Issuer, the Trustee and
the Owners of Bonds shall be restored to their former positions and rights
hereunder, respectively, but no such waiver or rescission shall extend to any
subsequent or other Default, or impair any right consequent thereon.

     Notwithstanding the foregoing, no waiver, rescission or annulment of a
Default hereunder shall be made if the Credit Provider shall theretofore have
honored in full a drawing under the Credit Facility in respect of such Default.

     SECTION 9.12 NOTICE OF DEFAULTS UNDER SECTION 9.01(e) OR (f);
OPPORTUNITY TO CURE SUCH DEFAULTS.

     Anything herein to the contrary notwithstanding, no Default under Section
9.01(e) or (f) hereof shall be deemed a Default until notice of such Default
shall be given to the Issuer and the Company by the Trustee or by the Owners of
not less than fifty percent (50%) in aggregate principal amount of all
Outstanding Bonds, and the Issuer and the Company shall have had thirty (30)
days after receipt of such notice to correct said Default or to cause said
Default to be corrected and shall not have corrected said Default or caused said
Default to be corrected within the applicable period; provided, however, if said
Default be such that it cannot be corrected within the applicable period, it
shall not constitute a Default if corrective action is instituted by the Issuer
or the Company within the applicable period and diligently pursued until the
Default is corrected.

     With regard to any Default concerning which notice is given to the Issuer
and the Company under the provisions of this Section, the Issuer hereby grants
the Company full authority for the account of the Issuer to perform any covenant
or obligation alleged in said notice to constitute a Default, in the name and
stead of the Issuer with full power to do any and

                                       45
<Page>

all things and acts to the same extent that the Issuer could do and perform any
such things and acts and with power of substitution.

     SECTION 9.13 SUBROGATION RIGHTS OF CREDIT PROVIDER.

     The Credit Provider shall be subrogated to the rights possessed under this
Indenture by the Owners of the Bonds, to the extent the Credit Facility is drawn
upon and the amount of such drawing is not subsequently reimbursed to the Credit
Provider. For purposes of the subrogation rights of the Credit Provider
hereunder, (a) any reference herein to the Owners of the Bonds shall mean the
Credit Provider, (b) any principal of or interest on the Bonds paid with moneys
collected pursuant to the Credit Facility shall be deemed to be unpaid
hereunder, and (c) the Credit Provider may exercise any rights it would have
hereunder as the Owner of the Bonds. The subrogation rights granted to the
Credit Provider in this Indenture are not intended to be exclusive of any other
remedy or remedies available to the Credit Provider and such subrogation rights
shall be cumulative and shall be in addition to every other remedy given
hereunder, under the Credit Agreement or under any other instrument or agreement
with respect to the reimbursement of moneys paid by the Credit Provider under
the Credit Facility or with respect to the security for the obligations of the
Company under the Credit Agreement, and every other remedy now or hereafter
existing at law or in equity or by statute.

                                       46
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                                    ARTICLE X

                                     TRUSTEE

     SECTION 10.01 ACCEPTANCE OF TRUSTS.

     The Trustee hereby accepts the trusts imposed upon it by this Indenture,
and agrees to perform said trusts, but only upon and subject to the following
express terms and conditions:

          (a) The Trustee, prior to the occurrence of a Default and after the
     curing of all Defaults which may have occurred, undertakes to perform such
     duties and only such duties as are specifically set forth in this Indenture
     and no implied covenants shall be read into this Indenture against the
     Trustee. In case a Default 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 the
     exercise of such rights and powers as an ordinary, prudent man would
     exercise or use in the conduct of his own affairs.

          (b) The Trustee may execute any of the trusts or powers hereof and
     perform any of its duties by or through attorneys, agents, receivers or
     employees, but shall not be answerable for the conduct of the same if
     appointed with due care, and shall be entitled to advice of counsel
     concerning its duties hereunder, and may in all cases pay such reasonable
     compensation to all such attorneys, agents, receivers and employees as may
     reasonably be employed in connection with the trusts hereof. The Trustee
     may act upon the opinion or advice of any attorney (who may be the attorney
     or attorneys for the Issuer or the Company) selected by the Trustee in the
     exercise of reasonable care. The Trustee shall not be responsible for any
     loss or damage resulting from any action or inaction taken or not taken, as
     the case may be, in good faith in reliance upon such opinion or advice.

          (c) The Trustee shall not be responsible for any recital herein or in
     the Bonds (except with respect to the certificate of authentication
     endorsed on the Bonds), or for insuring the Project, or for collecting any
     insurance moneys, or for the validity of the execution by the Issuer of
     this Indenture or of any supplements hereto or instruments of further
     assurance, or for the sufficiency of the security for the Bonds issued
     hereunder or intended to be secured hereby, or for the value or title of
     the Project or any lien waivers with respect to the Project, and the
     Trustee shall not be bound to ascertain or inquire as to the performance or
     observance of any covenants, conditions or agreements on the part of the
     Company under the Agreement except as hereinafter set forth; but the
     Trustee may require of the Issuer and the Company full information and
     advice as to the performance of the aforesaid covenants, conditions and
     agreements. The Trustee shall have no obligation to perform any of the
     duties of the Issuer under the Agreement.

          (d) The Trustee shall not be accountable for the use of any Bonds
     authenticated or delivered hereunder. The Trustee, in its commercial
     banking or in any other capacity, may in good faith buy, sell, own, hold
     and deal in any of the Bonds and

                                       47
<Page>

     may join in any action which any Bondholder may be entitled to take with
     like effect as if it were not the Trustee. The Trustee, in its commercial
     banking or in any other capacity, may also engage in or be interested in
     any financial or other transactions with the Issuer or the Company and may
     act as a depository, trustee or agent for any committee of Bondholders
     secured hereby or other obligations of the Issuer as freely as if it were
     not the Trustee. The Trustee may become the Owner of Bonds secured hereby
     with the same rights which it would have if not the Trustee hereunder.

          (e) The Trustee shall be protected in acting upon any notice, request,
     consent, certificate, order, affidavit, letter, telegram or other paper or
     document believed to be genuine and correct and to have been signed or sent
     by the proper person or persons. Any action taken by the Trustee pursuant
     to this Indenture upon the request or authority or consent of any person
     who at the time of making such request or giving such authority or consent
     is the Owner of any Bond shall be conclusive and binding upon all future
     owners of the same Bond and upon Bonds issued in exchange therefor or in
     place thereof.

          (f) As to the existence or nonexistence of any fact or as to the
     sufficiency or validity of any instrument, paper or proceeding, the Trustee
     shall be entitled to rely upon a certificate signed by an Issuer
     Representative or a Company Representative as sufficient evidence of the
     facts therein contained and prior to the occurrence of a Default of which a
     Responsible Officer of the Trustee has been notified as provided in
     Section 10.01(h) hereof, or of which by said subsection the Trustee is
     deemed to have notice, shall also be at liberty to accept a similar
     certificate to the effect that any particular dealing, transaction or
     action is necessary or expedient, but may at its discretion secure such
     further evidence deemed by it to be necessary or advisable, but shall in no
     case be bound to secure the same. The Trustee may accept a certificate of
     such officials of the Issuer who executed the Bonds (or their successors in
     office) to the effect that a resolution in the form therein set forth has
     been adopted by the Issuer as conclusive evidence that such resolution has
     been duly adopted and is in full force and effect.

          (g) The permissive right of the Trustee to do things enumerated in
     this Indenture shall not be construed as a duty, and the Trustee shall not
     be answerable for other than its gross negligence or willful misconduct.

          (h) The Trustee shall not be required to take notice or be deemed to
     have notice of any Default hereunder except for Defaults specified in
     subsections (a), (b), (c) or (d) of Section 9.01 hereof, unless a
     Responsible Officer of the Trustee shall be specifically notified in
     writing of such Default by the Issuer, the Credit Provider or by the Owners
     of at least fifty percent (50%) in aggregate principal amount of
     Outstanding Bonds, and all notices or other instruments required by this
     Indenture to be delivered to the Trustee, must, in order to be effective,
     be delivered at the Principal Office of the Trustee, and in the absence of
     such notice so delivered the Trustee may conclusively assume there is no
     Default except as aforesaid.

          (i) At any and all reasonable times the Trustee, and its duly
     authorized agents, attorneys, experts, engineers, accountants and
     representatives, shall have the right fully to

                                       48
<Page>

     inspect all books and records of the Issuer pertaining to the Project and
     the Bonds, and to make such copies and memoranda from and with regard
     thereto as may be desired.

          (j) The Trustee shall not be required to give any bond or surety in
     respect of the execution of this Indenture or otherwise in respect of the
     premises.

          (k) Notwithstanding anything elsewhere in this Indenture with respect
     to the authentication of any Bonds, the withdrawal of any cash, the release
     of any property or any action whatsoever within the purview of this
     Indenture, the Trustee shall have the right, but shall not be required, to
     demand any showings, certificates, opinions, appraisals or other
     information, or corporate action or evidence thereof, in addition to that
     by the terms hereof required as a condition of such action, deemed
     desirable by the Trustee for the purpose of establishing the right of the
     Issuer or the Company to the authentication of any Bonds, the withdrawal of
     any cash or the taking of any other action.

          (l) Before suffering, taking or omitting any action under this
     Indenture or under the Agreement (other than (i) paying the principal or
     Purchase Price of, redemption premium (if any) and interest on the Bonds as
     the same shall become due and payable, (ii) drawing upon the Credit
     Facility, (iii) declaring an acceleration under Section 9.02 as a result of
     a Default under Section 9.01(d) and (iv) declaring a mandatory purchase),
     the Trustee may require that a satisfactory indemnity bond be furnished for
     the reimbursement of any expenses to which it may be put and to protect it
     against all liability, except liability which is adjudicated to have
     resulted from its gross negligence or willful default in connection with
     any such action.

          (m) All moneys received by the Trustee shall, until used or applied or
     invested as herein provided, be held in trust for the purposes for which
     they were received but need not be segregated from other funds except to
     the extent otherwise required herein or required by law.

          (n) The Trustee's immunities and protections from liability and its
     right to compensation and indemnification in connection with the
     performance of its duties under this Indenture shall extend to the
     Trustee's officers, directors, agents and employees. Such immunities and
     protections and right to indemnification, together with the Trustee's right
     to compensation, shall survive the Trustee's resignation or removal and
     final payment of the Bonds.

          (o) Notwithstanding anything else herein contained, (i) the Trustee
     shall not be liable for any error of judgment made in good faith unless it
     is proven that the Trustee was negligent in ascertaining the pertinent
     facts, and (ii) no provisions of this Indenture shall require the 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 believes the repayment of such funds or
     adequate indemnity against such risk or liability is not reasonably assured
     to it.

          (p) In the event the Trustee receives inconsistent or conflicting
     requests and indemnity from two or more groups of holders of the Bonds,
     each representing less than a

                                       49
<Page>

     majority in aggregate principal amount of the Bonds Outstanding, the
     Trustee, in its sole discretion, may determine what action, if any, shall
     be taken.

          (q) The Trustee shall have no responsibility for any information in
     any offering memorandum or other disclosure material distributed with
     respect to the Bonds, and the Trustee shall have no responsibility for
     compliance with any state or federal securities laws in connection with the
     Bonds.

          (r) The Trustee shall have no responsibility for any registration,
     filing, recording, reregistration or rerecording of this Indenture or any
     other document or instrument executed in connection with this Indenture and
     the issuance and sale of the Bonds including, without limitation, any
     financing statements or continuation statements with respect thereto.

     SECTION 10.02 FEES, CHARGES AND EXPENSES OF THE TRUSTEE.

     The Trustee shall be entitled to payment of reasonable fees for its
services rendered hereunder and reimbursement of all advances, counsel fees and
other expenses reasonably made or incurred by the Trustee in connection with
such services including, without limitation, the reasonable compensation,
expenses and disbursements of its agents and counsel. Upon the occurrence of a
Default, but only upon the occurrence of a Default, the Trustee shall have a
first lien with right of payment prior to payment on account of principal of,
premium, if any, and interest on any Bond upon the Trust Estate (exclusive of
the proceeds of any drawing under the Credit Facility, proceeds of the
remarketing of the Bonds, and funds held by the Trustee for matured and
unpresented Bonds) for the foregoing fees, charges and expenses of the Trustee.
When the Trustee incurs expenses or renders services after the occurrence of an
Act of Bankruptcy with respect to the Company, the expenses and the compensation
for the services are intended to constitute expenses of administration under any
federal or state bankruptcy, insolvency, arrangement, moratorium, reorganization
or other debtor relief law. The Issuer shall have no liability to pay any fees,
charges or other expenses of the Trustee hereinabove mentioned except from the
amounts pledged under this Indenture. The rights of the Trustee under this
Section shall survive the Trustee's resignation or removal.

     SECTION 10.03 NOTICE TO OWNERS OF BONDS IF DEFAULT OCCURS.

     If a Default occurs of which the Trustee has been notified as provided in
Section 10.01(h) hereof, or of which by said subsection it is deemed to have
notice, then the Trustee shall promptly give notice thereof to the Credit
Provider and to the Owner of each Bond.

     SECTION 10.04 INTERVENTION BY THE TRUSTEE.

     In any judicial proceeding which in the opinion of the Trustee and its
counsel has a substantial bearing on the interests of the Owners of the Bonds,
the Trustee may intervene on behalf of the Owners of the Bonds and shall do so
if requested in writing by the Credit Provider or the Owners of at least fifty
percent (50%) of the aggregate principal amount of Outstanding Bonds.

                                       50
<Page>

     SECTION 10.05 SUCCESSOR TRUSTEE.

     Any corporation or association into which the Trustee may be converted or
merged, or with which it may be consolidated, or to which it may sell or
transfer its corporate trust business and assets as a whole or substantially as
a whole, or any corporation or association resulting from any such conversion,
sale, merger, consolidation or transfer to which it is a party, shall be and
become successor Trustee hereunder and vested with all of the title to the Trust
Estate and all the trusts, powers, discretions, immunities, privileges and all
other matters as was its predecessor, without the execution or filing of any
instrument or any further act, deed or conveyance on the part of any of the
parties hereto, anything herein to the contrary notwithstanding.

     SECTION 10.06 RESIGNATION BY THE TRUSTEE.

     The Trustee and any successor Trustee may at any time resign from the
trusts hereby created by giving thirty (30) days' notice to the Issuer, the
Credit Provider, the Remarketing Agent, the Company, and the Owner of each Bond.
Such resignation shall not take effect (i) until the appointment of a successor
Trustee or temporary Trustee and the transfer to said successor or temporary
Trustee of the Credit Facility, and (ii) payment in full of all fees and
expenses and other amounts payable to the Trustee pursuant thereto or the
Agreement.

     SECTION 10.07 REMOVAL OF THE TRUSTEE.

     The Trustee may be removed at any time by an instrument or concurrent
instruments in writing delivered to the Trustee and to the Issuer and signed by
the Owners of at least a majority in aggregate principal amount of Outstanding
Bonds. Such removal shall not take effect until (i) the appointment of a
successor Trustee or temporary Trustee and the transfer to said successor or
temporary Trustee of the Credit Facility and (ii) payment in full of all fees
and expenses and other amounts payable to the Trustee pursuant thereto or to the
Agreement.

     SECTION 10.08 APPOINTMENT OF SUCCESSOR TRUSTEE BY OWNERS OF BONDS.

     In case the Trustee hereunder shall resign or be removed, or be dissolved,
or shall be in the course of dissolution or liquidation, or otherwise become
incapable of acting hereunder, or in case it shall be taken under the control of
any public officer or officers, or of a receiver appointed by a court, a
successor may be appointed by the Owners of at least a majority in aggregate
principal amount of Outstanding Bonds by an instrument or concurrent instruments
in writing signed by such Owners, or by their attorneys-in-fact duly authorized,
a copy of which shall be delivered personally or sent by registered mail to the
Issuer, the Company and the Credit Provider. In case of any such vacancy, the
Issuer, by an instrument executed by its official who executed the Bonds or his
successor in office, may appoint a temporary successor Trustee to fill such
vacancy until a successor Trustee shall be appointed by the Owners of Bonds in
the manner above provided; and such temporary successor Trustee so appointed by
the Issuer shall immediately and without further act be superseded by the
Trustee appointed by the Owners of Bonds. If no successor Trustee has accepted
appointment in the manner provided in Section 10.09 hereof within sixty (60)
days after the Trustee has given notice of resignation to the Issuer and the
Owner of each Bond, the Trustee may petition any court of competent jurisdiction
for the appointment of a temporary successor Trustee; provided that any Trustee
so appointed shall

                                       51
<Page>

immediately and without further act be superseded by a Trustee appointed by the
Issuer or the Owners of Bonds as provided above. Every successor Trustee
appointed pursuant to the provisions of this Section shall be, if there be such
an institution willing, qualified and able to accept the trust upon customary
terms, a bank or trust company within or without the State, in good standing and
having reported capital and surplus of not less than $50,000,000 and rated
Baa3/Prime-3 or better by Moody's (or a substantially equivalent rating by such
other rating agency then providing the rating borne by the Bonds).

     SECTION 10.09 ACCEPTANCE BY SUCCESSOR TRUSTEE.

     Every successor Trustee appointed hereunder shall execute, acknowledge and
deliver to its or his predecessor and also to the Issuer, the Credit Provider
and the Company an instrument in writing accepting such appointment hereunder
and thereupon such successor, without any further act, deed or conveyance, shall
become fully vested with all the estates, properties, rights, powers, trusts,
duties and obligations of its predecessor; but its predecessor shall,
nevertheless, on the written request of the Issuer, or of its successor, execute
and deliver an instrument transferring to such successor all the estates,
properties, rights, powers and trusts of such predecessor hereunder; and every
predecessor Trustee shall deliver all securities and moneys held by it as
Trustee hereunder to its successor. Should any instrument in writing from the
Issuer be required by any successor Trustee for more fully and certainly vesting
in such successor the estate, rights, powers and duties hereby vested or
intended to be vested in the predecessor, any and all such instruments in
writing shall, on request, be executed, acknowledged and delivered by the
Issuer. The Credit Provider shall not be required to honor a draft with respect
to the Letter of Credit from a successor trustee unless the Trustee has
transferred and assigned to such successor trustee its rights, title and
interest in the Letter of Credit, in accordance with its terms.

     SECTION 10.10 APPOINTMENT OF CO-TRUSTEE.

     It is the purpose of this Indenture that there shall be no violation of any
law of any jurisdiction (including particularly the laws of the State) denying
or restricting the right of banking corporations or associations to transact
business as Trustee in such jurisdiction. It is recognized that in case of
litigation under this Indenture or the Agreement, and in particular in case of
the enforcement thereof on Default, or in case the Trustee deems that by reason
of any present or future law of any jurisdiction it may not exercise any of the
powers, rights or remedies herein or therein granted to the Trustee or hold
title to the properties, in trust, as herein granted, or take any other action
which may be desirable or necessary in connection therewith, the Trustee may
appoint an additional individual or institution as a separate or Co-Trustee, in
which event each and every remedy, power, right, claim, demand, cause of action,
immunity, estate, title, interest and lien expressed or intended by this
Indenture or the Agreement to be exercised by or vested in or conveyed to the
Trustee with respect thereto shall be exercisable by and vest in such separate
or Co-Trustee, but only to the extent necessary to enable such separate or
Co-Trustee to exercise such powers, rights and remedies, and every covenant and
obligation necessary to the exercise thereof by such separate or Co-Trustee
shall run to and be enforceable by either of them.

     Should any deed, conveyance or instrument in writing from the Issuer be
required by the separate or Co-Trustee so appointed by the Trustee for more
fully and certainly vesting in and

                                       52
<Page>

confirming to him or it such properties, rights, powers, trusts, duties and
obligations, any and all such deeds, conveyances and instruments in writing
shall, on request, be executed, acknowledged and delivered by the Issuer. In
case any separate or Co-Trustee, or a successor, shall die, become incapable of
acting, resign or be removed, all the estates, properties, rights, powers,
trusts, duties and obligations of such separate or Co-Trustee, so far as
permitted by law, shall vest in and be exercised by the Trustee until the
appointment of a successor to such separate or Co-Trustee. Any Co-Trustee
appointed by the Trustee pursuant to this Section may be removed by the Trustee,
in which case all powers, rights and remedies vested in the Co-Trustee shall
again vest in the Trustee as if no such appointment of a Co-Trustee had been
made.

     SECTION 10.11 SUCCESSOR REMARKETING AGENT.

          (a) Any corporation or association into which the Remarketing Agent
     may be converted or merged, or with which it may be consolidated, or to
     which it may sell or transfer its trust business and assets as a whole or
     substantially as a whole, or any corporation or association resulting from
     any such conversion, sale, merger, consolidation or transfer to which it is
     a party, shall be and become the successor Remarketing Agent hereunder,
     without the execution or filing of any instrument or any further act, deed
     or conveyance on the part of any of the parties hereto, anything herein to
     the contrary notwithstanding.

          (b) The Remarketing Agent may at any time resign by giving thirty (30)
     days' notice to the Issuer, the Trustee, the Credit Provider and the
     Company. Such resignation shall not take effect until the appointment of a
     successor Remarketing Agent.

          (c) The Remarketing Agent may be removed at any time by an instrument
     in writing delivered to the Trustee by the Company, with the prior written
     approval of the Credit Provider. In no event, however, shall any removal of
     the Remarketing Agent take effect until a successor Remarketing Agent shall
     have been appointed.

          (d) In case the Remarketing Agent shall resign or be removed, or be
     dissolved, or shall be in the course of dissolution or liquidation, or
     otherwise become incapable of acting as Remarketing Agent, or in case it
     shall be taken under the control of any public officer or officers, or of a
     receiver appointed by a court, a successor may be appointed by the Company
     with the prior written approval of the Issuer and the Credit Provider.
     Every successor Remarketing Agent appointed pursuant to the provisions of
     this Section shall be, if there be such an institution willing, qualified
     and able to accept the duties of the Remarketing Agent upon customary
     terms, a bank or trust company or any entity rated Baa3/Prime-3 or better,
     within or without the State, in good standing and having reported capital
     and surplus of not less than $10,000,000 and rated Baa3/Prime-3 or better
     by Moody's (or a substantially equivalent rating by such other rating
     agency then providing the rating borne by the Bonds). Written notice of
     such appointment shall immediately be given by the Company to the Trustee
     and the Trustee shall cause written notice of such appointment to be given
     to the Owners of the Bonds. The Credit Provider may appoint a successor
     Remarketing Agent if the Company fails to go so within 30 days of the
     resignation or removal of the prior Remarketing Agent. Any successor
     Remarketing Agent shall execute and deliver an instrument accepting such
     appointment

                                       53
<Page>

     and thereupon such successor, without any further act, deed or conveyance,
     shall become fully vested with all rights, powers, duties and obligations
     of its predecessor, with like effect as if originally named as Remarketing
     Agent, but such predecessor shall nevertheless, on the written request of
     the Company, the Trustee, the Credit Provider or the Issuer, or of the
     successor, execute and deliver such instruments and do such other things as
     may reasonably be required to more fully and certainly vest and confirm in
     such successor all rights, powers, duties and obligations of such
     predecessor. If no successor Remarketing Agent has accepted appointment in
     the manner provided above within 90 days after the Remarketing Agent has
     given notice of its resignation as provided above, the Remarketing Agent
     may petition any court of competent jurisdiction for the appointment of a
     temporary successor Remarketing Agent; provided that any Remarketing Agent
     so appointed shall immediately and without further act be superseded by a
     Remarketing Agent appointed by the Company as provided above.

     SECTION 10.12 NOTICE TO RATING AGENCIES.

     The Trustee shall provide Fitch, Moody's or S&P, as appropriate, so long as
any of such rating agencies shall provide the rating borne by the Bonds, with
prompt written notice following the effective date of such event of (i) any
successor Trustee and any successor Remarketing Agent, (ii) any Substitute
Credit Provider, (iii) any material amendments to this Indenture or the
Agreement, (iv) the expiration, termination or extension of any Credit Facility,
(v) the exercise of the Conversion Option, (vi) the occurrence of a Mandatory
Tender Date, (vii) the redemption in whole of the Bonds or the payment in full
of the Bonds at maturity, (viii) the defeasance of the Bonds, or (ix) the
acceleration of payment of the Bonds.

                                       54
<Page>

                                   ARTICLE XI

                             SUPPLEMENTAL INDENTURES

     SECTION 11.01 SUPPLEMENTAL INDENTURES NOT REQUIRING CONSENT OF OWNERS OF
BONDS.

     The Issuer and the Trustee may, with the consent of the Credit Provider and
upon receipt of an opinion of Bond Counsel to the effect that the proposed
supplemental indenture will not adversely affect the excludability of interest
on the Bonds from gross income for federal income tax purposes and is authorized
by this Indenture, and without consent of, or notice to, any of the Owners of
Bonds, enter into an indenture or indentures supplemental to this Indenture for
any one or more of the following purposes:

          (a) To cure any ambiguity or formal defect or omission in this
     Indenture;

          (b) To grant to or confer upon the Trustee for the benefit of the
     Owners of Bonds any additional rights, remedies, powers or authorities that
     may lawfully be granted to or conferred upon the Owners of Bonds or the
     Trustee;

          (c) To subject to this Indenture additional revenues, properties or
     collateral;

          (d) To modify, amend or supplement this Indenture or any indenture
     supplemental hereof in such manner as to permit the qualification hereof
     and thereof under the Trust Indenture Act of 1939, as amended, or any
     similar federal statute hereafter in effect or to permit the qualification
     of the Bonds for sale under the securities laws of any of the states of the
     United States of America;

          (e) To evidence the appointment of a separate or Co-Trustee or the
     succession of a new Trustee hereunder;

          (f) To correct any description of, or to reflect changes in, any of
     the properties comprising the Trust Estate;

          (g) To make any revisions of this Indenture that shall be required by
     Fitch, Moody's or S&P in order to obtain or maintain an investment grade
     rating on the Bonds;

          (h) To make any revisions of this Indenture that shall be necessary in
     connection with the Company or the Issuer furnishing a Credit Facility;

          (i) To provide for an uncertificated system of registering the Bonds
     or to provide for changes to or from the Book-Entry System;

          (j) To effect any other change herein which, in the judgment of the
     Trustee, is not to the prejudice of the Trustee or the Owners of Bonds; or

          (k) To make revisions to this Indenture that shall become effective
     only upon, and in connection with, the remarketing of all of the Bonds then
     Outstanding.

                                       55
<Page>

     In the event Fitch, S&P and/or Moody's has issued a rating of any of the
Bonds, Fitch, S&P and/or Moody's, as the case may be, shall receive prior
written notice from the Trustee of the proposed amendment but such notice shall
not be a condition of the effectiveness of such amendment.

     SECTION 11.02 SUPPLEMENTAL INDENTURES REQUIRING CONSENT OF OWNERS OF BONDS.

     Exclusive of supplemental indentures permitted by Section 11.01 hereof and
subject to the terms and provisions contained in this Section, and not
otherwise, the Credit Provider and the Owners of not less than a majority in
aggregate principal amount of the Outstanding Bonds shall have the right, from
time to time, anything contained in this Indenture to the contrary
notwithstanding, to consent to and approve the execution by the Issuer and the
Trustee of such other indenture or indentures supplemental hereto as shall be
deemed necessary and desirable for the purpose of modifying, altering, amending,
adding to or rescinding, in any particular, any of the terms or provisions
contained in this Indenture or in any supplemental indenture; provided, however,
that nothing in this Section or in Section 11.01 hereof contained shall permit,
or be construed as permitting, without the consent of the Credit Provider and
the Owners of all Bonds Outstanding, (a) an extension of the maturity of the
principal of, or the interest on, any bond issued hereunder, or (b) a reduction
in the principal amount or Purchase Price of, or redemption premium on, any Bond
or the rate of interest thereon, or (c) a privilege or priority of any Bond or
Bonds over any other Bond or Bonds, or (d) a reduction in the aggregate
principal amount of the Bonds required for consent to such supplemental
indentures or any modifications or waivers of the provisions of this Indenture
or the Agreement, or (e) the creation of any lien ranking prior to or on a
parity with the lien of this Indenture on the Trust Estate or any part thereof,
except as hereinbefore expressly permitted, or (f) the deprivation of the Owner
of any Outstanding Bond of the lien hereby created on the Trust Estate.

     If at any time the Issuer shall request the Trustee to enter into any such
supplemental indenture for any of the purposes of this Section, the Trustee
shall, upon being satisfactorily indemnified with respect to expenses, cause
notice of the proposed execution of such supplemental indenture to be given to
the Credit Provider and to the Owners of the Bonds as provided in Section 3.03
of this Indenture; provided, that prior to the delivery of such notice, the
Trustee may require that an opinion of Bond Counsel be furnished to the effect
that the supplemental indenture complies with the provisions of this Indenture
and will not adversely affect the excludability of interest on the Bonds from
gross income for federal income tax purposes. Such notice shall briefly set
forth the nature of the proposed supplemental indenture and shall state that
copies thereof are on file at the Principal Office of the Trustee for inspection
by all Owners of Bonds. If, within sixty (60) days or such longer period as
shall be prescribed by the Issuer following such notice, the Credit Provider and
the Owners of not less than a majority in aggregate principal amount of the
Bonds Outstanding (except for those supplemental indentures requiring consent of
the Credit Provider or the Owners of all Bonds Outstanding, as described above)
at the time of the execution of any such supplemental indenture shall have
consented to and approved the execution thereof as herein provided, no Owner of
any Bond shall have any right to object to any of the terms and provisions
contained therein, or the operation thereof, or in any manner to question the
propriety of the execution thereof, or to enjoin or restrain the Trustee or the
Issuer from executing the same or from taking any action pursuant to the
provisions thereof. Upon the execution of any such supplemental indenture as in
this Section

                                       56
<Page>

permitted and provided, this Indenture shall be and be deemed to be modified and
amended in accordance therewith.

     Anything herein to the contrary notwithstanding, a supplemental indenture
under this Article shall not become effective unless and until the Company shall
have consented to the execution and delivery of such supplemental indenture. In
this regard, the Trustee shall cause notice of the proposed execution of any
such supplemental indenture together with a copy of the proposed supplemental
indenture to be mailed to the Company at least fifteen (15) Business Days prior
to the proposed date of execution and delivery of any such supplemental
indenture.

     In the event Fitch, S&P and/or Moody's has issued a rating of any of the
Bonds, Fitch, S&P and/or Moody's, as the case may be, shall receive prior
written notice from the Trustee of the proposed amendment but such notice shall
not be a condition of the effectiveness of such amendment.

     During any Credit Facility Period, the Credit Provider shall be deemed the
Owner of the Bonds for the purpose of this Section 11.02.

     SECTION 11.03 CONSENT OF THE COMPANY.

     Anything herein to the contrary notwithstanding, a supplemental indenture
under this Article shall not become effective unless and until the Company shall
have consented to the execution and delivery of such supplemental indenture. In
this regard, the Trustee shall cause notice of the proposed execution of any
such supplemental indenture together with a copy of the proposed supplemental
indenture to be mailed to the Company at least 15 Business Days prior to the
proposed date of execution and delivery of any such supplemental indenture.

     SECTION 11.04 AMENDMENT WITHOUT CONSENT OF ISSUER.

     In the event the Issuer is unable to enter into any supplemental indenture
permitted by this Article, the Trustee may, without the consent of the Issuer,
amend or supplement this Indenture in any manner otherwise permitted by this
Article so long as such supplemental indenture does not adversely affect the
rights of the Issuer.

     SECTION 11.05 EXECUTION OF AMENDMENTS AND SUPPLEMENTS BY TRUSTEE.

     The Trustee shall not be obligated to sign any amendment or supplement to
this Indenture or the Bonds pursuant to this Article if the amendment or
supplement, in the judgment of the Trustee, could adversely affect the rights,
duties, liabilities, protections, privileges, indemnities or immunities of the
Trustee. In signing an amendment or supplement, the Trustee shall be entitled to
receive, and shall be fully protected in relying on, an opinion of Bond Counsel
stating that such amendment or supplement is authorized by this Indenture, and
will not adversely affect the exclusion of interest on the Bonds from gross
income for Federal income tax purposes.

                                       57
<Page>

                                   ARTICLE XII

                             AMENDMENT OF AGREEMENT

     SECTION 12.01 AMENDMENTS TO AGREEMENT NOT REQUIRING CONSENT OF OWNERS OF
BONDS.

     The Issuer and the Trustee may, with the consent of the Credit Provider
(during any Credit Facility Period) and upon receipt of an opinion of Bond
Counsel to the effect that the proposed amendment will not adversely affect the
excludability of interest on the Bonds from gross income for federal income tax
purposes and is authorized by this Indenture, and without the consent of or
notice to the Owners of Bonds, consent to any amendment, change or modification
of the Agreement as may be required (i) by the provisions of the Agreement, (ii)
for the purpose of curing any ambiguity or formal defect or omission in the
Agreement, (iii) so as to more precisely identify the Project, or to substitute
or add additional improvements or equipment to the Project or additional rights
or interests in property acquired in accordance with the provisions of the
Agreement, (iv) to enter into an indenture or indentures supplemental hereto as
provided in Section 11.01 hereof, (v) to make any revisions that shall be
required by Fitch, Moody's and/or S&P in order to obtain or maintain an
investment grade rating on the Bonds, (vi) in connection with any other change
therein which, in the judgment of the Trustee, is not to the prejudice of the
Trustee or the Owners of Bonds or (vii) to make revisions thereto which shall be
effective only upon, and in connection with, the remarketing of all of the Bonds
then Outstanding.

     SECTION 12.02 AMENDMENTS TO AGREEMENT REQUIRING CONSENT OF OWNERS OF BONDS.

     Except for the amendments, changes or modifications as provided in
Section 12.01 hereof, neither the Issuer nor the Trustee shall consent to any
other amendment, change or modification of the Agreement without mailing of
notice and the written approval or consent of the Credit Provider (during any
Credit Facility Period) and the Owners of a majority in aggregate principal
amount of the Outstanding Bonds, provided that the consent of the Credit
Provider and the Owners of all Bonds Outstanding is required for any amendment,
change or modification of the Agreement that would permit the termination or
cancellation of the Agreement or a reduction in or postponement of the payments
under the Agreement or any change in the provisions relating to payment
thereunder. If at any time the Issuer and the Company shall request the consent
of the Trustee to any such proposed amendment, change or modification of the
Agreement, the Trustee shall, upon being satisfactorily indemnified with respect
to expenses, cause notice of such proposed amendment, change or modification to
be given in the same manner as provided by Section 11.02 hereof with respect to
supplemental indentures; provided, that prior to the delivery of such notice or
request, the Trustee and the Issuer may require that an opinion of Bond Counsel
be furnished to the effect that such amendment, change or modification complies
with the provisions of this Indenture and will not adversely affect the
excludability of interest on the Bonds from gross income for federal income tax
purposes. Such notice shall briefly set forth the nature of such proposed
amendment, change or modification and shall state that copies of the instrument
embodying the same are on file at the Principal Office of the Trustee for
inspection by all Owners of Bonds.

                                       58
<Page>

                                  ARTICLE XIII

                                  MISCELLANEOUS

     SECTION 13.01 CONSENTS OF OWNERS OF BONDS.

     Any consent, request, direction, approval, objection or other instrument
required by this Indenture to be signed and executed by the Owners of Bonds may
be in any number of concurrent documents and may be executed by such Owners of
Bonds in person or by agent appointed in writing. Proof of the execution of any
such consent, request, direction, approval, objection or other instrument or of
the written appointment of any such agent or of the ownership of Bonds, if made
in the following manner, shall be sufficient for any of the purposes of this
Indenture, and shall be conclusive in favor of the Trustee with regard to any
action taken by it under such request or other instrument. The fact and date of
the execution by any person of any such instrument or writing may be proved by
the affidavit of a witness of such execution or by an officer authorized by law
to take acknowledgments of deeds certifying that the person signing such
instrument or writing acknowledged to him the execution thereof. The fact of
ownership of Bonds and the amount or amounts, numbers and other identification
of such Bonds, and the date of owning the same shall be proved by the
registration books of the Issuer maintained by the Trustee pursuant to
Section 2.12 hereof.

     SECTION 13.02 LIMITATION OF RIGHTS.

     With the exception of any rights herein expressly conferred, nothing
expressed or mentioned in or to be implied from this Indenture or the Bonds is
intended or shall be construed to give to any person or company other than the
parties hereto, the Credit Provider and the Owners of the Bonds, any legal or
equitable right, remedy or claim under or with respect to this Indenture or any
covenants, conditions and provisions herein contained; this Indenture and all of
the covenants, conditions and provisions hereof being intended to be and being
for the sole and exclusive benefit of the parties hereto, the Credit Provider
and the Owners of the Bonds as herein provided.

     SECTION 13.03 SEVERABILITY.

     If any provision of this Indenture shall be held or deemed to be or shall,
in fact, be illegal, inoperative or unenforceable, the same shall not affect any
other provision or provisions herein contained or render the same invalid,
inoperative or unenforceable to any extent whatever.

     SECTION 13.04 NOTICES.

     Any notice, request, complaint, demand, communication or other paper shall
be sufficiently given and shall be deemed given when delivered or mailed by
registered or certified mail, postage prepaid or sent by telegram, addressed as
follows:

                                       59
<Page>

If to the Issuer:                The Industrial Development Board of White
                                 County, Tennessee
                                 c/o William Mitchell, Esq.
                                 112 South Main Street
                                 Sparta, Tennessee 38583

If to the Trustee:               Principal Office:
                                 SunTrust Bank
                                 424 Church Street, 6th Floor
                                 Nashville, Tennessee 37219
                                 Attention: Corporate Trust Department

If to the Company:               Genlyte Thomas Group, LLC
                                 4360 Brownsboro Road, Suite 300
                                 Louisville, Kentucky 40207
                                 Attention: Terry Lange, Treasurer

If to the Credit Provider:       Bank of America, N.A.
                                 100 North Tryon Street
                                 Mail Code, NC1-007-17-12
                                 Charlotte, North Carolina 28255
                                 Attention: Richard Parkhurst

If to the Remarketing Agent:     SunTrust Capital Markets, Inc.
                                 303 Peachtree Street, 24th Floor
                                 Atlanta, Georgia  30303
                                 Attention: Municipal Desk

If to Fitch:                     Fitch IBCA, Inc.
                                 One State Street Plaza
                                 New York, New York 10004
                                 Attention: Structured Finance

If to Moody's:                   Moody's Investors Service, Inc.
                                 99 Church Street
                                 New York, New York 10007
                                 Attention:  Corporate Department,
                                 Structured Finance Group

If to S&P:                       Standard & Poor's Ratings Services, a division
                                 of The McGraw-Hill Companies, Inc.
                                 55 Water Street
                                 New York, New York 10041
                                 Attention:  Corporate Finance Department

                                       60
<Page>

A duplicate copy of each notice required to be given hereunder by any person
listed above shall also be given to the others. The Issuer, the Company, the
Trustee, the Remarketing Agent and the Credit Provider (including the issuer of
any Substitute Credit Facility), may designate any further or different
addresses to which subsequent notices, certificates or other communications
shall be sent. Except for those writings requiring original signatures, any
written notice, instruction or confirmation required hereunder may be provided
by telex, telegraph or facsimile transmission.

     SECTION 13.05 PAYMENTS DUE ON SATURDAYS, SUNDAYS AND HOLIDAYS.

     In any case where the date of maturity of interest on or principal of the
Bonds or the date fixed for purchase or redemption of any Bonds shall not be a
Business Day, then payment of principal, Purchase Price, premium, if any, or
interest need not be made on such date but may be made on the next succeeding
Business Day with the same force and effect as if made on the date of maturity
or the date fixed for purchase or redemption.

     SECTION 13.06 COUNTERPARTS.

     This Indenture may be simultaneously executed in several counterparts, each
of which shall be an original and all of such shall constitute but one and the
same instrument.

     SECTION 13.07 APPLICABLE PROVISIONS OF LAW.

     This Indenture shall be governed by and construed in accordance with the
laws of the State. It is the intention of the Issuer and the Trustee that the
situs of the trust created by this Indenture be, and it be administered, in the
state in which is located the principal office of the Trustee from time to time
acting under this Indenture.

     SECTION 13.08 RULES OF INTERPRETATION.

     Unless expressly indicated otherwise, references to Sections or Articles
are to be construed as references to Sections or Articles of this instrument as
originally executed. Use of the words "herein," "hereby," "hereunder," "hereof,"
"hereinbefore," "hereinafter" and other equivalent words refer to this Indenture
and not solely to the particular portion in which such word is used.

     SECTION 13.09 CAPTIONS.

     The captions and headings in this Indenture are for convenience only and in
no way define, limit or describe the scope or intent of any provisions or
Sections of this Indenture.

     SECTION 13.10 NO PERSONAL LIABILITY.

     Notwithstanding anything to the contrary contained herein or in any of the
Bonds or the Agreement, or in any other instrument or document executed by or on
behalf of the Issuer in connection herewith, no stipulation, covenant, agreement
or obligation contained herein or therein shall be deemed or construed to be a
stipulation, covenant, agreement or obligation of any present or future member,
commissioner, director, trustee, officer, employee or agent of the

                                       61
<Page>

Issuer, or of any incorporator, member, commissioner, director, trustee,
officer, employee or agent of any successor to the Issuer, in any such person's
individual capacity, and no such person, in his individual capacity, shall be
liable personally for any breach or non-observance of or for any failure to
perform, fulfill or comply with any such stipulations, covenants, agreements or
obligations, nor shall any recourse be had for the payment of the principal of,
premium, if any, or interest on any of the Bonds or for any claim based thereon
or on any such stipulation, covenant, agreement or obligation, against any such
person, in his individual capacity, either directly or through the Issuer or any
successor to the Issuer, under any rule of law or equity, statute or
constitution or by the enforcement of any assessment or penalty or otherwise,
and all such liability of any such person, in his individual capacity, is hereby
expressly waived and released.

     SECTION 13.11 CERTAIN REFERENCES INEFFECTIVE EXCEPT DURING A CREDIT
FACILITY PERIOD.

     Except during a Credit Facility Period and during the period immediately
after a Credit Facility Period until receipt by the Trustee of a certificate
from the Credit Provider stating that all amounts payable to the Credit Provider
under the Credit Agreement have been paid in full, all references to the Credit
Provider, the Credit Agreement or the Credit Facility in the Agreement, this
Indenture and the Bonds shall be ineffective.

                                       62
<Page>

     IN WITNESS WHEREOF, the Issuer has caused these presents to be executed in
its name by its duly authorized officials; and to evidence its acceptance of the
trusts hereby created, the Trustee has caused these presents to be executed by
its duly authorized officer, as of the date first above written.

                                        THE INDUSTRIAL DEVELOPMENT BOARD
                                        OF WHITE COUNTY, TENNESSEE

                                        By: /s/ GEORGE SAVAGE
                                            ------------------------
                                                Title:  Chairman

(SEAL)

Attest:

By: /s/ CAROLYN HOBSON
    ------------------------
        Title:  Secretary

                                       63
<Page>

                                        SUNTRUST BANK, Trustee

                                        By: /s/ FAYE MCQUISTON
                                            -------------------------------
                                                Authorized Officer

                                       64
<Page>

                                                                     EXHIBIT "A"
                                  FORM OF BOND

     UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE
TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, WITH RESPECT TO ANY
BOND ISSUED THAT IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

No. _____

                            UNITED STATES OF AMERICA
           THE INDUSTRIAL DEVELOPMENT BOARD OF WHITE COUNTY, TENNESSEE
                      INDUSTRIAL DEVELOPMENT REVENUE BONDS
                       (GENLYTE THOMAS GROUP, LLC PROJECT)
                                   SERIES 2001

MATURITY DATE     DATED DATE       CUSIP             TYPE OF INTEREST
-------------     ----------       -----                  PERIOD
                                                          ------

                       [FOR COMMERCIAL PAPER PERIOD ONLY]

                                              MANDATORY              AMOUNT OF
                  NUMBER OF DAYS             TENDER AND            INTEREST DUE
INTEREST RATE     IN CALCULATION.             INTEREST           FOR CALCULATION
     (%)             PERIOD                 PAYMENT DATE             PERIOD
----------------     ------                 ------------        ---------------

REGISTERED OWNER:

PRINCIPAL AMOUNT:

     THE INDUSTRIAL DEVELOPMENT BOARD OF WHITE COUNTY, TENNESSEE (the "Issuer"),
for value received, promises to pay from the source and as hereinafter provided,
to the Registered Owner identified above on the Maturity Date set forth above,
upon surrender hereof, the Principal Amount set forth above, and in like manner
to pay interest on said sum as provided in this Bond.

<Page>

     1. INDENTURE; LOAN AGREEMENT. This Bond is one of an authorized issue of
bonds (the "Bonds"), limited to $5,000,000 in principal amount, issued under the
Indenture of Trust dated as of September 1, 2001 (the "Indenture"), between The
Industrial Development Board of White County, Tennessee (the "Issuer") and
SunTrust Bank, as trustee (the "Trustee"). The terms of the Bonds include those
in the Indenture. Bondholders are referred to the Indenture for a statement of
those terms. Capitalized terms used herein and not otherwise defined shall have
the meanings ascribed to them in the Indenture.

     The Issuer will lease the Project (as defined herein) financed with the
proceeds of the Bonds to Genlyte Thomas Group, LLC (the "Company"), pursuant to
a Lease Agreement dated as of September 1, 2001 (the "Agreement"), between the
Issuer and the Company. The Company will use the proceeds of the Bonds for the
purpose of financing the cost of the acquisition, construction and installation
of manufacturing equipment to be located in its existing manufacturing facility
in White County, Tennessee (the "Project"). The Company has agreed in the
Agreement to pay the Issuer amounts sufficient to pay all amounts coming due on
the Bonds, and the Issuer has assigned its rights to such payments under the
Agreement to the Trustee as security for the Bonds.

     The Indenture and the Agreement may be amended, and references to them
include any amendments.

     The Issuer has established a Book Entry system of registration for this
Bond. Except as specifically provided otherwise in the indenture, CEDE & Co., as
nominee of the depository trust company, a New York corporation ("DTC"), will be
the registered owner and will hold this Bond on behalf of each beneficial owner
hereof. By acceptance of a confirmation of purchase, delivery or transfer, each
beneficial owner of this Bond shall be deemed to have agreed to such
arrangement. CEDE & Co., as registered owner of this Bond, may be treated as the
owner of it for all purposes.

     2. SOURCE OF PAYMENTS. This Bond and the series of Bonds of which it forms
a part are issued pursuant to and in full compliance with Chapter 53 of Title 7
of Tennessee Code Annotated, as amended (the "Act"). THIS BOND AND THE ISSUE OF
WHICH IT IS A PART AND THE PREMIUM, IF ANY, AND INTEREST HEREON ARE LIMITED
OBLIGATIONS OF THE ISSUER PAYABLE SOLELY FROM THE REVENUES AND RECEIPTS DERIVED
FROM THE AGREEMENT PURSUANT TO THE AGREEMENT (AS HEREINAFTER DEFINED), INCLUDING
PAYMENTS RECEIVED THEREUNDER, WHICH PAYMENTS, REVENUES AND RECEIPTS HAVE BEEN
PLEDGED AND ASSIGNED TO THE TRUSTEE TO SECURE PAYMENT OF THE BONDS. THE BONDS,
THE PREMIUM, IF ANY, AND THE INTEREST THEREON SHALL NOT BE DEEMED TO CONSTITUTE
A DEBT OR A PLEDGE OF THE FAITH AND CREDIT OF THE STATE OF TENNESSEE OR ANY
POLITICAL SUBDIVISION THEREOF, INCLUDING THE ISSUER. NEITHER THE STATE OF
TENNESSEE NOR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE ISSUER, SHALL BE
OBLIGATED TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS OR
OTHER COSTS INCIDENT THERETO EXCEPT FROM THE REVENUES AND RECEIPTS PLEDGED
THEREFOR, AND NEITHER THE FAITH AND CREDIT OF THE ISSUER, THE STATE OF TENNESSEE
OR ANY POLITICAL SUBDIVISION OF THE STATE OF TENNESSEE, NOR

                                        2
<Page>

THE TAXING POWER OF THE STATE OF TENNESSEE OR ANY POLITICAL SUBDIVISION
THEREOF, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR
INTEREST ON THE BONDS OR OTHER COSTS INCIDENT THERETO.

     The Bonds are initially secured by a letter of credit (the "Credit
Facility") issued by Bank of America, N.A. (the "Credit Provider"), in favor of
the Trustee. This Credit Facility entitles the Trustee to draw an amount
sufficient to pay the principal of the Bonds and up to 40 days' interest accrued
on the Bonds at a maximum rate per annum of 12%. Unless extended by the Credit
Provider in accordance with its terms, the Credit Facility expires on
_____________ 15, 200__, or on the earlier occurrence of events specified in it.
On its expiration, unless the Company has provided another Credit Facility
meeting the requirements of the Indenture, the Bonds will be subject to
mandatory tender for purchase as more fully described below.

     3. INTEREST RATE. Interest on this Bond will be paid at the lesser of (a) a
Daily Rate, a Weekly Rate, a Commercial Paper Rate or a Long Term Rate as
selected by the Company and as determined in accordance with the Indenture or
(b) 12% per annum or, when a Credit Facility supports the Bonds, such lower
maximum rate as may be specified in the Credit Facility. Interest will initially
be payable at the Weekly Rate, as set forth in the indenture. The Company may
change the interest rate determination method from time to time. A change in the
method, other than a change between the Daily Rate and the Weekly Rate, will
result in the Bonds becoming subject to mandatory tender for purchase on the
effective date of such change.

     When interest is payable at (a) a Daily Rate, Weekly Rate or Commercial
Paper Rate, it will be computed on the basis of the actual number of days
elapsed over a year of 365 or 366 days, as the case may be, and (b) a Long Term
Rate, it will be computed on the basis of a 360-day year of twelve 30-day
months.

     4. INTEREST PAYMENT AND RECORD DATES. Interest will accrue on the unpaid
portion of the principal of this Bond from the last date to which interest was
paid or duly provided for or, if no interest has been paid or duly provided for,
from the date of initial authentication and delivery of the Bonds, until the
entire principal amount of this Bond is paid or duly provided for. When interest
is payable at the rate in the first column below, interest accrued during the
period (an "Accrual Period") shown in the second column will be paid on the date
(an "Interest Payment Date") in the third column to holders of record on the
date (a "Record Date") in the fourth column:

<Table>
<Caption>
-------------------------------------------------------------------------------------------------------------------
TYPE OF                           ACCRUAL                     INTEREST
INTEREST PERIOD                   PERIOD(1)                  PAYMENT DATE                 RECORD DATE
-------------------------------------------------------------------------------------------------------------------
<S>                             <C>                          <C>                          <C>
Daily                           Calendar Month               Fifth Business Day of the    Last Business Day of the
                                                             next month                   Accrual Period
-------------------------------------------------------------------------------------------------------------------
</Table>

----------
(1) If the Conversion Date does not coincide with the first day of the Accrual
Period for the Interest period, then the first day of such Accrual Period shall
be the Conversion Date, but all other terms and condition shall be set forth in
the above Table.

                                        3
<Page>

<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------------
TYPE OF                     ACCRUAL                       INTEREST
INTEREST PERIOD             PERIOD(1)                    PAYMENT DATE                 RECORD DATE
-----------------------------------------------------------------------------------------------------------------
<S>                       <C>                            <C>                          <C>
Weekly                    First Wednesday of each        First Wednesday of each      Last Business Day before
                          month through the first        month                        Interest Payment Date
                          Tuesday of the next
                          succeeding month
-----------------------------------------------------------------------------------------------------------------
Commercial Paper          From 1 to 270 days as          First day following          Last Business Day before
                          determined for each Bond       Calculation Period           Interest Payment Date
                          pursuant to Section 2.05
                          of the Indenture
                          ("Calculation Period")
-----------------------------------------------------------------------------------------------------------------
Long Term                 Six-month period or            September 1 or March 1       Fifteenth of the month
                          portion thereof ending                                      before the Interest
                          February 28, 29 or August 31                                Payment Date (August or
                                                                                      February 15)
-----------------------------------------------------------------------------------------------------------------
</Table>

     5. CONVERSION OPTION. The Company shall have the option (the "Conversion
Option") to direct a change in the type of Interest Period to another type of
Interest Period by delivering to the Trustee and the Remarketing Agent written
instructions setting forth (i) the Conversion Date, (ii) the new type of
Interest Period and (iii) whether such Interest Period will be a Credit Facility
Period. If the new Interest Period is a Commercial Paper Period or a Long Term
Period and will be a Credit Facility Period, such instructions will be
accompanied by a Substitute Credit Facility, or by an amendment to the existing
Credit Facility, providing for the payment of such additional interest and
redemption premium (if any) on the Bonds as may be required under the Indenture,
and otherwise complying with the terms thereof.

     Any change in the type of Interest Period must comply with the following:
(i) the Conversion Date must be an Interest Payment Date for the Interest Period
then in effect (and, with respect to a Long Term Period, must be the last
Interest Payment Date for such Long Term Period) and (ii) no change in Interest
Period shall occur after an Event of Default shall have occurred and be
continuing.

     6. METHOD OF PAYMENT. The Trustee will be the registrar and paying agent
for the Bonds. Holders must surrender Bonds to the Trustee to collect principal
and premium, if any, at maturity or upon redemption and to collect the purchase
price for Bonds tendered for purchase as described in paragraphs 7 or 8, below.
Interest on Bonds bearing interest at a Commercial Paper Rate is payable only
after presentation of such Bonds to the Trustee, unless a Book-Entry System is
in effect with respect to such Bonds. Subject to the preceding sentence,
interest on the Bonds will be paid to the registered holder hereof as of the
Record Date by check mailed by first-class mail on the Interest Payment Date to
such holder's registered address or, with respect to Bonds

                                        4
<Page>

bearing interest at a Daily Rate, Weekly Rate or Commercial Paper Rate, by wire
transfer to an account in the continental United States if the holder provides
the Registrar with a written request therefor and the account address at least
five Business Days before the Record Date. A holder of $1,000,000 or more in
principal amount of Bonds may be paid interest at a Long Term Rate by wire
transfer to an account in the continental United States if the holder makes a
written request of the Registrar at least five Business Days before the Record
Date specifying the account address. Notices requesting wire transfers may
provide that they will remain in effect for later interest payments until
changed or revoked by another written notice. Principal and interest will be
paid in money of the United States that at the time of payment is legal tender
for payment of public and private debts or by checks or wire transfers payable
in such money. If any payment on the Bonds is due on a non-Business Day, such
payment will be made on the next Business Day, and no additional interest will
accrue as a result.

     7. MANDATORY TENDER FOR PURCHASE OF BONDS ON MANDATORY PURCHASE DATE. The
Bonds shall be subject to mandatory tender by the Registered Owners thereof for
purchase on (a) each Conversion Date other than a conversion between the Daily
Period and the Weekly Period, (b) each day immediately following the end of a
Calculation Period, (c) the first day of any Long Term Period, (d) the Interest
Payment Date immediately before the Credit Facility Termination Date (which
shall be at least one Business Day prior to such Credit Facility Termination
Date), (e) the Interest Payment Date concurrent with the effective date of a
Substitute Credit Facility, and (f) the first Interest Payment Date following
the occurrence of a Determination of Taxability for which the Trustee can give
notice of mandatory tender in accordance with the Indenture (each a "Mandatory
Purchase Date").

     Except when the Bonds are subject to mandatory tender on a day immediately
following the end of a Calculation Period, the Trustee shall deliver or mail by
first class mail a notice in substantially the form required by the Indenture at
least fifteen days prior to the Mandatory Purchase Date. When the Bonds are
subject to mandatory tender for purchase on the day immediately following the
end of a Calculation Period, the Trustee is not required to deliver or mail any
notice to the Registered Owners of the Bonds.

     Any notice given by the Trustee as provided above shall be conclusively
presumed to have been duly given, whether or not the Registered Owner receives
the notice. Failure to mail any such notice, or the mailing of defective notice,
to any Registered Owner, shall not affect the proceeding for purchase as to any
Registered Owner to whom proper notice is mailed.

     On each Mandatory Tender Date, Registered Owners of Bonds shall be required
to tender their Bonds to the Trustee for purchase by 10:30 A.M. New York City
time at a purchase price equal to 100% of the principal amount of the Bonds
tendered or deemed tendered, and any such Bonds not so tendered on the Mandatory
Purchase Date, for which there has been irrevocably deposited in trust with the
Trustee an amount of moneys sufficient to pay said purchase price of the
untendered bonds, shall be deemed to have been purchased pursuant to the
Indenture. In the event of a failure by a Registered Owner of Bonds to tender
its Bonds on or prior to the Mandatory Purchase Date by the requisite time, said
Registered Owner shall not be entitled to any payment (including any interest to
accrue subsequent to the Mandatory Purchase Date) other than said purchase price
for such untendered bonds, and any untendered bonds shall no longer be

                                        5
<Page>

entitled to the benefits of the Indenture, except for the purpose of payment of
said purchase price therefor.

     8. DEMAND PURCHASE OPTION. Any Bond bearing interest at the Daily Rate or
the Weekly Rate shall be purchased from the Registered Owners thereof at a
purchase price equal to 100% of the principal amount of the Bond tendered or
deemed tendered, plus accrued and unpaid interest thereon to the date of
purchase, upon: (a) delivery to the Trustee at its Principal Office and to the
Remarketing Agent at its Principal Office of a written notice (said notice to be
irrevocable and effective upon receipt) which (i) states the aggregate principal
amount and Bond numbers of the Bonds to be purchased; and (ii) states the date
on which such Bonds are to be purchased (the "Tender Date"); and (b) delivery to
the Trustee at its Delivery Office at or prior to 10:30 A.M. New York City time
on the date designated for purchase in the notice described in (a) above of such
Bonds to be purchased, with an appropriate endorsement for transfer or
accompanied by a bond power endorsed in blank. Furthermore, such date shall not
be prior to the seventh day next succeeding the date of delivery of the notice
unless the Daily Period is in effect. "Tender Date" means (a) during any Daily
Period, any Business Day, (b) during any Weekly Period, the seventh day (unless
such day is not a Business Day, in which case the next Business Day) following
receipt by the Trustee of notice from the Registered Owner that such Registered
Owner has elected to tender Bonds.

     9. EXTRAORDINARY REDEMPTION. During any Long Term Period, the Bonds are
subject to redemption in whole by the Issuer, at the option of the Company, at a
redemption price of 100% of the Outstanding principal amount thereof plus
accrued interest to the redemption date, in the event all or substantially all
of the Project shall have been damaged or destroyed, or there occurs the
condemnation of all or substantially all of the Project or the taking by eminent
domain of such use or control of the Project as to render it, in the judgment of
the Company, unsatisfactory for its intended use for a period of time longer
than one year.

     10. OPTIONAL REDEMPTION BY THE COMPANY. During any Daily Period or Weekly
Period, the Bonds are subject to redemption by the Issuer, at the option of the
Company, in whole at any time or in part on any Interest Payment Date, less than
all of such Bonds to be selected by lot or in such other manner as the Trustee
shall determine, at a redemption price of 100% of the Outstanding principal
amount thereof plus accrued interest to the redemption date.

     On any Conversion Date or on the day following the end of a Calculation
Period if such day is the end of the Calculation Period for all Bonds, the Bonds
are subject to redemption by the Issuer, at the option of the Company, in whole
or in part, less than all such Bonds to be selected by lot or in such other
manner as the Trustee shall determine, at a redemption price of 100% of the
Outstanding principal amount thereof plus accrued interest to the redemption
date.

     During any Long Term Period, the Bonds are subject to redemption by the
Issuer, at the option of the Company, on or after the First Optional Redemption
Date, in whole at any time or in part on any Interest Payment Date, less than
all of such Bonds to be selected by lot or in such other manner as the Trustee
shall determine, at the redemption prices (expressed as percentages of Principal
amount) set forth in the following table plus accrued interest to the redemption
date:

                                        6
<Page>

<Table>
<Caption>
         REDEMPTION DATES                                    REDEMPTION PRICES
         ----------------                                    -----------------
<S>                                                                 <C>
First Optional Redemption Date through
the last day of the twelfth calendar month
following such First Optional Redemption Date                       102%

First anniversary of the First Optional
Redemption Date through the last day of the
twelfth calendar month following such first anniversary             101%

Second anniversary of the First Optional
Redemption Date and thereafter                                      100%
</Table>

     "First Optional Redemption Date" means, with respect to a Long Term Period
less than or equal to 5 years, the first day of the 24th calendar month from the
beginning of such Long Term Period, with respect to a Long Term Period greater
than 5 years but less than or equal to 10 years, the first day of the 60th
calendar month from the beginning of such Long Term Period, and with respect to
a Long Term Period greater than 10 years, the first day of the 72nd calendar
month from the beginning of such Long Term Period.

     In the event any of the Bonds or portions thereof are called for redemption
as aforesaid, notice of the call for redemption, identifying the Bonds or
portions thereof to be redeemed, shall be given by the Trustee by mailing a copy
of the redemption notice by first class mail at least 30 days but not more than
60 days prior to the date fixed for redemption to the Registered Owner of each
Bond to be redeemed in whole or in part at the address shown on the registration
books. Any notice mailed as provided above shall be conclusively presumed to
have been duly given, whether or not the Registered Owner receives the notice.
Failure to mail any such notice, or the mailing of defective notice, to any
Registered Owner, shall not affect the proceeding for redemption as to any
Registered Owner to whom proper notice is mailed. No further interest shall
accrue on the principal of any Bond called for redemption after the date of
redemption if moneys sufficient for such redemption have been deposited with the
Trustee. Notwithstanding the foregoing, the notice requirements contained in the
first sentence of this paragraph may be deemed satisfied with respect to a
transferee of a Bond which has been purchased pursuant to the Demand Purchase
Option after such Bond has previously been called for redemption,
notwithstanding the failure to satisfy the notice requirements of the first
sentence of this paragraph with respect to such transferee, as more fully
provided in the Indenture.

     11. DENOMINATIONS; TRANSFER; EXCHANGE. The Bonds are in registered form
without coupons in denominations as follows: (1) when interest is payable at a
Daily Rate, Weekly Rate or Commercial Paper Rate, $100,000 minimum denomination,
with $5,000 increments in excess thereof and (2) when interest is payable at a
Long Term Rate, $5,000 minimum denomination and integral multiples of $5,000. A
holder may transfer or exchange Bonds in accordance with the Indenture. The
Trustee may require a holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by
law or permitted by the Indenture. Except in connection with Bonds tendered for
purchase, the Trustee will not be required to transfer or exchange any Bond
which has been called for redemption (except the unredeemed portion of any Bond
being redeemed in part) or during the period beginning 15 days

                                        7
<Page>

before the mailing of notice calling the Bonds or any portion of the Bonds for
redemption and ending on the redemption date.

     12. PERSONS DEEMED OWNERS. Except as otherwise specifically provided herein
and in the Indenture with respect to rights of Participants and Beneficial
Owners when a Book-Entry System is in effect, the registered holder of this Bond
shall be treated as the owner of it for all purposes.

     13. NON-PRESENTMENT OF BONDS. If money for the payment of principal,
premium, if any, interest or purchase price remains unclaimed for two years
after the due date therefor, the Trustee or the Tender Agent will pay the money
to the Company upon written request. After that, holders entitled to the money
must look only to the Company and not to the Trustee or the Tender Agent for
payment.

     14. DISCHARGE BEFORE REDEMPTION OR MATURITY. If the Company deposits with
the Trustee money or securities as described in, and in accordance with the
provisions of, the Indenture sufficient to pay at redemption or maturity
principal of and interest on the outstanding Bonds, and if the Company also pays
all other sums then payable by the Company under the Indenture, the lien of the
Indenture will be discharged. After discharge, Bondholders must look only to the
deposited money and securities for payment.

     15. AMENDMENT, SUPPLEMENT, WAIVER. Subject to certain exceptions, the
Indenture, the Loan Agreement or the Bonds may be amended or supplemented, and
any past default may be waived, with the consent of the holders of a majority in
principal amount of the Bonds then outstanding. Any such consent shall be
irrevocable and shall bind any subsequent owner of this Bond or any Bond
delivered in substitution for this Bond. Without the consent of any Bondholder,
the Issuer may amend or supplement the Indenture, the Loan Agreement or the
Bonds as described in the Indenture.

     16. DEFAULTS AND REMEDIES. The Indenture provides that the occurrences of
certain events constitute Events of Default. If an Event of Default occurs and
is continuing, the Trustee may declare the principal of all the Bonds to be due
and payable immediately; provided that in certain circumstances, the Trustee
shall make such declaration upon the written request of the holders of not less
than 50% in principal amount of the Bonds then outstanding and provided further,
that in the case of certain Events of Default, the principal of all of the Bonds
shall automatically become due and payable. An Event of Default and its
consequences may be waived as provided in the Indenture. Bondholders may not
enforce the Indenture or the Bonds except as provided in the Indenture. Except
as specifically provided in the Indenture, the Trustee may refuse to enforce the
Indenture or the Bonds unless it receives indemnity satisfactory to it. Subject
to certain limitations, holders of not less than 50% in principal amount of the
Bonds then outstanding may direct the Trustee in its exercise of any trust or
power.

     17. NO RECOURSE AGAINST OTHERS. No recourse shall be had for the payment of
the principal, purchase price, or redemption price of, or interest on, this
Bond, or for any claim based hereon or on the Indenture, against any member,
officer or employee, past, present or future, of the Issuer or of any successor
body, as such, either directly or through the Issuer or any such successor body
under any constitutional provision, statute or rule of law or by the enforcement
of

                                        8
<Page>

any assessment or by any legal or equitable proceeding or otherwise. Each
Bondholder by accepting a Bond waives and releases all such liability. The
waiver and release are part of the consideration for the issue of the Bond.

     18. AUTHENTICATION. This Bond shall not be valid until the Registrar signs
the certificate of authentication on the other side of this Bond.

     19. ABBREVIATIONS. Customary abbreviations may be used in the name of a
Bondholder or an assignee, such as TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), U/G/M/A (= Uniform Gifts to
Minors Act), and U/T/M/A (= Uniform Transfers to Minors Act).

     A copy of the Indenture may be inspected at the office of the Trustee
located at SunTrust Bank, 424 Church Street, Nashville, Tennessee 37219,
Attention: Corporate Trust Department.

                                        9
<Page>

     IN WITNESS WHEREOF, The Industrial Development Board of White County,
Tennessee has caused this Bond to be executed in its name by the manual or
facsimile signature of its Chairman (or Vice Chairman) and its corporate seal to
be impressed or printed hereon and attested by the manual or facsimile signature
of its Secretary (or Assistant Secretary).

                                        THE INDUSTRIAL DEVELOPMENT BOARD
                                        OF WHITE COUNTY, TENNESSEE

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

(SEAL)

Attest:

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

                                       10
<Page>

                     (Form of Certificate of Authentication)

                          CERTIFICATE OF AUTHENTICATION

Date of Authentication:______________________

     This Bond is one of the Bonds of the issue described in the
within-mentioned Indenture of Trust.

                                        SUNTRUST BANK,
                                        as Trustee

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

                                    * * * * *

                                       11
<Page>

                        (Form of Assignment and Transfer)

     FOR VALUE RECEIVED, _______________ the undersigned, hereby sells, assigns
and transfers unto _______________________ (Tax Identification or Social
Security No. ______________) the within Bond and all rights thereunder, and
hereby irrevocably constitutes and appoints _____________________ attorney to
transfer the within Bond on the books kept for registration thereof, with full
power of substitution in the premises.

Dated:______________

Signature Guarantee:

-----------------------------               ---------------------------------
(Authorized Officer)                        NOTICE:  The signature to this
Signature must be guaranteed                assignment must correspond with
by an institution which is a                the name as it appears upon the
participant in the Securities               face of the within Bond in every
Transfer Agent Medallion                    particular, without alteration or
Program (STAMP) or similar                  enlargement or any change
program.                                    whatever.

                                       12
<Page>

                                 [DTC FAST RIDER

Each such certificate shall remain in the Trustee's custody subject to the
provisions of the FAST Balance Certificate Agreement currently in effect between
the Trustee and DTC - FAST Agreement.]

                                       13
<Page>

                                                                     EXHIBIT "B"

                      FORM OF NOTICE FROM TRUSTEE TO OWNER
                        REGARDING MANDATORY PURCHASE DATE
                        ---------------------------------

[Name and address of Owner]

     Re: $5,000,000 The Industrial Development Board of White County, Tennessee
Industrial Development Revenue Bonds (Genlyte Thomas Group, LLC Project) Series
2001

     The undersigned officer of SunTrust Bank, as Trustee with respect to the
captioned Bonds (the "Bonds"), pursuant to the provisions of Section 4.01 of
that certain Indenture of Trust (the "Indenture"), dated as of September 1,
2001, by and between The Industrial Development Board of White County, Tennessee
and the Trustee, does hereby notify you that the Bonds are subject to mandatory
tender on __________ (the "Mandatory Purchase Date"). All owners of Bonds shall
be deemed to have tendered their Bonds for purchase on the Mandatory Purchase
Date and shall no longer be entitled to the benefits of the Indenture; interest
will cease to accrue on such Bonds for the benefit of the owners of the Bonds on
and after the Mandatory Purchase Date. The Bonds should be delivered to the
Trustee at 424 Church Street, 6th Floor, Nashville, Tennessee 37219, Attention:
Corporate Trust Department on _______________.

     This _____ day of ___________________, _____.

                                        SunTrust Bank, as Trustee

                                        --------------------------------
                                        Title:

                                       14

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