Document:

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                                                                    Exhibit 4.8

                              DECLARATION OF TRUST
                                       OF
                        AMERICAN EQUITY CAPITAL TRUST VI

          This DECLARATION OF TRUST, dated as of March 11, 2004 (this
"Declaration"), by and among American Equity Investment Life Holding Company, an
Iowa corporation, as "Sponsor," John M. Matovina, Wendy L. Carlson, Debra J.
Richardson and U.S. Bank Trust National Association, not in their individual
capacities but solely as "Trustees." The Sponsor and the Trustees hereby agree
as follows:

          1.   The trust created hereby (the "Trust") shall be known as
"American Equity Capital Trust VI" in which name the Trustees, or the Sponsor to
the extent provided herein, may conduct the business of the Trust, make and
execute contracts, and sue and be sued.

          2.   The Sponsor hereby assigns, transfers, conveys and sets over to
the Trust the sum of $10. The Trustees hereby acknowledge receipt of such amount
in trust from the Sponsor, which amount shall constitute the initial trust
estate. The Trustees hereby declare that they will hold the trust estate in
trust for the Sponsor. It is the intention of the parties hereto that the Trust
created hereby constitute a statutory trust under Chapter 38 of Title 12 of the
Delaware Code, 12 Del. C. Sections 3801 et seq. (the "Statutory Trust Act"), and
that this document constitutes the governing instrument of the Trust. The
Trustees are hereby authorized and directed to execute and file a certificate of
trust with the Delaware Secretary of State in accordance with the provisions of
the Statutory Trust Act.

          3.   The Sponsor and the Trustees will enter into an amended and
restated Declaration of Trust, satisfactory to each such party, to provide for
the contemplated operation of the Trust created hereby and the issuance of the
Preferred Securities and Common Securities referred to therein. Prior to the
execution and delivery of such amended and restated Declaration of Trust, the
Trustees shall not have any duty or obligation hereunder or with respect to the
trust estate, except as otherwise required by applicable law or as may be
necessary to obtain prior to such execution and delivery of any licenses,
consents or approvals required by applicable law or otherwise.

          4.   The Sponsor and the Trustees hereby authorize and direct the
Sponsor, as the sponsor of the Trust, in its sole discretion, (i) to file with
the Securities and Exchange Commission (the "Commission") and execute, in each
case on behalf of the Trust, (a) the Registration Statement on Form S-3 (the
"1933 Act Registration Statement"), including any pre-effective or
post-effective amendments thereto (including the prospectus, prospectus
supplements and the exhibits thereto), relating to the registration under the
Securities Act of 1933, as amended, of the Preferred Securities of the Trust and
(b) a Registration Statement on Form 8-A or other appropriate form (the "1934
Act Registration Statement"), including any pre-effective or post-effective
amendments thereto, relating to the registration of the Preferred Securities of
the Trust

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under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended;
(ii) if, and at such time as determined by the Sponsor, to file with the New
York Stock Exchange or any other exchange or the Nasdaq National Market (each,
an "Exchange") and execute on behalf of the Trust one or more listing
applications and all other applications, statements, certificates, agreements
and other instruments as shall be necessary or desirable to cause the Preferred
Securities to be listed on any of the Exchanges; (iii) to file and execute on
behalf of the Trust such applications, reports, surety bonds, irrevocable
consents, appointments of attorney for service of process and other papers and
documents as shall be necessary or desirable to register the Preferred
Securities under the securities or "Blue Sky" laws of such jurisdictions as the
Sponsor, on behalf of the Trust, may deem necessary or desirable; (iv) to
execute and deliver letters or documents to, or instruments for filing with, a
depository relating to the Preferred Securities of the Trust; and (v) to
negotiate the terms of and to execute, deliver and perform on behalf of the
Trust an underwriting agreement relating to the Preferred Securities among the
Trust, the Sponsor and the several Underwriters named therein. In the event that
any filing referred to in this Section 4 is required by the rules and
regulations of the Commission, an Exchange or state securities or "Blue Sky"
laws to be executed on behalf of the Trust by any of the Trustees, the Trustees,
in their capacity as trustees of the Trust, are hereby authorized to join in any
such filing and to execute on behalf of the Trust any and all of the foregoing,
it being understood that the Trustees, in their capacity as trustees of the
Trust, shall not be required to join in any such filing or to execute on behalf
of the Trust any such document unless required by the rules and regulations of
the Commission, the Exchange or state securities or "Blue Sky" laws.

          In connection with all of the foregoing, the Sponsor and each Trustee,
solely in its capacity as Trustee of the Trust, hereby constitutes and appoints
Debra J. Richardson and Wendy L. Carlson, and each of them, as his, her or its,
as the case may be, true and lawful attorneys-in-fact and agents, with full
power of substitution, for the Sponsor or in the Sponsor's name, place and
stead, in any and all capacities, to sign any and all amendments (including
post-effective amendments) to the 1933 Act Registration Statement and the 1934
Act Registration Statement and to file the same, with all exhibits thereto, and
other documents in connection therewith, with the Commission, granting unto said
attorneys-in-fact and agents full power and authority to do and perform each and
every act and thing requisite and necessary to be done in connection therewith,
as fully to all intents and purposes as the Sponsor might or could do in person,
hereby ratifying and confirming all that said attorneys-in-fact and agents or
any of them, or their respective substitute or substitutes, shall do or cause to
be done by virtue hereof.

          5.   This Declaration of Trust may be executed in one or more
counterparts.

          6.   The number of Trustees initially shall be four (4) and thereafter
the number of Trustees shall be such number as shall be fixed from time to time
by a written instrument signed by the Sponsor which may increase or decrease the
number of Trustees; provided, however, that to the extent required by the
Statutory Trust Act, one Trustee shall either be a natural person who is a
resident of the State of Delaware or, if not a natural person, an entity which
has its principal place of business in the State of

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Delaware and otherwise meets the requirements of applicable Delaware law.
Subject to the foregoing, the Sponsor is entitled to appoint or remove without
cause any Trustee at any time. A Trustee may resign upon 30 days' prior notice
to the Sponsor.

          7.   The Sponsor hereby agrees to indemnify, defend and hold harmless
the Trustees and any of the officers, directors, employees and agents of the
Trustees (the "Indemnified Persons") from and against any and all losses,
damages, liabilities, claims, actions, suits, costs, expenses, disbursements
(including the reasonable fees and expenses of counsel), taxes and penalties of
any kind and nature whatsoever (collectively, "Expenses"), to the extent that
such Expenses arise out of, or are imposed upon, or asserted at any time
against, such Indemnified Persons with respect to the performance of this
Declaration, the creation, operation or termination of the Trust or the
transactions contemplated hereby; provided, however, that the Sponsor shall not
be required to indemnify any Indemnified Person for any Expenses which are a
result of the willful misconduct, bad faith or negligence of such Indemnified
Person.

          8.   U.S. Bank Trust National Association, in its capacity as Trustee,
shall not have the powers or the duties of the Trustees set forth herein (except
as may be required under the Statutory Trust Act) and shall be a Trustee
hereunder for the sole and limited purpose of fulfilling the requirements of
Section 3807 of the Statutory Trust Act.

          9.   The Trust may be dissolved and terminated before the issuance of
the securities of the Trust at the election of the Sponsor.

          10.  This Declaration shall be governed by, and construed in
accordance with, the laws of the State of Delaware (without regard to conflict
of laws principles).

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

                                AMERICAN EQUITY INVESTMENT
                                LIFE HOLDING COMPANY,
                                as Sponsor

                                /s/ Wendy L. Carlson
                               ------------------------------------------------
                                Name:  Wendy L. Carlson
                                Title  Chief Financial Officer
                                       and General Counsel

                                John M. Matovina, not in his individual capacity
                                but solely as Trustee

                               /s/ John M. Matovina
                               ------------------------------------------------

                                Wendy L. Carlson, not in her individual capacity
                                but solely as Trustee

                               /s/ Wendy L. Carlson
                               ------------------------------------------------

                                Debra J. Richardson, not in her individual
                                capacity but solely as Trustee

                               /s/ Debra J. Richardson
                               ------------------------------------------------

                                U.S. Bank Trust National Association,
                                as Delaware Trustee

                               /s/ Frank P. Leslie III
                               ------------------------------------------------
                                Name: Frank P. Leslie III
                                Title: Vice President

                                       4<Page>

                                                                     Exhibit 4.9

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

                                     FORM OF
                        AMENDED AND RESTATED DECLARATION
                                    OF TRUST
                         [AMERICAN EQUITY CAPITAL TRUST]
                               Dated as of [DATE]

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

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                              PAGE
                                                                                              ----
<S>                <C>                                                                          <C>
                                    ARTICLE 1
                          INTERPRETATION AND DEFINITIONS

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

                                    ARTICLE 2
                              TRUST INDENTURE ACT

SECTION 2.01.      Trust Indenture Act; Application..............................................7

SECTION 2.02.      Lists of Holders of Securities................................................8

SECTION 2.03.      Reports by the Property Trustee...............................................8

SECTION 2.04.      Periodic Reports to Property Trustee..........................................8

SECTION 2.05.      Evidence of Compliance with Conditions Precedent..............................8

SECTION 2.06.      Events of Default; Waiver.....................................................9

SECTION 2.07.      Event of Default; Notice.....................................................10

                                    ARTICLE 3
                                   ORGANIZATION

SECTION 3.01.      Name.........................................................................11

SECTION 3.02.      Office.......................................................................11

SECTION 3.03.      Purpose......................................................................11

SECTION 3.04.      Authority....................................................................11

SECTION 3.05.      Title to Property of the Trust...............................................12

SECTION 3.06.      Powers and Duties of the Regular Trustees....................................12

SECTION 3.07.      Prohibition of Actions by the Trust and the Trustees.........................15

SECTION 3.08.      Powers and Duties of the Property Trustee....................................15

SECTION 3.09.      Certain Duties and Responsibilities of the Property Trustee..................17

SECTION 3.10.      Certain Rights of Property Trustee...........................................19

SECTION 3.11.      Delaware Trustee.............................................................21

SECTION 3.12.      Execution of Documents.......................................................21

SECTION 3.13.      Not Responsible for Recitals or Issuance of Securities.......................22

SECTION 3.14.      Duration of Trust............................................................22

SECTION 3.15.      Mergers......................................................................22

                                    ARTICLE 4
                                     SPONSOR

SECTION 4.01.      Sponsor's Purchase of Common Securities......................................24

SECTION 4.02.      Responsibilities of the Sponsor..............................................24

                                    ARTICLE 5
                                    TRUSTEES
</Table>

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<Table>
<S>                <C>                                                                          <C>
SECTION 5.01.      Number of Trustees...........................................................24

SECTION 5.02.      Delaware Trustee.............................................................25

SECTION 5.03.      Property Trustee; Eligibility................................................25

SECTION 5.04.      Qualifications of Regular Trustees and Delaware Trustee Generally............26

SECTION 5.05.      Initial Trustees.............................................................26

SECTION 5.06.      Appointment, Removal and Resignation of Trustees.............................26

SECTION 5.07.      Vacancies among Trustees.....................................................28

SECTION 5.08.      Effect of Vacancies..........................................................28

SECTION 5.09.      Meetings.....................................................................28

SECTION 5.10.      Delegation of Power..........................................................29

SECTION 5.11.      Merger, Conversion, Consolidation or Succession to Business..................29

                                    ARTICLE 6
                                  DISTRIBUTIONS

SECTION 6.01.      Distributions................................................................29

                                    ARTICLE 7
                             ISSUANCE OF SECURITIES

SECTION 7.01.      General Provisions Regarding Securities......................................30

SECTION 7.02.      Execution and Authentication.................................................30

SECTION 7.03.      Registrar, Paying Agent and Conversion Agent.................................31

SECTION 7.04.      Paying Agent to Hold Money in Trust..........................................31

SECTION 7.05.      Outstanding Preferred Securities.............................................32

SECTION 7.06.      Preferred Securities in Treasury.............................................32

SECTION 7.07.      Cancellation.................................................................32

SECTION 7.08.      CUSIP Numbers................................................................32

                                    ARTICLE 8
                              TERMINATION OF TRUST

SECTION 8.01.      Termination of Trust.........................................................33

                                    ARTICLE 9
                              TRANSFER AND EXCHANGE

SECTION 9.01.      General......................................................................34

SECTION 9.02.      Transfer of Certificates.....................................................35

SECTION 9.03.      Deemed Security Holders......................................................35

SECTION 9.04.      Book Entry Interests.........................................................35

SECTION 9.05.      Notices to Clearing Agency...................................................36

SECTION 9.06.      Appointment of Successor Clearing Agency.....................................36
</Table>

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<Table>
<S>                <C>                                                                          <C>
SECTION 9.07.      Definitive Preferred Security Certificates...................................36

SECTION 9.08.      Mutilated, Destroyed, Lost or Stolen Certificates............................37

                                    ARTICLE 10
          LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

SECTION 10.01.     Liability....................................................................37

SECTION 10.02.     Exculpation..................................................................38

SECTION 10.03.     Fiduciary Duty...............................................................38

SECTION 10.04.     Indemnification..............................................................39

SECTION 10.05.     Outside Businesses...........................................................40

SECTION 10.06.     Compensation.................................................................40

                                    ARTICLE 11
                                    ACCOUNTING

SECTION 11.01.     Fiscal Year..................................................................41

SECTION 11.02.     Certain Accounting Matters...................................................41

SECTION 11.03.     Banking......................................................................41

SECTION 11.04.     Withholding..................................................................42

                                    ARTICLE 12
                             AMENDMENTS AND MEETINGS

SECTION 12.01.     Amendments...................................................................42

SECTION 12.02.     Meetings of the Holders of Securities; Action by Written Consent.............44

                                    ARTICLE 13
                REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE

SECTION 13.01.     Representations and Warranties of Property Trustee...........................45

SECTION 13.02.     Representations and Warranties of Delaware Trustee...........................46

                                    ARTICLE 14
                                  MISCELLANEOUS

SECTION 14.01.     Notices......................................................................47

SECTION 14.02.     Governing Law................................................................48

SECTION 14.03.     Intention of the Parties.....................................................48

SECTION 14.04.     Headings.....................................................................48

SECTION 14.05.     Successors and Assigns.......................................................48

SECTION 14.06.     Partial Enforceability.......................................................48

SECTION 14.07.     Counterparts.................................................................49
</Table>

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CROSS-REFERENCE TABLE(1)

<Table>
<Caption>
SECTION OF                                                 SECTION OF
TRUST INDENTURE ACT                                        AS AMENDEDDECLARATION
-------------------                                        ---------------------
<S>                                                          <C>
310 .........................................................2.01(c)
310(a).......................................................Inapplicable
310(b).......................................................5.03(c), 5.03(d)
311(a).......................................................2.02(b)
311(b).......................................................2.02(b)
311(c).......................................................Inapplicable
312(a).......................................................Inapplicable
312(b).......................................................2.02(b)
313..........................................................2.03
314..........................................................2.04
314(a).......................................................3.06(j)
314(b).......................................................Inapplicable
314(c).......................................................2.05
314(d).......................................................Inapplicable
314(f).......................................................Inapplicable
315(a).......................................................Inapplicable
315(c).......................................................Inapplicable
315(d).......................................................Inapplicable
316(a).......................................................Inapplicable
316(c).......................................................3.06(e)
317..........................................................2.01(c)
317(b).......................................................3.08(h)
</Table>

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

                                       iv
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                              AMENDED AND RESTATED
                              DECLARATION OF TRUST
                       OF [AMERICAN EQUITY CAPITAL TRUST]
                                     [Date]

     AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration") dated and
effective as of [Date], by the undersigned trustees (together with all other
Persons from time to time duly appointed and serving as trustees in accordance
with the provisions of this Declaration, the "Trustees"), American Equity
Investment Life Holding Company, an Iowa corporation, as trust sponsor (the
"Sponsor"), and by the holders, from time to time, of undivided beneficial
interests in the Trust issued pursuant to this Declaration;

     WHEREAS, the Trustees and the Sponsor established [American Equity Capital
Trust], a trust (the "Trust") under the Statutory Trust Act pursuant to a
Declaration of Trust dated as of March 11, 2004, (the "Original Declaration")
and a Certificate of Trust filed with the Secretary of State of Delaware on
March 11, 2004, for the sole purpose of issuing and selling certain securities
representing undivided beneficial interests in the assets of the Trust and
investing the proceeds thereof in certain Debentures of the Debenture Issuer;

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

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

     NOW, THEREFORE, it being the intention of the parties hereto to continue
the Trust as a statutory trust under the Statutory Trust Act and that this
Declaration constitute the governing instrument of such statutory trust, the
Trustees declare that all assets contributed to the Trust will be held in trust
for the benefit of the holders, from time to time, of the securities
representing undivided beneficial interests in the assets of the Trust issued
hereunder, subject to the provisions of this Declaration.

                                    ARTICLE 1
                         INTERPRETATION AND DEFINITIONS

     SECTION 1.01. DEFINITIONS.

     Unless the context otherwise requires:

     (a) Capitalized terms used in this Declaration but not defined in the
preamble above have the respective meanings assigned to them in this Section
1.01;

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

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

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

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

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

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

     "Agent" means any Registrar, Paying Agent, Conversion Agent or co-
registrar.

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

     "Book Entry Interest" means a beneficial interest in a Global Certificate,
ownership and transfers of which shall be maintained and made through book
entries by a Depositary as described in Section 9.04

     "Business Day" means any day other than a Saturday, Sunday or day on which
banking institutions in New York, New York are authorized or required by law to
close.

     "Certificate" means a certificate in global or definitive form representing
a Common Security or a Preferred Security.

     "Clearing Agency" means an organization registered as a "clearing agency"
pursuant to Section 17A of the Exchange Act which is acting as a securities
depository with respect to the Preferred Securities. The Depository Trust
Company will be the initial Clearing Agency.

     "Closing Date" means [Date].

     "Code" means the Internal Revenue Code of 1986, as amended.

     "Commission" means the Securities and Exchange Commission.

     "Common Securities" has the meaning set forth in Section 7.01(a).

     "Common Securities Guarantee" means the guarantee agreement to be dated as
of [Date], of the Sponsor in respect of the Common Securities.

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

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Holder of Securities.

     "Debenture Issuer" means the Sponsor in its capacity as issuer of the
Debentures.

     "Debenture Trustee" means U.S. Bank National Association, a nationally
chartered banking association, as trustee under the Senior Indenture (as defined
in the definition of "Indenture" herein) until a successor is appointed
thereunder, and thereafter means such successor trustee or U.S. Bank National
Association, a nationally chartered banking association, as trustee under the
Subordinated Indenture (as defined in the definition of "Indenture" herein)
until a successor is appointed thereunder, and thereafter means such successor
trustee.

     "Debentures" means the series of Debentures to be issued by the Debenture
Issuer under the Indenture to be held by the Property Trustee, a specimen
certificate for such series of Debentures being Exhibit B.

     "Definitive Preferred Securities" means the Preferred Securities in
definitive form issued by the Trust.

     "Definitive Preferred Security Certificate" has the meaning set forth in
Section 9.04.

     "Delaware Trustee" has the meaning set forth in Section 5.02.

     "Distribution" means a distribution payable to Holders of Securities in
accordance with Section 6.01.

     "Depositary" means The Depository Trust Company, the initial Clearing
Agency.

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

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Global Certificate" has the meaning set forth in Section 9.04.

     "Holder" means a Person in whose name a Certificate representing a Security
is registered, such Person being a beneficial owner within the meaning of the
Statutory Trust Act.

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

     "Indenture" means either the Senior Indenture dated as of [Date], between
the Debenture Issuer and U.S. Bank National Association, as trustee, and any
indenture

                                        3
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supplemental thereto pursuant to which the Debentures are to be issued (the
"Senior Indenture"), or the Subordinated Indenture, dated as of [Date], between
the Debenture Issuer and U.S. Bank National Association, as trustee, and any
indenture supplemental thereto pursuant to which the Debentures are to be issued
(the "Subordinated Indenture").

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

     "Investment Company Act" means the Investment Company Act of 1940, as
amended.

     "Investment Company Event" means that the Regular Trustees shall have
received an opinion of a nationally recognized independent counsel experienced
in practice under the Investment Company Act to the effect that, as a result of
the occurrence of a change in law or regulation or a written change in
interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority (a "Change in 1940 Act Law"),
there is a more than an insubstantial risk that the Trust is or will be
considered an Investment Company which is required to be registered under the
Investment Company Act, which Change in 1940 Act Law becomes effective on or
after the date of the issuance of the Preferred Securities.

     "Legal Action" has the meaning set forth in Section 3.06(g).

     "Majority in liquidation preference of the Securities" means, except as
provided in the terms of the Preferred Securities and by the Trust Indenture
Act, Holders of outstanding Securities voting together as a single class or, as
the context may require, Holders of outstanding Preferred Securities or Holders
of outstanding Common Securities voting separately as a class, who are the
record owners of more than 50% of the aggregate liquidation preference
(including the stated amount that would be paid on redemption, liquidation or
otherwise, plus accrued and unpaid Distributions to the date upon which the
voting percentages are determined) of all outstanding Securities of the relevant
class.

     "Ministerial Action" has the meaning set forth in the terms of the
Securities as set forth in Annex I.

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

     (a) a statement that each officer signing the Certificate has read the
         covenant or condition and the definition relating thereto;

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

                                        4
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     (c) a statement that each such officer has made such examination or
         investigation as, in such officer's opinion, is necessary to enable
         such officer to express an informed opinion as to whether or not such
         covenant or condition has been complied with; and

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

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

     "Paying Agent" has the meaning specified in Section 7.03.

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

     "Preferred Securities Guarantee" means the guarantee agreement to be dated
as of [Date], of the Sponsor in respect of the Preferred Securities.

     "Preferred Securities" has the meaning specified in Section 7.01(a).

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

     "Property Trustee" means the Trustee meeting the eligibility requirements
set forth in Section 5.03.

     "Property Trustee Account" has the meaning set forth in Section 3.08(c).

     "Prospectus Supplement", as used in Annex I hereto, means the prospectus
supplement, dated as of [Date], relating to the issuance and sale by the Trust
of Preferred Securities.

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

     "Registrar" has the meaning set forth in Section 7.03.

     "Regular Trustee" means any Trustee other than the Property Trustee and the
Delaware Trustee.

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

     "Responsible Officer" means, with respect to the Property Trustee, any
vice-president, any assistant vice-president, the treasurer, any assistant
treasurer, any trust officer or assistant trust officer or any other officer in
the Corporate Trust Department of the Property Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of that officer's knowledge of
and familiarity with the particular subject.

     "Securities" means the Common Securities and the Preferred Securities.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Securities Custodian" means the custodian with respect to the Global
Preferred Security and any other Preferred Security in global form.

     "66-2/3% in liquidation preference of the Securities" means, except as
provided in the terms of the Preferred Securities and by the Trust Indenture
Act, Holders of outstanding Securities voting together as a single class or, as
the context may require, Holders of Preferred Securities or Holders of
outstanding Common Securities voting separately as a class, representing at
least 66-2/3% of the aggregate liquidation preference (including the stated
amount that would be paid on redemption, liquidation or otherwise, plus accrued
and unpaid Distributions, to the date upon which the voting percentages are
determined) of all outstanding Securities of the relevant class.

     "Sponsor" means American Equity Investment Life Holding Company, an Iowa
corporation, or any successor entity in a merger, consolidation or amalgamation,
in its capacity as sponsor of the Trust.

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

     "Successor Delaware Trustee" has the meaning set forth in Section 5.06(c).

     "Successor Property Trustee" has the meaning set forth in Section 5.06(b).

     "Super Majority" has the meaning set forth in Section 2.06(a)(ii).

     "Tax Event" means the Regular Trustees shall have received an opinion of
nationally recognized independent tax counsel experienced in such matters to the
effect that, as a result of (a) any amendment to, or change (including any
announced prospective change) in, the laws (or any regulations thereunder) of
the United States or any political

                                        6
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subdivision or taxing authority thereof or therein or (b) any amendment to or
change in an interpretation or application of such laws or regulations, there is
more than an insubstantial risk that (i) the Trust would be subject to United
States federal income tax with respect to income accrued or received on the
Subordinated Debt Securities, (ii) interest payable to the Trust on the
Subordinated Debt Securities would not be deductible by the Debenture Issuer for
United States federal income tax purposes or (iii) the Trust would be subject to
more than a de minimis amount of other taxes, duties or other governmental
charges.

     "10% in liquidation preference of the Securities" means, except as provided
in the terms of the Preferred Securities or by the Trust Indenture Act, Holders
of outstanding Securities voting together as a single class or, as the context
may require, Holders of outstanding Preferred Securities or Holders of
outstanding Common Securities, voting separately as a class, representing 10% of
the aggregate liquidation preference (including the stated amount that would be
paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined) of
all outstanding Securities of the relevant class.

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

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended.

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

                                    ARTICLE 2
                               TRUST INDENTURE ACT

     SECTION 2.01. TRUST INDENTURE ACT; APPLICATION.

     (a) This Declaration is subject to the provisions of the Trust Indenture
Act that are required to be part of this Declaration, which are incorporated by
reference in and made part of this Indenture and shall, to the extent
applicable, be governed by such provisions.

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

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

                                        7
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     (d) The application of the Trust Indenture Act to this Declaration shall
not affect the nature of the Securities as equity securities representing
undivided beneficial interests in the assets of the Trust.

     SECTION 2.02. LISTS OF HOLDERS OF SECURITIES.

     (a) Each of the Sponsor and the Regular Trustees on behalf of the Trust
shall provide the Property Trustee (i) within 15 days after each record date for
payment of Distributions, a list, in such form as the Property Trustee may
reasonably require, of the names and addresses of the Holders of the Securities
("List of Holders") as of such record date, provided that neither the Sponsor
nor the Regular Trustees on behalf of the Trust shall be obligated to provide
such List of Holders at any time the List of Holders does not differ from the
most recent List of Holders given to the Property Trustee by the Sponsor and the
Regular Trustees on behalf of the Trust, and (ii) at any other time, within 30
days of receipt by the Trust of a written request for a List of Holders as of a
date no more than 15 days before such List of Holders is given to the Property
Trustee. The Property Trustee shall preserve, in as current a form as is
reasonably practicable, all information contained in Lists of Holders given to
it or which it receives in the capacity as Paying Agent (if acting in such
capacity) provided that the Property Trustee may destroy any List of Holders
previously given to it on receipt of a new List of Holders.

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

     SECTION 2.03. REPORTS BY THE PROPERTY TRUSTEE.

     Within 60 days after May 15 of each year, commencing [ ],the Property
Trustee shall provide to the Holders of the Preferred Securities such reports,
if any, as are required by Section 313 of the Trust Indenture Act in the form
and in the manner provided by Section 313 of the Trust Indenture Act. The
Property Trustee shall also comply with the requirements of Section 313(d) of
the Trust Indenture Act.

     SECTION 2.04. PERIODIC REPORTS TO PROPERTY TRUSTEE.

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

     SECTION 2.05. EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT.

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

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officer pursuant to Section 314(c)(1) of the Trust Indenture Act may be given in
the form of an Officers' Certificate.

     SECTION 2.06. EVENTS OF DEFAULT; WAIVER.

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

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

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

     The foregoing provisions of this Section 2.06(a) shall be in lieu of
Section 316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of
the Trust Indenture Act is hereby expressly excluded from this Declaration and
the Securities, as permitted by the Trust Indenture Act. Upon such waiver, any
such default shall cease to exist, and any Event of Default with respect to the
Preferred Securities arising therefrom shall be deemed to have been cured, for
every purpose of this Declaration, but no such waiver shall extend to any
subsequent or other default or an Event of Default with respect to the Preferred
Securities or impair any right consequent thereon. Any waiver by the Holders of
the Preferred Securities of an Event of Default with respect to the Preferred
Securities shall also be deemed to constitute a waiver by the Holders of the
Common Securities of any such Event of Default with respect to the Common
Securities for all purposes of this Declaration without any further act, vote,
or consent of the Holders of the Common Securities.

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

         (i)  is not waivable under the Indenture, except where the Holders of
     the Common Securities are deemed to have waived such Event of Default under
     the Declaration as provided below in this Section 2.06(b), the Event of
     Default under the Declaration shall also not be waivable; or

         (ii) requires the consent or vote of a Super Majority to be waived,
     except where the Holders of the Common Securities are deemed to have

                                        9
<Page>

     waived such Event of Default under the Declaration as provided below in
     this Section 2.06(b), the Event of Default under the Declaration may only
     be waived by the vote of the Holders of at least the proportion in
     liquidation preference of the Preferred Securities that the relevant Super
     Majority represents of the aggregate principal amount of the Debentures
     outstanding;

provided further, each Holder of Common Securities will be deemed to have waived
any such Event of Default and all Events of Default with respect to the Common
Securities and its consequences until all Events of Default with respect to the
Preferred Securities have been cured, waived or otherwise eliminated, and until
such Events of Default have been so cured, waived or otherwise eliminated, the
Property Trustee will be deemed to be acting solely on behalf of the Holders of
the Preferred Securities and only the Holders of the Preferred Securities will
have the right to direct the Property Trustee in accordance with the terms of
the Securities. The foregoing provisions of this Section 2.06(b) shall be in
lieu of Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act and
such Sections 316(a)(1)(A) and 316(a)(1)(B) of the Trust Indenture Act are
hereby expressly excluded from this Declaration and the Securities, as permitted
by the Trust Indenture Act. Subject to the foregoing provisions of this Section
2.06(b), upon such waiver, any such default shall cease to exist and any Event
of Default with respect to the Common Securities arising therefrom shall be
deemed to have been cured for every purpose of this Declaration, but no such
waiver shall extend to any subsequent or other default or Event of Default with
respect to the Common Securities or impair any right consequent thereon.

     (c) A waiver of an Event of Default under the Indenture by the Property
Trustee at the direction of the Holders of the Preferred Securities, constitutes
a waiver of the corresponding Event of Default under this Declaration. The
foregoing provisions of this Section 2.06(c) shall be in lieu of Section
316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of the
Trust Indenture Act is hereby expressly excluded from this Declaration and the
Securities, as permitted by the Trust Indenture Act.

     SECTION 2.07. EVENT OF DEFAULT; NOTICE.

     (a) The Property Trustee shall, within 90 days after the occurrence of an
Event of Default, transmit by mail, first class postage prepaid, to the Holders
of the Securities, notices of all defaults with respect to the Securities known
to the Property Trustee, unless such defaults have been cured before the giving
of such notice (the term "defaults" for the purposes of this Section 2.07(a)
being hereby defined to be an Event of Default as defined in the Indenture, not
including any periods of grace provided for therein and irrespective of the
giving of any notice provided therein); provided that, except for a default in
the payment of principal of (or premium, if any) or interest on any of the
Debentures or in the payment of any sinking fund installment established for the
Debentures, the Property Trustee shall be protected in withholding such notice
if and so long as the board of directors, the executive committee, or a trust
committee of directors and/or Responsible Officers of the Property Trustee in
good faith determines that the withholding of such notice is in the interests of
the Holders of the Securities.

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<Page>

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

         (i)  a default under Section 6.01(a)(1) or 6.01(a)(2) of the Indenture,
     provided that the Property Trustee is also the Paying Agent under the
     Indenture; or

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

                                    ARTICLE 3
                                  ORGANIZATION

     SECTION 3.01. NAME.

     The Trust is named "[American Equity Capital Trust]," as such name may be
modified from time to time by the Regular Trustees following written notice to
the Holders of Securities. The Trust's activities may be conducted under the
name of the Trust or any other name deemed advisable by the Regular Trustees.

     SECTION 3.02. OFFICE.

     The address of the principal office of the Trust is c/o American Equity
Investment Life Holding Company, 5000 Westown Parkway, Suite 440, West Des
Moines, Iowa 50266. On ten Business Days written notice to the Holders of
Securities, the Regular Trustees may designate another principal office.

     SECTION 3.03. PURPOSE.

     The exclusive purposes and functions of the Trust are (a) to issue and sell
Securities and use the proceeds from such sale to acquire the Debentures, and
(b) except as otherwise limited herein, to engage in only those other activities
necessary, or incidental thereto. The Trust shall not borrow money, issue debt
or reinvest proceeds derived from investments, pledge any of its assets, or
otherwise undertake (or permit to be undertaken) any activity that would cause
the Trust not to be classified for United States federal income tax purposes as
a grantor trust.

     SECTION 3.04. AUTHORITY.

     Subject to the limitations provided in this Declaration and to the specific
duties of the Property Trustee, the Regular Trustees shall have exclusive and
complete authority to carry out the purposes of the Trust. An action taken by
the Regular Trustees in accordance with their powers shall constitute the act of
and serve to bind the Trust and an action taken by the Property Trustee in
accordance with its powers shall constitute the act of and serve to bind the
Trust. In dealing with the Trustees acting on behalf of the Trust, no person
shall be required to inquire into the authority of the Trustees to bind the
Trust.

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Persons dealing with the Trust are entitled to rely conclusively on the power
and authority of the Trustees as set forth in this Declaration.

     SECTION 3.05. TITLE TO PROPERTY OF THE TRUST.

     Except as provided in Section 3.08 with respect to the Debentures and the
Property Trustee Account or as otherwise provided in this Declaration, legal
title to all assets of the Trust shall be vested in the Trust. The Holders shall
not have legal title to any part of the assets of the Trust, but shall have an
undivided beneficial interest in the assets of the Trust.

     SECTION 3.06. POWERS AND DUTIES OF THE REGULAR TRUSTEES.

     The Regular Trustees shall have the exclusive power, duty and authority to
cause the Trust to engage in the following activities:

     (a) to issue and sell the Securities in accordance with this Declaration;
provided, however, that the Trust may issue no more than one series of Preferred
Securities and no more than one series of Common Securities, and, provided
further, that there shall be no interests in the Trust other than the
Securities, and the issuance of Securities shall be limited to the simultaneous
issuance of both Preferred Securities and Common Securities on the Closing Date;

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

         (i)  execute and file with the Commission, at such time as determined
     by the Sponsor, a registration statement filed on Form S-3 prepared by the
     Sponsor, including any amendments thereto in relation to the Preferred
     Securities and to take any other action relating to the registration and
     sale of the Preferred Securities under federal and state securities laws;

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

         (iii) execute and file an application, prepared by or on behalf of the
     Sponsor, at such time as determined by the Sponsor, to the New York Stock
     Exchange or any other national stock exchange or the Nasdaq National Market
     for listing or quotation of the Preferred Securities;

         (iv) execute and deliver letters, documents, or instruments with The
     Depository Trust Company and other Clearing Agencies relating to the
     Preferred Securities;

                                       12
<Page>

         (v)  execute and file with the Commission, at such time as determined
     by the Sponsor, a registration statement on Form 8-A, including any
     amendments thereto, prepared by the Sponsor relating to the registration of
     the Preferred Securities under Section 12(b) of the Exchange Act; and

         (vi) execute and enter into the purchase agreement, registration rights
     agreement and other related agreements providing for the sale of the
     Preferred Securities;

     (c) to acquire the Debentures with the proceeds of the sale of the
Securities; provided, however, that the Regular Trustees shall cause legal title
to the Debentures to be held of record in the name of the Property Trustee for
the benefit of the Holders of the Preferred Securities and the Holders or Common
Securities;

     (d) to give the Sponsor and the Property Trustee prompt written notice of
the occurrence of a Tax Event or Investment Company Event; provided that the
Regular Trustees shall consult with the Sponsor and the Property Trustee before
taking or refraining from taking any Ministerial Action in relation to a Tax
Event or Investment Company Event;

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

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

     (g) to bring or defend, pay, collect, compromise, arbitrate, resort to
legal action, or otherwise adjust claims or demands of or against the Trust
("Legal Action"), unless pursuant to Section 3.08(e), the Property Trustee has
the exclusive power to bring such Legal Action;

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

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

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

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

                                       13
<Page>

     (l) to act as, or appoint another Person to act as, registrar and transfer
agent for the Securities;

     (m) to give prompt written notice to the Holders of the Securities of any
notice received from the Debenture Issuer of its election (i) to defer payments
of interest on the Debentures by extending the interest payment period under the
Indenture or (ii) to extend the scheduled maturity date on the Debentures;

     (n) to execute all documents or instruments, perform all duties and powers,
and do all things for and on behalf of the Trust in all matters necessary or
incidental to the foregoing;

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

     (p) to take any action, not inconsistent with this Declaration or with
applicable law, that the Regular Trustees determine in their discretion to be
necessary or desirable in carrying out the activities of the Trust as set out in
this Section 3.06, including, but not limited to:

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

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

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

provided that such action does not adversely affect the interests of Holders;
and

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

     The Regular Trustees must exercise the powers set forth in this Section
3.06 in a manner that is consistent with the purposes and functions of the Trust
set out in Section 3.03, and the Regular Trustees shall not take any action that
is inconsistent with the purposes and functions of the Trust set forth in
Section 3.03.

                                       14
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     Subject to this Section 3.06, the Regular Trustees shall have none of the
powers or the authority of the Property Trustee set forth in Section 3.08.

     SECTION 3.07. PROHIBITION OF ACTIONS BY THE TRUST AND THE TRUSTEES.

     (a) The Trust shall not, and the Trustees (including the Property Trustee)
shall not, engage in any activity other than as required or authorized by this
Declaration. In particular, the Trust shall not and the Trustees (including the
Property Trustee) shall cause the Trust not to:

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

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

         (iii) possess Trust property for other than a Trust purpose;

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

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

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

         (vii) other than as provided in this Declaration or Annex I hereto, (A)
     direct the time, method and place of exercising any trust or power
     conferred upon the Debenture Trustee with respect to the Debentures, (B)
     waive any past default that is waivable under the Indenture, (C) exercise
     any right to rescind or annul any declaration that the principal of all the
     Debentures shall be due and payable, or (D) consent to any amendment,
     modification or termination of the Indenture or the Debentures where such
     consent shall be required unless the Trust shall have received an opinion
     of counsel to the effect that such modification will not cause more than an
     insubstantial risk that for United States Federal income tax purposes the
     Trust will not be classified as a grantor trust or partnership.

     SECTION 3.08. POWERS AND DUTIES OF THE PROPERTY TRUSTEE.

     (a) The legal title to the Debentures shall be owned by and held of record
in the name of the Property Trustee in trust for the benefit of the Holders of
the Securities. The right, title and interest of the Property Trustee to the
Debentures shall vest automatically in each Person who may hereafter be
appointed as Property Trustee in accordance with Section 5.06. Such vesting and
cessation of title shall be effective whether or not conveyancing documents with
regard to the Debentures have been executed and

                                       15
<Page>

delivered.

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

     (c) The Property Trustee shall:

         (i)  establish and maintain a segregated non-interest bearing trust
     account (the "Property Trustee Account") in the name of and under the
     exclusive control of the Property Trustee on behalf of the Holders of the
     Securities and, upon the receipt of payments of funds made in respect of
     the Debentures held by the Property Trustee, deposit such funds into the
     Property Trustee Account and make payments to the Holders of the Preferred
     Securities and Holders of the Common Securities from the Property Trustee
     Account in accordance with Section 6.01. Funds in the Property Trustee
     Account shall be held uninvested until disbursed in accordance with this
     Declaration;

         (ii) engage in such ministerial activities as so directed in writing by
     the Regular Trustees and as shall be necessary or appropriate to effect the
     redemption of the Preferred Securities and the Common Securities to the
     extent the Debentures are redeemed or mature; and

         (iii) upon notice of distribution issued by the Regular Trustees in
     accordance with the terms of the Securities, engage in such ministerial
     activities as so directed in writing by the Regular Trustees as shall be
     necessary or appropriate to effect the distribution of the Debentures to
     Holders of Securities upon the occurrence of certain special events (as may
     be defined in the terms of the Securities) arising from a change in law or
     a change in legal interpretation or other specified circumstances pursuant
     to the terms of the Securities.

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

     (e) The Property Trustee shall take any Legal Action which arises out of or
in connection with an Event of Default of which a Responsible Officer has actual
knowledge or the Property Trustee's duties and obligations under this
Declaration or the Trust Indenture Act.

     (f) The Property Trustee shall only resign as a Trustee in accordance with
Section 5.06(d).

                                       16
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     (g) The Property Trustee shall have the legal power to exercise all of the
rights, powers and privileges of a holder of Debentures under the Indenture and,
if an Event of Default actually known to a Responsible Officer occurs and is
continuing, the Property Trustee shall, for the benefit of Holders of the
Securities, enforce its rights as holder of the Debentures subject to the rights
of the Holders pursuant to the terms of such Securities.

     (h) The Property Trustee will act as Paying Agent and Registrar to pay
Distributions, redemption payments or liquidation payments on behalf of the
Trust with respect to all securities and any such Paying Agent shall comply with
Section 317(b) of the Trust Indenture Act. Any Paying Agent may be removed by
the Property Trustee at any time and a successor Paying Agent or additional
Paying Agents may be appointed at any time by the Property Trustee.

     (i) Subject to this Section 3.08, the Property Trustee shall have none of
the duties, liabilities, powers or the authority of the Regular Trustees set
forth in Section 3.06. The Property Trustee must exercise the powers set forth
in this Section 3.08 in a manner that is consistent with the purposes and
functions of the Trust set out in Section 3.03, and the Property Trustee shall
not take any action that is inconsistent with the purposes and functions of the
Trust set out in Section 3.03.

     SECTION 3.09. CERTAIN DUTIES AND RESPONSIBILITIES OF THE PROPERTY TRUSTEE.

     (a) The Property Trustee, before the occurrence of any Event of Default and
after the curing of all Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically set forth in this
Declaration and no implied covenants shall be read into this Declaration against
the Property Trustee. In case an Event of Default has occurred (that has not
been cured or waived pursuant to Section 2.06), the Property Trustee shall
exercise such of the rights and powers vested in it by this Declaration, and use
the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own
affairs.

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

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

             (A) the duties and obligations of the Property Trustee shall be
         determined solely by the express provisions of this Declaration and
         the Property Trustee shall not be liable except for the performance of
         such

                                       17
<Page>

         duties and obligations as are specifically set forth in this
         Declaration, and no implied covenants or obligations shall be read into
         this Declaration against the Property Trustee; and

             (B) in the absence of bad faith on the part of the Property
         Trustee, the Property Trustee may conclusively rely, as to the truth of
         the statements and the correctness of the opinions expressed therein,
         upon any certificates or opinions furnished to the Property Trustee and
         conforming to the requirements of this Declaration; but in the case of
         any such certificates or opinions that by any provision hereof are
         specifically required to be furnished to the Property Trustee, the
         Property Trustee shall be under a duty to examine the same to determine
         whether or not they conform to the requirements of this Declaration
         (but need not confirm or investigate the accuracy of mathematical
         calculations or other facts stated therein, unless specifically
         required by this Declaration);

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

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

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

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

                                       18
<Page>

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

         (vii) the Property Trustee shall not be liable for any interest on any
     money received by it except as it may otherwise agree with the Sponsor.
     Money held by the Property Trustee need not be segregated from other funds
     held by it except in relation to the Property Trustee Account maintained by
     the Property Trustee pursuant to Section 3.08(c)(i) and except to the
     extent otherwise required by law; and

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

     SECTION 3.10. CERTAIN RIGHTS OF PROPERTY TRUSTEE.

     (a) Subject to the provisions of Section 3.09:

         (i)  the Property Trustee may in absence of bad faith conclusively
     rely, as to the truth of the statements and the correctness of the opinions
     expressed therein, and shall be fully protected in acting or refraining
     from acting upon any resolution, certificate, statement, instrument,
     opinion, report, notice, request, direction, consent, order, bond,
     debenture, note, other evidence of indebtedness or other paper or document
     believed by it to be genuine and to have been signed, sent or presented by
     the proper party or parties;

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

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

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

                                       19
<Page>

     rerecording, refiling or registration thereof;

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

          (vi) the Property Trustee shall be under no obligation to exercise any
     of the rights or powers vested in it by this Declaration at the request or
     direction of any Holder, unless such Holder shall have provided to the
     Property Trustee adequate security and indemnity, reasonably satisfactory
     to the Property Trustee, against the costs, expenses (including reasonable
     attorneys' fees and expenses) and liabilities that might be incurred by it
     in complying with such request or direction, including such reasonable
     advances as may be requested by the Property Trustee provided, that,
     nothing contained in this Section 3.10(a)(iv) shall be taken to relieve the
     Property Trustee, upon the occurrence of an Event of Default, of its
     obligation to exercise the rights and powers vested in it by this
     Declaration;

         (vii) the Property Trustee shall not be bound to make any investigation
     into the facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, direction, consent, order,
     security, bond, debenture, note, other evidence of indebtedness or other
     paper or document, but the Property Trustee, in its discretion, may make
     such further inquiry or investigation into such facts or matters as it may
     see fit and, if the Property Trustee shall determine to make such further
     inquiry or investigation, it shall be entitled, at a time and place
     reasonably determined by the Regular Trustees, to examine the books and
     records of the Trust, personally or by agent or attorney, and shall incur
     no additional liability by reason of such inquiry or investigation;

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

         (ix) any action taken by the Property Trustee or its agents hereunder
     shall bind the Trust and the Holders of the Securities, and the signature
     of the Property Trustee or its agents alone shall be sufficient and
     effective to

                                       20
<Page>

     perform any such action and no third party shall be required to inquire as
     to the authority of the Property Trustee to so act or as to its compliance
     with any of the terms and provisions of this Declaration, both of which
     shall be conclusively evidenced by the Property Trustee's or its agent's
     taking such action;

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

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

         (xii) the rights, privileges, protections, immunities and benefits
     given to the Property Trustee, including, without limitation, its right to
     indemnification, are extended to, and shall be enforceable by, the Property
     Trustee in each of its capacities hereunder, and each agent, custodian and
     other Person employed to act hereunder; and

         (xiii) the Property Trustee may request that the Sponsor deliver an
     Officers' Certificate setting forth the names of individuals and/or titles
     of officers authorized at such time to take specified actions pursuant to
     this Declaration, which Officers' Certificate may be signed by any person
     authorized to sign an Officers' Certificate, including any person specified
     as so authorized in any such certificate previously delivered and not
     superseded.

     (b) No provision of this Declaration shall be deemed to impose any duty or
obligation on the Property Trustee to perform any act or acts or exercise any
right, power, duty or obligation conferred or imposed on it, in any jurisdiction
in which it shall be illegal, or in which the Property Trustee shall be
unqualified or incompetent in accordance with applicable law, to perform any
such act or acts, or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Property Trustee shall be
construed to be a duty.

     SECTION 3.11. DELAWARE TRUSTEE.

     Notwithstanding any other provision of this Declaration other than Section
5.02,

                                       21
<Page>

the Delaware Trustee shall not be entitled to exercise any powers, nor shall the
Delaware Trustee have any of the duties and responsibilities of the Regular
Trustees or the Property Trustee described in this Declaration. Except as set
forth in Section 5.02, the Delaware Trustee shall be a Trustee for the sole and
limited purpose of fulfilling the requirements of Section 3807 of the Statutory
Trust Act.

     SECTION 3.12. EXECUTION OF DOCUMENTS.

     Unless otherwise determined by the Regular Trustees, and except as
otherwise required by the Statutory Trust Act, any Regular Trustee is authorized
to execute on behalf of the Trust any documents that the Regular Trustees have
the power and authority to execute pursuant to Section 3.06; provided that, the
registration statement referred to in Section 3.06(b)(i)), including any
amendments thereto, shall be signed by a majority of the Regular Trustees.

     SECTION 3.13. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

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

     SECTION 3.14. DURATION OF TRUST.

     The Trust, unless terminated pursuant to the provisions of Article 8
hereof, shall exist until 55 years from the date of its formation.

     SECTION 3.15. MERGERS.

     (a) The Trust may not consolidate, amalgamate, merge with or into, or be
replaced by, or convey, transfer or lease its properties and assets
substantially as an entirety to any corporation or other entity or person,
except as described in Section 3.15(b) and 3.15(c).

     (b) The Trust may, with the consent of a majority of the Regular Trustees
and without the consent of the Holders of the Securities, the Delaware Trustee
or the Property Trustee, consolidate, amalgamate, merge with or into, or be
replaced by a trust organized as such under the laws of any State or the
District of Columbia; provided that:

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

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

             (B) substitutes for the Preferred Securities other securities
         having substantially the same terms as the Preferred Securities (the
         "Successor

                                       22
<Page>

         Securities") as long as the Successor Securities rank, with respect to
         participation in the profits and distributions or in the assets of the
         Successor Entity at least as high as the Preferred Securities rank with
         respect to participation in the profits and dividends or in the assets
         of the Trust;

         (ii) the Debenture Issuer expressly acknowledges such Successor Entity
     as the Holder of the Debentures;

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

         (iv) such merger, consolidation, amalgamation or replacement does not
     cause the Preferred Securities (including any Successor Securities) to be
     downgraded by any nationally recognized statistical rating organization;

         (v)  such merger, consolidation, amalgamation or replacement does not
     adversely affect the powers, preferences and other special rights of the
     Holders of the Preferred Securities (including any Successor Securities) in
     any material respect;

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

         (vii) prior to such merger, consolidation, amalgamation or replacement,
     the Sponsor has received an opinion of a nationally recognized independent
     counsel (reasonably acceptable to the Property Trustee) to the Trust
     experienced in such matters to the effect that:

             (A) the Successor Entity will be treated as a grantor trust for
         United States Federal income tax purposes;

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

             (C) such merger, consolidation, amalgamation or replacement will
         not adversely affect the rights, preferences and privileges of the
         Holders of the Securities (including any Successor Securities) in any
         material respect (other than with respect to any dilution of the
         Holders' interest in the new entity); and

         (viii) the Sponsor provides a guarantee to the Holders of the Successor
     Securities with respect to the Successor Entity having substantially the
     same

                                       23
<Page>

     terms as the Preferred Securities Guarantee.

     (c) Notwithstanding Section 3.15(b), the Trust shall not, except with the
consent of Holders of 100% in liquidation preference of the Common Securities,
consolidate, amalgamate, merge with or into, or be replaced by any other entity
or permit any other entity to consolidate, amalgamate, merge with or into, or
replace it if such consolidation, amalgamation, merger or replacement would
cause the Trust or Successor Entity to be classified as other than a grantor
trust for United States Federal income tax purposes.

                                    ARTICLE 4
                                     SPONSOR

     SECTION 4.01. SPONSOR'S PURCHASE OF COMMON SECURITIES.

     On the Closing Date the Sponsor will purchase all the Common Securities
issued by the Trust, in an aggregate liquidation preference equal to 3% of the
total capital of the Trust, at the same time as the Preferred Securities are
sold.

     SECTION 4.02. RESPONSIBILITIES OF THE SPONSOR.

     In connection with the issue and sale of the Preferred Securities, the
Sponsor shall have the exclusive right and responsibility to engage in the
following activities:

     (a) to prepare for filing by the Trust with the Commission the registration
statement on Form S-3, including any amendments thereto;

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

     (c) to prepare for filing by the Trust an application to the New York Stock
Exchange or any other national stock exchange or the Nasdaq National Market for
listing or quotation of the Preferred Securities;

     (d) to prepare for filing by the Trust with the Commission a registration
statement on Form 8-A relating to the registration of the Preferred Securities
under Section 12(b) of the Exchange Act, including any amendments thereto; and

     (e) to negotiate the terms of the purchase agreement, registration rights
agreement and other related agreements providing for the sale of the Preferred
Securities.

                                       24
<Page>

                                    ARTICLE 5
                                    TRUSTEES

     SECTION 5.01. NUMBER OF TRUSTEES.

     The number of Trustees shall initially be [ ], and:

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

     (b) after the issuance of any Securities the number of Trustees may be
increased or decreased by vote of the Holders of a Majority in liquidation
preference of the Common Securities voting as a class at a meeting of the
Holders of the Common Securities; provided that, the number of Trustees shall in
no event be less than two (2); provided further that at least one Trustee shall
be an employee or officer of, or affiliated with, the Sponsor.

     SECTION 5.02. DELAWARE TRUSTEE.

     If required by the Statutory Trust Act, one Trustee (the "Delaware
Trustee") shall be (a) a natural person who is a resident of the State of
Delaware; or (b) if not a natural person,an entity which has its principal place
of business in the State of Delaware, and otherwise meets the requirements of
applicable law; provided that, if the Property Trustee has its principal place
of business in the State of Delaware and otherwise meets the requirements of
applicable law, then the Property Trustee shall also be the Delaware Trustee and
Section 3.11 shall have no application.

     SECTION 5.03. PROPERTY TRUSTEE; ELIGIBILITY.

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

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

         (ii) be a corporation organized and doing business under the laws of
     the United States of America or any State or Territory thereof or of the
     District of Columbia, or a corporation or Person permitted by the
     Commission to act as an institutional trustee under the Trust Indenture
     Act, authorized under such laws to exercise corporate trust powers, having
     a combined capital and surplus of at least 50 million U.S. dollars
     ($50,000,000), and subject to supervision or examination by Federal, State,
     Territorial or District of Columbia authority. If such corporation
     publishes reports of condition at least annually, pursuant to law or to the
     requirements of the supervising or examining authority referred to above,
     then for the purposes of this Section 5.03(a)(ii), the combined capital and
     surplus of such corporation shall be deemed to be its combined capital and
     surplus as set forth in its most recent report of condition so published.

                                       25
<Page>

     (b) If at any time the Property Trustee shall cease to be eligible to so
act under Section 5.03(a), the Property Trustee shall immediately resign in the
manner and with the effect set forth in Section 5.06(c).

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

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

     SECTION 5.04. QUALIFICATIONS OF REGULAR TRUSTEES AND DELAWARE TRUSTEE
                   GENERALLY.

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

     SECTION 5.05. INITIAL TRUSTEES.

     The initial Regular Trustees shall be:

         John M. Matovina
         c/o American Equity Investment Life Holding Company
         5000 Westown Parkway, Suite 440
         West Des Moines, Iowa 50266

         Wendy L. Carlson
         c/o American Equity Investment Life Holding Company
         5000 Westown Parkway, Suite 440
         West Des Moines, Iowa 50266

         Debra J. Richardson
         c/o American Equity Investment Life Holding Company
         5000 Westown Parkway, Suite 440
         West Des Moines, Iowa 50266

     The initial Delaware Trustee shall be:

         U.S. Bank Trust National Association
         300 Delaware Avenue
         Suite 812
         Wilmington, DE 19801

     The initial Property Trustee shall be:

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<Page>

         U.S. Bank National Association
         60 Livingston Avenue
         St. Paul, MN 55107-2292
         Facsimile: 651-495-8097
         Attention: Frank Leslie

     SECTION 5.06. APPOINTMENT, REMOVAL AND RESIGNATION OF TRUSTEES.

     (a) Subject to Section 5.06(b), Trustees may be appointed or removed
without cause at any time:

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

         (ii) after the issuance of any Securities by vote of the Holders of a
     Majority in liquidation preference of the Common Securities voting as a
     class at a meeting of the Holders of the Common Securities.

     (b) The Trustee that acts as Property Trustee shall not be removed in
accordance with Section 5.06(a) until a successor Property Trustee (the
"Successor Property Trustee") has been appointed and has accepted such
appointment by written instrument executed by such Successor Property Trustee
and delivered to the Regular Trustees and the Sponsor; and

     (c) The Trustee that acts as Delaware Trustee shall not be removed in
accordance with this Section 5.06(a) until a successor Trustee possessing the
qualifications to act as Delaware Trustee under Sections 5.02 and 5.04 (a
"Successor Delaware Trustee") has been appointed and has accepted such
appointment by written instrument executed by such Successor Delaware Trustee
and delivered to the Regular Trustees and the Sponsor.

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

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

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

             (B) until the assets of the Trust have been completely liquidated

                                       27
<Page>

         and the proceeds thereof distributed to the Holders of the Securities
         pursuant to the terms of the Securities; and

          (ii) no such resignation of the Trustee that acts as the Delaware
     Trustee shall be effective until a Successor Delaware Trustee has been
     appointed and has accepted such appointment by instrument executed by such
     Successor Delaware Trustee and delivered to the Trust, the Sponsor and the
     resigning Delaware Trustee.

     (e) The Holders of the Common Securities shall use their best efforts to
promptly appoint a Successor Property Trustee or Successor Delaware Trustee, as
the case may be, if the Property Trustee or the Delaware Trustee delivers an
instrument of resignation in accordance with this Section 5.06.

     (f) If no Successor Property Trustee or Successor Delaware Trustee shall
have been appointed and accepted appointment as provided in this Section 5.06
within 60 days after delivery to the Sponsor and the Trust of an instrument of
resignation, the resigning Property Trustee or Delaware Trustee, as applicable,
may petition any court of competent jurisdiction for appointment of a Successor
Property Trustee or Successor Delaware Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper and prescribe, appoint a
Successor Property Trustee or Successor Delaware Trustee, as the case may be.

     SECTION 5.07. VACANCIES AMONG TRUSTEES.

     If a Trustee ceases to hold office for any reason and the number of
Trustees is not reduced pursuant to Section 5.01, or if the number of Trustees
is increased pursuant to Section 5.01, a vacancy shall occur. A resolution
certifying the existence of such vacancy by the Regular Trustees or, if there
are more than two, a majority of the Regular Trustees shall be conclusive
evidence of the existence of such vacancy. The vacancy shall be filled with a
Trustee appointed in accordance with Section 5.06.

     SECTION 5.08. EFFECT OF VACANCIES.

     The death, resignation, retirement, removal, bankruptcy, dissolution,
liquidation, incompetence or incapacity to perform the duties of a Trustee shall
not operate to annul the Trust. Whenever a vacancy in the number of Regular
Trustees shall occur, until such vacancy is filled by the appointment of a
Regular Trustee in accordance with Section 5.06, the Regular Trustees in office,
regardless of their number, shall have all the powers granted to the Regular
Trustees and shall discharge all the duties imposed upon the Regular Trustees by
this Declaration.

     SECTION 5.09. MEETINGS.

     If there is more than one Regular Trustee, meetings of the Regular Trustees
shall be held from time to time upon the call of any Regular Trustee. Regular
meetings of the Regular Trustees may be held at a time and place fixed by
resolution of the Regular

                                       28
<Page>

Trustees. Notice of any in-person meetings of the Regular Trustees shall be hand
delivered or otherwise delivered in writing (including by facsimile, with a hard
copy by overnight courier) not less than 48 hours before such meeting. Notice of
any telephonic meetings of the Regular Trustees or any committee thereof shall
be hand delivered or otherwise delivered in writing (including by facsimile,
with a hard copy by overnight courier) not less than 24 hours before a meeting.
Notices shall contain a brief statement of the time, place and anticipated
purposes of the meeting. The presence (whether in person or by telephone) of a
Regular Trustee at a meeting shall constitute a waiver of notice of such meeting
except where a Regular Trustee attends a meeting for the express purpose of
objecting to the transaction of any activity on the ground that the meeting has
not been lawfully called or convened. Unless provided otherwise in this
Declaration, any action of the Regular Trustees may be taken at a meeting by
vote of a majority of the Regular Trustees present (whether in person or by
telephone) and eligible to vote with respect to such matter, provided that a
Quorum is present, or without a meeting by the unanimous written consent of the
Regular Trustees. In the event that there is only one Regular Trustee, any and
all action of such Regular Trustee shall be evidenced by a written consent of
such Regular Trustee.

     SECTION 5.10. DELEGATION OF POWER.

     (a) Any Regular Trustee may, by power of attorney consistent with
applicable law, delegate to any other natural person over the age of 21 his or
her power for the purpose of executing any documents contemplated in Section
3.06, including any registration statement or amendment thereto filed with the
Commission, or making any other governmental filing; and

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

     SECTION 5.11. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.

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

                                       29
<Page>

                                    ARTICLE 6
                                  DISTRIBUTIONS

     SECTION 6.01. DISTRIBUTIONS.

     Holders shall receive Distributions (as defined herein) in accordance with
the applicable terms of the relevant Holder's Securities. Distributions shall be
made on the Preferred Securities and the Common Securities in accordance with
the preferences set forth in their respective terms. If and to the extent that
the Debenture Issuer makes a payment of interest (including Defaulted Interest
(as defined in the Indenture)) premium and principal on the Debentures held by
the Property Trustee (the amount of any such payment being a "Payment Amount"),
the Property Trustee shall and is directed, to the extent funds are available
for that purpose, to make a distribution (a "Distribution") of the Payment
Amount to Holders.

                                    ARTICLE 7
                             ISSUANCE OF SECURITIES

     SECTION 7.01. GENERAL PROVISIONS REGARDING SECURITIES.

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

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

     (c) Upon issuance of the Securities as provided in this Declaration, the
Securities so issued shall be deemed to be validly issued, fully paid and non-
assessable, subject to Section 10.01 with respect to the Common Securities.

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

     SECTION 7.02. EXECUTION AND AUTHENTICATION.

     (a) The Securities shall be signed on behalf of the Trust by one Regular
Trustee. In case any Regular Trustee of the Trust who shall have signed any of
the Securities shall cease to be such Regular Trustee before the Securities so
signed shall be delivered by the

                                       30
<Page>

Trust, such Securities nevertheless may be delivered as though the person who
signed such Securities had not ceased to be such Regular Trustee; and any
Securities may be signed on behalf of the Trust by such persons who, at the
actual date of execution of such Security, shall be the Regular Trustees of the
Trust, although at the date of the execution and delivery of the Declaration any
such person was not such a Regular Trustee.

     (b) One Regular Trustee shall sign the Preferred Securities for the Trust
by manual or facsimile signature. Unless otherwise determined by the Trust, such
signature shall, in the case of Common Securities, be a manual signature.

     A Preferred Security shall not be valid until authenticated by the manual
signature of an authorized officer of the Property Trustee. The signature shall
be conclusive evidence that the Preferred Security has been authenticated under
this Declaration.

     Upon a written order of the Trust signed by one Regular Trustee, the
Property Trustee shall authenticate the Preferred Securities for original issue
in accordance with paragraph 5 of the Securities. The aggregate number of
Preferred Securities outstanding at any time shall not exceed the number set
forth in the Terms in Annex A hereto except as provided in Section 9.08.

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

     SECTION 7.03. REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

     In the event that the Preferred Securities are not in book-entry only form,
the Trust shall maintain (i) an office or agency where Preferred Securities may
be presented for registration of transfer or exchange ("Registrar"), and (ii) an
office or agency where Preferred Securities may be presented for payment
("Paying Agent"). The Registrar shall keep a register of the Preferred
Securities and of their transfer and exchange. The Trust may appoint the
Registrar, the Paying Agent and the Conversion Agent and may appoint one or more
co-registrars, one or more additional paying agents and one or more additional
conversion agents in such other locations as it shall determine. The term
"Paying Agent" includes any additional paying agent. The Trust may change any
Paying Agent, Registrar or co-registrar without prior notice to any Holder. The
Trust shall notify the Property Trustee of the name and address of any Agent not
a party to this Declaration. If the Trust fails to appoint or maintain another
entity as Registrar or Paying Agent, the Property Trustee shall act as such. The
Trust or any of its Affiliates may act as Paying Agent or Registrar. The Trust
shall act as Paying Agent, Registrar or co-registrar for the Common Securities.

     The Trust initially appoints the Property Trustee as Registrar and Paying
Agent for the Preferred Securities.

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<Page>

     SECTION 7.04. PAYING AGENT TO HOLD MONEY IN TRUST.

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

     SECTION 7.05. OUTSTANDING PREFERRED SECURITIES.

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

     If a Preferred Security is replaced pursuant to Section 9.08, it ceases to
be outstanding unless the Property Trustee receives proof satisfactory to it
that the replaced Preferred Security is held by a bona fide purchaser.

     If Preferred Securities are considered paid in accordance with the terms of
this Declaration, they cease to be outstanding and interest on them ceases to
accrue.

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

     SECTION 7.06. PREFERRED SECURITIES IN TREASURY.

     In determining whether the Holders of the required amount of Securities
have concurred in any direction, waiver or consent, Preferred Securities owned
by the Trust, the Sponsor or an Affiliate of the Sponsor, as the case may be,
shall be disregarded and deemed not to be outstanding, except that for the
purposes of determining whether the Property Trustee shall be protected in
relying on any such direction, waiver or consent, only Securities which a
Responsible Officer of the Property Trustee knows are so owned shall be so
disregarded.

     SECTION 7.07. CANCELLATION.

     The Trust at any time may deliver Preferred Securities to the Property
Trustee for cancellation. The Registrar, Paying Agent and Conversion Agent shall
forward to the Property Trustee any Preferred Securities surrendered to them for
registration of transfer,

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<Page>

redemption, conversion, exchange or payment. The Property Trustee shall promptly
cancel all Preferred Securities, surrendered for registration of transfer,
redemption, conversion, exchange, payment, replacement or cancellation and shall
dispose of cancelled Preferred Securities in accordance with its customary
procedures for the disposition of cancelled securities in effect at the time of
such cancellation. The Trust may not issue new Preferred Securities to replace
Preferred Securities that it has paid or that have been delivered to the
Property Trustee for cancellation or that any holder has converted.

     SECTION 7.08. CUSIP NUMBERS

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

                                    ARTICLE 8
                              TERMINATION OF TRUST

     SECTION 8.01. TERMINATION OF TRUST.

     (a) The Trust shall terminate upon the earliest to occur of the following:

         (i)  the bankruptcy of the Holder of the Common Securities or the
     Sponsor;

         (ii) the filing of a certificate of dissolution or its equivalent with
     respect to the Holder of the Common Securities or the Sponsor; the filing
     of a certificate of cancellation with respect to the Trust or the
     revocation of the charter of the Holder of the Common Securities or the
     Sponsor and the expiration of 90 days after the date of revocation without
     a reinstatement thereof;

         (iii) the entry of a decree of judicial dissolution of the Holder of
     the Common Securities, the Sponsor or the Trust;

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

         (v)  the occurrence and continuation of a Tax Event or Investment
     Company Event pursuant to which the Trust shall have been dissolved in
     accordance with the terms of the Securities and all of the Debentures

                                       33
<Page>

     endorsed thereon shall have been distributed to the Holders of Securities
     in exchange for all of the Securities; or

         (vi) the expiration of the term of the Trust on 55 years from the date
     of its formation.

     (b) As soon as is practicable after the occurrence of an event referred to
in Section 8.01(a)), the Trustees shall file a certificate of cancellation with
the Secretary of State of the State of Delaware.

     (c) The provisions of Section 3.09 and Article 10 shall survive the
termination of the Trust.

                                    ARTICLE 9
                              TRANSFER AND EXCHANGE

     SECTION 9.01. GENERAL.

     (a) Where Preferred Securities are presented to the Registrar or a
co-registrar with a request to register a transfer or to exchange them for an
equal number of Preferred Securities represented by different certificates, the
Registrar shall register the transfer or make the exchange if its requirements
for such transactions are met. To permit registrations of transfers and
exchanges, the Trust shall issue and the Property Trustee shall authenticate
Preferred Securities at the Registrar's request.

     (b) Securities may only be transferred, in whole or in part, in accordance
with the terms and conditions set forth in this Declaration and in the terms of
the Securities. Any transfer or purported transfer of any Security not made in
accordance with this Declaration shall be null and void.

     Subject to this Article 9, the Sponsor and any Related Party may only
transfer Common Securities to the Sponsor or a Related Party of the Sponsor;
provided that, any such transfer is subject to the condition precedent that the
transferor obtain the written opinion of nationally recognized independent
counsel experienced in such matters that such transfer would not cause more than
an insubstantial risk that:

         (i)  the Trust would not be classified for United States federal income
     tax purposes as a grantor trust; and

         (ii) the Trust would be an Investment Company or the transferee would
     become an Investment Company.

     (c) The Regular Trustees shall provide for the registration of Securities
and of transfers of Securities, which will be effected without charge but only
upon payment (with such indemnity as the Regular Trustees may require) in
respect of any tax or other governmental charges that may be imposed in relation
to it. Upon surrender for registration of transfer of any Securities, the
Regular Trustees shall cause one or more

                                       34
<Page>

new Securities to be issued in the name of the designated transferee or
transferees. Every Security surrendered for registration of transfer shall be
accompanied by a written instrument of transfer in form satisfactory to the
Regular Trustees duly executed by the Holder or such Holder's attorney duly
authorized in writing. Each Security surrendered for registration of transfer
shall be canceled by the Regular Trustees. A transferee of a Security shall be
entitled to the rights and subject to the obligations of a Holder hereunder upon
the receipt by such transferee of a Security. By acceptance of a Security, each
transferee shall be deemed to have agreed to be bound by this Declaration.

     (d) The Trust shall not be required (i) to issue, register the transfer of,
or exchange, Preferred Securities during a period beginning at the opening of
business 15 days before the day of any selection of Preferred Securities for
redemption set forth in the terms and ending at the close of business on the day
of selection, or (ii) to register the transfer or exchange of any Preferred
Security so selected for redemption in whole or in part, except the unredeemed
portion of any Preferred Security being redeemed in part.

     SECTION 9.02. TRANSFER OF CERTIFICATES.

     The Regular Trustees shall provide for the registration of Certificates and
of transfers of Certificates, which will be effected without charge but only
upon payment (with such indemnity as the Regular Trustees may require) in
respect of any tax or other government charges that may be imposed in relation
to it. Upon surrender for registration of transfer of any Certificate, the
Regular Trustees shall cause one or more new Certificates to be issued in the
name of the designated transferee or transferees. Every Certificate surrendered
for registration of transfer shall be accompanied by a written instrument of
transfer in form satisfactory to the Regular Trustees duly executed by the
Holder or such Holder's attorney duly authorized in writing. Each Certificate
surrendered for registration of transfer shall be cancelled by the Regular
Trustees. A transferee of a Certificate shall be entitled to the rights and
subject to the obligations of a Holder hereunder upon the receipt by such
transferee of a Certificate. By acceptance of a Certificate, each transferee
shall be deemed to have agreed to be bound by this Declaration.

     SECTION 9.03. DEEMED SECURITY HOLDERS.

     The Trustees may treat the Person in whose name any Certificate shall be
registered on the books and records of the Trust as the sole holder of such
Certificate and of the Securities represented by such Certificate for purposes
of receiving Distributions and for all other purposes whatsoever and,
accordingly, shall not be bound to recognize any equitable or other claim to or
interest in such Certificate or in the Securities represented by such
Certificate on the part of any Person, whether or not the Trust, the Property
Trustee, the Registrar or an co-registrar shall have actual or other notice
thereof.

     SECTION 9.04. BOOK ENTRY INTERESTS.

     Unless otherwise specified in the terms of the Preferred Securities, the
Preferred Securities Certificates, on original issuance, will be issued in the
form of one or more,

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<Page>

fully registered, global Preferred Security Certificates (each a "Global
Certificate"), to be delivered to the Depositary, the initial Clearing Agency,
by, or on behalf of, the Trust. Such Global Certificates shall initially be
registered on the books and records of the Trust in the name of Cede & Co., the
nominee of the Depositary, and no Preferred Security Beneficial Owner will
receive a Definitive Preferred Security Certificate representing such Preferred
Security Beneficial Owner's interests in such Global Certificates, except as
provided in Section 9.07 . Unless and until definitive, fully registered
Preferred Security Certificates (the "Definitive Preferred Security
Certificates") have been issued to the Preferred Security Beneficial Owners
pursuant to Section 9.07:

     (a) the provisions of this Section 9.04 shall be in full force and effect;

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

     (c) to the extent that the provisions of this Section 9.04 conflict with
any other provisions of this Declaration, the provisions of this Section 9.04
shall control; and

     (d) the rights of the Preferred Security Beneficial Owners shall be
exercised only through the Clearing Agency and shall be limited to those
established by law and agreements between such Preferred Security Beneficial
Owners and the Clearing Agency and/or the Participants and receive and transmit
payments of Distributions on the Global Certificates to such Participants. The
Clearing Agency will make book entry transfers among the Participants.

     SECTION 9.05. NOTICES TO CLEARING AGENCY.

     Whenever a notice or other communication to the Preferred Security Holders
is required under this Declaration, unless and until Definitive Preferred
Security Certificates shall have been issued to the Preferred Security
Beneficial Owners pursuant to Section 9.07, the Regular Trustees shall give all
such notices and communications specified herein to be given to the Preferred
Security Holders to the Clearing Agency, and shall have no notice obligations to
the Preferred Security Beneficial Owners.

     SECTION 9.06. APPOINTMENT OF SUCCESSOR CLEARING AGENCY.

     If any Clearing Agency elects to discontinue its services as securities
depositary with respect to the Preferred Securities, the Regular Trustees may,
in their sole discretion, appoint a successor Clearing Agency with respect to
such Preferred Securities.

     SECTION 9.07. DEFINITIVE PREFERRED SECURITY CERTIFICATES.

     If:

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<Page>

     (a) a Clearing Agency notifies the Sponsor and the Trust that it elects to
discontinue its services as securities depositary with respect to the Preferred
Securities or if at any time such Clearing Agency ceases to be a "clearing
agency" registered under the Exchange Act and a successor Clearing Agency is not
appointed within 90 days after such discontinuance pursuant to Section 9.06; or

     (b) the Regular Trustees elect after consultation with the Sponsor and the
Trust to terminate the book entry system through the Clearing Agency with
respect to the Preferred Securities, then:

         (i)  Definitive Preferred Security Certificates shall be prepared by
     the Regular Trustees on behalf of the Trust with respect to such Preferred
     Securities; and

         (ii) Upon surrender of the Global Certificates by the Clearing Agency,
     accompanied by registration instructions, the Regular Trustees shall cause
     Definitive Preferred Security Certificates to be delivered to Preferred
     Security Beneficial Owners in accordance with the instructions of the
     Clearing Agency. Neither the Trustees nor the Trust shall be liable for any
     delay in delivery of such instructions and each of them may conclusively
     rely on and shall be protected in relying on, said instructions of the
     Clearing Agency. The Definitive Preferred Security Certificates shall be
     printed, lithographed or engraved or may be produced in any other manner as
     is reasonably acceptable to the Regular Trustees, as evidenced by their
     execution thereof, and may have such letters, numbers or other marks of
     identification or designation and such legends or endorsements as the
     Regular Trustees may deem appropriate, or as may be required to comply with
     any law or with any rule or regulation made pursuant thereto or with any
     rule or regulation of any stock exchange on which Preferred Securities may
     be listed, or to conform to usage.

     SECTION 9.08. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

     If:

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

     (b) there shall be delivered to the Regular Trustees, the Property Trustee
and any Registrar such security or indemnity as may be required by them to keep
each of them and the Trust harmless, then, in the absence of notice that such
Certificate shall have been acquired by a bona fide purchaser, any Regular
Trustee on behalf of the Trust shall execute and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like denomination. In connection with the issuance of any new
Certificate under this Section 9.08, the Regular Trustees may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be

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<Page>

imposed in connection therewith. Any duplicate Certificate issued pursuant to
this Section 9.08 shall constitute conclusive evidence of an ownership interest
in the relevant Securities, as if originally issued, whether or not the lost,
stolen or destroyed Certificate shall be found at any time.

                                   ARTICLE 10
      LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

     SECTION 10.01.          LIABILITY.

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

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

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

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

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

     SECTION 10.02.          EXCULPATION.

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

     (b) An Indemnified Person shall be fully protected in relying in good faith
upon the records of the Trust and upon such information, opinions, reports or
statements presented to the Trust by any Person as to matters the Indemnified
Person reasonably believes are within such other Person's professional or expert
competence and who has

                                       38
<Page>

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

     SECTION 10.03.          FIDUCIARY DUTY.

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

     (b) Unless otherwise expressly provided herein:

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

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

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

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

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

         (ii) in its "good faith" or under another express standard, the

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<Page>

     Indemnified Person shall act under such express standard and shall not be
     subject to any other or different standard imposed by this Declaration or
     by applicable law.

     SECTION 10.04.          INDEMNIFICATION.

     (a) To the fullest extent permitted by applicable law, the Sponsor shall
indemnify and hold harmless each Indemnified Person from and against any loss,
damage, liability, tax, penalty, expense or claim of any kind or nature
whatsoever incurred by such Indemnified Person by reason of the creation,
operation or termination of the Trust or any act or omission performed or
omitted by such Indemnified Person in good faith on behalf of the Trust and in a
manner such Indemnified Person reasonably believed to be within the scope of
authority conferred on such Indemnified Person by this Declaration, except that
no Indemnified Person shall be entitled to be indemnified in respect of any
loss, damage or claim incurred by such Indemnified Person by reason of gross
negligence (or, in the case of the Property Trustee, negligence) or willful
misconduct with respect to such acts or omissions.

     (b) To the fullest extent permitted by applicable law, reasonable expenses
(including reasonable legal fees and expenses) incurred by an Indemnified Person
in defending any claim, demand, action, suit or proceeding shall, from time to
time, be advanced by the Sponsor prior to the final disposition of such claim,
demand, action, suit or proceeding upon receipt by the Sponsor of an undertaking
by or on behalf of the Indemnified Person to repay such amount if it shall be
determined that the Indemnified Person is not entitled to be indemnified as
authorized in Section 10.04(a). The indemnification shall survive the
termination of this Declaration.

     SECTION 10.05.          OUTSIDE BUSINESSES.

     Any Covered Person, the Sponsor, the Delaware Trustee and the Property
Trustee may engage in or possess an interest in other business ventures of any
nature or description, independently or with others, similar or dissimilar to
the business of the Trust, and the Trust and the Holders of Securities shall
have no rights by virtue of this Declaration in and to such independent ventures
or the income or profits derived therefrom and the pursuit of any such venture,
even if competitive with the business of the Trust, shall not be deemed wrongful
or improper. No Covered Person, the Sponsor, the Delaware Trustee, or the
Property Trustee shall be obligated to present any particular investment or
other opportunity to the Trust even if such opportunity is of a character that,
if presented to the Trust, could be taken by the Trust, and any Covered Person,
the Sponsor, the Delaware Trustee and the Property Trustee shall have the right
to take for its own account (individually or as a partner or fiduciary) or to
recommend to others any such particular investment or other opportunity. Any
Covered Person, the Delaware Trustee and the Property Trustee may engage or be
interested in any financial or other transaction with the Sponsor or any
Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or
act on any committee or body of holders of, securities or other obligations of
the Sponsor or its Affiliates.

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<Page>

         SECTION 10.06.      COMPENSATION.

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

     The provisions of this Section shall survive the termination of this
Declaration, the dissolution of the Trust and the resignation or removal of the
Property Trustee or Delaware Trustee.

                                   ARTICLE 11
                                   ACCOUNTING

     SECTION 11.01.          FISCAL YEAR.

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

     SECTION 11.02.          CERTAIN ACCOUNTING MATTERS.

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

     (b) The Regular Trustees shall cause to be prepared and delivered to each
of the Holders of Securities, within 90 days after the end of each Fiscal Year
of the Trust, annual financial statements of the Trust, including a balance
sheet of the Trust as of the end of such Fiscal Year, and the related statements
of income or loss;

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

     (d) The Regular Trustees shall cause to be duly prepared and filed with the
appropriate taxing authority, an annual United States federal income tax return,
on a

                                       41
<Page>

Form 1041 or such other form required by United States federal income tax
law, and any other annual income tax returns required to be filed by the Regular
Trustees on behalf of the Trust with any state or local taxing authority.

     SECTION 11.03.          BANKING.

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

     SECTION 11.04.          WITHHOLDING.

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

                                   ARTICLE 12
                             AMENDMENTS AND MEETINGS

     SECTION 12.01.          AMENDMENTS.

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

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

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

                                       42
<Page>

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

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

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

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

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

             (B) an opinion of counsel (who may be counsel to the Sponsor or the
         Trust) that such amendment is permitted by, and conforms to, the terms
         of this Declaration (including the terms of the Securities); and

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

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

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

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

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

     (d) Section 9.01(c) and this Section 12.01 shall not be amended without the
consent of all of the Holders of the Securities;

     (e) Article 4 shall not be amended without the consent of the Holders of a
Majority in liquidation preference of the Common Securities and;

                                       43
<Page>

     (f) the rights of the holders of the Common Securities under Article 5 to
increase or decrease the number of, and appoint and remove Trustees shall not be
amended without the consent of the Holders of a Majority in liquidation
preference of the Common Securities; and

     (g) notwithstanding Section 12.01(c), this Declaration may be amended
without the consent of the Holders of the Securities to:

         (i)  cure any ambiguity;

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

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

         (iv) conform to any change in Rule 3a-5 or written change in
     interpretation or application of Rule 3a-5 by any legislative body, court,
     government agency or regulatory authority which amendment does not have a
     material adverse effect on the rights, preferences or privileges of the
     Holders; and

         (v)  cause the Trust to continue to be classified for United States
     federal income tax purposes as a grantor trust.

     SECTION 12.02.          MEETINGS OF THE HOLDERS OF SECURITIES; ACTION BY
                  WRITTEN CONSENT.

     (a) Meetings of the Holders of any class of Securities may be called at any
time by the Regular Trustees (or as provided in the terms of the Securities) to
consider and act on any matter on which Holders of such class of Securities are
entitled to act under the terms of this Declaration, the terms of the Securities
or the rules of any stock exchange on which the Preferred Securities are listed
or admitted for trading. The Regular Trustees shall call a meeting of the
Holders of such class if directed to do so by the Holders of at least 10% in
liquidation preference of such class of Securities. Such direction shall be
given by delivering to the Regular Trustees one or more requests in a writing
stating that the signing Holders of Securities wish to call a meeting and
indicating the general or specific purpose for which the meeting is to be
called. Any Holders of Securities calling a meeting shall specify in writing the
Certificates held by the Holders of Securities exercising the right to call a
meeting and only those Securities represented by the Certificates so specified
shall be counted for purposes of determining whether the required percentage set
forth in the second sentence of this paragraph has been met.

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

         (i)  notice of any such meeting shall be given to all the Holders of
     Securities having a right to vote thereat at least 7 days and not more than

                                       44
<Page>

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

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

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

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

                                   ARTICLE 13

                                       45
<Page>

            REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE

     SECTION 13.01.          REPRESENTATIONS AND WARRANTIES OF PROPERTY TRUSTEE.

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

     (a) The Property Trustee is a banking corporation with trust powers, duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, with corporate power and authority to execute
and deliver, and to carry out and perform its obligations under the terms of,
the Declaration.

     (b) The Property Trustee satisfies the requirements set forth in
Section 5.03(a).

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

     (d) The execution, delivery and performance of the Declaration by the
Property Trustee does not conflict with or constitute a breach of the
certificate of incorporation or By-laws of the Property Trustee.

     (e) No consent, approval or authorization of, or registration with or
notice to, any State or Federal banking authority is required for the execution,
delivery or performance by the Property Trustee, of the Declaration.

     SECTION 13.02.          REPRESENTATIONS AND WARRANTIES OF DELAWARE TRUSTEE.

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

     (a) The Delaware Trustee is a banking corporation with trust powers, duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, with corporate power and authority to execute
and deliver, and to carry out

                                       46
<Page>

and perform its obligations under the terms of, the Declaration.

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

     (c) The execution, delivery and performance of the Declaration by the
Delaware Trustee does not conflict with or constitute a breach of the
certificate of incorporation or By-laws of the Delaware Trustee.

     (d) No consent, approval or authorization of, or registration with or
notice to, any State or Federal banking authority is required for the execution,
delivery or performance by the Delaware Trustee, of the Declaration.

     (e) The Delaware Trustee is an entity which has its principal place of
business in the State of Delaware.

     (f) The Delaware Trustee has been authorized to perform its obligations
under the Certificate of Trust and the Declaration. The Declaration under
Delaware law constitutes a legal, valid and binding obligation of the Delaware
Trustee, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, reorganization, moratorium, insolvency, and other similar
laws affecting creditors' rights generally and to general principles of equity
and the discretion of the court (regardless of whether the enforcement of such
remedies is considered in a proceeding in equity or at law).

                                   ARTICLE 14
                                  MISCELLANEOUS

     SECTION 14.01.          NOTICES.

     All notices provided for in this Declaration shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or
mailed by registered or certified mail, as follows:

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

         c/o American Equity Investment Life Holding Company
         5000 Westown Parkway, Suite 440
         West Des Moines, Iowa 50266

                                       47
<Page>

         Attention:  General Counsel

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

         U.S. Bank National Association
         60 Livingston Avenue
         St. Paul, MN 55107-2292
         Facsimile: 651-495-8097
         Attention: Frank Leslie

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

         U.S. Bank Trust National Association
         60 Livingston Avenue
         St. Paul, MN 55107-2292
         Facsimile: 651-495-8097
         Attention: Frank Leslie

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

    American Equity Investment Life Holding Company
         5000 Westown Parkway, Suite 440
         West Des Moines, Iowa 50266
         Attention: General Counsel

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

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

     SECTION 14.02.          GOVERNING LAW.

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

     SECTION 14.03.          INTENTION OF THE PARTIES.

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

                                       48
<Page>

     SECTION 14.04.          HEADINGS.

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

     SECTION 14.05.          SUCCESSORS AND ASSIGNS.

     Whenever in this Declaration any of the parties hereto is named or referred
to, the successors and assigns of such party shall be deemed to be included, and
all covenants and agreements in this Declaration by the Sponsor and the Trustees
shall bind and inure to the benefit of their respective successors and assigns,
whether so expressed.

     SECTION 14.06.          PARTIAL ENFORCEABILITY.

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

     SECTION 14.07.          COUNTERPARTS.

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

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

                             ----------------------------------------
                             John M. Matovina,
                             as Trustee

                             ----------------------------------------
                             Wendy L. Carlson,
                             as Trustee

                             ----------------------------------------
                             Debra J. Richardson,
                             as Trustee

                                       49
<Page>

                             U.S. BANK TRUST NATIONAL ASSOCIATION,
                             as Delaware Trustee

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

                             U.S. BANK NATIONAL ASSOCIATION,
                             as Property Trustee

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

                             AMERICAN EQUITY INVESTMENT
                             LIFE HOLDING COMPANY
                             as Sponsor

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

                                       50
<Page>

                                                                         ANNEX I

                                    TERMS OF
                           [___]% PREFERRED SECURITIES
                            [___] % COMMON SECURITIES

       Pursuant to Section 7.01 of the Amended and Restated Declaration of
Trust, dated as of [Date] (as amended from time to time, the "Declaration"), the
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Preferred Securities and the Common Securities are set out
below (each capitalized term used but not defined herein has the meaning set
forth in the Declaration or, if not defined in such Declaration, as defined in
the Prospectus Supplement referred to below):

1.   Designation and Number.

         (a)  Preferred Securities. [_______] Preferred Securities of the Trust
              with an aggregate liquidation preference with respect to the
              assets of the Trust of [__________] Dollars ($[_________])[, plus
              up to an additional [______________] Preferred Securities of the
              Trust with an aggregate liquidation preference with respect to the
              assets of the Trust of [______________] Dollars ($[________])
              solely to cover over-allotments, as provided for in the
              underwriting agreement (the "Additional Preferred Securities"),]
              and a liquidation preference with respect to the assets of the
              Trust of $[ ] per Preferred Security, are hereby designated for
              the purposes of identification only as "[___]% Preferred
              Securities" (the "Preferred Securities"). The Preferred Security
              Certificates evidencing the Preferred Securities shall be
              substantially in the form attached hereto as Exhibit A-1, with
              such changes and additions thereto or deletions therefrom as may
              be required by ordinary usage, custom or practice or to conform to
              the rules of any stock exchange or other organization on which the
              Preferred Securities are listed.

         (b)  Common Securities. [_____] Common Securities of the Trust with an
              aggregate liquidation preference with respect to the assets of the
              Trust of [_______________________] Dollars ($[________])[, plus up
              to an additional [____] Common Securities of the Trust with an
              aggregate liquidation preference with respect to the assets of the
              Trust of [____________________] Dollars ($[_______]) to meet the
              capital requirements of the Trust in the event of an issuance of
              Additional Preferred Securities,] and a liquidation amount with
              respect to the assets of the Trust of $[__] per Common Security,
              are hereby designated for the purposes of identification only as
              "[___]% Common Securities" (the "Common Securities"). The Common
              Security Certificates evidencing the Common Securities shall be
              substantially in the form attached hereto as Exhibit A-2,

                                       I-1
<Page>

              with such changes and additions thereto or deletions therefrom as
              may be required by ordinary usage, custom or practice.

2.   Distributions.

         (a)  Distributions payable on each Security will be fixed at a rate per
              annum of [___]% (the "Coupon Rate") of the stated liquidation
              amount of $[__] per Security, such rate being the rate of interest
              payable on the Debentures to be held by the Property Trustee.
              Distributions in arrears for more than one [semi-annual period]
              [quarter] will bear interest thereon compounded [semi-annually]
              [quarterly] at the Coupon Rate (to the extent permitted by
              applicable law). The term "Distributions" as used herein includes
              such cash distributions and any such interest payable unless
              otherwise stated. A Distribution is payable only to the extent
              that payments are made in respect of the Debentures held by the
              Property Trustee and to the extent the Property Trustee has funds
              available therefor. The amount of Distributions payable for any
              period will be computed for any full [semi-annually] [quarterly]
              Distribution period on the basis of a 360- day year of twelve
              30-day months, and for any period shorter than a full
              [semi-annually] [quarterly] Distribution period for which
              Distributions are computed, Distributions will be computed on the
              basis of the actual number of days elapsed per 30-day month.

         (b)  Distributions on the Securities will be cumulative, will accrue
              from the date of original issuance and will be payable
              [semi-annually] [quarterly] in arrears, on the following dates,
              which dates correspond to the interest payment dates on the
              Debentures: [_________], of each year, commencing on
              [________________], except as otherwise described below. The
              Debenture Issuer has the right under the Indenture to defer
              payments of interest by extending the interest payment period from
              time to time on the Debentures for a period not exceeding
              [_________] consecutive [semi-annual periods] [quarters] (each an
              "Extension Period") and, as a consequence of such deferral,
              Distributions will also be deferred. Despite such deferral,
              [semi-annually] [quarterly] Distributions will continue to accrue
              with interest thereon (to the extent permitted by applicable law)
              at the Coupon Rate compounded [semi-annually] [quarterly] during
              any such Extension Period. Prior to the termination of any such
              Extension Period, the Debenture Issuer may further extend such
              Extension Period; provided that such Extension Period together
              with all such previous and further extensions thereof may not
              exceed [_________] consecutive [semi-annual periods] [quarters].
              Payments of accrued Distributions will be payable to Holders as
              they appear on the books and records of the Trust on the first
              record date after the end of the Extension Period. Upon the
              termination of any Extension Period and the payment of all amounts
              then due, the Debenture Issuer may commence a new Extension
              Period, subject to the above requirements.

         (c)  Distributions on the Securities will be payable to the Holders
              thereof as they

                                       I-2
<Page>

              appear on the books and records of the Trust on the relevant
              record dates. The relevant record dates shall be 15 days prior to
              the relevant payment dates, except as otherwise described in this
              Annex I to the Declaration. Subject to any applicable laws and
              regulations and the provisions of the Declaration, each such
              payment in respect of Preferred Securities being held in
              book-entry form through The Depository Trust Company (the
              "Depositary") will be made as described under the heading
              ["Description of the Preferred Securities -- Book-Entry Only
              Issuance-- The Depository Trust Company"] in the Prospectus
              Supplement. The relevant record dates for the Common Securities
              shall be the same record dates as for the Preferred Securities.
              Distributions payable on any Securities that are not punctually
              paid on any Distribution payment date, as a result of the
              Debenture Issuer having failed to make a payment under the
              Debentures, will cease to be payable to the Person in whose name
              such Securities are registered on the relevant record date, and
              such defaulted Distribution will instead be payable to the Person
              in whose name such Securities are registered on the special record
              date or other specified date determined in accordance with the
              Indenture. If any date on which Distributions are payable on the
              Securities is not a Business Day, then payment of the Distribution
              payable on such date will be made on the next succeeding day that
              is a Business Day (and without any interest or other payment in
              respect of any such delay) except that, if such Business Day is in
              the next succeeding calendar year, such payment shall be made on
              the immediately preceding Business Day, in each case with the same
              force and effect as if made on such date.

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

3.   Liquidation Distribution Upon Dissolution.

     In the event of any voluntary or involuntary dissolution, winding-up or
termination of the Trust, the Holders of the Securities on the date of the
dissolution, winding-up or termination, as the case may be, will be entitled to
receive out of the assets of the Trust available for distribution to Holders of
Securities after satisfaction of liabilities of creditors of the trust an amount
equal to the aggregate of the stated liquidation preference of $[__] per
Security plus accrued and unpaid Distributions thereon to the date of payment
(such amount being the "Liquidation Distribution"), unless, in connection with
such dissolution, winding-up or termination, Debentures in an aggregate
principal amount equal to the aggregate stated liquidation preference of such
Securities, with an interest rate equal to the Coupon Rate of, and bearing
accrued and unpaid interest in an amount equal to the accrued and unpaid
Distributions on, such Securities, shall be distributed on a Pro Rata basis to
the Holders of the Securities in exchange for such Securities.

     If, upon any such dissolution, the Liquidation Distribution can be paid
only in part

                                       I-3
<Page>

because the Trust has insufficient assets available to pay in full the aggregate
Liquidation Distribution, then the amounts payable directly by the Trust on the
Securities shall be paid on a Pro Rata basis in accordance with paragraph 9
hereof.

4.   Redemption and Distribution.

         (a)  Upon the repayment or payment of the Debentures in whole or in
              part, whether at maturity or upon redemption or otherwise, the
              proceeds from such repayment or redemption shall be simultaneously
              applied to redeem Securities having an aggregate liquidation
              preference equal to the aggregate principal amount of the
              Debentures so repaid or redeemed at a redemption price of $[__]
              per Security together with accrued and unpaid Distributions
              thereon through the date of the redemption, payable in cash (the
              "Redemption Price"). Holders will be given not less than 30 nor
              more than 60 days' notice of such redemption. Upon the repayment
              of the Debentures at maturity or upon any acceleration, earlier
              redemption or otherwise, the proceeds from such repayment will be
              applied to redeem the Securities, in whole, upon not less than 30
              nor more than 60 days' notice.

         (b)  If fewer than all the outstanding Securities are to be so
              redeemed, the Common Securities and the Preferred Securities will
              be redeemed Pro Rata and the Preferred Securities to be redeemed
              will be as described in Paragraph 4(e)(ii) below.

         (c)  If, at any time, a Tax Event shall occur and be continuing the
              Sponsor shall cause the Regular Trustees to liquidate the Trust
              and, after satisfaction of creditors of the Trust, cause
              Debentures to be distributed to the Holders of the Securities in
              liquidation of the Trust within 90 days following the occurrence
              of such Tax Event (the "90 Day Period"); provided, however, that
              such liquidation and distribution shall be conditioned on (i) the
              Regular Trustees' receipt of an opinion of a nationally recognized
              independent tax counsel (reasonably acceptable to the Regular
              Trustees) experienced in such matters (a "No Recognition
              Opinion"), which opinion may rely on published revenue rulings of
              the Internal Revenue Service, to the effect that the Holders of
              the Securities will not recognize any income, gain or loss for
              United States Federal income tax purposes as a result of such
              liquidation and distribution of Debentures, and (ii) the Sponsor
              being unable to avoid such Tax Event within such 90 Day Period by
              taking some ministerial action or pursuing some other reasonable
              measure that, in the sole judgment of the Sponsor, will have no
              adverse effect on the Trust, the Sponsor or the Holders of the
              Securities and will involve no material cost ("Ministerial
              Action").

                  If (i) the Debenture Issuer has received an opinion (a
              "Redemption Tax Opinion") of a nationally recognized independent
              tax counsel (reasonably acceptable to the Regular Trustees)
              experienced in such matters that, as a result of a Tax Event,
              there is more than an insubstantial risk that the

                                       I-4
<Page>

              Debenture Issuer would be precluded from deducting the interest on
              the Debentures for United States Federal income tax purposes, even
              after the Debentures were distributed to the Holders of Securities
              upon liquidation of the Trust as described in this paragraph 4(c),
              or (ii) the Regular Trustees shall have been informed by such tax
              counsel that it cannot deliver a No Recognition Opinion, the
              Debenture Issuer shall have the right, upon not less than 30 nor
              more than 60 days' notice, and within 90 days following the
              occurrence of such Tax Event, to redeem the Debentures in whole
              (but not in part) for cash, at the Tax Event Prepayment Price plus
              accrued and unpaid interest and, following such redemption, all
              the Securities will be redeemed by the Trust at the Tax Event
              Redemption Price plus accrued and unpaid distributions; provided,
              however, that, if at the time there is available to the Debenture
              Issuer or the Trust the opportunity to eliminate, within such 90
              Day Period, the Tax Event by taking some Ministerial Action, the
              Trust or the Debenture Issuer will pursue such Ministerial Action
              in lieu of redemption.

                  "Adjusted Treasury Rate" means, with respect to any prepayment
              date, the rate per annum equal to the [semi-annual] equivalent
              yield to maturity of the Comparable Treasury Issue, assuming a
              price for the Comparable Treasury Issue (expressed as a percentage
              of its principal amount) equal to the Comparable Treasury Price
              for such prepayment date.

                  "Comparable Treasury Issue" means the United States Treasury
              security selected by the Quotation Agent as having a maturity
              comparable to the remaining term of the Debentures to be prepaid
              that would be utilized, at the time of selection and in accordance
              with customary financial practice, in pricing new issues of
              corporate debt securities of comparable maturity to the remaining
              term of the Debentures.

                  "Comparable Treasury Price" means, with respect to any
              prepayment date, (i) the average of the bid and asked prices for
              the Comparable Treasury Issue (expressed in each case as a
              percentage of its principal amount) on the third Business Day
              preceding such prepayment date, as set forth in the daily
              statistical release (or any successor release) published by the
              Federal Reserve Bank of New York and designated "Composite 3:30
              p.m. Quotations for U.S. Government Securities" or (ii) if such
              release (or any successor release) is not published or does not
              contain such prices on such Business Day, (A) the average of the
              Reference Treasury Dealer Quotations for such prepayment date,
              after excluding the highest and lowest such Reference Treasury
              Dealer Quotations, or (B) if the Debenture Trustee obtains fewer
              than three such Reference Treasury Dealer quotations, the average
              of all such Quotations.

                  "Quotation Agent" means the Reference Treasury Dealer
              appointed by the Debenture Issuer.

                  "Reference Treasury Dealer" means a nationally recognized U.S.

                                       I-5
<Page>

              Government securities dealer in New York City selected by the
              Debenture Issuer.

                  "Reference Treasury Dealer Quotations" means, with respect to
              each Reference Treasury Dealer and any prepayment date, the
              average, as determined by the Debenture Trustee, of the bid and
              asked prices for the Comparable Treasury Issue (expressed in each
              case as a percentage of its principal amount) quoted in writing to
              the Debenture Trustee by such Reference Treasury Dealer at 5:00
              p.m., New York City time, on the third Business Day preceding such
              repayment date.

                  "Tax Event" means that the Sponsor shall have received an
              opinion of a nationally recognized independent tax counsel
              (reasonably acceptable to the Regular Trustees) experienced in
              such matters (a "Dissolution Tax Opinion") to the effect that as a
              result of (a) any amendment to, or change (including any announced
              prospective change) in, the laws (or any regulations thereunder)
              of the United States or any political subdivision or taxing
              authority therefor or therein, or (b) any amendment to, or change
              in, an interpretation or application of any such laws or
              regulations by any legislative body, court, governmental agency or
              regulatory authority (including the enactment of any legislation
              and the publication of any judicial decision or regulatory
              determination on or after the date of the Prospectus Supplement),
              which amendment or change is effective or which interpretation or
              pronouncement is announced on or after the date of the Prospectus
              Supplement, there is more than an insubstantial risk that (i) the
              Trust is or will be subject to United States Federal income tax
              with respect to interest received on the Debentures, (ii) interest
              payable by the Debenture Issuer to the Trust on the Debentures is
              not or will not be deductible by the Debenture Issuer for United
              States Federal income tax purposes, or (iii) the Trust is, or will
              be within 90 days of the date thereof, subject to more than a de
              minimis amount of taxes, duties, assessments or other governmental
              charges.

                  "Tax Event Prepayment Price" means a prepayment price equal to
              the greater of (1) 100% of the principal amount thereof or (2) the
              sum, as determined by a Quotation Agent, of the present values of
              the remaining scheduled payments of principal and interest (after
              giving effect to payment of accrued interest to the date of
              prepayment on the Debentures after the prepayment date),
              discounted to the prepayment date on a [semi-annual] basis at the
              Adjusted Treasury Rate plus basis points if prepaid on or prior to
              , and basis points if prepaid thereafter, plus, in any case,
              accrued and unpaid interest to the prepayment date.

                  "Tax Event Redemption Price" means the redemption price equal
              to the Tax Event Prepayment Price upon an optional prepayment by
              the Debenture Issuer of the Debentures upon the occurrence and
              continuation of a Tax Event.

                                       I-6
<Page>

                  If an Investment Company Event (as hereinafter defined) shall
              occur and be continuing, the Sponsor shall cause the Regular
              Trustees to liquidate the Trust and cause the Debentures to be
              distributed to the Holders of the Securities in liquidation of the
              Trust within 90 days following the occurrence of such Investment
              Company Event.

                  "Investment Company Event" means the occurrence of a change in
              law or regulation or a written change in interpretation or
              application of law or regulation by any legislative body, court,
              governmental agency or regulatory authority (a "Change in 1940 Act
              Law"), to the effect that the Trust is or will be considered an
              "investment company" which is required to be registered under the
              United States Investment Company Act, as amended, which Change in
              1940 Act Law becomes effective on or after the date of the
              Prospectus Supplement.

                  After the date fixed for any distribution of Debentures: (i)
              the Securities will no longer be deemed to be outstanding, (ii)
              the Depositary or its nominee (or any successor Clearing Agency or
              its nominee), as record Holder of Preferred Securities represented
              by global certificates, will receive a registered global
              certificate or certificates representing the Debentures to be
              delivered upon such distribution and (iii) any certificates
              representing Securities, except for certificates representing
              Preferred Securities held by the Depositary or its nominee (or any
              successor Clearing Agency or its nominee), will be deemed to
              represent Debentures having an aggregate principal preference
              equal to the aggregate stated liquidation preference of such
              Securities, with accrued and unpaid interest equal to accrued and
              unpaid Distributions on such Securities until such certificates
              are presented to the Debenture Issuer or its agent for transfer or
              reissuance.

         (d)  The Securities will not be redeemed unless all accrued and unpaid
              Distributions have been paid on all Securities for all
              [semi-annual] [quarterly] Distribution periods terminating on or
              before the date of redemption.

         (e)  "Redemption or Distribution Procedures."

               (i) Notice of any redemption of, or notice of distribution of
                   Debentures in exchange for the Securities (a
                   "Redemption/Distribution Notice") will be given by the Trust
                   by mail to each Holder of Securities to be redeemed or
                   exchanged not fewer than 30 nor more than 60 days before the
                   date fixed for redemption or exchange thereof which, in the
                   case of a redemption, will be the date fixed for redemption
                   of the Debentures. For purposes of the calculation of the
                   date of redemption or exchange and the dates on which notices
                   are given pursuant to this paragraph 4(f)(i), a
                   Redemption/Distribution Notice shall be deemed to be given on
                   the day such notice is first mailed by first-class mail,
                   postage prepaid, to Holders of Securities. Each
                   Redemption/Distribution Notice shall be addressed to

                                       I-7
<Page>

                   the Holders of Securities at the address of each such Holder
                   appearing in the books and records of the Trust. No defect in
                   the Redemption/Distribution Notice or in the mailing of
                   either thereof with respect to any Holder shall affect the
                   validity of the redemption or exchange proceedings with
                   respect to any other Holder.

              (ii) In the event that fewer than all the outstanding Securities
                   are to be redeemed, the Securities to be redeemed shall be
                   redeemed Pro Rata from each Holder of Preferred Securities,
                   it being understood that, in respect of Preferred Securities
                   registered in the name of and held of record by the
                   Depositary (or any successor Clearing Agency) or any nominee,
                   the distribution of the proceeds of such redemption will be
                   made to each Participant (or Person on whose behalf such
                   nominee holds such securities) in accordance with the
                   procedures applied by such agency or nominee.

              (iii)If Securities are to be redeemed and the Trust gives a
                   Redemption/Distribution Notice, which notice may only be
                   issued if the Debentures are redeemed as set out in this
                   paragraph 4 (which notice will be irrevocable), then (A) with
                   respect to Preferred Securities held in book-entry form, by
                   12:00 noon, Central time, on the redemption date, provided
                   that the Debenture Issuer has paid the Property Trustee a
                   sufficient amount of cash in connection with the related
                   redemption or maturity of the Debentures, the Property
                   Trustee will deposit irrevocably with the Depositary (or
                   successor clearing agency) funds sufficient to pay the amount
                   payable on redemption with respect to such Preferred
                   Securities and will give the Depositary irrevocable
                   instructions and authority to pay the amount payable on
                   redemption to the Holders of such Preferred Securities, and
                   (B) with respect to Preferred Securities issued in
                   certificated form and Common Securities, provided that the
                   Debenture Issuer has paid the Property Trustee a sufficient
                   amount of cash in connection with the related redemption or
                   maturity of the Debentures, the Property Trustee will
                   irrevocably deposit with the Paying Agent funds sufficient to
                   pay the amount payable on redemption to the Holders of such
                   Securities upon surrender of their certificates. If a
                   Redemption/Distribution Notice shall have been given and
                   funds deposited as required, then on the date of such
                   deposit, all rights of Holders of such Securities so called
                   for redemption will cease, except the right of the Holders of
                   such Securities to receive the redemption price, but without
                   interest on such redemption price. Neither the Regular
                   Trustees nor the Trust shall be required to register or cause
                   to be registered the transfer of any Securities that have
                   been so called for redemption. If any date fixed for
                   redemption of Securities is not a Business Day, then payment
                   of the amount payable on such date will be made on the next
                   succeeding day that is a Business Day (without any interest
                   or other payment in respect of any such delay) except that,
                   if such Business Day

                                       I-8
<Page>

                   falls in the next calendar year, such payment will be made on
                   the immediately preceding Business Day, in each case with the
                   same force and effect as if made on such date fixed for
                   redemption. If payment of the redemption price in respect of
                   any Securities is improperly withheld or refused and not paid
                   either by the Trust or by the Sponsor as guarantor pursuant
                   to the Preferred Securities Guarantee or the Common
                   Securities Guarantee, as applicable, Distributions on such
                   Securities will continue to accrue at the then applicable
                   rate, from the original redemption date to the date of
                   payment, in which case the actual payment date will be
                   considered the date fixed for redemption for purposes of
                   calculating the amount payable upon redemption (other than
                   for purposes of calculating any premium).

               (iv)Redemption/Distribution Notices shall be sent by the Regular
                   Trustees on behalf of the Trust to (A) in the case of
                   Preferred Securities held in book-entry form, the Depositary
                   and, in the case of Securities held in certificated form, the
                   Holders of such certificates and (B) in respect of the Common
                   Securities, the Holder thereof.

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

5.   [RESERVED].

6.   Voting Rights - Preferred Securities.

               Except as provided under this paragraph 6, in the Statutory Trust
               Act and as otherwise required by law and the Declaration, the
               Holders of the Preferred Securities will have no voting rights.
               Subject to the requirements set forth in this paragraph, the
               Holders of a majority in liquidation preference of the Preferred
               Securities, voting separately as a class may direct the time,
               method, and place of conducting any proceeding for any remedy
               available to the Property Trustee, or direct the exercise of any
               trust or power conferred upon the Property Trustee under the
               Declaration, including the right to direct the Property Trustee,
               as holder of the Debentures, to (i) exercise the remedies
               available under the Indenture with respect to the Debentures,
               (ii) waive any past default and its consequences that is waivable
               under Section 6.08 of the Indenture, (iii) exercise any right to
               rescind or annul a declaration that the principal of all the
               Debentures shall be due and payable, or (iv) consent to any
               amendment, modification or termination of the Indenture or the
               Debentures where such consent shall be required; provided,
               however, that, where a consent under the Indenture would require
               the consent or act of the Holders of greater than a majority of
               the Holders in principal amount of Debentures affected thereby (a
               "Super Majority"), the Property Trustee may only give

                                       I-9
<Page>

               such consent or take such action at the written direction of the
               Holders of at least the proportion in liquidation preference of
               the Preferred Securities which the relevant Super Majority
               represents of the aggregate principal amount of the Debentures
               outstanding. The Property Trustee shall not revoke any action
               previously authorized or approved by a vote of the Holders of the
               Preferred Securities. Other than with respect to directing the
               time, method and place of conducting any remedy available to the
               Property Trustee or the Debenture Trustee as set forth above, the
               Property Trustee shall not take any action in accordance with the
               directions of the Holders of the Preferred Securities under this
               paragraph unless the Property Trustee has received an opinion of
               independent tax counsel to the effect that, as a result of such
               action, the Trust will not fail to be classified as a grantor
               trust or partnership for United States Federal income tax
               purposes. If the Property Trustee fails to enforce its rights, as
               holder of the Debentures, under the Indenture, any Holder of
               Preferred Securities may, after a period of 30 days has elapsed
               from such Holder's written request to the Property Trustee to
               enforce such rights, institute a legal proceeding directly
               against the Debenture Issuer, to enforce the rights of the
               Property Trustee, as holder of the Debentures, under the
               Indenture, without first instituting any legal proceeding against
               the Property Trustee or any other Person.

               Notwithstanding the foregoing, in the event the Debenture Issuer
               shall fail to make any payment on the Debentures when due,
               Holders of the Preferred Securities shall have the right to
               institute a direct action against the Debenture Issuer for
               payment of such amounts. Any required approval or direction of
               Holders of Preferred Securities may be given at a separate
               meeting of Holders of Preferred Securities convened for such
               purpose, at a meeting of all of the Holders of Securities in the
               Trust or pursuant to written consent. The Regular Trustees will
               cause a notice of any meeting at which Holders of Preferred
               Securities are entitled to vote, or of any matter upon which
               action by written consent of such Holders is to be taken, to be
               mailed to each Holder of record of Preferred Securities. Each
               such notice will include a statement setting forth the following
               information: (i) the date of such meeting or the date by which
               such action is to be taken, (ii) a description of any resolution
               proposed for adoption at such meeting on which such Holders are
               entitled to vote or of such matter upon which written consent is
               sought and (iii) instructions for the delivery of proxies or
               consents.

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

               Notwithstanding that Holders of Preferred Securities are entitled
               to vote or consent under any of the circumstances described
               above, any of the Preferred Securities that are owned by the
               Sponsor or any Affiliate of the Sponsor shall not be entitled to
               vote or consent and shall, for purposes of such vote or

                                      I-10
<Page>

               consent, be treated as if they were not outstanding.

7.   Voting Rights - Common Securities.

         (a)  The Holders of the Common Securities will only have such voting
              rights as provided under paragraphs 7(b), (c) and 8 herein, in the
              Statutory Trust Act and as otherwise required by law and the
              Declaration, the Holders of the Common Securities will have no
              voting rights.

         (b)  The Holders of the Common Securities are entitled, in accordance
              with Article 5 of the Declaration, to vote to appoint, remove or
              replace any Trustee.

         (c)  Subject to Section 2.06 of the Declaration and only after the
              Event of Default with respect to the Preferred Securities has been
              cured, waived, or otherwise eliminated and subject to the
              requirements of the second to last sentence of this paragraph, the
              Holders of a Majority in liquidation preference of the Common
              Securities, voting separately as a class, may direct the time,
              method, and place of conducting any proceeding for any remedy
              available to the Property Trustee, or exercising any trust or
              power conferred upon the Property Trustee under the Declaration,
              including (i) directing the time, method, place of conducting any
              proceeding for any remedy waivable to the Debenture Trustee, or
              exercising any trust or power conferred on the Debenture Trustee
              with respect to the Debentures, (ii) waive any past default and
              its consequences that is waivable under Section 6.08 of the
              Indenture, (iii) exercise any right to rescind or annul a
              declaration that the principal of all the Debentures shall be due
              and payable, or (iv) consent to any amendment, modification or
              termination of the Indenture or the Debentures where such consent
              shall be required; provided that, where a consent or action under
              the Indenture would require the consent or act of the Holders of
              greater than a majority in principal amount of Debentures affected
              thereby (a "Super Majority"), the Property Trustee may only give
              such consent or take such action at the written direction of the
              Holders of at least the proportion in liquidation preference of
              the Common Securities which the relevant Super Majority represents
              of the aggregate principal amount of the Debentures outstanding.
              Pursuant to this paragraph 7(c), the Property Trustee shall not
              revoke any action previously authorized or approved by a vote of
              the Holders of the Preferred Securities. Other than with respect
              to directing the time, method and place of conducting any remedy
              available to the Property Trustee or the Debenture Trustee as set
              forth above, the Property Trustee shall not take any action in
              accordance with the directions of the Holders of the Common
              Securities under this paragraph unless the Property Trustee has
              received an opinion of independent tax counsel to the effect that,
              as a result of such action the Trust will not fail to be
              classified as a grantor trust or a partnership for United States
              Federal income tax purposes. If the Property Trustee fails to
              enforce its rights, as holder of the Debentures, under the
              Indenture, any Holder of Common Securities may, after a period of
              30 days has elapsed from

                                      I-11
<Page>

              such Holder's written request to the Property Trustee to enforce
              such rights, institute a legal proceeding directly against the
              Debenture Issuer, to enforce the Property Trustee's rights, as
              holder of the Debentures, under the Indenture, without first
              instituting any legal proceeding against the Property Trustee or
              any other Person. Notwithstanding the foregoing, in the event the
              Debenture Issuer shall fail to make any payment on the Debentures
              when due, Holders of the Common Securities shall have the right to
              institute a direct action against the Debenture Issuer for payment
              of such amounts. Any required approval or direction of Holders of
              Common Securities may be given at a separate meeting of Holders of
              Common Securities convened for such purpose, at a meeting of all
              of the Holders of Securities in the Trust or pursuant to written
              consent. The Regular Trustees will cause a notice of any meeting
              at which Holders of Common Securities are entitled to vote, or of
              any matter upon which action by written consent of such Holders is
              to be taken, to be mailed to each Holder of record of Common
              Securities. Each such notice will include a statement setting
              forth the following information: (i) the date of such meeting or
              the date by which such action is to be taken, (ii) a description
              of any resolution proposed for adoption at such meeting on which
              such Holders are entitled to vote or of such matter upon which
              written consent is sought and (iii) instructions for the delivery
              of proxies or consents. No vote or consent of the Holders of the
              Common Securities will be required for the Trust to redeem and
              cancel Common Securities or to distribute the Debentures in
              accordance with the Declaration and the terms of the Securities.

8.   Amendments to Declaration and Indenture.

         (a)  In addition to any requirements under Section 12.01 of the
              Declaration, if any proposed amendment to the Declaration provides
              for, or the Regular Trustees otherwise propose to effect, (i) any
              action that would adversely affect the powers, preferences or
              special rights of the Securities, whether by way of amendment to
              the Declaration or otherwise, or (ii) the dissolution, winding-up
              or termination of the Trust, other than as described in Section
              8.01 of the Declaration, then the Holders of outstanding
              Securities as a class, will be entitled to vote on such amendment
              or proposal (but not on any other amendment or proposal) and such
              amendment or proposal shall not be effective except with the
              approval of the Holders of at least 66-2/3% in liquidation
              preference of the Securities, voting together as a single class;
              provided, however, if any amendment or proposal referred to in
              clause (i) above would adversely affect only the Preferred
              Securities or only the Common Securities, then only the affected
              class will be entitled to vote on such amendment or proposal and
              such amendment or proposal shall not be effective except with the
              approval of 66-2/3% in liquidation preference of such class of
              Securities.

         (b)  In the event the consent of the Property Trustee as the holder of
              the Debentures is required under the Indenture with respect to any
              amendment,

                                      I-12
<Page>

              modification or termination of the Indenture or the Debentures,
              the Property Trustee shall request the written direction of the
              Holders of the Securities with respect to such amendment,
              modification or termination and shall vote with respect to such
              amendment, modification or termination as directed, in writing, by
              a Majority in liquidation preference of the Securities voting
              together as a single class; provided, however, that where a
              consent under the Indenture would require the consent of the
              holders of greater than a majority in aggregate principal amount
              of the Debentures (a "Super Majority"), the Property Trustee may
              only give such consent at the written direction of the Holders of
              at least the same proportion in aggregate stated liquidation
              preference of the Securities; provided, further, that the Property
              Trustee shall not take any action in accordance with the
              directions of the Holders of the Securities under this paragraph
              8(b) unless the Property Trustee has received an opinion of
              independent tax counsel to the effect that for the purposes of
              United States Federal income tax the Trust will not be classified
              as other than a grantor trust or partnership on account of such
              action.

9.   Pro Rata.

       A reference in these terms of the Securities to any payment, distribution
or treatment as being "Pro Rata" shall mean pro rata to each Holder of
Securities according to the aggregate liquidation preference of the Securities
held by the relevant Holder in relation to the aggregate liquidation preference
of all Securities outstanding unless, on any distribution date or redemption
date an Event of Default under the Declaration has occurred and is continuing,
in which case no payment of any distribution on, or amount payable upon
redemption of, any Common Security, and no other payment on account of the
redemption, liquidation or other acquisition of Common Securities, shall be made
unless payment in full in cash of all accumulated and unpaid distributions on
all outstanding Preferred Securities for all distribution periods terminating on
or prior thereto, or in the case of payment of the amount payable upon
redemption of the Preferred Securities, the full amount of such amount in
respect of all outstanding Preferred Securities shall have been made or provided
for, and all funds available to the Property Trustee shall first be applied to
the payment in full in cash of all distributions on, or the amount payable upon
redemption of Preferred Securities then due and payable.

10.  Ranking.

       The Preferred Securities rank pari passu and payment thereon shall be
made Pro Rata with the Common Securities except that, where an Event of Default
occurs and is continuing under the Indenture in respect of the Debentures held
by the Property Trustee, the rights of Holders of the Common Securities to
payment in respect of Distributions and payments upon liquidation, redemption
and otherwise are subordinated to the rights to payment of the Holders of the
Preferred Securities.

11.  Acceptance of Securities Guarantee and Indenture.

                                      I-13
<Page>

       Each Holder of Preferred Securities and Common Securities, by the
acceptance thereof, agrees to the provisions of the Preferred Securities
Guarantee and the Common Securities Guarantee, respectively, including the
subordination provisions therein and to the provisions of the Indenture.

12.  No Preemptive Rights.

       The Holders of the Securities shall have no preemptive rights to
subscribe for any additional securities.

13.  Miscellaneous.

       These terms constitute a part of the Declaration.

       The Sponsor will provide a copy of the Declaration, the Preferred
Securities Guarantee or the Common Securities Guarantee (as may be appropriate),
and the Indenture to a Holder without charge on written request to the Sponsor
at its principal place of business.

                                      I-14
<Page>

                                                                     EXHIBIT A-1

                           FORM OF PREFERRED SECURITY

                           [FORM OF FACE OF SECURITY]

     [Include if Preferred Security is in global form and The Depository Trust
Company is the U. S. Depositary-- UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR 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.]

     [Include if Preferred Security is in global form -- TRANSFERS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE
IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE DECLARATION REFERRED TO
BELOW.]

Certificate Number                                Number of Preferred Securities
                                                      [CUSIP NO. [ ]]

                              Preferred Securities

                                       of

                         [American Equity Capital Trust]

                           [___]% Preferred Securities

              (liquidation preference $[__] per Preferred Security)

     [American Equity Capital Trust], a statutory trust formed under the laws of
the State of Delaware (the "Trust"), hereby certifies that (the "Holder") is the
registered owner of preferred securities of the Trust representing undivided
beneficial interests in

                                      A1-1
<Page>

the assets of the Trust designated the [___]% Preferred Securities (liquidation
preference $[__] per Preferred Security) (the "Preferred Securities"). The
Preferred Securities are transferable on the books and records of the Trust, in
person or by a duly authorized attorney, upon surrender of this certificate duly
endorsed and in proper form for transfer. The designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Preferred
Securities represented hereby are issued and shall in all respects be subject to
the provisions of the Amended and Restated Declaration of Trust of the Trust
dated as of [Date], as the same may be amended from time to time (the
"Declaration"), including the designation of the terms of the Preferred
Securities as set forth in Annex I to the Declaration. Capitalized terms used
herein but not defined shall have the meaning given them in the Declaration. The
Holder is entitled to the benefits of the Preferred Securities Guarantee to the
extent provided therein. The Sponsor will provide a copy of the Declaration, the
Preferred Securities Guarantee and the Indenture to a Holder without charge upon
written request to the Trust at its principal place of business.

     Reference is hereby made to select provisions of the Preferred Securities
set forth on the reverse hereof, which select provisions shall for all purposes
have the same effect as if set forth at this place.

     Upon receipt of this certificate, the Holder is bound by the Declaration
and is entitled to the benefits thereunder.

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

     Unless the Property Trustee's Certificate of Authentication hereon has been
properly executed, these Preferred Securities shall not be entitled to any
benefit under the Declaration or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Trust has executed this certificate this day of
____________, ____.

                               [American Equity Capital Trust]

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

                                      A1-2
<Page>

                PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Preferred Securities referred to in the within-mentioned
Declaration.

Dated: _________, ____

                                 [  ],
                                 as Property Trustee

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

                                      A1-3
<Page>

                          [FORM OF REVERSE OF SECURITY]

     Distributions payable on each Preferred Security will be fixed at a rate
per annum of [___]% (the "Coupon Rate") of the stated liquidation preference of
$[__] per Preferred Security, such rate being the rate of interest payable on
the Debentures to be held by the Property Trustee. Distributions in arrears for
more than one [semi-annual period] [quarter] will bear interest thereon
compounded [semi-annually] [quarterly] at the Coupon Rate (to the extent
permitted by applicable law). The term "Distributions" as used herein includes
such cash distributions and any such interest payable unless otherwise stated. A
Distribution is payable only to the extent that payments are made in respect of
the Debentures held by the Property Trustee and to the extent the Property
Trustee has funds available therefor. The amount of Distributions payable for
any period will be computed for any full [semi-annual] [quarterly] Distribution
period on the basis of a 360-day year of twelve 30-day months, and for any
period shorter than a full [semi-annual] [quarterly] Distribution period for
which Distributions are computed, Distributions will be computed on the basis of
the actual number of days elapsed per 30-day month.

     Except as otherwise described below, distributions on the Preferred
Securities will be cumulative, will accrue from the date of original issuance
and will be payable [semi-annually] [quarterly] in arrears, on [______________]
of each year, commencing on [________________], to Holders of record fifteen
(15) days prior to such payment dates, which payment dates shall correspond to
the interest payment dates on the Debentures. The Debenture Issuer has the right
under the Indenture to defer payments of interest by extending the interest
payment period from time to time on the Debentures for a period not exceeding
[____] consecutive [semi-annual periods] [quarters] (each an "Extension Period")
and, as a consequence of such deferral, Distributions will also be deferred.
Despite such deferral, [semi-annual] [quarterly] Distributions will continue to
accrue with interest thereon (to the extent permitted by applicable law) at the
Coupon Rate compounded [semi-annually] [quarterly] during any such Extension
Period. Prior to the termination of any such Extension Period, the Debenture
Issuer may further extend such Extension Period; provided that such Extension
Period together with all such previous and further extensions thereof may not
exceed [_____] consecutive [semi-annual periods] [quarters]. Payments of accrued
Distributions will be payable to Holders as they appear on the books and records
of the Trust on the first record date after the end of the Extension Period.
Upon the termination of any Extension Period and the payment of all amounts then
due, the Debenture Issuer may commence a new Extension Period, subject to the
above requirements.

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

                                      A1-4
<Page>

                                   ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned assigns and transfers this Preferred
Security Certificate to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Insert assignee's social security or tax identification number)

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Insert address and zip code of assignee)

and irrevocably appoints
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

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

Date:
     ----------------------
Signature:
          -------------------------
(Sign exactly as your name appears on the other side of this Preferred Security
Certificate) Signature
Guarantee:(2)
             --------------------------------------------------------

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

                                      A1-5
<Page>

                                                                     EXHIBIT A-2

                             FORM OF COMMON SECURITY

                           [FORM OF FACE OF SECURITY]

     [THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION OR AN EFFECTIVE REGISTRATION
STATEMENT.]

     [OTHER THAN AS PROVIDED IN THE DECLARATION (AS DEFINED HEREIN), THIS
SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT TO A
RELATED PARTY (AS DEFINED IN THE DECLARATION) OF AMERICAN EQUITY INVESTMENT LIFE
HOLDING COMPANY]

Certificate Number                                   Number of Common Securities

                                Common Securities

                                       of

                         [American Equity Capital Trust]

                             ____% Common Securities

               (liquidation preference $[___] per Common Security)

     [American Equity Capital Trust], a statutory trust formed under the laws of
the State of Delaware (the "Trust"), hereby certifies that
________________________________________________________________________________
______________ (the "Holder") is the registered owner of common securities of
the Trust representing undivided beneficial interests in the assets of the Trust
designated the ___% Common Securities (liquidation preference $[___] per Common
Security) (the "Common Securities"). The Common Securities are transferable on
the books and records of the Trust, in person or by a duly authorized attorney,
upon surrender of this certificate duly endorsed and in proper form for
transfer. The designation, rights, privileges, restrictions, preferences and
other terms and provisions of the Common Securities represented hereby are
issued and shall in all respects be subject to the provisions of the Amended and
Restated Declaration of Trust of the Trust dated as of [Date], as the same may
be amended from time to time (the "Declaration"), including the designation of
the terms of the Common Securities as set forth in Annex I to the Declaration.
Capitalized terms used herein but not defined shall have the meaning given them
in the Declaration. The Holder is entitled to the benefits of the Common
Securities Guarantee to the extent provided therein. The Sponsor will provide a
copy of the Declaration, the Common Securities Guarantee and the Indenture to a
Holder without

                                      A2-2
<Page>

charge upon written request to the Sponsor at its principal place of business.

     Reference is hereby made to select provisions of the Common Securities set
forth on the reverse hereof, which select provisions shall for all purposes have
the same effect as if set forth at this place.

     Upon receipt of this certificate, the Sponsor is bound by the Declaration
and is entitled to the benefits thereunder.

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

     IN WITNESS WHEREOF, the Trust has executed this certificate this day of
________________ ___, ______ .

                   [American Equity Capital Trust]

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

                                      A2-2
<Page>

                          [FORM OF REVERSE OF SECURITY]

     Distributions payable on each Common Security will be fixed at a rate per
annum of ___% (the "Coupon Rate") of the stated liquidation preference of $[__]
per Common Security, such rate being the rate of interest payable on the
Debentures to be held by the Property Trustee. Distributions in arrears for more
than one [semi-annual] [quarterly] period will bear interest thereon compounded
[semi-annually] [quarterly] at the Coupon Rate (to the extent permitted by
applicable law). The term "Distributions" as used herein includes such cash
distributions and any such interest payable unless otherwise stated. A
Distribution is payable only to the extent that payments are made in respect of
the Debentures held by the Property Trustee and to the extent the Property
Trustee has funds available therefor. The amount of Distributions payable for
any period will be computed for any full [semi-annual] [quarterly] Distribution
period on the basis of a 360-day year of twelve 30-day months, and for any
period shorter than a full [semi-annual] [quarterly] Distribution period for
which Distributions are computed, Distributions will be computed on the basis of
the actual number of days elapsed per 30-day month.

     Except as otherwise described below, distributions on the Common Securities
will be cumulative, will accrue from the date of original issuance and will be
payable [semi-annually] [quarterly] in arrears, on [_________________] of each
year, commencing on [________________], to Holders of record fifteen (15) days
prior to such payment dates, which payment dates shall correspond to the
interest payment dates on the Debentures. The Debenture Issuer has the right
under the Indenture to defer payments of interest by extending the interest
payment period from time to time on the Debentures for a period not exceeding
[_______] consecutive [semi-annual] [quarterly] periods (each an "Extension
Period") and, as a consequence of such deferral, Distributions will also be
deferred. Despite such deferral, [semi-annual] [quarterly] Distributions will
continue to accrue with interest thereon (to the extent permitted by applicable
law) at the Coupon Rate compounded [semi-annually] [quarterly] during any such
Extension Period. Prior to the termination of any such Extension Period, the
Debenture Issuer may further extend such Extension Period; provided that such
Extension Period together with all such previous and further extensions thereof
may not exceed [______] consecutive [semi-annual] [quarterly] periods. Payments
of accrued Distributions will be payable to Holders as they appear on the books
and records of the Trust on the first record date after the end of the Extension
Period. Upon the termination of any Extension Period and the payment of all
amounts then due, the Debenture Issuer may commence a new Extension Period,
subject to the above requirements.

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

                                      A2-3
<Page>

                                   ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned assigns and transfers this Preferred
Security Certificate to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Insert assignee's social security or tax identification number)

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Insert address and zip code of assignee)

and irrevocably appoints
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

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

Date:
     ----------------------
Signature:
          -------------------------
(Sign exactly as your name appears on the other side of this Preferred Security
Certificate) Signature
Guarantee:(3)
             --------------------------------------------------------

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

                                      A2-4

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