Document:

Matrix Bancorp, Inc.
                                    as Issuer

                                    INDENTURE
                            Dated as of June 30, 2005

                     WELLS FARGO BANK, NATIONAL ASSOCIATION
                                   As Trustee

                       JUNIOR SUBORDINATED DEBT SECURITIES
                                Due July 7, 2035

<PAGE>

                               TABLE OF CONTENTS

                                                                            Page
                                   ARTICLE I
                                  DEFINITIONS
SECTION 1.01.   Definitions..................................................  1

                                   ARTICLE II
                                DEBT SECURITIES

SECTION 2.01.   Authentication and Dating....................................  8
SECTION 2.02.   Form of Trustee's Certificate of Authentication..............  9
SECTION 2.03.   Form and Denomination of Debt Securities.....................  9
SECTION 2.04.   Execution of Debt Securities.................................  9
SECTION 2.05.   Exchange and Registration of Transfer of Debt Securities..... 10
SECTION 2.06.   Mutilated, Destroyed, Lost or Stolen Debt Securities......... 12
SECTION 2.07.   Temporary Debt Securities.................................... 13
SECTION 2.08.   Payment of Interest.......................................... 14
SECTION 2.09.   Cancellation of Debt Securities Paid, etc.................... 15
SECTION 2.10.   Computation of Interest...................................... 15
SECTION 2.11.   Extension of Interest Payment Period......................... 17
SECTION 2.12.   CUSIP Numbers................................................ 18
SECTION 2.13.   Global Debentures............................................ 18

                                  ARTICLE III
                      PARTICULAR COVENANTS OF THE COMPANY

SECTION 3.01.   Payment of Principal, Premium and Interest; Agreed Treatment
                of the Debt Securities....................................... 20
SECTION 3.02.   Offices for Notices and Payments, etc........................ 21
SECTION 3.03.   Appointments to Fill Vacancies in Trustee's Office........... 21
SECTION 3.04.   Provision as to Paying Agent................................. 22
SECTION 3.05.   Certificate to Trustee....................................... 23
SECTION 3.06.   Additional Interest.......................................... 23
SECTION 3.07.   Compliance with Consolidation Provisions..................... 23
SECTION 3.08.   Limitation on Dividends...................................... 23
SECTION 3.09.   Covenants as to the Trust.................................... 24

                                   ARTICLE IV
                LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

SECTION 4.01.   Securityholders' Lists....................................... 25

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SECTION 4.02.   Preservation and Disclosure of Lists......................... 25

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

SECTION 5.01.   Events of Default............................................ 26
SECTION 5.02.   Payment of Debt Securities on Default; Suit Therefor......... 28
SECTION 5.03.   Application of Moneys Collected by Trustee................... 30
SECTION 5.04.   Proceedings by Securityholders............................... 30
SECTION 5.05.   Proceedings by Trustee....................................... 31
SECTION 5.06.   Remedies Cumulative and Continuing........................... 31
SECTION 5.07.   Direction of Proceedings and Waiver of Defaults by Majority
                of Securityholders........................................... 31
SECTION 5.08.   Notice of Defaults........................................... 32
SECTION 5.09.   Undertaking to Pay Costs..................................... 32

                                   ARTICLE VI
                             CONCERNING THE TRUSTEE

SECTION 6.01.   Duties and Responsibilities of Trustee....................... 33
SECTION 6.02.   Reliance on Documents, Opinions, etc......................... 34
SECTION 6.03.   No Responsibility for Recitals, etc.......................... 35
SECTION 6.04.   Trustee, Authenticating Agent, Paying Agents, Transfer Agents
                or Registrar May Own Debt Securities......................... 36
SECTION 6.05.   Moneys to be Held in Trust................................... 36
SECTION 6.06.   Compensation and Expenses of Trustee......................... 36
SECTION 6.07.   Officers' Certificate as Evidence............................ 37
SECTION 6.08.   Eligibility of Trustee....................................... 37
SECTION 6.09.   Resignation or Removal of Trustee, Calculation Agent, Paying
                Agent or Debt Security Registrar............................. 38
SECTION 6.10.   Acceptance by Successor...................................... 39
SECTION 6.11.   Succession by Merger, etc.................................... 40
SECTION 6.12.   Authenticating Agents........................................ 40

                                  ARTICLE VII
                         CONCERNING THE SECURITYHOLDERS

SECTION 7.01.   Action by Securityholders.................................... 41

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SECTION 7.02.   Proof of Execution by Securityholders........................ 42
SECTION 7.03.   Who Are Deemed Absolute Owners............................... 42
SECTION 7.04.   Debt Securities Owned by Company Deemed Not Outstanding...... 43
SECTION 7.05.   Revocation of Consents; Future Securityholders Bound......... 43

                                  ARTICLE VIII
                           SECURITYHOLDERS' MEETINGS

SECTION 8.01.   Purposes of Meetings......................................... 44
SECTION 8.02.   Call of Meetings by Trustee.................................. 44
SECTION 8.03.   Call of Meetings by Company or Securityholders............... 44
SECTION 8.04.   Qualifications for Voting.................................... 45
SECTION 8.05.   Regulations.................................................. 45
SECTION 8.06.   Voting....................................................... 45
SECTION 8.07.   Quorum; Actions.............................................. 46
SECTION 8.08.   Written Consent Without a Meeting............................ 47

                                   ARTICLE IX
                            SUPPLEMENTAL INDENTURES

SECTION 9.01.   Supplemental Indentures without Consent of Securityholders... 47
SECTION 9.02.   Supplemental Indentures with Consent of Securityholders...... 48
SECTION 9.03.   Effect of Supplemental Indentures............................ 49
SECTION 9.04.   Notation on Debt Securities.................................. 50
SECTION 9.05.   Evidence of Compliance of Supplemental Indenture to be
                furnished to Trustee......................................... 50

                                   ARTICLE X
                            REDEMPTION OF SECURITIES

SECTION 10.01.  Optional Redemption.......................................... 50
SECTION 10.02.  Special Event Redemption..................................... 50
SECTION 10.03.  Notice of Redemption; Selection of Debt Securities........... 51
SECTION 10.04.  Payment of Debt Securities Called for Redemption............. 51

                                   ARTICLE XI
               CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

SECTION 11.01.  Company May Consolidate, etc., on Certain Terms.............. 52
SECTION 11.02.  Successor Entity to be Substituted........................... 53
SECTION 11.03.  Opinion of Counsel to be Given to Trustee.................... 53

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                               TABLE OF CONTENTS
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                                  ARTICLE XII
                    SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 12.01.  Discharge of Indenture....................................... 53
SECTION 12.02.  Deposited Moneys to be Held in Trust by Trustee.............. 54
SECTION 12.03.  Paying Agent to Repay Moneys Held............................ 54
SECTION 12.04.  Return of Unclaimed Moneys................................... 54

                                  ARTICLE XIII
        IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 13.01.  Indenture and Debt Securities Solely Corporate Obligations... 55

                                  ARTICLE XIV
                            MISCELLANEOUS PROVISIONS

SECTION 14.01.  Successors................................................... 55
SECTION 14.02.  Official Acts by Successor Entity............................ 55
SECTION 14.03.  Surrender of Company Powers.................................. 55
SECTION 14.04.  Addresses for Notices, etc................................... 56
SECTION 14.05.  Governing Law................................................ 56
SECTION 14.06.  Evidence of Compliance with Conditions Precedent............. 56
SECTION 14.07.  Non-Business Days............................................ 57
SECTION 14.08.  Table of Contents, Headings,etc.............................. 57
SECTION 14.09.  Execution in Counterparts.................................... 57
SECTION 14.10.  Severability................................................. 57
SECTION 14.11.  Assignment................................................... 57
SECTION 14.12.  Acknowledgment of Rights..................................... 57

                                   ARTICLE XV
                        SUBORDINATION OF DEBT SECURITIES

SECTION 15.01.  Agreement to Subordinate..................................... 58
SECTION 15.02.  Default on Senior Indebtedness............................... 58
SECTION 15.03.  Liquidation; Dissolution; Bankruptcy......................... 59
SECTION 15.04.  Subrogation.................................................. 60
SECTION 15.05.  Trustee to Effectuate Subordination.........................  61
SECTION 15.06.  Notice by the Company........................................ 61
SECTION 15.07.  Rights of the Trustee, Holders of Senior Indebtedness........ 62

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SECTION 15.08.  Subordination May Not Be Impaired............................ 62

EXHIBITS

EXHIBIT A       FORM OF DEBT SECURITY

                                      -v-

<PAGE>

      THIS INDENTURE, dated as of June 30, 2005, between Matrix Bancorp, Inc., a
savings and loan holding company incorporated in Colorado (hereinafter sometimes
called the "Company"),  and Wells Fargo Bank, National  Association,  a national
banking  association  with its  principal  place  of  business  in the  State of
Delaware, as trustee (hereinafter sometimes called the "Trustee").

                                   WITNESSETH:

      WHEREAS,  for  its  lawful  corporate  purposes,   the  Company  has  duly
authorized the issuance of its Junior  Subordinated  Debt Securities due July 7,
2035 (the "Debt  Securities")  under this Indenture and to provide,  among other
things,  for the  execution  and  authentication,  delivery  and  administration
thereof, the Company has duly authorized the execution of this Indenture.

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

      SECTION 1.01. Definitions.

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

      "Acceleration  Event"  shall have the meaning  set forth in Section  5.01.
"Additional  Interest"  shall  have  the  meaning  set  forth in  Section  3.06.
"Additional Provisions" shall have the meaning set forth in Section 15.01.

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

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

<PAGE>

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

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

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

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

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

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

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

      "Capital  Treatment  Event" means the receipt by the Company and the Trust
of an Opinion of Counsel  experienced  in such matters to the effect that,  as a
result of any amendment to, or change in, the laws,  rules or regulations of the
United States or any political  subdivision thereof or therein, or as the result
of  any  official  or   administrative   pronouncement  or  action  or  decision
interpreting  or applying such laws,  rules or  regulations,  which amendment or
change is effective or which  pronouncement,  action or decision is announced on
or after the date of  original  issuance of the Debt  Securities,  there is more
than an insubstantial  risk that, within 90 days of the receipt of such opinion,
the aggregate  Liquidation Amount of the Capital Securities will not be eligible
to be  treated  by the  Company  as "Tier 1  Capital"  (or the  then  equivalent
thereof) for purposes of the capital adequacy  guidelines of the Federal Reserve
or OTS; as applicable (or any successor  regulatory  authority with jurisdiction
over bank, savings & loan or financial holding companies), as then in effect and
applicable to the Company; provided,  however, that the inability of the Company
to treat all or any portion of the Liquidation  Amount of the Capital Securities
as Tier 1 Capital shall not constitute the basis for a Capital  Treatment Event,
if such inability  results from the Company having  cumulative  preferred stock,
minority interests in consolidated subsidiaries,  or any other class of security
or interest which the Federal Reserve may now or hereafter accord Tier 1 Capital
treatment  in  excess  of the  amount  which may now or  hereafter  qualify  for
treatment as Tier 1 Capital under applicable capital adequacy

                                      -2-
<PAGE>

guidelines;  provided  further,  however,  that  the  distribution  of the  Debt
Securities in connection  with the liquidation of the Trust by the Company shall
not  in  and  of  itself  constitute  a  Capital  Treatment  Event  unless  such
liquidation  shall have occurred in connection with a Tax Event or an Investment
Company Event.

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

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

      "Company" means Matrix  Bancorp,  Inc., a savings and loan holding company
incorporated  in Colorado,  and,  subject to the provisions of Article XI, shall
include its successors and assigns.

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

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

      "Declaration"  means the Amended and Restated  Declaration of Trust of the
Trust dated as of June 30, 2005, as amended or supplemented from time to time.

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

      "Defaulted  Interest" has the meaning set forth in Section 2.08. "Deferred
Interest" has the meaning set forth in Section 2.11.

      "Depositary"  means an organization  registered as a clearing agency under
the  Securities  Exchange Act of 1934 that is  designated  as  Depositary by the
Company or any successor thereto. DTC will be the initial Depositary.

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

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

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

                                      -3-
<PAGE>

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

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

      "Fixed Rate" means a per annum rate of interest, equal to 5.86% commencing
June 30, 2005.

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

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

      "Initial Purchaser" means the initial purchaser of the Capital Securities.
"Institutional Trustee" has the meaning set forth in the Declaration.

      "Interest  Payment Date" means January 7, April 7, July 7 and October 7 of
each year, commencing on October 7, 2005, during the term of this Indenture.

      "Interest  Payment Period" means the period from and including an Interest
Payment Date, or in the case of the first Interest Payment Period,  the original
date of issuance of the Debt Securities,  to, but excluding, the next succeeding
Interest Payment Date or, in the case of the last Interest  Payment Period,  the
Redemption Date, Special Redemption Date or Maturity Date, as the case may be.

      "Interest  Rate" is defined to mean the Fixed Rate and Variable  Rate,  as
applicable.

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

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

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

                                      -4-
<PAGE>

      "Liquidation  Amount"  means the  liquidation  amount of $1,000  per Trust
Security. "Maturity Date" means July 7, 2035. "Notice" has the meaning set forth
in Section 2.11.

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

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

      "OTS" means the Office of Thrift  Supervision  and any  successor  federal
agency that is primarily  responsible  for  regulating the activities of savings
and loan holding companies.

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

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

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

      (c) Debt  Securities  paid  pursuant  to Section  2.06 or in lieu of or in
substitution for which other Debt Securities shall have been  authenticated  and
delivered pursuant to the terms of Section 2.06 unless proof satisfactory to the
Company and the Trustee is presented  that any such Debt  Securities are held by
bona fide  holders in due  course.  "Paying  Agent" has the meaning set forth in
Section 3.04(e).

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

                                      -5-
<PAGE>

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

      "Principal  Office of the  Trustee"  means the office of the  Trustee,  at
which at any particular  time its corporate  trust business shall be principally
administered,  which at all times shall be located  within the United States and
at the time of the execution of this Indenture shall be 919 Market Street, Suite
700, Wilmington, DE 19801.

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

      "Redemption  Price"  means  100%  of the  principal  amount  of  the  Debt
Securities  being  redeemed  plus  accrued  and  unpaid  interest  on such  Debt
Securities  to the  Redemption  Date or, in the case of a redemption  due to the
occurrence  of a Special  Event to the Special  Redemption  Date if such Special
Redemption Date is on or after July 7, 2010.

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

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

      "Senior  Indebtedness"  means,  with  respect  to  the  Company,  (i)  the
principal,  premium,  if any, and interest in respect of (A) indebtedness of the
Company  for  money  borrowed  and (B)  indebtedness  evidenced  by  securities,
debentures,  notes,  bonds or other similar  instruments  issued by the Company;
(ii) all capital lease obligations of the Company;  (iii) all obligations of the
Company  issued or assumed  as the  deferred  purchase  price of  property,  all
conditional  sale  obligations of the Company and all obligations of the Company
under any title  retention  agreement  (but  excluding  trade  accounts  payable
arising in the ordinary course of business); (iv) all obligations of the Company
for the  reimbursement  of any letter of credit,  any banker's  acceptance,  any
security purchase facility, any repurchase agreement or similar arrangement, any
interest rate swap, any other hedging arrangement,  any obligation under options
or any similar  credit or other  transaction;  (v) all  obligations  of the type
referred to in clauses (i) through  (iv) above of other  Persons for the payment
of which  the  Company  is  responsible  or  liable  as  obligor,  guarantor  or
otherwise;  and (vi) all  obligations  of the type  referred  to in clauses  (i)
through (v) above of other Persons  secured by any lien on any property or asset
of the  Company  (whether  or not such  obligation  is assumed by the  Company),
whether  incurred  on or  prior  to the  date of this  Indenture  or  thereafter
incurred, unless (1) with the prior

                                      -6-
<PAGE>

approval of the Federal  Reserve if not  otherwise  generally  approved,  in the
instrument  creating  or  evidencing  the same or  pursuant to which the same is
outstanding,  it is provided that such  obligations are not superior or are pari
passu in right of payment to the Debt  Securities;  or (2) the  Federal  Reserve
shall  hereafter  classify or otherwise  recognize  any such  obligation as pari
passu or subordinate to the Debt Securities.

      "Special Event" means any of a Tax Event, an Investment Company Event or a
Capital Treatment Event.  "Special Redemption Date" has the meaning set forth in
Section 10.02.

      "Special  Redemption  Price" means (1) if the Special  Redemption  Date is
before July 7, 2010, One Hundred  Percent (105%) of the principal  amount of the
Debt Securities to be redeemed plus any accrued and unpaid  interest  thereon to
the date of such redemption or (2) if the Special Redemption Date is on or after
July 7, 2010, the Redemption Price for such Special Redemption Date.

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

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

                                      -7-
<PAGE>

from distributions to holders of Trust Securities, more than a de minimis amount
of other taxes  (including  withholding  taxes),  duties,  assessments  or other
governmental charges.

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

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

      "Trust  Securities"  means Common  Securities  and Capital  Securities  of
Matrix Bancorp Capital Trust VIII.

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

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

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

                  "Variable  Rate" means a per annum rate of interest,  equal to
LIBOR plus 1.69%, as determined on the LIBOR  Determination  Date preceding each
Interest Payment Date, reset quarterly,  commencing upon expiration of the Fixed
Rate Period.

                                   ARTICLE II

                                DEBT SECURITIES

      SECTION 2.01. Authentication and Dating.

      Upon the  execution and delivery of this  Indenture,  or from time to time
thereafter,  Debt Securities in an aggregate  principal  amount not in excess of
$7,732,000  may be  executed  and  delivered  by the  Company to the Trustee for
authentication,  and the Trustee shall thereupon authenticate and make available
for delivery  said Debt  Securities to or upon the written order of the Company,
signed by its Chairman of the Board of Directors,  Vice  Chairman,  President or
Chief  Financial  Officer or one of its Vice  Presidents,  without  any  further
action by the Company  hereunder.  In authenticating  such Debt Securities,  and
accepting the  additional  responsibilities  under this Indenture in relation to
such Debt Securities,  the Trustee shall be entitled to receive, and (subject to
Section  6.01)  shall be fully  protected  in  relying  upon a copy of any Board
Resolution  or  Board  Resolutions  relating  thereto  and,  if  applicable,  an
appropriate record of any action taken pursuant to such resolution, in each case
certified  by the  Secretary or an Assistant  Secretary or other  officers  with
appropriate delegated authority of the Company as the case may be.

      The Trustee  shall have the right to decline to  authenticate  and deliver
any Debt Securities under this Section if the Trustee, being advised by counsel,
determines that such action

                                      -8-
<PAGE>

may not  lawfully  be taken or if a  Responsible  Officer of the Trustee in good
faith  shall  determine  that such action  would  expose the Trustee to personal
liability to existing Securityholders.

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

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

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

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

      WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity but
solely as trustee

                           By_______________________
                                Authorized Officer

      SECTION 2.03. Form and Denomination of Debt Securities.

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

      SECTION 2.04. Execution of Debt Securities.

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

      In case any  officer of the  Company who shall have signed any of the Debt
Securities  shall cease to be such officer before the Debt  Securities so signed
shall have been authenticated and delivered by the Trustee or the Authenticating
Agent, or disposed of by the Company,  such Debt Securities  nevertheless may be
authenticated  and delivered or disposed of as though the Person who signed such
Debt Securities had not ceased to be such officer of the

                                      -9-
<PAGE>

Company;  and any Debt  Security  may be signed on behalf of the Company by such
Persons as, at the actual date of the execution of such Debt Security,  shall be
the proper  officers of the  Company,  although at the date of the  execution of
this Indenture any such person was not such an officer.

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

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

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

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

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

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

      The Company or the Trustee shall not be required to exchange or register a
transfer of any Debt Security for a period of 15 days immediately  preceding the
date of selection of Debt Securities for redemption.

      Notwithstanding  the  foregoing,  Debt  Securities  may not be transferred
except in  compliance  with the  restricted  securities  legend set forth below,
unless otherwise determined by

                                      -10-
<PAGE>

the Company in accordance  with  applicable law, which legend shall be placed on
each Debt Security:

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED  (THE  "SECURITIES  ACT"),  OR ANY  STATE  SECURITIES  LAWS OR ANY OTHER
APPLICABLE   SECURITIES  LAWS.   NEITHER  THIS  SECURITY  NOR  ANY  INTEREST  OR
PARTICIPATION  HEREIN MAY BE REOFFERED,  SOLD, ASSIGNED,  TRANSFERRED,  PLEDGED,
ENCUMBERED  OR  OTHERWISE  DISPOSED  OF IN THE ABSENCE OF SUCH  REGISTRATION  OR
UNLESS SUCH  TRANSACTION  IS EXEMPT  FROM,  OR NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF  THE  SECURITIES  ACT.  THE  HOLDER  OF  THIS  SECURITY  BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE COMPANY,  (B) PURSUANT TO RULE 144A UNDER THE  SECURITIES  ACT ("RULE
144A"), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED  IN RULE 144A THAT  PURCHASES  FOR ITS OWN  ACCOUNT OR FOR THE
ACCOUNT  OF A  QUALIFIED  INSTITUTIONAL  BUYER TO WHOM  NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,  (C)  PURSUANT TO AN  EXEMPTION
FROM THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT TO AN  "ACCREDITED
INVESTOR"  WITHIN THE MEANING OF  SUBPARAGRAPH  (a) (1), (2), (3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT,
OR FOR THE ACCOUNT OF AN "ACCREDITED  INVESTOR," FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION  WITH,  ANY  DISTRIBUTION  IN
VIOLATION OF THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE  EXEMPTION
FROM  THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT,  SUBJECT  TO THE
COMPANY'S  RIGHT PRIOR TO ANY SUCH OFFER,  SALE OR TRANSFER  PURSUANT TO CLAUSES
(C) OR (D) TO REQUIRE  THE  DELIVERY  OF AN OPINION  OF  COUNSEL,  CERTIFICATION
AND/OR OTHER INFORMATION  SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A
COPY OF WHICH MAY BE OBTAINED  FROM THE COMPANY.  THE HOLDER OF THIS SECURITY BY
ITS   ACCEPTANCE   HEREOF   AGREES  THAT  IT  WILL  COMPLY  WITH  THE  FOREGOING
RESTRICTIONS.

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

      THE  HOLDER  OF  THIS  SECURITY  BY ITS  ACCEPTANCE  HEREOF  ALSO  AGREES,
REPRESENTS  AND  WARRANTS  THAT  IT  IS  NOT  AN  EMPLOYEE  BENEFIT,  INDIVIDUAL
RETIREMENT  ACCOUNT  OR  OTHER  PLAN OR  ARRANGEMENT  SUBJECT  TO TITLE I OF THE
EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT OF 1974,  AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE  INTERNAL  REVENUE  CODE OF 1986,  AS AMENDED (THE  "CODE"),
(EACH A "PLAN"),  OR AN ENTITY WHOSE UNDERLYING  ASSETS INCLUDE "PLAN ASSETS" BY
REASON OF ANY PLAN'S  INVESTMENT  IN THE ENTITY  AND NO PERSON  INVESTING  "PLAN
ASSETS"

                                      -11-
<PAGE>

OF ANY PLAN MAY ACQUIRE OR HOLD THIS  SECURITY OR ANY INTEREST  THEREIN,  UNLESS
SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE  RELIEF  AVAILABLE  UNDER
U.S.    DEPARTMENT   OF   LABOR   PROHIBITED    TRANSACTION    CLASS   EXEMPTION
96-23,95-60,91-38,90-1  OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE
AND  HOLDING OF THIS  SECURITY  IS NOT  PROHIBITED  BY  SECTION  406 OF ERISA OR
SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER
OR  HOLDER  OF THIS  SECURITY  OR ANY  INTEREST  THEREIN  WILL BE DEEMED TO HAVE
REPRESENTED  BY ITS  PURCHASE  AND HOLDING  THEREOF THAT EITHER (i) IT IS NOT AN
EMPLOYEE  BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO
WHICH SECTION 4975 OF THE CODE IS  APPLICABLE,  A TRUSTEE OR OTHER PERSON ACTING
ON BEHALF OF AN EMPLOYEE  BENEFIT  PLAN OR PLAN,  OR ANY OTHER  PERSON OR ENTITY
USING THE ASSETS OF ANY EMPLOYEE  BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE,
OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED  TRANSACTION UNDER SECTION
406 OF  ERISA OR  SECTION  4975 OF THE CODE  FOR  WHICH  THERE IS NO  APPLICABLE
STATUTORY OR ADMINISTRATIVE EXEMPTION.

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

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

      THIS  OBLIGATION  IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES
OR ANY  AGENCY OR FUND OF THE  UNITED  STATES,  INCLUDING  THE  FEDERAL  DEPOSIT
INSURANCE  CORPORATION  (THE "FDIC").  THIS  OBLIGATION IS  SUBORDINATED  TO THE
CLAIMS OF  DEPOSITORS  AND THE CLAIMS OF GENERAL  AND SECURED  CREDITORS  OF THE
COMPANY,  IS INELIGIBLE  AS  COLLATERAL  FOR A LOAN BY THE COMPANY OR ANY OF ITS
SUBSIDIARIES AND IS NOT SECURED.

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

      In case any Debt Security shall become mutilated or be destroyed,  lost or
stolen,  the Company  shall  execute,  and upon its written  request the Trustee
shall  authenticate  and  deliver,  a new Debt  Security  bearing  a number  not
contemporaneously outstanding, in exchange

                                      -12-
<PAGE>

and  substitution  for  the  mutilated  Debt  Security,  or in  lieu  of  and in
substitution for the Debt Security so destroyed,  lost or stolen.  In every case
the applicant for a substituted  Debt Security  shall furnish to the Company and
the Trustee  such  security or indemnity as may be required by them to save each
of them  harmless,  and,  in  every  case of  destruction,  loss or  theft,  the
applicant  shall also  furnish to the Company and the Trustee  evidence to their
satisfaction of the destruction,  loss or theft of such Debt Security and of the
ownership thereof.

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

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

      SECTION 2.07. Temporary Debt Securities.

      Pending the  preparation of definitive  Debt  Securities,  the Company may
execute and the Trustee  shall  authenticate  and make  available  for  delivery
temporary Debt Securities  that are typed,  printed or  lithographed.  Temporary
Debt  Securities  shall  be  issuable  in  any  authorized   denomination,   and
substantially  in the form of the  definitive  Debt  Securities  but  with  such
omissions,  insertions and  variations as may be appropriate  for temporary Debt
Securities,  all as may be determined by the Company.  Every such temporary Debt
Security  shall be executed by the Company and be  authenticated  by the Trustee
upon the same conditions and in substantially the same manner, and with the same
effect,  as the definitive Debt  Securities.  Without  unreasonable  delay,  the
Company  will  execute and deliver to the  Trustee or the  Authenticating  Agent
definitive  Debt  Securities and thereupon any or all temporary Debt  Securities
may be surrendered in exchange therefor,  at the Principal Office of the Trustee
or at any  office  or agency  maintained  by the  Company  for such  purpose  as
provided  in Section  3.02,  and the Trustee or the  Authenticating  Agent shall
authenticate and make available for delivery in exchange for such

                                      -13-
<PAGE>

temporary Debt Securities a like aggregate  principal  amount of such definitive
Debt  Securities.  Such exchange shall be made by the Company at its own expense
and  without  any  charge  therefor  except  that in case of any  such  exchange
involving a  registration  of transfer the Company may require  payment of a sum
sufficient  to cover  any  tax,  fee or other  governmental  charge  that may be
imposed in relation thereto.  Until so exchanged,  the temporary Debt Securities
shall in all respects be entitled to the same benefits  under this  Indenture as
definitive Debt Securities authenticated and delivered hereunder.

      SECTION 2.08. Payment of Interest.

      During the Fixed Rate Period, each Debt Security will bear interest at the
Fixed  Rate.  Thereafter  each  Debt  Security  will bear  interest  at the then
applicable  Variable Rate from and including  each  Interest  Payment Date,  but
excluding, the next succeeding Interest Payment Date or, in the case of the last
Interest  Payment  Period,  the  Redemption  Date,  Special  Redemption  Date or
Maturity Date, as applicable, on the principal thereof, on any overdue principal
and (to the extent that payment of such interest is enforceable under applicable
law) on Deferred Interest and on any overdue  installment of interest (including
Defaulted  Interest),  payable (subject to the provisions of Article XV) on each
Interest Payment Date commencing on September 7, 2005. Interest and any Deferred
Interest on any Debt  Security that is payable,  and is punctually  paid or duly
provided for by the Company,  on any Interest  Payment Date shall be paid to the
Person in whose name said Debt Security (or one or more Predecessor  Securities)
is  registered  at the close of  business  on the  regular  record date for such
interest installment,  except that interest and any Deferred Interest payable on
the Maturity Date, the Redemption  Date, or the Special  Redemption Date, as the
case may be, shall be paid to the Person to whom  principal is paid. In (i) case
the Maturity  Date of any Debt Security or (ii) the event that any Debt Security
or  portion  thereof  is  called  for  redemption  and  the  redemption  date is
subsequent  to a regular  record date with respect to any Interest  Payment Date
and either on or prior to such  Interest  Payment  Date,  interest  on such Debt
Security will be paid upon presentation and surrender of such Debt Security.

      Any interest on any Debt Security,  other than Deferred Interest,  that is
payable,  but is not punctually paid or duly provided for by the Company, on any
Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease
to be payable to the  registered  holder on the relevant  regular record date by
virtue of having been such holder,  and such Defaulted Interest shall be paid by
the  Company  to the  Persons  in whose  names  such Debt  Securities  (or their
respective Predecessor  Securities) are registered at the close of business on a
special record date for the payment of such Defaulted  Interest,  which shall be
fixed in the following  manner:  the Company shall notify the Trustee in writing
of the  amount  of  Defaulted  Interest  proposed  to be paid on each  such Debt
Security and the date of the proposed payment,  and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate  amount
proposed  to be paid in  respect  of  such  Defaulted  Interest  or  shall  make
arrangements  reasonably  satisfactory  to the Trustee for such deposit prior to
the date of the proposed payment,  such money when deposited to be held in trust
for the benefit of the Persons  entitled to such  Defaulted  Interest as in this
clause  provided.  Thereupon the Trustee shall fix a special record date for the
payment of such Defaulted Interest which shall not be more than fifteen nor less
than ten days prior to the date of the  proposed  payment  and not less than ten
days after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company

                                      -14-
<PAGE>

of such special  record date and, in the name and at the expense of the Company,
shall cause notice of the proposed  payment of such  Defaulted  Interest and the
special record date therefor to be mailed,  first class postage prepaid, to each
Securityholder  at  his or her  address  as it  appears  in  the  Debt  Security
Register,  not less than ten days prior to such special  record date.  Notice of
the proposed  payment of such  Defaulted  Interest  and the special  record date
therefor having been mailed as aforesaid,  such Defaulted Interest shall be paid
to the  Persons  in whose  names  such  Debt  Securities  (or  their  respective
Predecessor   Securities)  are  registered  on  such  special  record  date  and
thereafter  the Company shall have no further  payment  obligation in respect of
the Defaulted Interest.

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

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

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

      SECTION 2.09. Cancellation of Debt Securities Paid, etc.

      All Debt Securities  surrendered  for the purpose of payment,  redemption,
exchange or  registration  of transfer,  shall, if surrendered to the Company or
any Paying Agent, be surrendered to the Trustee and promptly canceled by it, or,
if surrendered  to the Trustee or any  Authenticating  Agent,  shall be promptly
canceled by it, and no Debt Securities shall be issued in lieu thereof except as
expressly  permitted  by any of the  provisions  of  this  Indenture.  All  Debt
Securities  canceled  by any  Authenticating  Agent  shall be  delivered  to the
Trustee.  The Trustee  shall  destroy all canceled  Debt  Securities  unless the
Company  otherwise  directs the  Trustee in  writing,  in which case the Trustee
shall dispose of such Debt Securities as directed by the Company. If the Company
shall acquire any of the Debt Securities,  however,  such acquisition  shall not
operate as a redemption or satisfaction of the indebtedness  represented by such
Debt  Securities  unless and until the same are  surrendered  to the Trustee for
cancellation.

      SECTION 2.10. Computation of Interest.

      (a) From June 30, 2005 until July 7, 2010 (the "Fixed Rate  Period"),  the
interest  shall be  computed  on the  basis of a 360-day  year of twelve  30-day
months and the amount  payable for any partial  period  shall be computed on the
basis of the number of days elapsed in a 360-day year of twelve  30-day  months.
Upon expiration of the Fixed Rate Period, the amount of interest payable for any
Interest  Payment Period will be computed on the basis of a 360-day year and the
actual  number  of days  elapsed  in the  relevant  interest  period;  provided,
however,  that upon the  occurrence  of a Special Event  Redemption  pursuant to
Section 10.02 the amounts payable pursuant to this Indenture shall be calculated
as set forth in the definition of Special Redemption Price.

                                      -15-
<PAGE>

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

            (1) On the second  LIBOR  Business Day  (provided,  that on such day
      commercial  banks are open for  business  (including  dealings  in foreign
      currency  deposits) in London (a "LIBOR Banking  Day"),  and otherwise the
      next preceding  LIBOR Business Day that is also a LIBOR Banking Day) prior
      to the January 15, April 15, July 15 and October 15 immediately succeeding
      the  commencement of such Interest Payment Period (or, with respect to the
      first Interest Payment Period subsequent to the Fixed Rate Period, on July
      15, 2010) (each such day, a "LIBOR  Determination  Date" for such Interest
      Payment  Period),   the  Calculation  Agent  shall  obtain  the  rate  for
      three-month U.S. Dollar deposits in Europe, which appears on Telerate Page
      3750 (as defined in the International  Swaps and Derivatives  Association,
      Inc. 2000 Interest Rate and Currency  Exchange  Definitions) or such other
      page as may replace such  Telerate  Page 3750 on the  Moneyline  Telerate,
      Inc. service (or such other service or services as may be nominated by the
      British Banker's  Association as the information vendor for the purpose of
      displaying London interbank offered rates for U.S. dollar deposits), as of
      11:00 a.m. (London time) on such LIBOR Determination Date, and the rate so
      obtained shall be LIBOR for such Interest Payment Period.  "LIBOR Business
      Day"  means any day that is not a  Saturday,  Sunday or other day on which
      commercial  banking  institutions  in The City of New York or  Wilmington,
      Delaware are  authorized  or  obligated  by law or  executive  order to be
      closed.  If such rate is  superseded  on Telerate Page 3750 by a corrected
      rate before 12:00 noon (London time) on the same LIBOR Determination Date,
      the  corrected  rate as so  substituted  will be LIBOR  for that  Interest
      Payment Period.

            (2) If, on any LIBOR  Determination  Date, such rate does not appear
      on Telerate Page 3750 or such other page as may replace such Telerate Page
      3750 on the  Moneyline  Telerate,  Inc.  service (or such other service or
      services as may be nominated by the British  Banker's  Association  as the
      information  vendor for the purpose of displaying London interbank offered
      rates for U.S. dollar deposits), the Calculation Agent shall determine the
      arithmetic  mean of the  offered  quotations  of the  Reference  Banks (as
      defined  below)  to  leading  banks in the  London  Interbank  market  for
      three-month U.S. Dollar deposits in Europe (in an amount determined by the
      Calculation   Agent)  by  reference  to  requests  for  quotations  as  of
      approximately  11:00 a.m.  (London time) on the LIBOR  Determination  Date
      made by the  Calculation  Agent to the Reference  Banks.  If, on any LIBOR
      Determination  Date,  at least two of the  Reference  Banks  provide  such
      quotations,  LIBOR shall equal the arithmetic mean of such quotations. If,
      on any LIBOR  Determination  Date, only one or none of the Reference Banks
      provide such a quotation,  LIBOR shall be deemed to be the arithmetic mean
      of the offered  quotations  that at least two leading banks in the City of
      New York  (as  selected  by the  Calculation  Agent)  are  quoting  on the
      relevant LIBOR  Determination Date for three-month U.S. Dollar deposits in
      Europe at approximately  11:00 a.m. (London time) (in an amount determined
      by the Calculation Agent). As used herein,

                                      -16-
<PAGE>

      "Reference  Banks" means four major banks in the London  Interbank  market
      selected by the Calculation Agent.

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

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

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

      SECTION 2.11. Extension of Interest Payment Period.

      So long as no Event of Default has occurred and is continuing, the Company
shall have the right, from time to time and without causing an Event of Default,
to defer  payments of interest on the Debt  Securities by extending the interest
distribution  period  on the Debt  Securities  at any time and from time to time
during the term of the Debt Securities,  for up to twenty consecutive  quarterly
periods  (each  such  extended  interest   distribution  period,  an  "Extension
Period"),  during which  Extension  Period no interest  shall be due and payable
(except any  Additional  Interest  that may be due and  payable).  No  Extension
Period may end on a date other than an Interest  Payment  Date or extend  beyond
the Maturity Date, any Redemption  Date or any Special  Redemption  Date, as the
case may be.  During any Extension  Period,  interest will continue to accrue on
the Debt  Securities,  and  interest  on such  accrued  interest  (such  accrued
interest and interest  thereon  referred to herein as "Deferred  Interest") will
accrue at an annual  rate equal to the  Interest  Rate  applicable  during  such
Extension  Period,  compounded  quarterly  from the date such Deferred  Interest
would have been  payable  were it not for the  Extension  Period,  to the extent
permitted  by law. No interest  or  Deferred  Interest  shall be due and payable
during an Extension  Period,  except at the end thereof.  At the end of any such
Extension  Period the Company  shall pay all Deferred  Interest then accrued and
unpaid on the Debt Securities;  provided,  however, that no Extension Period may
extend beyond the Maturity Date; and provided further,  however, that during any
such  Extension  Period,  the Company shall be subject to the  restrictions  set
forth  in  Section  3.08 of this  Indenture.  Prior  to the  termination  of any
Extension  Period,  the Company may further extend such period,  provided,  that
such period

                                      -17-
<PAGE>

together with all such previous and further consecutive extensions thereof shall
not exceed twenty consecutive  quarterly periods,  or extend beyond the Maturity
Date. Upon the  termination of any Extension  Period and upon the payment of all
Deferred Interest,  the Company may commence a new Extension Period,  subject to
the  foregoing  requirements.  The Company  must give the Trustee  notice of its
election to begin such Extension  Period  ("Notice") at least five Business Days
prior to the next succeeding Interest Payment Date on which interest on the Debt
Securities  would  have been  payable  except  for the  election  to begin  such
Extension  Period.  The Notice shall  describe,  in reasonable  detail,  why the
Company has elected to begin an Extension  Period.  The Notice shall acknowledge
and  affirm the  Company's  understanding  that it is  prohibited  from  issuing
dividends and other  distributions  during the Extension Period. Upon receipt of
the Notice,  an Initial  Purchaser shall have the right, at its sole discretion,
to disclose  the name of the  Company,  the fact that the Company has elected to
begin an Extension Period and other information that such Initial Purchaser,  at
its sole  discretion,  deems  relevant  to the  company's  election  to begin an
Extension  Period.  The Trustee shall give notice of the  Company's  election to
begin a new Extension Period to the Securityholders.

      SECTION 2.12. CUSIP Numbers.

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

      SECTION 2.13. Global Debentures.

      (a) Upon the election of the holder of Outstanding Debt Securities,  which
election need not be in writing,  the Debt Securities owned by such holder shall
be issued in the form of one or more Global Debentures registered in the name of
the Depositary or its nominee. Each Global Debenture issued under this Indenture
shall be registered in the name of the Depositary  designated by the Company for
such Global Debenture or a nominee thereof and delivered to such Depositary or a
nominee  thereof or custodian  therefor,  and each such Global  Debenture  shall
constitute a single Debt Security for all purposes of this Indenture.

      (b)  Notwithstanding  any other  provision  in this  Indenture,  no Global
Debenture may be exchanged in whole or in part for Debt  Securities  registered,
and no transfer of a Global Debenture in whole or in part may be registered,  in
the name of any Person other than the Depositary for such Global  Debenture or a
nominee thereof unless (i) such  Depositary  advises the Trustee and the Company
in  writing  that such  Depositary  is no  longer  willing  or able to  properly
discharge  its  responsibilities  as  Depositary  with  respect  to such  Global
Debenture,  and no qualified successor is appointed by the Company within ninety
(90) days of receipt by the Company of such notice,  (ii) such Depositary ceases
to be a clearing  agency  registered  under the Exchange Act and no successor is
appointed by the Company  within ninety (90) days after  obtaining  knowledge of
such event, (iii) the Company executes and delivers to the Trustee a

                                      -18-
<PAGE>

Company Order stating that the Company elects to terminate the book-entry system
through the  Depositary  or (iv) an Event of Default  shall have occurred and be
continuing.  Upon the  occurrence  of any event  specified in clause (i),  (ii),
(iii) or (iv) above,  the Trustee shall notify the  Depositary  and instruct the
Depositary to notify all owners of beneficial interests in such Global Debenture
of the occurrence of such event and of the  availability  of Debt  Securities to
such owners of beneficial  interests  requesting the same.  Upon the issuance of
such Debt Securities and the registration in the Debt Security  Register of such
Debt Securities in the names of the holders of the beneficial interests therein,
the Trustee  shall  recognize  such holders of  beneficial  interests as holders
thereof.

      (c) If any Global  Debenture is to be exchanged for other Debt  Securities
or canceled in part,  or if another Debt Security is to be exchanged in whole or
in part for a beneficial interest in any Global Debenture,  then either (i) such
Global  Debenture  shall be so  surrendered  for  exchange  or  cancellation  as
provided  in this  Article  II or (ii) the  principal  amount  thereof  shall be
reduced  or  increased  by an  amount  equal  to the  portion  thereof  to be so
exchanged  or  canceled,  or equal to the  principal  amount of such  other Debt
Security to be so exchanged for a beneficial  interest therein,  as the case may
be,  by means  of an  appropriate  adjustment  made on the  records  of the Debt
Security  registrar,  whereupon the Trustee,  in accordance  with the Applicable
Depository   Procedures,   shall  instruct  the  Depositary  or  its  authorized
representative to make a corresponding  adjustment to its records. Upon any such
surrender or adjustment of a Global Debenture by the Depositary,  accompanied by
registration  instructions,  the Company  shall  execute  and the Trustee  shall
authenticate  and deliver  any Debt  Securities  issuable  in exchange  for such
Global Debenture (or any portion thereof) in accordance with the instructions of
the  Depositary.  The  Trustee  shall not be liable for any delay in delivery of
such  instructions and may conclusively rely on, and shall be fully protected in
relying on, such instructions.

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

      (e)  Debt  Securities   distributed  to  holders  of  Book-Entry   Capital
Securities (as defined in the Trust Agreement) upon the dissolution of the Trust
shall be distributed in the form of one or more Global Debentures  registered in
the name of a Depositary or its nominee,  and deposited with the Debt Securities
registrar, as custodian for such Depositary, or with such Depositary, for credit
by the  Depositary to the respective  accounts of the  beneficial  owners of the
Debt Securities represented thereby (or such other accounts as they may direct).
Debt  Securities  distributed  to  holders  of  Capital  Securities  other  than
Book-Entry  Capital  Securities  upon the  dissolution of the Trust shall not be
issued  in the  form  of a  Global  Debenture  or any  other  form  intended  to
facilitate book-entry trading in beneficial interests in such Debt Securities.

      (f) The  Depositary or its nominee,  as the  registered  owner of a Global
Debenture,  shall be the holder of such Global  Debenture for all purposes under
this Indenture and the Debt Securities,  and owners of beneficial interests in a
Global Debenture shall hold such interests pursuant to the Applicable Depository
Procedures. Accordingly, any such owner's

                                      -19-
<PAGE>

beneficial  interest  in a Global  Debenture  shall be  shown  only on,  and the
transfer of such interest shall be effected only through,  records maintained by
the  Depositary  or  its  nominee  or  its  Depositary  Participants.  The  Debt
Securities  registrar  and the  Trustee  shall  be  entitled  to deal  with  the
Depositary  for all purposes of this  Indenture  relating to a Global  Debenture
(including  the  payment of  principal  and  interest  thereon and the giving of
instructions  or directions by owners of  beneficial  interests  therein and the
giving of  notices) as the sole  holder of the Debt  Security  and shall have no
obligations to the owners of beneficial  interests therein.  Neither the Trustee
nor the Debt  Securities  registrar  shall have any  liability in respect of any
transfers affected by the Depositary.

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

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

                                   ARTICLE III

                       PARTICULAR COVENANTS OF THE COMPANY

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

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

      (b) The Company will treat the Debt  Securities as  indebtedness,  and the
interest  payable in respect of such Debt  Securities as interest,  for all U.S.
federal  income tax  purposes.  All payments in respect of such Debt  Securities
will be made free and clear of U.S.

                                      -20-
<PAGE>

withholding  tax to any  beneficial  owner thereof that has provided an Internal
Revenue Service Form W-8 BEN (or any substitute or successor form)  establishing
its non-U.S. status for U.S. federal income tax purposes.

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

      (d) As of the date of this  Indenture,  the  Company  represents  that the
likelihood that it would exercise its right under Section 2.11 to defer payments
of interest on the Debt Securities by commencing an Extension Period at any time
during  which the Debt  Securities  are  outstanding  is remote  because  of the
restrictions  that would be imposed on the  Company's  ability to declare or pay
dividends  or  distributions  on, or to redeem,  purchase or make a  liquidation
payment  with  respect to, any of its  outstanding  equity and on the  Company's
ability to make any payments of principal  of or interest on, or  repurchase  or
redeem, any of its debt securities that rank pari passu in all respects with (or
junior in interest to) the Debt Securities.

      SECTION 3.02. Offices for Notices and Payments, etc.

      So long as any of the Debt Securities remain outstanding, the Company will
maintain in Wilmington,  Delaware an office or agency where the Debt  Securities
may be presented for payment,  an office or agency where the Debt Securities may
be presented for  registration  of transfer and for exchange as provided in this
Indenture  and an office or agency  where  notices  and  demands  to or upon the
Company in respect of the Debt  Securities  or of this  Indenture may be served.
The Company will give to the Trustee  written notice of the location of any such
office  or  agency  and of any  change  of  location  thereof.  Until  otherwise
designated  from  time to time by the  Company  in a notice to the  Trustee,  or
specified as  contemplated by Section 2.05, such office or agency for all of the
above purposes shall be the Principal Office of the Trustee. In case the Company
shall fail to  maintain  any such  office or agency in  Wilmington,  Delaware or
shall fail to give such notice of the  location or of any change in the location
thereof,  presentations and demands may be made and notices may be served at the
Principal Office of the Trustee.

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

                                      -21-
<PAGE>

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

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

      SECTION 3.04. Provision as to Paying Agent.

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

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

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

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

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

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

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

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

                                      -22-
<PAGE>

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

      SECTION 3.05. Certificate to Trustee.

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

      SECTION 3.06. Additional Interest.

      If and for so long as the Trust is the holder of all Debt  Securities  and
is subject to or  otherwise  required to pay,  or is  required to withhold  from
distributions  to holders of Trust  Securities,  any additional taxes (including
withholding  taxes),  duties,  assessments  or other  governmental  charges as a
result  of a Tax  Event,  the  Company  will pay such  additional  amounts  (the
"Additional  Interest") on the Debt  Securities as shall be required so that the
net amounts  received and retained by the Trust for  distribution  to holders of
Trust  Securities  after  paying  all  taxes  (including  withholding  taxes  on
distributions  to holders of Trust  Securities),  duties,  assessments  or other
governmental  charges will be equal to the amounts the Trust would have received
and retained for  distribution to holders of Trust  Securities  after paying all
taxes  (including  withholding  taxes  on  distributions  to  holders  of  Trust
Securities),  duties,  assessments  or  other  governmental  charges  if no such
additional taxes,  duties,  assessments or other  governmental  charges had been
imposed.  Whenever in this Indenture or the Debt Securities there is a reference
in any context to the payment of principal of or premium, if any, or interest on
the Debt Securities, such mention shall be deemed to include mention of payments
of the Additional Interest provided for in this paragraph to the extent that, in
such context, Additional Interest is, was or would be payable in respect thereof
pursuant to the provisions of this paragraph and express  mention of the payment
of Additional  Interest (if  applicable) in any  provisions  hereof shall not be
construed as excluding Additional Interest in those provisions hereof where such
express mention is not made, provided, however, that notwithstanding anything to
the contrary  contained in this Indenture or any Debt Security,  the deferral of
the payment of interest  during an  Extension  Period  pursuant to Section  2.11
shall not defer  the  payment  of any  Additional  Interest  that may be due and
payable.

      SECTION 3.07. Compliance with Consolidation Provisions.

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

                                      -23-
<PAGE>

      SECTION 3.08. Limitation on Dividends.

      If Debt Securities are initially  issued to the Trust or a trustee of such
Trust  in  connection  with  the  issuance  of  Trust  Securities  by the  Trust
(regardless  of whether Debt  Securities  continue to be held by such Trust) and
(i) there shall have occurred and be  continuing  an Event of Default,  (ii) the
Company shall be in default with respect to its payment of any obligations under
the Capital Securities Guarantee or (iii) the Company shall have given notice of
its election to defer  payments of interest on the Debt  Securities by extending
the interest  distribution  period as provided  herein and such  period,  or any
extension thereof, shall have commenced and be continuing,  then the Company may
not (A) declare or pay any dividends or distributions  on, or redeem,  purchase,
acquire,  or make a  liquidation  payment with respect to, any of the  Company's
capital stock or (B) make any payment of principal of or interest or premium, if
any, on or repay,  repurchase or redeem any debt  securities of the Company that
rank  pari  passu  in all  respects  with or  junior  in  interest  to the  Debt
Securities or (C) make any payment under any guarantees of the Company that rank
pari passu in all respects with or junior in interest to the Capital  Securities
Guarantee  (other than (a)  repurchases,  redemptions or other  acquisitions  of
shares of capital  stock of the Company (I) in  connection  with any  employment
contract,  benefit plan or other similar  arrangement with or for the benefit of
one or more employees,  officers,  directors or consultants,  (II) in connection
with a dividend  reinvestment  or  stockholder  stock  purchase plan or (III) in
connection  with the  issuance of capital  stock of the  Company (or  securities
convertible into or exercisable for such capital stock),  as consideration in an
acquisition  transaction  entered into prior to the  occurrence  of (i), (ii) or
(iii) above, (b) as a result of any exchange,  reclassification,  combination or
conversion of any class or series of the Company's capital stock (or any capital
stock of a subsidiary  of the Company) for any class or series of the  Company's
capital  stock or of any class or series of the Company's  indebtedness  for any
class or series of the Company's  capital stock,  (c) the purchase of fractional
interests in shares of the Company's capital stock pursuant to the conversion or
exchange  provisions  of such capital stock or the security  being  converted or
exchanged,   (d)  any   declaration  of  a  dividend  in  connection   with  any
stockholder's  rights plan, or the issuance of rights,  stock or other  property
under any  stockholder's  rights plan, or the redemption or repurchase of rights
pursuant thereto, or (e) any dividend in the form of stock, warrants, options or
other rights where the dividend  stock or the stock  issuable  upon  exercise of
such  warrants,  options or other  rights is the same stock as that on which the
dividend is being paid or ranks pari passu with or junior to such stock.

      SECTION 3.09. Covenants as to the Trust.

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

                                      -24-
<PAGE>

                                   ARTICLE IV

                LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

      SECTION 4.01. Securityholders' Lists.

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

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

      (b) at such other times as the  Trustee may request in writing,  within 30
days after the  receipt by the  Company of any such  request,  a list of similar
form and  content as of a date not more than 15 days prior to the time such list
is furnished;

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

      SECTION 4.02. Preservation and Disclosure of Lists.

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

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

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

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

                                      -25-
<PAGE>

      If the Trustee  shall elect not to afford such  applicants  access to such
information,  the Trustee shall,  upon the written  request of such  applicants,
mail to each  Securityholder of Debt Securities whose name and address appear in
the  information  preserved  at the time by the Trustee in  accordance  with the
provisions of subsection (a) of this Section 4.02 a copy of the form of proxy or
other   communication  which  is  specified  in  such  request  with  reasonable
promptness  after a tender to the  Trustee of the  material  to be mailed and of
payment,  or provision for the payment,  of the reasonable  expenses of mailing,
unless  within  five days  after such  tender,  the  Trustee  shall mail to such
applicants and file with the Securities and Exchange Commission, if permitted or
required by applicable law, together with a copy of the material to be mailed, a
written  statement  to the effect  that,  in the  opinion of the  Trustee,  such
mailing  would be  contrary  to the best  interests  of the  holders of all Debt
Securities, as the case may be, or would be in violation of applicable law. Such
written  statement shall specify the basis of such opinion.  If said Commission,
as permitted or required by applicable law, after opportunity for a hearing upon
the objections specified in the written statement so filed, shall enter an order
refusing to sustain any of such  objections  or if,  after the entry of an order
sustaining one or more of such  objections,  said Commission  shall find,  after
notice and  opportunity  for hearing,  that all the objections so sustained have
been met and shall enter an order so declaring, the Trustee shall mail copies of
such material to all such Securityholders  with reasonable  promptness after the
entry of such order and the renewal of such tender;  otherwise the Trustee shall
be  relieved  of any  obligation  or duty to such  applicants  respecting  their
application.

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

                                    ARTICLE V

          REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF
                                     DEFAULT

      SECTION 5.01. Events of Default.

      The  following  events  shall be "Events of Default"  with respect to Debt
Securities:

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

      (b)  the  Company  defaults  in the  payment  of all  or any  part  of the
principal of (or premium,  if any, on) any Debt  Securities as and when the same
shall become due and payable

                                      -26-
<PAGE>

either at maturity, upon redemption,  by declaration of acceleration pursuant to
Section 5.01 of this Indenture or otherwise; or

      (c) the Company  defaults in the performance  of, or breaches,  any of its
covenants or agreements in Sections 3.06,  3.07, 3.08 or 3.09 of this Indenture,
and  continuance  of such  default or breach for a period of 30 days after there
has been given,  by registered or certified  mail, to the Company by the Trustee
or to the  Company  and the  Trustee  by the  holders  of not  less  than 25% in
aggregate principal amount of the outstanding Debt Securities,  a written notice
specifying  such  default or breach and  requiring it to be remedied and stating
that such notice is a "Notice of Default' hereunder; or

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

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

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

      (g) the Company shall cease to be subject to regulation or  supervision by
the Federal Reserve or OTS, as applicable (or any successor  federal  regulatory
authority having jurisdiction over bank or savings and loan holding companies).

      If an Event of Default  specified under clause (a), (b), (d), (e), (f), or
(g) of this Section 5.01 (each an "Acceleration Event") occurs and is continuing
with  respect  to the Debt  Securities,  then,  and in each and every such case,
unless the principal of the Debt  Securities  shall have already  become due and
payable,  either the  Trustee or the  holders of not less than 25% in  aggregate
principal amount of the Debt Securities then outstanding hereunder, by notice in
writing to the  Company  (and to the Trustee if given by  Securityholders),  may
declare  the entire  principal  of the Debt  Securities  and any premium and the
interest  accrued,  but  unpaid,   thereon,  if  any,  to  be  due  and  payable
immediately, and upon any such declaration the same shall become immediately due
and  payable.  If the Company  shall cease to be subject to the  supervision  or
regulation of the Federal  Reserve or the OTS, as the case may be, then the term
"Acceleration Event" shall be defined to include clause (c) of this Section 5.01
as an Event of Default resulting

                                      -27-
<PAGE>

in  acceleration  of payment of the Debt  Securities to the same extent provided
for clauses (a), (b), (d), (e), (f), and (g) of this Section 5.01.

      Anything in this Section 5.01 to the contrary notwithstanding, if an Event
of Default  specified  under clause (c) occurs and is  continuing,  then, and in
each and every  such  case,  the  Trustee,  in its own name and as trustee of an
express trust,  shall pursue all available remedies at law and/or equity against
the Company. The Company acknowledges and affirms that in the event of breach of
such covenants and agreements referenced in clause (c) of this Section 5.01, the
damages to the holders of the Debt Securities and the Capital  Securities may be
difficult or  impossible to  ascertain.  Therefore,  in addition to any remedies
available at law for breach of any or all of said covenants or  agreements,  the
holders of the Debt Securities and the Capital  Securities  shall be entitled to
injunctive or other  equitable  relief in  connection  with the violation of any
such covenants or agreements referenced in Section 5.01(c).

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

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

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

      The Company  covenants that upon the occurrence of an Acceleration  Event,
the Company will pay to the Trustee,  for the benefit of the holders of the Debt
Securities, the whole

                                      -28-
<PAGE>

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

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

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

                                      -29-
<PAGE>

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

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

      SECTION 5.03. Application of Moneys Collected by Trustee.

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

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

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

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

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

      SECTION 5.04. Proceedings by Securityholders.

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

                                      -30-
<PAGE>

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

      SECTION 5.05. Proceedings by Trustee.

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

      SECTION 5.06. Remedies Cumulative and Continuing.

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

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

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

                                      -31-
<PAGE>

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

      SECTION 5.08. Notice of Defaults.

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

      SECTION 5.09. Undertaking to Pay Costs.

      All parties to this Indenture  agree, and each holder of any Debt Security
by such holder's  acceptance  thereof  shall be deemed to have agreed,  that any
court may in its  discretion  require,  in any suit for the  enforcement  of any
right or remedy under this Indenture, or in any suit

                                      -32-
<PAGE>

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

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

      SECTION 6.01. Duties and Responsibilities of Trustee.

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

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

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

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

            (2) in the  absence  of bad  faith on the part of the  Trustee,  the
      Trustee may  conclusively  rely, as to the truth of the statements and the
      correctness of the opinions  expressed  therein,  upon any certificates or
      opinions  furnished to the Trustee and conforming to the  requirements  of
      this Indenture; but, in the case of

                                      -33-
<PAGE>

      any such  certificates  or  opinions  which by any  provision  hereof  are
      specifically required to be furnished to the Trustee, the Trustee shall be
      under a duty to examine the same to determine  whether or not they conform
      on their face to the requirements of this Indenture;

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

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

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

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

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

      SECTION 6.02.  Reliance on Documents,  Opinions,  etc.

      Except as otherwise provided in Section 6.01:

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

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

      (c) the Trustee may consult with counsel of its  selection  and any advice
or Opinion of Counsel shall be full and complete authorization and protection in
respect of any

                                      -34-
<PAGE>

action  taken,  suffered  or  omitted  by it  hereunder  in  good  faith  and in
accordance with such advice or Opinion of Counsel;

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

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

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

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

      SECTION 6.03. No Responsibility for Recitals, etc.

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

                                      -35-
<PAGE>

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

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

      SECTION 6.05. Moneys to be Held in Trust.

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

      SECTION 6.06. Compensation and Expenses of Trustee.

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

                                      -36-
<PAGE>

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

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

      SECTION 6.07. Officers' Certificate as Evidence.

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

      SECTION 6.08. Eligibility of Trustee.

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

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

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

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

                                      -37-
<PAGE>

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

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

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

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

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

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

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

                                      -38-
<PAGE>

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

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

      SECTION 6.10. Acceptance by Successor.

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

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

                                      -39-
<PAGE>

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

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

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

      SECTION 6.11. Succession by Merger, etc.

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

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

      SECTION 6.12. Authenticating Agents.

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

                                      -40-
<PAGE>

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

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

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

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

                                   ARTICLE VII

                         CONCERNING THE SECURITYHOLDERS

      SECTION 7.01. Action by Securityholders.

      Whenever in this  Indenture it is provided that the holders of a specified
percentage  in aggregate  principal  amount of the Debt  Securities or aggregate
Liquidation  Amount of the Capital Securities may take any action (including the
making of any demand or request, the giving of any notice,  consent or waiver or
the taking of any other action), the fact

                                      -41-
<PAGE>

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

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

      SECTION 7.02. Proof of Execution by Securityholders.

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

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

      SECTION 7.03. Who Are Deemed Absolute Owners.

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

                                      -42-
<PAGE>

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

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

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

      SECTION 7.05. Revocation of Consents; Future Securityholders Bound.

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

                                      -43-
<PAGE>

                                  ARTICLE VIII

                           SECURITYHOLDERS' MEETINGS

      SECTION 8.01. Purposes of Meetings.

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

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

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

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

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

      SECTION 8.02. Call of Meetings by Trustee.

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

      SECTION 8.03. Call of Meetings by Company or Securit how.

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

                                      -44-
<PAGE>

      SECTION 8.04. Qualifications for Voting.

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

      SECTION 8.05. Regulations.

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

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

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

      SECTION 8.06. Voting.

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

                                      -45-
<PAGE>

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

      SECTION 8.07. Quorum; Actions.

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

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

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

                                      -46-
<PAGE>

      SECTION 8.08. Written Consent Without a Meeting.

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

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

      SECTION 9.01. Supplemental Indentures without Consent of Securityholders.

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

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

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

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

      (d) to add to,  delete  from,  or  revise  the  terms of Debt  Securities,
including,  without  limitation,  any terms relating to the issuance,  exchange,
registration or transfer of Debt

                                      -47-
<PAGE>

Securities,  including  to provide  for  transfer  procedures  and  restrictions
substantially similar to those applicable to the Capital Securities, as required
by  Section  2.05  (for  purposes  of  assuring  that  no  registration  of Debt
Securities is required under the Securities Act of 1933, as amended);  provided,
that any such action shall not adversely  affect the interests of the holders of
the Debt Securities then outstanding (it being understood,  for purposes of this
proviso, that transfer restrictions on Debt Securities  substantially similar to
those  applicable to Capital  Securities shall not be deemed to adversely affect
the holders of the Debt Securities);

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

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

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

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

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

      SECTION 9.02. Supplemental Indentures with Consent of Securityholders.

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

                                      -48-
<PAGE>

such Debt Security in accordance  with the terms of this Indenture and such Debt
Security) or increase the aggregate  principal  amount of Debt  Securities  then
outstanding,  or change any of the redemption provisions,  or make the principal
thereof or any interest or premium thereon payable in any coin or currency other
than United States Dollars,  or impair or affect the right of any Securityholder
to institute suit for payment thereof or impair the right of repayment,  if any,
at the option of the holder,  or (ii) reduce the  aforesaid  percentage  of Debt
Securities the holders of which are required to consent to any such supplemental
indenture;  and provided,  further,  that if the Debt Securities are held by the
Trust or a trustee  of such  trust,  such  supplemental  indenture  shall not be
effective  until  the  holders  of a  majority  in  Liquidation  Amount  of  the
outstanding  Capital  Securities  shall  have  consented  to  such  supplemental
indenture;  provided, further, that if the consent of the Securityholder of each
outstanding Debt Security is required,  such supplemental indenture shall not be
effective until each holder of the  outstanding  Capital  Securities  shall have
consented to such supplemental indenture.

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

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

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

      SECTION 9.03. Effect of Supplemental Indentures.

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

                                      -49-
<PAGE>

      SECTION 9.04. Notation on Debt Securities.

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

      SECTION  9.05.  Evidence of  Compliance  of  Supplemental  Indenture to be
furnished to Trustee.

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

                                   ARTICLE X

                            REDEMPTION OF SECURITIES

      SECTION 10.01. Optional Redemption.

      At any time the  Company  shall have the right,  subject to the receipt by
the Company of prior  approval from any regulatory  authority with  jurisdiction
over the Company if such  approval is then  required  under  applicable  capital
guidelines  or  policies  of such  regulatory  authority,  to  redeem  the  Debt
Securities,  in whole or (provided that all accrued and unpaid interest has been
paid on all Debt Securities for all Interest Periods  terminating on or prior to
such  date)  from time to time in part,  on any  January  7,  April 7, July 7 or
October 7 on or after July 7, 2010 (the  "Redemption  Date"),  at the Redemption
Price.

      SECTION 10.02. Special Event Redemption.

      If a Special Event shall occur and be  continuing,  the Company shall have
the right,  subject to the  receipt by the  Company of prior  approval  from any
regulatory authority with jurisdiction over the Company if such approval is then
required  under  applicable  capital  guidelines or policies of such  regulatory
authority,  to  redeem  the Debt  Securities,  in whole or in part,  at any time
within 90 days  following  the  occurrence  of such Special  Event (the "Special
Redemption Date"), at the Special Redemption Price.

                                      -50-
<PAGE>

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

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

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

      Prior to 10:00  a.m.  New York  City  time on the  Redemption  Date or the
Special  Redemption Date specified in the notice of redemption given as provided
in this  Section,  the Company will deposit with the Trustee or with one or more
Paying Agents an amount of money sufficient to redeem on the redemption date all
the Debt  Securities  so called for  redemption  at the  appropriate  redemption
price, together with unpaid interest accrued to such date.

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

      SECTION 10.04. Payment of Debt Securities Called for Redemption.

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

                                      -51-
<PAGE>

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

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

                                   ARTICLE XI

                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

      SECTION 11.01. Company May Consolidate, etc., on Certain Terms.

      Nothing  contained  in this  Indenture  or in the  Debt  Securities  shall
prevent  any  consolidation  or  merger  of the  Company  with or into any other
corporation  or  corporations  (whether or not  affiliated  with the Company) or
successive  consolidations  or mergers in which the Company or its  successor or
successors shall be a party or parties,  or shall prevent any sale,  conveyance,
transfer or other  disposition  of all or  substantially  all of the property or
capital  stock of the  Company  or its  successor  or  successors,  to any other
corporation  (whether or not  affiliated  with the Company,  or its successor or
successors) authorized to acquire and operate the same; provided,  however, that
the Company hereby  covenants and agrees that, (i) upon any such  consolidation,
merger (where the Company is not the surviving  corporation),  sale, conveyance,
transfer or other  disposition,  the  successor  entity  shall be a  corporation
organized and existing  under the laws of the United States or any state thereof
or the District of Columbia  (unless such corporation has (1) agreed to make all
payments due in respect of the Debt Securities or, if  outstanding,  the Capital
Securities and Capital  Securities  Guarantee  without  withholding or deduction
for,  or on account of, any taxes,  duties,  assessments  or other  governmental
charges under the laws or regulations of the  jurisdiction  of  organization  or
residence (for tax purposes) of such corporation or any political subdivision or
taxing authority  thereof or therein unless required by applicable law, in which
case such corporation shall have agreed to pay such additional  amounts as shall
be required so that the net amounts received and retained by the holders of such
Debt Securities or Capital Securities,  as the case may be, after payment of all
taxes (including withholding taxes),  duties,  assessments or other governmental
charges,  will be equal to the amounts that such holders would have received and
retained had no such taxes (including withholding taxes), duties, assessments or
other  governmental  charges been imposed,  (2) irrevocably and  unconditionally
consented and submitted to the  jurisdiction  of any United States federal court
or New York state court,  in each case located in The City of New York,  Borough
of Manhattan,  in respect of any action,  suit or proceeding  against it arising
out of or in connection with this Indenture,  the Debt  Securities,  the Capital
Securities  Guarantee or the Declaration  and  irrevocably  and  unconditionally
waived,  to the fullest extent  permitted by law, any objection to the laying of
venue in any such court or that any such  action,  suit or  proceeding  has been
brought in an inconvenient  forum and (3) irrevocably  appointed an agent in The
City of

                                      -52-
<PAGE>

New York for service of process in any action, suit or proceeding referred to in
clause (2) above) and such corporation  expressly assumes all of the obligations
of the Company under the Debt Securities, this Indenture, the Capital Securities
Guarantee  and  the  Declaration  and  (ii)  after  giving  effect  to any  such
consolidation,  merger,  sale,  conveyance,  transfer or other  disposition,  no
Default or Event of Default shall have occurred and be continuing.

      SECTION 11.02. Successor Entity to be Substituted.

      In case of any such consolidation,  merger, sale, conveyance,  transfer or
other  disposition  contemplated in Section 11.01 and upon the assumption by the
successor  entity,  by  supplemental  indenture,  executed and  delivered to the
Trustee  and  reasonably  satisfactory  in form to the  Trustee,  of the due and
punctual payment of the principal of and premium, if any, and interest on all of
the Debt  Securities and the due and punctual  performance and observance of all
of the covenants and conditions of this Indenture to be performed or observed by
the Company,  such successor  entity shall succeed to and be substituted for the
Company, with the same effect as if it had been named herein as the Company, and
thereupon the predecessor  entity shall be relieved of any further  liability or
obligation  hereunder  or  upon  the  Debt  Securities.  Such  successor  entity
thereupon may cause to be signed, and may issue either in its own name or in the
name of the Company,  any or all of the Debt Securities issuable hereunder which
theretofore  shall not have been  signed by the  Company  and  delivered  to the
Trustee  or the  Authenticating  Agent;  and,  upon the order of such  successor
entity  instead of the  Company  and  subject to all the terms,  conditions  and
limitations  in this  Indenture  prescribed,  the Trustee or the  Authenticating
Agent shall  authenticate and deliver any Debt Securities which previously shall
have been signed and delivered by the officers of the Company, to the Trustee or
the Authenticating Agent for authentication,  and any Debt Securities which such
successor  entity  thereafter  shall  cause to be signed  and  delivered  to the
Trustee or the Authenticating Agent for that purpose. All the Debt Securities so
issued  shall in all  respects  have the same legal rank and benefit  under this
Indenture as the Debt Securities  theretofore or thereafter issued in accordance
with the terms of this Indenture as though all of such Debt  Securities had been
issued at the date of the execution hereof.

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

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

                                   ARTICLE XII

                     SATISFACTION AND DISCHARGE OF INDENTURE

      SECTION 12.01. Discharge of Indenture.

      When (a) the Company  shall  deliver to the Trustee for  cancellation  all
Debt Securities theretofore  authenticated (other than any Debt Securities which
shall have been

                                      -53-
<PAGE>

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

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

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

      SECTION 12.03. Paying Agent to Repay Moneys.

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

      SECTION 12.04. Return of Unclaimed Moneys.

      Any moneys  deposited  with or paid to the Trustee or any Paying Agent for
payment of the principal of, and premium, if any, or interest on Debt Securities
and not applied

                                      -54-
<PAGE>

but remaining  unclaimed by the holders of Debt  Securities  for two years after
the date upon which the principal  of, and premium,  if any, or interest on such
Debt Securities, as the case may be, shall have become due and payable, shall be
repaid to the Company by the Trustee or such Paying Agent on written demand; and
the  holder  of any of the Debt  Securities  shall  thereafter  look only to the
Company  for any  payment  which such  holder may be entitled to collect and all
liability  of the Trustee or such Paying Agent with respect to such moneys shall
thereupon cease.

                                  ARTICLE XIII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

      SECTION 13.01. Indenture and Debt Securities Solely Corporate Obligations.

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

                                   ARTICLE XIV

                            MISCELLANEOUS PROVISIONS

      SECTION 14.01. Successors.

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

      SECTION 14.02. Official Acts by Successor Entity.

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

      SECTION 14.03. Surrender of Company Powers.

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

                                      -55-
<PAGE>

      SECTION 14.04. Addresses for Notices, etc.

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

                              Matrix Bancorp, Inc.
                           700 17th Street, Suite 2100
                                Denver, CO 80202
                            Attention: David W. Kloos

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

                                919 Market Street
                                    Suite 700
                              Wilmington, DE 19801
                       Attention: Corporate Trust Division

      SECTION 14.05. Governing Law.

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

      SECTION 14.06. Evidence of Compliance with Conditions Precedent.

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

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

                                      -56-
<PAGE>

condition has been complied  with;  and (d) a statement as to whether or not, in
the opinion of such person, such condition or covenant has been complied with.

      SECTION 14.07. Non-Business Days.

      Notwithstanding anything to the contrary contained herein, if any Interest
Payment  Date,  other than on the  Maturity  Date,  any  Redemption  Date or the
Special  Redemption  Date,  falls on a day that is not a Business  Day, then any
interest  payable will be paid on, and such Interest  Payment Date will be moved
to, the next  succeeding  Business Day, and additional  interest will accrue for
each day that such payment is delayed as a result thereof. If the Maturity Date,
any Redemption Date or the Special  Redemption Date falls on a day that is not a
Business Day, then the principal,  premium,  if any, and/or interest  payable on
such date will be paid on the next preceding Business Day.

      SECTION 14.08. Table of Contents, Headings, etc.

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

      SECTION 14.09. Execution in Counterparts.

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

      SECTION 14.10. Severability.

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

      SECTION 14.11. Assignment.

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

      SECTION 14.12. Acknowledgment of Rights.

      The Company acknowledges that, with respect to any Debt Securities held by
the  Trust or the  Institutional  Trustee  of the  Trust,  if the  Institutional
Trustee of the Trust fails to

                                      -57-
<PAGE>

enforce its rights under this Indenture as the holder of Debt Securities held as
the assets of the Trust after the holders of a majority in Liquidation Amount of
the  Capital   Securities  of  the  Trust  have  so  directed  in  writing  such
Institutional  Trustee, a holder of record of such Capital Securities may to the
fullest extent permitted by law institute legal proceedings directly against the
Company to enforce such  Institutional  Trustee's  rights  under this  Indenture
without  first  instituting  any legal  proceedings  against such  Institutional
Trustee  or any other  Person.  Notwithstanding  the  foregoing,  if an Event of
Default has occurred and is  continuing  and such event is  attributable  to the
failure of the Company to pay interest (or premium,  if any) or principal on the
Debt  Securities on the date such interest (or premium,  if any) or principal is
otherwise  due and  payable  (or in the case of  redemption,  on the  redemption
date), the Company acknowledges that a holder of record of Capital Securities of
the  Trust  may  directly   institute  a  proceeding  against  the  Company  for
enforcement of payment to such holder  directly of the principal of (or premium,
if any) or interest on the Debt Securities having an aggregate  principal amount
equal to the  aggregate  Liquidation  Amount of the Capital  Securities  of such
holder on or after the respective due date specified in the Debt Securities.

                                   ARTICLE XV

                        SUBORDINATION OF DEBT SECURITIES

      SECTION 15.01. Agreement to Subordinate.

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

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

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

      SECTION 15.02. Default on Senior Indebtedness.

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

                                      -58-
<PAGE>

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

      SECTION 15.03. Liquidation; Dissolution; Bankruptcy.

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

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

                                      -59-
<PAGE>

      For purposes of this Article XV, the words "cash,  property or securities"
shall not be deemed to include  shares of stock of the Company as reorganized or
readjusted,  or securities of the Company or any other corporation  provided for
by  a  plan  of  reorganization  or  readjustment,   the  payment  of  which  is
subordinated  at least to the extent provided in this Article XV with respect to
the Debt  Securities to the payment of all Senior  Indebtedness  of the Company,
that may at the time be outstanding, provided, that (a) such Senior Indebtedness
is  assumed  by  the  new   corporation,   if  any,   resulting  from  any  such
reorganization or readjustment, and (b) the rights of the holders of such Senior
Indebtedness  are not,  without  the  consent of such  holders,  altered by such
reorganization  or readjustment.  The  consolidation of the Company with, or the
merger  of  the  Company  into,  another   corporation  or  the  liquidation  or
dissolution  of the  Company  following  the  conveyance  or  transfer  or other
disposition of its property as an entirety,  or substantially as an entirety, to
another  corporation upon the terms and conditions provided for in Article XI of
this  Indenture  shall not be deemed a dissolution,  winding-up,  liquidation or
reorganization  for the purposes of this Section 15.03 if such other corporation
shall, as a part of such consolidation,  merger,  conveyance or transfer, comply
with the conditions  stated in Article XI of this Indenture.  Nothing in Section
15.02 or in this  Section  15.03 shall  apply to claims of, or payments  to, the
Trustee under or pursuant to Section 6.06 of this Indenture.

      SECTION 15.04. Subrogation.

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

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

                                      -60-
<PAGE>

      Upon any payment or distribution  of assets of the Company  referred to in
this Article XV, the Trustee,  subject to the  provisions  of Article VI of this
Indenture,  and the Securityholders  shall be entitled to conclusively rely upon
any order or decree made by any court of  competent  jurisdiction  in which such
dissolution,  winding-up, liquidation or reorganization proceedings are pending,
or a certificate of the receiver,  trustee in bankruptcy,  liquidation  trustee,
agent or other  Person  making such  payment or  distribution,  delivered to the
Trustee or to the Securityholders,  for the purposes of ascertaining the Persons
entitled to participate in such distribution, the holders of Senior Indebtedness
and other  indebtedness of the Company,  the amount thereof or payable  thereon,
the amount or amounts paid or distributed  thereon and all other facts pertinent
thereto or to this Article XV.

      SECTION 15.05. Trustee to Effectuate Subordination.

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

      SECTION 15.06. Notice by the Company.

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

      The Trustee,  subject to the  provisions of Article VI of this  Indenture,
shall be entitled to conclusively rely on the delivery to it of a written notice
by  a  Person  representing  himself  or  herself  to  be  a  holder  of  Senior
Indebtedness  of the Company (or a trustee or  representative  on behalf of such
holder) to establish  that such notice has been given by a holder of such Senior
Indebtedness  or a trustee  or  representative  on behalf of any such  holder or
holders.  In the event that the Trustee  determines  in good faith that  further
evidence is required with respect to the right of any Person as a holder of such
Senior Indebtedness to participate in

                                      -61-
<PAGE>

any payment or distribution pursuant to this Article XV, the Trustee may request
such Person to furnish evidence to the reasonable satisfaction of the Trustee as
to the amount of such Senior  Indebtedness  held by such  Person,  the extent to
which such Person is entitled to participate in such payment or distribution and
any other facts  pertinent  to the rights of such Person  under this Article XV,
and,  if such  evidence is not  furnished,  the Trustee may defer any payment to
such Person  pending  judicial  determination  as to the right of such Person to
receive such payment.

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

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

      With respect to the holders of Senior  Indebtedness  of the  Company,  the
Trustee  undertakes  to  perform or to observe  only such of its  covenants  and
obligations  as are  specifically  set forth in this  Article XV, and no implied
covenants or obligations with respect to the holders of such Senior Indebtedness
shall be read into this  Indenture  or any  Additional  Provisions  against  the
Trustee. The Trustee shall not owe or be deemed to owe any fiduciary duty to the
holders of such Senior Indebtedness and, subject to the provisions of Article VI
of this Indenture,  the Trustee shall not be liable to any holder of such Senior
Indebtedness if it shall pay over or deliver to Securityholders,  the Company or
any other Person money or assets to which any holder of such Senior Indebtedness
shall be entitled by virtue of this Article XV or otherwise.

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

      SECTION 15.08. Subordination May Not Be Impaired.

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

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

                                      -62-
<PAGE>

of such Senior  Indebtedness;  and (d) exercise or refrain from  exercising  any
rights against the Company, and any other Person.

      Wells Fargo Bank, National Association, in its capacity as Trustee, hereby
accepts the trusts in this Indenture  declared and provided,  upon the terms and
conditions herein above set forth.

                                      -63-
<PAGE>

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

                                               Matrix Bancorp, Inc.

                                               By:______________________________
                                               Name:____________________________
                                               Title:___________________________

                                               Wells Fargo Bank, National
                                               Association, as Trustee

                                               By:______________________________
                                               Name:____________________________
                                               Title:___________________________

<PAGE>

                                    EXHIBIT A

                    FORM OF JUNIOR SUBORDINATED DEBT SECURITY
                                    DUE 2035

                           [FORM OF FACE OF SECURITY]

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED  (THE  "SECURITIES  ACT"),  OR ANY  STATE  SECURITIES  LAWS OR ANY OTHER
APPLICABLE   SECURITIES  LAWS.   NEITHER  THIS  SECURITY  NOR  ANY  INTEREST  OR
PARTICIPATION  HEREIN MAY BE REOFFERED,  SOLD, ASSIGNED,  TRANSFERRED,  PLEDGED,
ENCUMBERED  OR  OTHERWISE  DISPOSED  OF IN THE ABSENCE OF SUCH  REGISTRATION  OR
UNLESS SUCH  TRANSACTION  IS EXEMPT  FROM,  OR NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF  THE  SECURITIES  ACT.  THE  HOLDER  OF  THIS  SECURITY  BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE COMPANY,  (B) PURSUANT TO RULE 144A UNDER THE  SECURITIES  ACT ("RULE
144A"), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED  IN RULE 144A THAT  PURCHASES  FOR ITS OWN  ACCOUNT OR FOR THE
ACCOUNT  OF A  QUALIFIED  INSTITUTIONAL  BUYER TO WHOM  NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,  (C)  PURSUANT TO AN  EXEMPTION
FROM THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT TO AN  "ACCREDITED
INVESTOR"  WITHIN THE MEANING OF  SUBPARAGRAPH  (a) (1), (2), (3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT,
OR FOR THE ACCOUNT OF SUCH AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND
NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE  EXEMPTION
FROM  THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT,  SUBJECT  TO THE
COMPANY'S  RIGHT PRIOR TO ANY SUCH OFFER,  SALE OR TRANSFER  PURSUANT TO CLAUSES
(C) OR (D) TO REQUIRE  THE  DELIVERY  OF AN OPINION  OF  COUNSEL,  CERTIFICATION
AND/OR OTHER INFORMATION  SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A
COPY OF WHICH MAY BE OBTAINED  FROM THE COMPANY.  THE HOLDER OF THIS SECURITY BY
ITS   ACCEPTANCE   HEREOF   AGREES  THAT  IT  WILL  COMPLY  WITH  THE  FOREGOING
RESTRICTIONS.

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

      THE  HOLDER  OF  THIS  SECURITY  BY ITS  ACCEPTANCE  HEREOF  ALSO  AGREES,
REPRESENTS  AND  WARRANTS  THAT  IT  IS  NOT  AN  EMPLOYEE  BENEFIT,  INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT

                                      A-1
<PAGE>

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

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

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

      THIS  OBLIGATION  IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES
OR ANY  AGENCY OR FUND OF THE  UNITED  STATES,  INCLUDING  THE  FEDERAL  DEPOSIT
INSURANCE  CORPORATION  (THE "FDIC").  THIS  OBLIGATION IS  SUBORDINATED  TO THE
CLAIMS OF  DEPOSITORS  AND THE CLAIMS OF GENERAL  AND SECURED  CREDITORS  OF THE
COMPANY,  IS INELIGIBLE  AS  COLLATERAL  FOR A LOAN BY THE COMPANY OR ANY OF ITS
SUBSIDIARIES AND IS NOT SECURED.

                                      A-2
<PAGE>

               Form of Junior Subordinated Debt Security due 2035
                                       of
                              Matrix Bancorp, Inc.

      Matrix Bancorp,  Inc., a savings and loan holding company  incorporated in
Colorado  (the  "Company"),  for value  received  promises to pay to Wells Fargo
Bank,  National  Association,  not in its  individual  capacity  but  solely  as
Institutional  Trustee  for  Matrix  Bancorp  Capital  Trust  VIII,  a  Delaware
statutory  trust (the  "Holder"),  or registered  assigns,  the principal sum of
Seven Million Seven Hundred  Thirty-Two  Thousand Dollars on July 7, 2035 and to
pay interest on said  principal  sum from June 30, 2005, or from the most recent
interest  payment  date (each such date,  an "Interest  Payment  Date") to which
interest has been paid or duly provided for,  quarterly  (subject to deferral as
set forth herein) in arrears on January 7, April 7, July 7 and October 7 of each
year  commencing  October 7, 2005,  at the rate of 5.86% (the "Fixed  Rate") per
annum until July 7, 2010 (the "Fixed Rate Period") and  thereafter at a variable
per annum rate  equal to LIBOR (as  defined  in the  Indenture)  plus 1.69% (the
"Variable  Rate")  ("Interest Rate" is defined to include the Fixed Rate and the
Variable Rate, as applicable) (provided, however, that the Interest Rate for any
Interest  Payment  Period may not exceed the highest rate  permitted by New York
law, as the same may be modified by United States law of general  applicability)
until the principal hereof shall have become due and payable, and on any overdue
principal  and  (without  duplication  and to the  extent  that  payment of such
interest is  enforceable  under  applicable  law) on any overdue  installment of
interest  at an annual rate equal to the  Interest  Rate in effect for each such
Extension  Period  compounded  quarterly.  The amount of interest payable on any
Interest  Payment  Date shall be  computed  during the Fixed Rate  Period on the
basis of a 360-day year of twelve 30-day months,  and thereafter on the basis of
a 360-day year and the actual  number of days  elapsed in the relevant  interest
period.  Notwithstanding  anything  to the  contrary  contained  herein,  if any
Interest  Payment Date,  other than on the Maturity Date, any Redemption Date or
the Special Redemption Date, falls on a day that is not a Business Day, then any
interest  payable will be paid on, and such Interest  Payment Date will be moved
to, the next  succeeding  Business Day, and additional  interest will accrue for
each day that such payment is delayed as a result thereof. If the Maturity Date,
any Redemption Date or the Special  Redemption date falls on a day that is not a
Business Day, then the principal,  premium,  if any, and/or interest  payable on
such date will be paid on the immediately  preceding  Business Day. The interest
installment  so  payable,  and  punctually  paid or duly  provided  for,  on any
Interest Payment Date will, as provided in the Indenture,  be paid to the Person
in whose name this Debt  Security  (or one or more  Predecessor  Securities,  as
defined in said Indenture) is registered at the close of business on the regular
record date for such interest installment, except that interest and any Deferred
Interest  payable  on the  Maturity  Date  shall be paid to the  Person  to whom
principal is paid. Any such interest  installment  not  punctually  paid or duly
provided for shall  forthwith  cease to be payable to the registered  holders on
such  regular  record date and may be paid to the Person in whose name this Debt
Security (or one or more Predecessor Debt Securities) is registered at the close
of business on a special  record date to be fixed by the Trustee for the payment
of such  defaulted  interest,  notice  whereof shall be given to the  registered
holders  of the Debt  Securities  not less  than 10 days  prior to such  special
record date, all as more fully  provided in the Indenture.  The principal of and
interest on this Debt  Security  shall be payable at the office or agency of the
Trustee (or other Paying Agent appointed by the Company) maintained for that

                                      A-3
<PAGE>

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

      Upon  submission of Notice (as defined in the Indenture) and so long as no
Event of Default has  occurred  and is  continuing,  the Company  shall have the
right,  from time to time and  without  causing  an Event of  Default,  to defer
payments  of  interest  on  the  Debt   Securities  by  extending  the  interest
distribution  period  on the Debt  Securities  at any time and from time to time
during  the  term of the Debt  Securities,  for up to 20  consecutive  quarterly
periods  (each  such  extended  interest   distribution  period,  an  "Extension
Period"),  during which  Extension  Period no interest  shall be due and payable
(except  any  Additional  Interest  that  may be due and  payable).  During  any
Extension Period,  interest will continue to accrue on the Debt Securities,  and
interest on such accrued  interest (such accrued  interest and interest  thereon
referred to herein as "Deferred  Interest")  will accrue at an annual rate equal
to the  Interest  Rate  applicable  during  such  Extension  Period,  compounded
quarterly  from the date such Deferred  Interest would have been payable were it
not for the  Extension  Period,  to the extent  permitted  by law. No  Extension
Period may end on a date other than an Interest  Payment Date. At the end of any
such Extension  Period the Company shall pay all Deferred  Interest then accrued
and unpaid on the Debt Securities;  provided,  however, that no Extension Period
may extend beyond the Maturity Date, Redemption Date or Special Redemption Date,
as the case may be, and provided,  further,  however,  during any such Extension
Period,  the Company may not (i) declare or pay any  dividends or  distributions
on, or redeem, purchase, acquire, or make a liquidation payment with respect to,
any of the  Company's  capital stock or (ii) make any payment of principal of or
premium,  if any,  or  interest  on or  repay,  repurchase  or  redeem  any debt
securities of the Company that rank pari passu in all respects with or junior in
interest to the Debt  Securities or (iii) make any payment under any  guarantees
of the Company that rank in all respects pari passu with or junior in respect to
the Capital  Securities  Guarantee (other than (a)  repurchases,  redemptions or
other  acquisitions  of shares of capital stock of the Company (A) in connection
with any employment contract,  benefit plan or other similar arrangement with or
for the benefit of one or more  employees,  officers,  directors or consultants,
(B) in connection  with a dividend  reinvestment  or stockholder  stock purchase
plan or (C) in connection  with the issuance of capital stock of the Company (or
securities   convertible  into  or  exercisable  for  such  capital  stock),  as
consideration in an acquisition transaction entered into prior to the applicable
Extension Period, (b) as a result of any exchange, reclassification, combination
or  conversion  of any class or series of the  Company's  capital  stock (or any
capital  stock of a  subsidiary  of the  Company) for any class or series of the
Company's capital stock or of any class or series of the Company's  indebtedness
for any class or series of the  Company's  capital  stock,  (c) the  purchase of
fractional  interests in shares of the Company's  capital stock  pursuant to the
conversion or exchange  provisions  of such capital stock or the security  being
converted or exchanged, (d) any declaration of a dividend in

                                      A-4
<PAGE>

connection with any stockholder's  rights plan, or the issuance of rights, stock
or other  property  under any  stockholder's  rights plan, or the  redemption or
repurchase of rights pursuant thereto, or (e) any dividend in the form of stock,
warrants, options or other rights where the dividend stock or the stock issuable
upon  exercise of such  warrants,  options or other  rights is the same stock as
that on which the  dividend  is being paid or ranks pari passu with or junior to
such stock).  Prior to the termination of any Extension Period,  the Company may
further extend such period,  provided,  that such period  together with all such
previous  and  further  consecutive  extensions  thereof  shall  not  exceed  20
consecutive   quarterly  periods,  or  extend  beyond  the  Maturity  Date,  the
Redemption  Date or  Special  Redemption  Date,  as the  case  may be.  Upon the
termination  of any  Extension  Period  and upon  the  payment  of all  Deferred
Interest,  the  Company  may  commence a new  Extension  Period,  subject to the
foregoing  requirements.  No  interest  or  Deferred  Interest  shall be due and
payable  during an Extension  Period,  except at the end  thereof,  but Deferred
Interest  shall accrue upon each  installment  of interest that would  otherwise
have been due and payable during such Extension Period until such installment is
paid.  The  Company  must give the  Trustee  notice of its  election to begin or
extend  an  Extension  Period  at least  five  Business  Days  prior to the next
succeeding  Interest Payment Date on which interest on the Debt Securities would
have been payable except for the election to begin such Extension Period.

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

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

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

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

                                      A-5
<PAGE>

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

                                               MATRIX BANCORP, INC.

                                               By:______________________________
                                               Name:____________________________
                                               Title:___________________________

Dated:____________________________, 2005

                          CERTIFICATE OF AUTHENTICATION

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

                                               Wells Fargo Bank, National
                                               Association, not in its
                                               individual capacity but solely
                                               as the Trustee

                                               By:______________________________
                                                       Authorized Officer

Dated:____________________________, 2005

                                      A-6
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

      This Debt Security is one of a duly  authorized  series of Debt Securities
of the  Company,  all  issued  or to be issued  pursuant  to an  Indenture  (the
"Indenture"), dated as of June 30, 2005, duly executed and delivered between the
Company and Wells Fargo Bank, National Association,  as Trustee (the "Trustee"),
to which Indenture and all indentures  supplemental  thereto reference is hereby
made for a description of the rights, limitations of rights, obligations, duties
and  immunities  thereunder  of the Trustee,  the Company and the holders of the
Debt Securities (referred to herein as the "Debt Securities") of which this Debt
Security  is a part.  The summary of the terms of this Debt  Security  contained
herein does not purport to be complete  and is  qualified  by  reference  to the
Indenture.

      Upon the occurrence and continuation of a Tax Event, an Investment Company
Event or a Capital Treatment Event (each a "Special Event"),  this Debt Security
may become due and  payable,  in whole or in part,  at any time,  within 90 days
following the occurrence of such Tax Event,  Investment Company Event or Capital
Treatment  Event (the  "Special  Redemption  Date"),  as the case may be, at the
Special Redemption Price. In the event that the Special Redemption Date falls on
a day after the Fixed Rate Period but prior to the LIBOR  Determination Date for
any  Interest  Payment  Period,  then the  Company  shall be  required to pay to
Securityholders,  on the Business Day following such LIBOR  Determination  Date,
any  additional  amount of interest  that would have been payable on the Special
Redemption   Date  had  the  amount  of  interest   determined   on  such  LIBOR
Determination  Date been known on the first day of such Interest Payment Period.
The Company shall also have the right to redeem this Debt Security at the option
of the  Company,  in whole or in part,  on any  January  7,  April 7,  July 7 or
October 7 on or after  July 7, 2010 (a  "Redemption  Date"),  at the  Redemption
Price.

      Any redemption  pursuant to the preceding  paragraph will be made, subject
to the receipt by the Company of prior  approval from any  regulatory  authority
with  jurisdiction  over the  Company if such  approval is then  required  under
applicable capital guidelines or policies of such regulatory authority, upon not
less than 30 days' nor more than 60 days'  notice.  If the Debt  Securities  are
only partially redeemed by the Company, the Debt Securities will be redeemed pro
rata or by lot or by any other method utilized by the Trustee.

      "Redemption  Price"  means  100%  of the  principal  amount  of  the  Debt
Securities  being  redeemed  plus  accrued  and  unpaid  interest  on such  Debt
Securities  to the  Redemption  Date or, in the case of a redemption  due to the
occurrence of a Special Event,  to the Special  Redemption  Date if such Special
Redemption Date is on or after July 7, 2010.

      "Special  Redemption  Price" means (1) if the Special  Redemption  Date is
before July 7, 2010, One Hundred Five Percent (105%) of the principal  amount to
be redeemed  plus any accrued  and unpaid  interest  thereon to the date of such
redemption and (2) if the Special  Redemption  Date is on or after July 7, 2010,
the Redemption Price for such Special Redemption Date.

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

                                      A-7
<PAGE>

      Upon the occurrence of an Acceleration  Event, the principal of all of the
Debt  Securities  may be declared  due and payable,  and upon such  acceleration
shall become due and payable,  in the manner, with the effect and subject to the
conditions provided in the Indenture.

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

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

      As provided in the Indenture and subject to certain limitations herein and
therein set forth,  this Debt Security is transferable by the registered  holder
hereof on the Debt Security Register of the Company, upon surrender of this Debt
Security for  registration of transfer at the office or agency of the Trustee in
Wilmington,  Delaware  accompanied  by a written  instrument or  instruments  of
transfer in form satisfactory to the Company or the Trustee duly executed by the
registered  holder hereof or such holder's  attorney duly authorized in writing,
and thereupon one or more new Debt  Securities of authorized  denominations  and
for the same aggregate principal

                                      A-8
<PAGE>

amount will be issued to the designated  transferee or  transferees.  No service
charge will be made for any such  registration of transfer,  but the Company may
require  payment  of a sum  sufficient  to cover  any tax or other  governmental
charge payable in relation thereto.

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

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

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

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

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

                                      A-9AMENDED AND RESTATED DECLARATION

                                    OF TRUST

                        Matrix Bancorp Capital Trust VIII

                            Dated as of June 30, 2005

<PAGE>

                                TABLE OF CONTENTS

                                   ARTICLE I
                         INTERPRETATION AND DEFINITIONS

SECTION 1.1.    Definitions..................................................  1

                                   ARTICLE II
                                  ORGANIZATION

SECTION 2.1.    Name.........................................................  9
SECTION 2.2.    Office.......................................................  9
SECTION 2.3.    Purpose......................................................  9
SECTION 2.4.    Authority....................................................  9
SECTION 2.5.    Title to Property of the Trust............................... 10
SECTION 2.6.    Powers and Duties of the Trustees and the Administrators..... 10
SECTION 2.7.    Prohibition of Actions by the Trust and the Trustees......... 15
SECTION 2.8.    Powers and Duties of the Institutional Trustee............... 15
SECTION 2.9.    Certain Duties and Responsibilities of the Trustees and the
                Administrators............................................... 17
SECTION 2.10.   Certain Rights of Institutional Trustee...................... 19
SECTION 2.11.   Delaware Trustee............................................. 21
SECTION 2.12.   Execution of Documents....................................... 21
SECTION 2.13.   Not Responsible for Recitals or Issuance of Securities....... 21
SECTION 2.14.   Duration of Trust............................................ 22
SECTION 2.15.   Mergers...................................................... 22

                                  ARTICLE III
                                    SPONSOR

SECTION 3.1.    Sponsor's Purchase of Common Securities...................... 24
SECTION 3.2.    Responsibilities of the Sponsor.............................. 24

                                   ARTICLE IV
                          TRUSTEES AND ADMINISTRATORS

SECTION 4.1.    Number of Trustees........................................... 24
SECTION 4.2.    Delaware Trustee............................................. 24
SECTION 4.3.    Institutional Trustee; Eligibility........................... 25
SECTION 4.4.    Certain Qualifications of the Delaware Trustee Generally..... 25
SECTION 4.5.    Administrators............................................... 25
SECTION 4.6.    Initial Delaware Trustee..................................... 26

                                      -i-

<PAGE>

                               TABLE OF CONTENTS
                              (continued) PAGE ii

SECTION 4.7.    Appointment, Removal and Resignation of the Trustees and the
                Administrators............................................... 26
SECTION 4.8.    Vacancies Among Trustees..................................... 28
SECTION 4.9.    Effect of Vacancies.......................................... 28
SECTION 4.10.   Meetings of the Trustees and the Administrators.............. 28
SECTION 4.11.   Delegation of Power.......................................... 28
SECTION 4.12.   Merger, Conversion, Consolidation or Succession to Business.. 29

                                   ARTICLE V
                                 DISTRIBUTIONS

SECTION 5.1.    Distributions................................................ 29

                                   ARTICLE VI
                             ISSUANCE OF SECURITIES

SECTION 6.1.    General Provisions Regarding Securities...................... 29
SECTION 6.2.    Paying Agent, Transfer Agent, Calculation Agent and Registrar 31
SECTION 6.3.    Form and Dating.............................................. 31
SECTION 6.4.    Book-Entry Capital Securities................................ 32
SECTION 6.5.    Mutilated, Destroyed, Lost or Stolen Certificates............ 34
SECTION 6.6.    Temporary Securities......................................... 34
SECTION 6.7.    Cancellation................................................. 34
SECTION 6.8.    Rights of Holders; Waivers of Past Defaults.................. 34

                                  ARTICLE VII
                      DISSOLUTION AND TERMINATION OF TRUST

SECTION 7.1.    Dissolution and Termination of Trust......................... 36

                                  ARTICLE VIII
                             TRANSFER OF INTERESTS

SECTION 8.1.    General...................................................... 37
SECTION 8.2.    Transfer Procedures and Restrictions......................... 38
SECTION  8.3.   Deemed Security Holders...................................... 41

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

SECTION 9.1.    Liability.................................................... 42
SECTION 9.2.    Exculpation.................................................. 42
SECTION 9.3.    Fiduciary Duty............................................... 43

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

                                                                            PAGE

SECTION 9.4.    Indemnification.............................................. 43
SECTION 9.5.    Outside Businesses........................................... 46
SECTION 9.6.    Compensation; Fee............................................ 47

                                   ARTICLE X
                                   ACCOUNTING

SECTION 10.1.   Fiscal Year.................................................. 47
SECTION 10.2.   Certain Accounting Matters................................... 47
SECTION 10.3.   Banking...................................................... 48
SECTION 10.4.   Withholding.................................................. 48

                                   ARTICLE XI
                            AMENDMENTS AND MEETINGS

SECTION 11.1.   Amendments................................................... 49
SECTION 11.2.   Meetings of the Holders of the Securities; Action by Written
                Consent...................................................... 51

                                  ARTICLE XII
          REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

SECTION 12.1.   Representations and Warranties of Institutional Trustee...... 52
SECTION 12.2.   Representations and Warranties of Delaware Trustee........... 53

                                  ARTICLE XIII
                                 MISCELLANEOUS

SECTION 13.1.   Notices...................................................... 54
SECTION 13.2.   Governing Law................................................ 55
SECTION 13.3.   Submission to Jurisdiction................................... 55
SECTION 13.4.   Intention of the Parties..................................... 56
SECTION 13.5.   Headings..................................................... 56
SECTION 13.6.   Successors and Assigns....................................... 56
SECTION 13.7.   Partial Enforceability....................................... 56
SECTION 13.8.   Counterparts................................................. 56

                                     -iii-

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

                                                                            PAGE
ANNEXES AND EXHIBITS

ANNEX I         Terms of Capital Securities and Common Securities

EXHIBIT A-1     Form of Capital Security Certificate
EXHIBIT A-2     Form of Common Security Certificate

                                      -iv-
<PAGE>

                    AMENDED AND RESTATED DECLARATION OF TRUST
                                       OF
                        Matrix Bancorp Capital Trust VIII
                                  June 30, 2005

      AMENDED AND RESTATED DECLARATION OF TRUST (this "Declaration"),  dated and
effective  as of June  30,  2005,  by the  Trustees  (as  defined  herein),  the
Administrators  (as defined  herein),  the  Sponsor (as defined  herein) and the
holders from time to time of undivided beneficial interests in the assets of the
Trust (as defined herein) to be issued pursuant to this Declaration.

      WHEREAS,  certain of the  Trustees,  the  Administrators  and the  Sponsor
established  Matrix Bancorp Capital Trust VIII (the "Trust"),  a statutory trust
under the Statutory Trust Act (as defined herein),  pursuant to a Declaration of
Trust, dated as of June 28, 2005 (the "Original Declaration"), and a Certificate
of Trust filed with the  Secretary of State of the State of Delaware on June 28,
2005,  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 the  Debentures  (as defined  herein) of the
Debenture  Issuer (as defined  herein) in  connection  with the  issuance of the
Capital  Securities  (as defined  herein);

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

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

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

                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

      SECTION 1.1. Definitions. Unless the context otherwise requires:

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

<PAGE>

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

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

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

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

      (f) a  reference  to the  singular  includes  the plural  and vice  versa.
"Additional  Interest"  has  the  meaning  set  forth  in  Section  3.06  of the
Indenture.  "Administrative  Action" has the meaning set forth in paragraph 4(a)
of Annex I.

      "Administrators"  means  each of David W.  Kloos and T.  Allen  McConnell,
solely  in such  Person's  capacity  as  Administrator  of the  Trust  continued
hereunder and not in such Person's individual capacity,  or such Administrator's
successor in interest in such  capacity,  or any  successor  appointed as herein
provided.

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

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

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

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

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

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

                                      -2-
<PAGE>

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

      "Book-Entry Capital Security" means a Capital Security,  the ownership and
transfers of which shall be made through book entries by a Depositary.

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

      "Calculation  Agent"  has the  meaning  set forth in  Section  1.01 of the
Indenture.

      "Capital Securities" has the meaning set forth in Section 6.1(a).

      "Capital Security Certificate" means a definitive  Certificate  registered
in the name of the Holder representing Capital Securities shall be substantially
in the form attached hereto as Exhibit A 1.

      "Capital  Treatment  Event" has the meaning set forth in paragraph 4(a) of
Annex I. "Certificate" means any certificate evidencing Securities.

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

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

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

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

      "Common Securities" has the meaning set forth in Section 6.1(a).

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

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

      "Corporate Trust Office" means the office of the Institutional  Trustee at
which the corporate  trust business of the  Institutional  Trustee shall, at any
particular time, be principally administered, which office shall at all times be
located in the United States and at the date of execution of this Declaration is
located  at 919  Market  Street  Suite  700  Wilmington,  DE  19801,  Attention:
Corporate Trust Division.

                                      -3-
<PAGE>

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

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

      "Debenture Issuer" means Matrix Bancorp,  Inc., a savings and loan holding
company  incorporated  in Colorado,  in its capacity as issuer of the Debentures
under the Indenture.

      "Debenture  Trustee"  means  Wells  Fargo Bank,  National  Association,  a
national  banking  association with its principal place of business in the State
of Delaware,  not in its  individual  capacity  but solely as trustee  under the
Indenture until a successor is appointed  thereunder,  and thereafter means such
successor trustee.

      "Debentures"  means the Junior  Subordinated  Debt  Securities due July 7,
2035 to be issued by the Debenture Issuer under the Indenture.

      "Deferred  Interest"  means any interest on the Debentures that would have
been overdue and unpaid for more than one Distribution  Payment Date but for the
imposition  of an Extension  Period,  and the interest that shall accrue (to the
extent  that the  payment  of such  interest  is  legally  enforceable)  on such
interest at the Coupon Rate applicable during such Extension Period,  compounded
quarterly  from the date on which such Deferred  Interest  would  otherwise have
been due and payable until paid or made available for payment.

      "Definitive  Capital Securities" means any Capital Securities in defmitive
form issued by the Trust.

      "Delaware Trustee" has the meaning set forth in Section 4.2.

      "Depositary"  means an organization  registered as a clearing agency under
the  Exchange  Act  that is  designated  as  Depositary  by the  Sponsor  or any
successor thereto. DTC will be the initial Depositary.

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

      "Direct Action" has the meaning set forth in Section 2.8(e).

      "Distribution"  means a  distribution  payable to Holders of Securities in
accordance with Section 5.1.

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

      "Distribution  Payment  Period"  means the  period  from and  including  a
Distribution  Payment  Date,  or in the case of the first  Distribution  Payment
Period, the original date of issuance of the Securities,  to, but excluding, the
next  succeeding  Distribution  Payment  Date  or,  in  the  case  of  the  last
Distribution Payment Period, the Redemption Date, Special Redemption

                                      -4-
<PAGE>

Date or Maturity  Date (each as defined in the  Indenture),  as the case may be,
for the related Debentures.

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

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

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

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

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

      "Fiscal Year" has the meaning set forth in Section 10.1.

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

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

      "Guarantee" means the Guarantee  Agreement,  dated as of June 30, 2005, of
the Sponsor in respect of the Capital Securities.

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

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

      "Indenture"  means the  Indenture,  dated as of June 30,  2005,  among the
Debenture  Issuer and the  Debenture  Trustee,  and any  indenture  supplemental
thereto pursuant to which the Debentures are to be issued.

      "Indenture Event of Default" means an "Event of Default" as defined in the
Indenture.  "Initial  Purchaser"  means the  initial  purchaser  of the  Capital
Securities.

      "Institutional   Trustee"  means  the  Trustee   meeting  the  eligibility
requirements set forth in Section 4.3.

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

                                      -5-
<PAGE>

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

      "Investment  Company Event" has the meaning set forth in paragraph 4(a) of
Annex I. "Legal Action" has the meaning set forth in Section 2.8(e).

      "LIBOR" means the London  Interbank  Offered Rate for U.S. Dollar deposits
in Europe as determined by the Calculation  Agent according to paragraph 2(b) of
Annex I.

      "LIBOR  Banking  Day" has the  meaning set forth in  paragraph  2(b)(1) of
Annex I.

      "LIBOR  Business  Day" has the meaning set forth in  paragraph  2(b)(1) of
Annex I.

      "LIBOR  Determination Date" has the meaning set forth in paragraph 2(b)(1)
of Annex I.

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

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

      "Majority  in  liquidation  amount of the  Securities"  means  Holders  of
outstanding  Securities voting together as a single class or, as the context may
require,  Holders of  outstanding  Capital  Securities or Holders of outstanding
Common  Securities  voting  separately as a class,  who are the record owners of
more than 50% of the aggregate  liquidation  amount (including the 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.

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

      "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:

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

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

      (e) 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

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

                                      -6-
<PAGE>

      "Owner"  means  each  Person  who is the  beneficial  owner of  Book-Entry
Capital  Securities  as  reflected  in the  records of the  Depositary  or, if a
Depositary Participant is not the beneficial owner, then the beneficial owner as
reflected in the records of the Depositary Participant.

         "Paying  Agent"  has the  meaning  set forth in Section  6.2.

      "Payment Amount" has the meaning set forth in Section 5.1.

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

      "PORTAL" has the meaning set forth in Section 2.6(a)(i).

      "Property Account" has the meaning set forth in Section 2.8(c). "Pro Rata"
has the meaning set forth in paragraph 8 of Annex I.

      "Purchase Agreement" means the Purchase Agreement relating to the offering
and sale of Capital Securities.

      "QIB" means a "qualified institutional buyer" as defined under Rule 144A.

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

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

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

      "Registrar" has the meaning set forth in Section 6.2.

      "Relevant Trustee" has the meaning set forth in Section 4.7(a).

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

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

                                      -7-
<PAGE>

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

      "Rule 3a-5" means Rule 3a-5 under the Investment Company Act.

      "Rule 3a-7" means Rule 3a-7 under the Investment Company Act.

      "Securities"  means the Common Securities and the Capital  Securities,  as
applicable.

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

      "Sponsor" means Matrix  Bancorp,  Inc., a savings and loan holding company
that is a U.S.  Person  incorporated in Colorado,  or any successor  entity in a
merger,  consolidation or amalgamation that is a U.S. Person, in its capacity as
sponsor of the Trust.

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

      "Successor Delaware Trustee" has the meaning set forth in Section 4.7(e).

      "Successor Entity" has the meaning set forth in Section 2.15(b).

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

      "Successor Securities" has the meaning set forth in Section 2.15(b).

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

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

      "10% in liquidation amount of the Securities" means Holders of outstanding
Securities  voting  together as a single  class or, as the context may  require,
Holders of  outstanding  Capital  Securities  or Holders of  outstanding  Common
Securities  voting  separately  as a class,  who are the record owners of 10% or
more of the aggregate liquidation amount (including the stated amount that would
be paid 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.

      "Transfer Agent" has the meaning set forth in Section 6.2.

      "Transfer Notice" has the meaning set forth in Section 8.2(e).

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

      "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

                                      -8-
<PAGE>

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.

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

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

                                   ARTICLE II
                                  ORGANIZATION

      SECTION 2.1. Name. The Trust is named "Matrix Bancorp Capital Trust VIII,"
as such name may be modified from time to time by the  Administrators  following
written notice to the  Institutional  Trustee and the Holders of the Securities.
The Trust's activities may be conducted under the name of the Trust or any other
name deemed advisable by the Administrators.

      SECTION 2.2.  Office.  The address of the  principal  office of the Trust,
which shall be in a state of the United  States or the District of Columbia,  is
700 17th Street,  Suite 2100,  Denver,  CO 80202.  On ten Business Days' written
notice to the  Institutional  Trustee  and the  Holders of the  Securities,  the
Administrators may designate another principal office, which shall be in a state
of the United States or the District of Columbia.

      SECTION 2.3.  Purpose.  The exclusive  purposes and functions of the Trust
are (a) to issue  and  sell the  Securities  representing  undivided  beneficial
interests in the assets of the Trust, (b) to invest the gross proceeds from such
sale to acquire the  Debentures,  (c) to  facilitate  direct  investment  in the
assets of the Trust through  issuance of the Common  Securities  and the Capital
Securities and (d) except as otherwise  limited herein,  to engage in only those
other  activities  incidental  thereto that are deemed necessary or advisable by
the  Institutional  Trustee,  including,  without  limitation,  those activities
specified in this Declaration.  The Trust shall not borrow money,  issue debt or
reinvest  proceeds  derived  from  investments,  pledge  any of its  assets,  or
otherwise  undertake (or permit to be undertaken)  any activity that would cause
the Trust not to be classified  for United States federal income tax purposes as
a grantor trust.

      SECTION  2.4.   Authority.   Except  as  specifically   provided  in  this
Declaration,  the  Institutional  Trustee  shall  have  exclusive  and  complete
authority to carry out the  purposes of the Trust.  An action taken by a Trustee
on behalf  of the Trust and in  accordance  with  such  Trustee's  powers  shall
constitute the act of and serve to bind the Trust.  In dealing with the Trustees
acting on behalf of the Trust,  no Person  shall be required to inquire into the
authority of the Trustees to bind the Trust.  Persons dealing with the Trust are
entitled to rely  conclusively on the power and authority of the Trustees as set
forth in this Declaration.  The Administrators shall have only those ministerial
duties set forth herein with respect to accomplishing  the purposes of the Trust
and are not intended to be trustees or fiduciaries  with respect to the Trust or
the Holders. The

                                      -9-
<PAGE>

Institutional Trustee shall have the right, but shall not be obligated except as
provided in Section 2.6, to perform those duties assigned to the Administrators.

      SECTION 2.5. Title to Property of the Trust. Except as provided in Section
2.6(g) and Section 2.8 with respect to the Debentures  and the Property  Account
or as otherwise  provided in this Declaration,  legal title to all assets of the
Trust shall be vested in the Trust.  The  Holders  shall not have legal title to
any part of the assets of the  Trust,  but shall  have an  undivided  beneficial
interest in the assets of the Trust.

      SECTION 2.6. Powers and Duties of the Trustees and the Administrators.

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

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

                  (A) the issuance and sale of the Securities;

                  (B) to acquire the Debentures with the proceeds of the sale of
            the Securities;  provided,  however,  that the Administrators  shall
            cause legal title to the Debentures to be held of record in the name
            of the Institutional Trustee for the benefit of the Holders;

                  (C) to cause the Trust to enter into, and to execute,  deliver
            and  perform  on  behalf of the  Trust,  such  agreements  as may be
            necessary or desirable in connection  with the purposes and function
            of  the  Trust,  including  agreements  with  the  Paying  Agent,  a
            Debenture  subscription  agreement between the Trust and the Sponsor
            and a Common Securities subscription agreement between the Trust and
            the Sponsor;

                  (D) ensuring compliance with the Securities Act and applicable
            state securities or blue sky laws;

                  (E) if and at such time  determined  solely by the  Sponsor at
            the request of the  Holders,  assisting  in the  designation  of the
            Capital Securities for trading in the Private Offering,  Resales and
            Trading  through  the  Automatic   Linkages   ("PORTAL")  system  if
            available;

                  (F) the sending of notices (other than notices of default) and
            other information regarding the Securities and the Debentures to the

                                      -10-
<PAGE>

            Holders in accordance with this Declaration, including notice of any
            notice  received from the Debenture  Issuer of its election to defer
            payments of interest on the  Debentures  by  extending  the interest
            payment period under the Indenture;

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

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

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

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

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

                  (L) to  establish a record date with respect to all actions to
            be  taken  hereunder  that  require  a record  date be  established,
            including Distributions,  voting rights,  redemptions and exchanges,
            and to issue relevant  notices to the Holders of Capital  Securities
            and Holders of Common  Securities as to such actions and  applicable
            record dates;

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

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

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

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

                                      -11-
<PAGE>

                  (Q) to give the certificate  required by ss.  314(a)(4) of the
            Trust Indenture Act to the Institutional  Trustee, which certificate
            may be executed by an Administrator; and

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

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

                  (A) the establishment of the Property Account; (B) the receipt
            of the Debentures;

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

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

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

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

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

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

                  (I)  after any Event of  Default  (of which the  Institutional
            Trustee  has  knowledge  (as  provided in Section  2.10(m)  hereof))
            (provided,  that such Event of Default is not by or with  respect to
            the Institutional  Trustee),  the taking of any action incidental to
            the  foregoing  as the  Institutional  Trustee may from time to time
            determine  is  necessary or advisable to give effect to the terms of
            this Declaration and protect and

                                      -12-
<PAGE>

            conserve the Trust Property for the benefit of the Holders  (without
            consideration  of the  effect of any such  action on any  particular
            Holder);

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

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

            (iii) The Institutional  Trustee shall have the power and authority,
      and is hereby  authorized,  to act on behalf of the Trust with  respect to
      any  of  the  duties,   liabilities,   powers  or  the  authority  of  the
      Administrators set forth in Section  2.6(a)(i)(F) and (G) herein but shall
      not have a duty to do any such act unless specifically  requested to do so
      in writing by the  Sponsor,  and shall then be fully  protected  in acting
      pursuant to such written  request;  and in the event of a conflict between
      the  action of the  Administrators  and the  action  of the  Institutional
      Trustee, the action of the Institutional Trustee shall prevail.

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

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

            (i) the taking of any action  necessary to obtain an exemption  from
      the Securities Act;

            (ii) the  determination  of the States in which to take  appropriate
      action  to  qualify  or  register  for  sale  all or part  of the  Capital
      Securities and the

                                      -13-
<PAGE>

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

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

      (d) Notwithstanding  anything herein to the contrary,  the Administrators,
the Institutional Trustee and the Holders of a Majority in liquidation amount of
the Common  Securities are authorized and directed to conduct the affairs of the
Trust and to operate the Trust so that (i) the Trust will not be deemed to be an
Investment  Company  (in the case of the  Institutional  Trustee,  to the actual
knowledge  of a  Responsible  Officer),  (ii)  the  Trust  will  not  fail to be
classified as a grantor trust for United States  federal income tax purposes (in
the case of the Institutional  Trustee, to the actual knowledge of a Responsible
Officer)  and (iii) the Trust  will not take any  action  inconsistent  with the
treatment of the Debentures as indebtedness  of the Debenture  Issuer for United
States federal income tax purposes (in the case of the Institutional Trustee, to
the  actual  knowledge  of a  Responsible  Officer).  In  this  connection,  the
Institutional  Trustee,  the  Administrators  and the  Holders of a Majority  in
liquidation  amount of the Common  Securities are authorized to take any action,
not inconsistent with applicable laws or this Declaration,  as amended from time
to time, that each of the Institutional  Trustee,  the  Administrators  and such
Holders  determine in their  discretion  to be  necessary or desirable  for such
purposes,  even if such action adversely affects the interests of the Holders of
the Capital Securities.

      (e)  Subject to the Fee  Agreement  of even date  herewith,  all  expenses
incurred by the  Administrators  or the  Trustees  pursuant to this  Section 2.6
shall be reimbursed by the Sponsor,  and the Trustees  shall have no obligations
with respect to such expenses.

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

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

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

                                      -14-
<PAGE>

      SECTION 2.7.  Prohibition  of Actions by the Trust and the  Trustees.  The
Trust shall not, and the Institutional Trustee and the Administrators shall not,
and the  Administrators  shall  cause the Trust not to,  engage in any  activity
other than as required or authorized by this  Declaration.  In  particular,  the
Trust shall not, and the Institutional  Trustee and the Administrators shall not
cause the Trust to:

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

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

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

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

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

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

      (g) other than as provided in this  Declaration  (including  Annex I), (i)
direct the time,  method and place of  exercising  any trust or power  conferred
upon the Debenture  Trustee with respect to the Debentures,  (ii) waive any past
default  that is  waivable  under the  Indenture,  (iii)  exercise  any right to
rescind or annul any declaration  that the principal of all the Debentures shall
be due and payable, or (iv) consent to any amendment, modifcation or termination
of the Indenture or the Debentures  where such consent shall be required  unless
the Trust shall have received a written  opinion of counsel  experienced in such
matters to the effect that such amendment,  modification or termination will not
cause the Trust to cease to be  classified  as a grantor trust for United States
federal income tax purposes.

      SECTION 2.8. Powers and Duties of the Institutional Trustee.

      (a) The legal title to the Debentures shall be owned by and held of record
in the name of the Institutional  Trustee in trust for the benefit of the Trust.
The right,  title and interest of the  Institutional  Trustee to the  Debentures
shall vest  automatically  in each  Person who may  hereafter  be  appointed  as
Institutional Trustee in accordance with Section 4.7. Such vesting and cessation
of title shall be effective whether or not conveyancing documents with regard to
the Debentures have been executed and delivered.

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

      (c) The Institutional Trustee shall:

                                      -15-
<PAGE>

            (i) establish and maintain a segregated  non-interest  bearing trust
      account  (the  "Property  Account")  in the United  States (as  defined in
      Treasury  Regulations  ss.  301.7701-7),  in the  name  of and  under  the
      exclusive  control of the  Institutional  Trustee,  and  maintained in the
      Institutional Trustee's trust department,  on behalf of the Holders of the
      Securities  and,  upon the receipt of payments of funds made in respect of
      the Debentures held by the Institutional Trustee,  deposit such funds into
      the  Property  Account  and make  payments  to the  Holders of the Capital
      Securities and Holders of the Common  Securities from the Property Account
      in  accordance  with Section 5.1.  Funds in the Property  Account shall be
      held uninvested until disbursed in accordance with this Declaration;

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

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

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

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

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

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

                                      -16-
<PAGE>
      Securities and this Declaration (including Annex I) and the certificate of
      cancellation referenced in Section 7.1(b) has been filed; or

            (ii) a Successor  Institutional  Trustee has been  appointed and has
      accepted that appointment in accordance with Section 4.7.

      (g) The  Institutional  Trustee shall have the legal power to exercise all
of the rights,  powers and  privileges of a holder of the  Debentures  under the
Indenture  and,  if  an  Event  of  Default   occurs  and  is  continuing,   the
Institutional Trustee may, 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  this  Declaration  (including  Annex  I)  and  the  terms  of  the
Securities.

      (h) The  Institutional  Trustee must exercise the powers set forth in this
Section 2.8 in a manner that is  consistent  with the purposes and  functions of
the Trust set out in Section 2.3, and the  Institutional  Trustee shall not take
any action that is inconsistent with the purposes and functions of the Trust set
out in Section 2.3.

      SECTION 2.9. Certain Duties and  Responsibilities  of the Trustees and the
Administrators.

      (a) The  Institutional  Trustee,  before  the  occurrence  of any Event of
Default  (of which the  Institutional  Trustee  has  knowledge  (as  provided in
Section 2.10(m)  hereof)) and after the curing of all Events of Default that may
have occurred,  shall undertake to perform only such duties as are  specifically
set forth in this  Declaration and no implied  covenants shall be read into this
Declaration  against the Institutional  Trustee. In case an Event of Default (of
which the  Institutional  Trustee has knowledge (as provided in Section  2.10(m)
hereof)),  has occurred  (that has not been cured or waived  pursuant to Section
6.8),  the  Institutional  Trustee shall  exercise such of the rights and powers
vested in it by this  Declaration,  and use the same degree of care and skill in
their   exercise,   as  a  prudent  person  would  exercise  or  use  under  the
circumstances in the conduct of his or her own affairs.

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

                                      -17-
<PAGE>

Administrator's  good faith reliance on the provisions of this Declaration.  The
provisions of this Declaration,  to the extent that they restrict the duties and
liabilities of the  Administrators or the Trustees  otherwise existing at law or
in  equity,  are agreed by the  Sponsor  and the  Holders to replace  such other
duties and liabilities of the Administrators or the Trustees.

      (c) All payments  made by the  Institutional  Trustee or a Paying Agent in
respect of the Securities  shall be made only from the revenue and proceeds from
the Trust Property and only to the extent that there shall be sufficient revenue
or proceeds  from the Trust  Property to enable the  Institutional  Trustee or a
Paying Agent to make payments in accordance with the terms hereof.  Each Holder,
by its acceptance of a Security,  agrees that it will look solely to the revenue
and  proceeds  from the Trust  Property  to the  extent  legally  available  for
distribution   to  it  as  herein   provided  and  that  the  Trustees  and  the
Administrators  are not personally liable to it for any amount  distributable in
respect of any Security or for any other  liability in respect of any  Security.
This Section  2.9(c) does not limit the liability of the Trustees  expressly set
forth  elsewhere  in this  Declaration  or,  in the  case  of the  Institutional
Trustee, in the Trust Indenture Act.

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

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

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

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

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

                                      -18-
<PAGE>

      Institutional  Trustee  pursuant  to Section  2.8(c)(i)  and except to the
      extent otherwise required by law; and

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

      SECTION 2.10.  Certain  Rights of  Institutional  Trustee.  Subject to the
provisions of Section 2.9.

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

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

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

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

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

      (f) the  Institutional  Trustee may consult with counsel of its  selection
(which counsel may be counsel to the Sponsor or any of its  Affiliates)  and the
advice of such counsel

                                      -19-
<PAGE>

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

      (g) the Institutional Trustee shall be under no obligation to exercise any
of the  rights or powers  vested in it by this  Declaration  at the  request  or
direction  of any of the  Holders  pursuant  to this  Declaration,  unless  such
Holders shall have offered to the  Institutional  Trustee  security or indemnity
reasonably  satisfactory to it against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or direction;  provided,
that nothing  contained in this  Section  2.10(g)  shall be taken to relieve the
Institutional  Trustee, upon the occurrence of an Event of Default (of which the
Institutional  Trustee has  knowledge (as provided in Section  2.10(m)  hereof))
that has not been cured or waived,  of its obligation to exercise the rights and
powers vested in it by this Declaration;

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

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

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

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

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

                                      -20-
<PAGE>

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

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

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

      SECTION 2.11.  Delaware  Trustee.  Notwithstanding  any other provision of
this  Declaration  other than Section 4.2,  the  Delaware  Trustee  shall not be
entitled to exercise any powers,  nor shall the Delaware Trustee have any of the
duties  and  responsibilities  of  any  of the  Trustees  or the  Administrators
described in this  Declaration  (except as may be required  under the  Statutory
Trust Act).  Except as set forth in Section 4.2, the Delaware Trustee shall be a
Trustee for the sole and limited  purpose of fulfilling the  requirements of ss.
3807 of the Statutory Trust Act.

      SECTION  2.12.  Execution of  Documents.  Unless  otherwise  determined in
writing by the Institutional  Trustee,  and except as otherwise  required by the
Statutory  Trust  Act,  the  Institutional  Trustee,  or any  one or more of the
Administrators,  as the case may be, is  authorized  to execute  and  deliver on
behalf of the Trust any documents, agreements,  instruments or certificates that
the  Trustees  or the  Administrators,  as the case may be,  have the  power and
authority to execute pursuant to Section 2.6.

      SECTION 2.13. 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,  the
Debentures or the Securities.

                                      -21-
<PAGE>

      SECTION 2.14.  Duration of Trust. The Trust,  unless dissolved pursuant to
the provisions of Article VII hereof,  shall have existence for thirty-five (35)
years from the Closing Date.

      SECTION 2.15. Mergers.

      (a) The Trust may not consolidate,  amalgamate,  merge with or into, or be
replaced  by,  or  convey,   transfer  or  lease  its   properties   and  assets
substantially  as an  entirety to any  corporation  or other  Person,  except as
described in this Section  2.15 and except with respect to the  distribution  of
Debentures  to Holders of  Securities  pursuant  to  Section  7.1(a)(iv)  of the
Declaration or Section 4 of Annex I.

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

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

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

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

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

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

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

            (v)   such   merger,   consolidation,   amalgamation,   replacement,
      conveyance,  transfer  or lease  does not  adversely  affect  the  rights,
      preferences and privileges of the Holders of the Securities (including any
      Successor Securities) in

                                      -22-
<PAGE>

      any  material  respect  (other than with  respect to any  dilution of such
      Holders'  interests  in the  Successor  Entity as a result of such merger,
      consolidation, amalgamation or replacement);

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

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

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

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

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

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

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

      (c) Notwithstanding  Section 2.15(b), the Trust shall not, except with the
consent of Holders of 100% in liquidation amount of the Securities, consolidate,
amalgamate,  merge with or into, or be replaced by, or convey, transfer or lease
its properties and assets as an entirety or substantially as an entirety to, any
other Person or permit any other Person to consolidate,  amalgamate,  merge with
or into, or replace it if such consolidation, amalgamation, merger, replacement,
conveyance,  transfer or lease would cause the Trust or  Successor  Entity to be
classified as other than a grantor trust for United  States  federal  income tax
purposes.

                                      -23-
<PAGE>

                               ARTICLE III SPONSOR

      SECTION 3.1. Sponsor's Purchase of Common Securities. On the Closing Date,
the Sponsor will purchase all of the Common  Securities  issued by the Trust, in
an amount at least equal to 3% of the capital of the Trust,  at the same time as
the Capital Securities are sold.

      SECTION 3.2. Responsibilities of the Sponsor. In connection with the issue
and sale of the Capital  Securities,  the Sponsor shall have the exclusive right
and  responsibility and sole decision to engage in, or direct the Administrators
to engage in, the following activities:

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

      (b) to prepare  for filing and  request  the  Administrators  to cause the
filing by the Trust,  as may be  appropriate,  of an  application  to the PORTAL
system,  for  listing  or  quotation  upon  notice of  issuance  of any  Capital
Securities,  as  requested  by the  Holders  of not  less  than  a  Majority  in
liquidation amount of the Capital Securities; and

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

                                   ARTICLE IV
                           TRUSTEES AND ADMINISTRATORS

      SECTION 4.1. Number of Trustees. The number of Trustees initially shall be
two, 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 Holder of a Majority in liquidation amount
of the  Common  Securities  voting as a class at a meeting  of the Holder of the
Common Securities;  provided, however, that there shall be a Delaware Trustee if
required by Section  4.2; and there shall always be one Trustee who shall be the
Institutional Trustee, and such Trustee may also serve as Delaware Trustee if it
meets the  applicable  requirements,  in which case  Section  2.11 shall have no
application to such entity in its capacity as Institutional Trustee.

      SECTION 4.2. Delaware Trustee. If required by the Statutory Trust Act, one
Trustee (the "Delaware Trustee") shall be:

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

                                      -24-
<PAGE>

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

      SECTION 4.3. Institutional Trustee; Eligibility.

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

            (i) not be an Affiliate of the Sponsor;

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

            (iii) be a banking corporation or national association organized and
      doing business under the laws of the United States of America or any state
      thereof or of the District of Columbia and  authorized  under such laws to
      exercise corporate trust powers,  having a combined capital and surplus of
      at  least  fifty  million  U.S.  dollars  ($50,000,000),  and  subject  to
      supervision  or  examination  by  federal,  state or  District of Columbia
      authority.  If such corporation or national association  publishes reports
      of condition at least annually,  pursuant to law or to the requirements of
      the  supervising or examining  authority  referred to above,  then for the
      purposes of this Section 4.3(a)(iii),  the combined capital and surplus of
      such  corporation  or  national  association  shall  be  deemed  to be its
      combined  capital and  surplus as set forth in its most  recent  report of
      condition so published.

      (b) If at any time the Institutional Trustee shall cease to be eligible to
so act under Section 4.3(a), the Institutional  Trustee shall immediately resign
in the manner and with the effect set forth in Section 4.7.

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

      (d) The initial  Institutional Trustee shall be Wells Fargo Bank, National
Association.

      SECTION 4.4. Certain Qualifications of the Delaware Trustee Generally. The
Delaware  Trustee shall be a U.S.  Person and 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 4.5. Administrators. Each Administrator shall be a U.S. Person.

      There  shall at all times be at least one  Administrator.  Except  where a
requirement for action by a specific number of  Administrators  is expressly set
forth in this  Declaration  and except with  respect to any action the taking of
which is the subject of a meeting of the Administrators,  any action required or
permitted to be taken by the Administrators may be taken

                                      -25-
<PAGE>

by, and any power of the Administrators may be exercised by, or with the consent
of, any one such Administrator acting alone.

      SECTION 4.6. Initial Delaware Trustee.  The initial Delaware Trustee shall
be Wells Fargo Delaware Trust Company.

      SECTION 4.7. Appointment,  Removal and Resignation of the Trustees and the
Administrators.

      (a) No resignation or removal of any Trustee (the "Relevant  Trustee") and
no  appointment  of a successor  Trustee  pursuant to this Article  shall become
effective  until the  acceptance  of  appointment  by the  successor  Trustee in
accordance with the applicable requirements of this Section 4.7.

      (b) Subject to Section 4.7(a),  a Relevant  Trustee may resign at any time
by giving  written  notice  thereof  to the  Holders  of the  Securities  and by
appointing  a  successor  Relevant  Trustee,   except  that  Delaware  Trustee's
successor  shall be appointed by Holders of a Majority in liquidation  amount of
the Common Securities.  Upon the resignation of the Institutional  Trustee,  the
Institutional  Trustee  shall  appoint a successor by  requesting  from at least
three Persons meeting the eligibility requirements their expenses and charges to
serve  as  the  successor  Institutional  Trustee  on a  form  provided  by  the
Administrators,  and selecting  the Person who agrees to the lowest  expense and
charges (the "Successor Institutional Trustee"). If the instrument of acceptance
by the successor  Relevant  Trustee  required by this Section 4.7 shall not have
been  delivered to the Relevant  Trustee within 60 days after the giving of such
notice of  resignation  or delivery of the  instrument of removal,  the Relevant
Trustee  may  petition,  at the  expense of the  Trust,  any  federal,  state or
District of Columbia court of competent  jurisdiction  for the  appointment of a
successor  Relevant  Trustee.  Such court may thereupon,  after prescribing such
notice,  if  any,  as it may  deem  proper,  appoint  a  Relevant  Trustee.  The
Institutional  Trustee  shall  have  no  liability  for  the  selection  of such
successor pursuant to this Section 4.7.

      (c) Unless an Event of Default shall have occurred and be continuing,  any
Trustee  may be  removed at any time by an act of the  Holders of a Majority  in
liquidation amount of the Common Securities. If any Trustee shall be so removed,
the  Holders of the Common  Securities,  by act of the  Holders of a Majority in
liquidation  amount of the Common Securities  delivered to the Relevant Trustee,
shall promptly appoint a successor Relevant Trustee,  and such successor Trustee
shall comply with the applicable  requirements  of this Section 4.7. If an Event
of Default shall have occurred and be continuing,  the Institutional  Trustee or
the Delaware Trustee,  or both of them, may be removed by the act of the Holders
of a Majority in liquidation amount of the Capital Securities,  delivered to the
Relevant Trustee (in its individual capacity and on behalf of the Trust). If any
Trustee shall be so removed,  the Holders of Capital  Securities,  by act of the
Holders of a Majority  in  liquidation  amount of the  Capital  Securities  then
outstanding  delivered  to  the  Relevant  Trustee,  shall  promptly  appoint  a
successor Relevant Trustee or Trustees,  and such successor Trustee shall comply
with the applicable  requirements of this Section 4.7. If no successor  Relevant
Trustee shall have been so appointed by the Holders of a Majority in liquidation
amount of the Capital Securities and accepted appointment in the manner required
by this Section 4.7 within 30 days after  delivery of an  instrument of removal,
the Relevant  Trustee or any Holder who has been a Holder of the  Securities for
at least six months

                                      -26-
<PAGE>

may,  on behalf of  himself  and all others  similarly  situated,  petition  any
federal,  state or District of Columbia court of competent  jurisdiction for the
appointment of a successor  Relevant  Trustee.  Such court may thereupon,  after
prescribing  such  notice,  if any, as it may deem  proper,  appoint a successor
Relevant Trustee or Trustees.

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

      (e)   Notwithstanding  the  foregoing  or  any  other  provision  of  this
Declaration,  in the event a Delaware Trustee who is a natural person dies or is
adjudged by a court to have become  incompetent  or  incapacitated,  the vacancy
created  by  such  death,  incompetence  or  incapacity  may  be  filled  by the
Institutional   Trustee  (provided  the  Institutional   Trustee  satisfies  the
requirements  of a Delaware  Trustee as set forth in Section 4.2)  following the
procedures in this Section 4.7 (with the successor  being a Person who satisfies
the  eligibility   requirement  for  a  Delaware   Trustee  set  forth  in  this
Declaration) (the "Successor Delaware Trustee").

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

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

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

                                      -27-
<PAGE>

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

      SECTION 4.8. Vacancies Among Trustees.  If a Trustee ceases to hold office
for any reason and the number of  Trustees  is not  reduced  pursuant to Section
4.1,  or if the number of  Trustees  is  increased  pursuant  to Section  4.1, a
vacancy shall occur.  A resolution  certifying  the existence of such vacancy by
the Trustees or, if there are more than two, a majority of the Trustees shall be
conclusive  evidence of the  existence  of such  vacancy.  The vacancy  shall be
filled with a Trustee appointed in accordance with Section 4.7.

      SECTION 4.9.  Effect of  Vacancies.  The death,  resignation,  retirement,
removal,  bankruptcy,  dissolution,  liquidation,  incompetence or incapacity to
perform the duties of a Trustee  shall not  operate to  dissolve,  terminate  or
annul the Trust or terminate this Declaration.  Whenever a vacancy in the number
of Trustees  shall occur,  until such vacancy is filled by the  appointment of a
Trustee in accordance with Section 4.7, the Institutional Trustee shall have all
the powers  granted to the Trustees and shall  discharge all the duties  imposed
upon the Trustees by this Declaration.

      SECTION 4.10. Meetings of the Trustees and the Administrators. Meetings of
the Trustees or the Administrators shall be held from time to time upon the call
of any Trustee or Administrator, as applicable. Regular meetings of the Trustees
and the Administrators,  respectively,  may be in person in the United States or
by  telephone,  at a place (if  applicable)  and time fixed by resolution of the
Trustees or the Administrators,  as applicable.  Notice of any inperson meetings
of the  Trustees or the  Administrators  shall be hand  delivered  or  otherwise
delivered  in writing  (including  by  facsimile,  with a hard copy by overnight
courier) not less than 48 hours before such  meeting.  Notice of any  telephonic
meetings of the Trustees or the Administrators or any committee thereof shall be
hand delivered or otherwise delivered in writing (including by facsimile, with a
hard copy by overnight courier) not less than 24 hours before a meeting. Notices
shall contain a brief statement of the time,  place and anticipated  purposes of
the meeting. The presence (whether in person or by telephone) of a Trustee or an
Administrator,  as the case may be, at a meeting  shall  constitute  a waiver of
notice of such meeting except where a Trustee or an  Administrator,  as the case
may  be,  attends  a  meeting  for  the  express  purpose  of  objecting  to the
transaction of any activity on the ground that the meeting has not been lawfully
called or convened. Unless provided otherwise in this Declaration, any action of
the  Trustees  or the  Administrators,  as the  case  may be,  may be taken at a
meeting by vote of a majority  of the  Trustees  or the  Administrators  present
(whether in person or by  telephone)  and  eligible to vote with respect to such
matter; provided, that, in the case of the Administrators,  a Quorum is present,
or without a meeting by the  unanimous  written  consent of the  Trustees or the
Administrators,   as  the  case  may  be.  Meetings  of  the  Trustees  and  the
Administrators  together  shall be held  from  time to time upon the call of any
Trustee or Administrator.

      SECTION 4.11. Delegation of Power.

      (a) Any Trustee or any Administrator, as the case may be, may, by power of
attorney  consistent with  applicable law,  delegate to any other natural person
over the age of 21

                                      -28-
<PAGE>

that  is a U.S.  Person  his or her  power  for the  purpose  of  executing  any
documents, instruments or other writings contemplated in Section 2.6.

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

      SECTION 4.12. Merger, Conversion, Consolidation or Succession to Business.
Any Person into which the Institutional  Trustee or the Delaware Trustee, as the
case maybe, may be merged or converted or with which either may be consolidated,
or any Person  resulting from any merger,  conversion or  consolidation to which
the Institutional  Trustee or the Delaware Trustee, as the case may be, shall be
a party,  or any Person  succeeding  to all or  substantially  all the corporate
trust business of the Institutional Trustee or the Delaware Trustee, as the case
may be,  shall be the  successor  of the  Institutional  Trustee or the Delaware
Trustee,  as the case may be, hereunder,  without the execution or filing of any
paper or any further act on the part of any of the parties hereto, provided such
Person  shall be  otherwise  qualified  and  eligible  under this  Article  and,
provided,  further,  that such Person shall file an amendment to the Certificate
of Trust with the Secretary of State of the State of Delaware as contemplated in
Section 4.7(i).

                                    ARTICLE V
                                  DISTRIBUTIONS

      SECTION  5.1.  Distributions.   Holders  shall  receive  Distributions  in
accordance  with the  applicable  terms  of the  relevant  Holder's  Securities.
Distributions  shall be made on the Capital Securities and the Common Securities
in accordance with the preferences set forth in their  respective  terms. If and
to the extent that the Debenture  Issuer makes a payment of interest  (including
any  Additional  Interest or Deferred  Interest)  or premium,  if any, on and/or
principal on the Debentures held by the Institutional Trustee (the amount of any
such payment being a "Payment Amount"),  the Institutional  Trustee shall and is
directed,  to the extent funds are  available  in the Property  Account for that
purpose,  to make a  distribution  (a  "Distribution")  of the Payment Amount to
Holders.  For the avoidance of doubt, funds in the Property Account shall not be
distributed  to Holders to the extent of any taxes payable by the Trust,  in the
case of withholding  taxes,  as determined by the  Institutional  Trustee or any
Paying  Agent and, in the case of taxes  other than  withholding  tax taxes,  as
determined  by the  Administrators  in a  written  notice  to the  Institutional
Trustee.

                                   ARTICLE VI
                             ISSUANCE OF SECURITIES

      SECTION 6.1. General Provisions Regarding Securities.

      (a) The  Administrators  shall on behalf of the Trust  issue one series of
capital  securities,  evidenced by a  certificate  substantially  in the form of
Exhibit A-1,  representing  undivided  beneficial interests in the assets of the
Trust  and  having  such  terms  as are  set  forth  in  Annex  I (the  "Capital
Securities"), and one series of common securities, evidenced by a

                                      -29-
<PAGE>

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

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

      (c) The Capital  Securities  shall be,  except as provided in Section 6.4,
BookEntry  Capital  Securities  issued in the form of one or more Global Capital
Securities  registered  in the  name  of the  Depositary,  or  its  nominee  and
deposited  with the  Depositary or a custodian for the  Depositary for credit by
the Depositary to the respective accounts of the Depositary Participants thereof
(or such other accounts as they may direct).

      (d) 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.

      (e) 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,  and each  Holder  thereof  shall be  entitled  to the  benefits
provided by this Declaration.

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

                                      -30-
<PAGE>

      SECTION  6.2.  Paying  Agent,   Transfer  Agent,   Calculation  Agent  and
Registrar.

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

      (b) The  Trust  shall  also  appoint  a  Calculation  Agent,  which  shall
determine the Coupon Rate in accordance  with the terms of the  Securities.  The
Trust initially appoints the Institutional Trustee as Calculation Agent.

      SECTION 6.3. Form and Dating.

      (a) The Capital Securities and the Institutional  Trustee's certificate of
authentication  thereon shall be  substantially  in the form of Exhibit A-1, and
the Common Securities shall be substantially in the form of Exhibit A-2, each of
which is hereby  incorporated in and expressly made a part of this  Declaration.
Certificates may be typed, printed,  lithographed or engraved or may be produced
in any other  manner  as is  reasonably  acceptable  to the  Administrators,  as
conclusively  evidenced by their execution  thereof.  The  Certificates may have
letters, numbers,  notations or other marks of identification or designation and
such legends or endorsements required by law, stock exchange rule, agreements to
which the Trust is subject, if any, or usage (provided,  that any such notation,
legend or endorsement is in a form acceptable to the Sponsor).  The Trust at the
direction of the Sponsor  shall furnish any such legend not contained in Exhibit
A-1 to the  Institutional  Trustee in writing.  Each Capital  Security  shall be
dated the date of its authentication. The terms and provisions of the Securities
set forth in Annex I and the forms of  Securities  set forth in Exhibits A-1 and
A-2 are part of the terms of this Declaration and to the extent applicable,  the
Institutional Trustee, the Delaware Trustee, the Administrators and the Sponsor,
by their  execution and delivery of this  Declaration,  expressly  agree to such
terms and provisions and to be bound thereby.  Capital Securities will be issued
only in blocks having a stated liquidation amount of not less than $100,000.

                                      -31-
<PAGE>

      (b) The Capital  Securities  sold by the Trust to the  Initial  Purchasers
pursuant  to the  Purchase  Agreement  shall be  issued  in the form of a Global
Capital Security, registered in the name of the Depositary,  without coupons and
with the Restricted Securities Legend.

      SECTION 6.4. Book-Entry Capital Securities.

      (a) A Global Capital  Security may be exchanged,  in whole or in part, for
Definitive  Capital  Securities  Certificates  registered in the names of Owners
only if such exchange complies with Article VIII and (i) the Depositary  advises
the Administrators and the Institutional  Trustee in writing that the Depositary
is no longer  willing or able to properly  discharge its  responsibilities  with
respect to the Global Capital Security,  and no qualified successor is appointed
by the  Administrators  within ninety (90) days of receipt of such notice,  (ii)
the Depositary  ceases to be a clearing agency registered under the Exchange Act
and the Administrators  fail to appoint a qualified successor within ninety (90)
days of obtaining  knowledge of such event,  (iii) the  Administrators  at their
option  advise the  Institutional  Trustee in writing  that the Trust  elects to
terminate  the  book-entry  system  through the  Depositary or (iv) an Indenture
Event of Default has  occurred and is  continuing.  Upon the  occurrence  of any
event  specified in clause (i), (ii),  (iii) or (iv) above,  the  Administrators
shall notify the Depositary and instruct the Depositary to notify all Owners and
the  Institutional   Trustee  of  the  occurrence  of  such  event  and  of  the
availability of Definitive Capital Securities  Certificates to Owners requesting
the same. Upon the issuance of Definitive Capital Securities  Certificates,  the
Administrators and the Institutional  Trustee shall recognize the Holders of the
Definitive  Capital  Securities  Certificates  as Holders.  Notwithstanding  the
foregoing, if an Owner wishes at any time to transfer an interest in such Global
Capital  Security to a Person other than a QIB, such transfer shall be effected,
subject  to  the  Applicable  Depository  Procedures,  in  accordance  with  the
provisions  of this  Section  6.4 and Article  VIII,  and the  transferee  shall
receive a Definitive  Capital  Securities  Certificate  in connection  with such
transfer. A holder of a Definitive Capital Securities  Certificate that is a QIB
may upon request,  and in accordance with the provisions of this Section 6.4 and
Article VIII,  exchange such  Definitive  Capital  Securities  Certificate for a
beneficial interest in a Global Capital Security.

      (b) If any Global  Capital  Security  is to be  exchanged  for  Definitive
Capital  Securities  Certificates  or  canceled  in part,  or if any  Definitive
Capital  Securities  Certificate  is to be exchanged in whole or in part for any
Global Capital  Security,  then either (i) such Global Capital Security shall be
so surrendered  for exchange or cancellation as provided in this Section 6.4 and
Article VIII or (ii) the aggregate liquidation amount represented by such Global
Capital  Security  shall be reduced,  subject to Section 6.3, or increased by an
amount equal to the liquidation amount represented by that portion of the Global
Capital  Security to be so exchanged or  canceled,  or equal to the  liquidation
amount represented by such Definitive  Capital Securities  Certificates to be so
exchanged for any Global  Capital  Security,  as the case may be, by means of an
appropriate  adjustment  made  on  the  records  of  the  Securities  Registrar,
whereupon  the  Institutional   Trustee,   in  accordance  with  the  Applicable
Depositary   Procedures,   shall  instruct  the  Depositary  or  its  authorized
representative to make a corresponding  adjustment to its records. Upon any such
surrender to the  Administrators or the Registrar of any Global Capital Security
or Securities by the Depositary,  accompanied by registration instructions,  the
Administrators,  or any  one of  them,  shall  execute  the  Definitive  Capital
Securities  Certificates in accordance with the  instructions of the Depositary.
None of the Registrar, Administrators, or the Institutional

                                      -32-
<PAGE>

Trustee shall be liable for any delay in delivery of such  instructions  and may
conclusively  rely  on,  and  shall be  fully  protected  in  relying  on,  such
instructions.

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

      (d) The Depositary or its nominee, as registered owner of a Global Capital
Security,  shall be the Holder of such Global Capital  Security for all purposes
under this Declaration and the Global Capital Security,  and Owners with respect
to a  Global  Capital  Security  shall  hold  such  interests  pursuant  to  the
Applicable  Depositary  Procedures.  The Registrar,  the  Administrators and the
Institutional  Trustee  shall be  entitled to deal with the  Depositary  for all
purposes  of  this  Declaration   relating  to  the  Global  Capital  Securities
(including the payment of the  liquidation  amount of and  Distributions  on the
Book-Entry Capital Securities represented thereby and the giving of instructions
or  directions by Owners  represented  thereby and the giving of notices) as the
sole Holder of the Book-Entry Capital Securities  represented  thereby and shall
have no  obligations  to the Owners  thereof.  None of the  Administrators,  the
Institutional  Trustee nor the Registrar  shall have any liability in respect of
any transfers effected by the Depositary.

      (e) The rights of the Owners of the Book-Entry Capital Securities shall be
exercised only through the Depositary and shall be limited to those  established
by law, the Applicable  Depositary Procedures and agreements between such Owners
and the Depositary and/or the Depositary Participants;  provided, solely for the
purpose of  determining  whether the Holders of the requisite  amount of Capital
Securities  have voted on any matter  provided for in this  Declaration,  to the
extent that Capital Securities are represented by a Global Capital Security, the
Administrators and the Institutional Trustee may conclusively rely on, and shall
be fully  protected  in relying on, any written  instrument  (including a proxy)
delivered  to the  Institutional  Trustee by the  Depositary  setting  forth the
Owners'  votes or assigning the right to vote on any matter to any other Persons
either  in  whole  or in  part.  To  the  extent  that  Capital  Securities  are
represented  by a Global  Capital  Security,  the initial  Depositary  will make
bookentry  transfers among the Depositary  Participants and receive and transmit
payments on the Capital  Securities  that are  represented  by a Global  Capital
Security  to  such  Depositary  Participants,  and  none  of  the  Sponsor,  the
Administrators  or the  Institutional  Trustee shall have any  responsibility or
obligation with respect thereto.

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

                                      -33-
<PAGE>

      SECTION 6.5. Mutilated, Destroyed, Lost or Stolen Certificates. If

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

      (b) there shall be delivered to the Registrar,  the Administrators and the
Institutional  Trustee such  security or indemnity as may be required by them to
hold each of them harmless; then, in the absence of notice that such Certificate
shall have been acquired by a bona fide purchaser, an Administrator on behalf of
the Trust shall execute (and in the case of a Capital Security Certificate,  the
Institutional  Trustee shall  authenticate)  and deliver,  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 6.5, the  Registrar or the  Administrators  may
require the payment of a sum  sufficient to cover any tax or other  governmental
charge that may be imposed in connection  therewith.  Any duplicate  Certificate
issued  pursuant to this  Section  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.

      SECTION 6.6. Temporary  Securities.  Until definitive Securities are ready
for  delivery,  the  Administrators  may prepare and, in the case of the Capital
Securities, the Institutional Trustee shall authenticate,  temporary Securities.
Temporary Securities shall be substantially in form of definitive Securities but
may have variations that the Administrators  consider  appropriate for temporary
Securities. Without unreasonable delay, the Administrators shall prepare and, in
the case of the Capital Securities, the Institutional Trustee shall authenticate
defmitive Securities in exchange for temporary Securities.

      SECTION  6.7.  Cancellation.  The  Administrators  at any time may deliver
Securities to the Institutional  Trustee for  cancellation.  The Registrar shall
forward  to the  Institutional  Trustee  any  Securities  surrendered  to it for
registration of transfer, redemption or payment. The Institutional Trustee shall
promptly  cancel  all  Securities  surrendered  for  registration  of  transfer,
payment,  replacement  or  cancellation  and  shall  dispose  of  such  canceled
Securities  in  accordance  with its  standard  procedures  or  otherwise as the
Administrators  direct.  The  Administrators  may not  issue new  Securities  to
replace  Securities  that have been  paid or that  have  been  delivered  to the
Institutional Trustee for cancellation.

      SECTION 6.8. Rights of Holders, Waivers of Past Defaults.

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

                                      -34-
<PAGE>

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

      (c) At any time after a  declaration  of  acceleration  of maturity of the
Debentures  has been made and  before a judgment  or decree  for  payment of the
money  due has  been  obtained  by the  Debenture  Trustee  as  provided  in the
Indenture, if the Institutional Trustee, subject to the provisions hereof, fails
to annul any such  declaration  and waive such default,  the Holders of not less
than a Majority  in  liquidation  amount of the Capital  Securities,  by written
notice to the Institutional  Trustee, the Sponsor and the Debenture Trustee, may
rescind and annul such declaration and its consequences if

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

                  (A)  all  overdue  installments  of  interest  on  all  of the
            Debentures;

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

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

                  (D) all sums paid or advanced by the  Debenture  Trustee under
            the Indenture and the reasonable compensation,  documented expenses,
            disbursements   and  advances  of  the  Debenture  Trustee  and  the
            Institutional Trustee, their agents and counsel; and

            (ii) all Events of Default  with  respect to the  Debentures,  other
      than the  non-payment  of the  principal  of or  premium,  if any,  on the
      Debentures  that has  become due  solely by such  acceleration,  have been
      cured or waived as provided in Section 5.07 of the Indenture.

      (d) The Holders of not less than a Majority in  liquidation  amount of the
Capital Securities may, on behalf of the Holders of all the Capital  Securities,
waive any past default or Event of Default, except a default or Event of Default
in the payment of  principal  of or premium,  if any, or interest  (unless  such
default  or Event of  Default  has been  cured and a sum  sufficient  to pay all
matured   installments   of  interest  and  principal  due  otherwise   than  by
acceleration  has been  deposited  with the  Debenture  Trustee) or a default or
Event of Default in respect of a covenant or provision  that under the Indenture
cannot  be  modified  or  amended  without  the  consent  of the  holder of each
outstanding Debenture. No such rescission shall affect any subsequent default or
impair any right consequent thereon.

                                      -35-
<PAGE>

      (e) Upon receipt by the Institutional  Trustee of written notice declaring
such an  acceleration,  or rescission and annulment  thereof,  by Holders of any
part  of the  Capital  Securities,  a  record  date  shall  be  established  for
determining  Holders of outstanding  Capital Securities entitled to join in such
notice,  which  record  date  shall be at the close of  business  on the day the
Institutional  Trustee receives such notice. The Holders on such record date, or
their duly designated proxies, and only such Persons,  shall be entitled to join
in such notice,  whether or not such Holders  remain  Holders  after such record
date; provided, that, unless such declaration of acceleration, or rescission and
annulment,  as the case may be,  shall have  become  effective  by virtue of the
requisite  percentage  having  joined in such notice prior to the day that is 90
days after such record date,  such notice of  declaration  of  acceleration,  or
rescission and annulment,  as the case may be, shall  automatically  and without
further  action by any Holder be canceled and of no further  effect.  Nothing in
this  paragraph  shall  prevent a Holder,  or a proxy of a Holder,  from giving,
after  expiration of such 90-day period,  a new written notice of declaration of
acceleration,  or rescission and annulment thereof,  as the case may be, that is
identical to a written notice that has been canceled  pursuant to the proviso to
the preceding  sentence,  in which event a new record date shall be  established
pursuant to the provisions of this Section 6.8.

      (f) Except as  otherwise  provided in this Section 6.8, the Holders of not
less than a Majority in  liquidation  amount of the Capital  Securities  may, on
behalf of the Holders of all the Capital  Securities,  waive any past default or
Event of Default and its  consequences.  Upon such  waiver,  any such default or
Event of  Default  shall  cease to exist,  and any  default  or Event of Default
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 or impair any right consequent thereon.

                                   ARTICLE VII
                      DISSOLUTION AND TERMINATION OF TRUST

      SECTION 7.1. Dissolution and Termination of Trust.

      (a) The Trust shall dissolve on the first to occur of

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

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

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

                                      -36-
<PAGE>

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

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

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

      (b) As soon as is practicable after the occurrence of an event referred to
in Section  7.1(a),  and after  satisfaction  of liabilities to creditors of the
Trust as required by  applicable  law,  including  Section 3808 of the Statutory
Trust  Act,  and  subject  to the terms set forth in Annex I, the  Institutional
Trustee,  upon  completion of the winding up of the Trust in accordance with the
Statutory Trust Act, shall terminate the Trust by filing,  at the expense of the
Sponsor,  a certificate of cancellation with the Secretary of State of the State
of Delaware.

      (c) The  provisions  of  Section  2.9 and  Article  IX shall  survive  the
termination of the Trust.

                                  ARTICLE VIII
                              TRANSFER OF INTERESTS

      SECTION 8.1. General.

      (a) Subject to Section 6.4 and Section 8.1(c), when Capital Securities are
presented to the Registrar  with a request to register a transfer or to exchange
them  for an  equal  number  of  Capital  Securities  represented  by  different
Certificates,  the Registrar shall register the transfer or make the exchange if
the  requirements  provided for herein for such  transactions are met. To permit
registrations  of  transfers  and  exchanges,  the  Trust  shall  issue  and the
Institutional  Trustee shall authenticate  Capital Securities at the Registrar's
request.

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

      (c) Capital  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  Capital  Securities.  To the  fullest  extent  permitted  by
applicable  law, any transfer or purported  transfer of any Security not made in
accordance with this Declaration shall be null and void and will be deemed to be
of no legal effect  whatsoever and any such transferee shall be deemed not to be
the holder of such Capital Securities for any purpose, including but not limited
to the receipt of Distributions on such Capital Securities,  and such transferee
shall be deemed to have no interest whatsoever in such Capital Securities.

                                      -37-
<PAGE>

      (d) The Registrar 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 Registrar may require) in respect of any tax
or other  governmental  charges  that may be imposed  in  relation  to it.  Upon
surrender for  registration of transfer of any  Securities,  the Registrar shall
cause one or more new  Securities  to be  issued  in the name of the  designated
transferee or transferees. Any Security issued upon any registration of transfer
or exchange  pursuant to the terms of this  Declaration  shall evidence the same
Security and shall be entitled to the same benefits  under this  Declaration  as
the Security  surrendered upon such registration of transfer or exchange.  Every
Security  surrendered  for  registration  of transfer  shall be accompanied by a
written  instrument  of  transfer in form  satisfactory  to the  Registrar  duly
executed by the Holder or such  Holder's  attorney  duly  authorized in writing.
Each Security  surrendered for registration of transfer shall be canceled by the
Institutional  Trustee pursuant to Section 6.7. 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.

      (e) Neither the Trust nor the  Registrar  shall be required  (i) to issue,
register the transfer of, or exchange any Securities  during a period  beginning
at the opening of business 15 days before the day of any selection of Securities
for redemption and ending at the close of business on the earliest date on which
the relevant notice of redemption is deemed to have been given to all Holders of
the  Securities to be redeemed,  or (ii) to register the transfer or exchange of
any  Security  so  selected  for  redemption  in whole or in  part,  except  the
unredeemed portion of any Security being redeemed in part.

      SECTION 8.2. Transfer Procedures and Restrictions.

      (a) The Capital Securities shall bear the Restricted Securities Legend (as
defined  below),  which shall not be removed  unless  there is  delivered to the
Trust  such  satisfactory  evidence,  which may  include  an  opinion of counsel
reasonably  acceptable  to the  Institutional  Trustee,  as  may  be  reasonably
required by the Trust,  that neither the legend nor the restrictions on transfer
set forth therein are required to ensure that transfers  thereof comply with the
provisions of the  Securities Act or that such  Securities are not  "restricted"
within the meaning of Rule 144 under the Securities  Act. Upon provision of such
satisfactory  evidence,  the Institutional  Trustee, at the written direction of
the Trust,  shall  authenticate and deliver Capital  Securities that do not bear
the Restricted Securities Legend.

      (b) When Capital Securities are presented to the Registrar (x) to register
the  transfer  of such  Capital  Securities,  or (y) to  exchange  such  Capital
Securities  for an equal number of Capital  Securities  represented by different
Certificates,  the Registrar shall register the transfer or make the exchange as
requested if its reasonable requirements for such transaction are met; provided,
however, that the Capital Securities surrendered for registration of transfer or
exchange  shall be duly  endorsed  or  accompanied  by a written  instrument  of
transfer in form reasonably  satisfactory  to the Trust and the Registrar,  duly
executed by the Holder thereof or his attorney duly authorized in writing.

                                      -38-
<PAGE>

      (c) Except as permitted by Section  8.2(a),  each Capital  Security  shall
bear  a  legend  (the  "Restricted  Securities  Legend")  in  substantially  the
following form:

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

UNLESS THIS CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
TO MATRIX BANCORP CAPITAL TRUST VIII OR ITS AGENT FOR  REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT,  AND ANY CAPITAL SECURITY ISSUED IS REGISTERED AS REQUESTED
BY AN AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT HEREON IS MADE 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.

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED  (THE  "SECURITIES  ACT"),  OR ANY  STATE  SECURITIES  LAWS OR ANY OTHER
APPLICABLE   SECURITIES  LAWS.   NEITHER  THIS  SECURITY  NOR  ANY  INTEREST  OR
PARTICIPATION  HEREIN MAY BE REOFFERED,  SOLD, ASSIGNED,  TRANSFERRED,  PLEDGED,
ENCUMBERED  OR  OTHERWISE  DISPOSED  OF IN THE ABSENCE OF SUCH  REGISTRATION  OR
UNLESS SUCH  TRANSACTION  IS EXEMPT  FROM,  OR NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF  THE  SECURITIES  ACT.  THE  HOLDER  OF  THIS  SECURITY  BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE  DEBENTURE  ISSUER OR THE TRUST,  (B) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A"),  TO A PERSON THE HOLDER  REASONABLY  BELIEVES IS A
"QUALIFIED  INSTITUTIONAL  BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,  (C) PURSUANT
TO AN EXEMPTION FROM THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT TO AN
"ACCREDITED  INVESTOR"  WITHIN THE MEANING OF SUBPARAGRAPH  (a) (1), (2), (3) OR
(7) OF RULE 501 UNDER THE  SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS
OWN ACCOUNT,  OR FOR THE ACCOUNT OF AN  "ACCREDITED  INVESTOR,"  FOR  INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN  CONNECTION  WITH,  ANY
DISTRIBUTION  IN  VIOLATION  OF THE  SECURITIES  ACT, OR (D) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE

                                      -39-
<PAGE>

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

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

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

      IN CONNECTION WITH ANY TRANSFER,  THE HOLDER WILL DELIVER TO THE REGISTRAR
AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY
THE AMENDED  AND  RESTATED  DECLARATION  OF TRUST TO CONFIRM  THAT THE  TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

                                      -40-
<PAGE>

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

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

      (e) Each party  hereto  understands  and hereby  agrees  that the  Initial
Purchaser is intended  solely to be an interim holder of the Capital  Securities
and is purchasing such securities to facilitate consummation of the transactions
contemplated herein and in the documents  ancillary hereto.  Notwithstanding any
provision in this Declaration to the contrary,  the Initial Purchaser shall have
the right upon notice (a  "Transfer  Notice")  (such  Transfer  Notice  shall be
required  if,  and only if,  the  Capital  Securities  are not  listed  with the
Depository  Trust  Company)  to the  Institutional  Trustee  and the  Sponsor to
transfer title in and to the Capital Securities,  provided the Initial Purchaser
shall  take  reasonable  steps to ensure  that  such  transfer  is  exempt  from
registration under the Securities Act of 1933, as amended, and rules promulgated
thereunder.  Any  Transfer  Notice  delivered to the  Institutional  Trustee and
Sponsor  pursuant  to  the  preceding  sentence  shall  indicate  the  aggregate
liquidation amount of Capital Securities being transferred, the name and address
of the  transferee  thereof (the  "Transferee")  and the date of such  transfer.
Notwithstanding any provision in this Declaration to the contrary,  the transfer
by the Initial Purchaser of title in and to the Capital Securities pursuant to a
Transfer Notice shall not be subject to any requirement  relating to Opinions of
Counsel, Certificates of Transfer or any other Opinion or Certificate applicable
to transfers hereunder and relating to Capital Securities.

      SECTION 8.3. Deemed Security Holders.  The Trust, the Administrators,  the
Trustees,  the Paying Agent,  the Transfer  Agent or the Registrar may treat the
Person  in whose  name any  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  Administrators,  the Trustees,  the
Paying Agent,  the Transfer  Agent or the  Registrar  shall have actual or other
notice thereof.

                                      -41-
<PAGE>

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

      SECTION 9.1. Liability.

      (a) Except as expressly set forth in this  Declaration,  the 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 the 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) Except to the extent provided in Section 9.1(b), and pursuant to ss. 3
803 (a) of the  Statutory  Trust Act,  the  Holders of the  Securities  shall be
entitled to the same limitation of personal  liability  extended to stockholders
of private  corporations for profit organized under the General  Corporation Law
of the State of Delaware, except as otherwise specifically set forth herein.

      SECTION 9.2. Exculpation.

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

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

                                      -42-
<PAGE>

      SECTION 9.3. Fiduciary Duty.

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

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

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

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

      SECTION 9.4.  Indemnifcation.  (a) (i) The Sponsor shall indemnify, to the
fullest extent permitted by law, any Indemnified Person who was or is a party or
is threatened to be made a party to any threatened, pending or completed action,
suit or proceeding,  whether civil,  criminal,  administrative  or investigative
(other  than an action  by or in the  right of the  Trust) by reason of the fact
that such Person is or was an  Indemnified  Person against  expenses  (including
attorneys' fees and expenses),  judgments,  fines and amounts paid in settlement
actually and reasonably  incurred by such Person in connection with such action,
suit or  proceeding  if such  Person  acted in good  faith and in a manner  such
Person reasonably  believed to be in or not opposed to the best interests of the
Trust, and, with respect to any criminal action or proceeding, had no reasonable
cause to believe such conduct was unlawful.  The termination of any action, suit
or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent,  shall not, of itself,  create a presumption  that
the  Indemnified  Person  did not act in good  faith and in a manner  which such
Person reasonably  believed to be in or not opposed to the best interests of the
Trust,  and, with respect to any criminal  action or proceeding,  had reasonable
cause to believe that such conduct was unlawful.

            (ii) The Sponsor shall indemnify, to the fullest extent permitted by
      law, any  Indemnified  Person who was or is a party or is threatened to be
      made a party to any threatened,  pending or completed action or suit by or
      in the right of the Trust to procure a judgment  in its favor by reason of
      the fact that such Person is or was an Indemnified Person against expenses
      (including  attorneys' fees and expenses) actually and reasonably incurred
      by such Person in connection with the

                                      -43-
<PAGE>

      defense or  settlement of such action or suit if such Person acted in good
      faith and in a manner  such  Person  reasonably  believed  to be in or not
      opposed  to the  best  interests  of the  Trust  and  except  that no such
      indemnification  shall be made in respect of any claim, issue or matter as
      to which such Indemnified  Person shall have been adjudged to be liable to
      the Trust  unless and only to the  extent  that the Court of  Chancery  of
      Delaware  or the  court in which  such  action or suit was  brought  shall
      determine upon application that, despite the adjudication of liability but
      in view of all the  circumstances  of the case,  such Person is fairly and
      reasonably  entitled to indemnity  for such  expenses  which such Court of
      Chancery or such other court shall deem proper.

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

            (iv) Any indemnifcation of an Administrator under paragraphs (i) and
      (ii) of this Section 9.4(a)  (unless  ordered by a court) shall be made by
      the Sponsor only as authorized  in the specific case upon a  determination
      that   indemnification   of  the  Indemnified  Person  is  proper  in  the
      circumstances  because  such  Person has met the  applicable  standard  of
      conduct set forth in paragraphs (i) and (ii). Such determination  shall be
      made (A) by the  Administrators  by a majority vote of a Quorum consisting
      of such  Administrators  who  were not  parties  to such  action,  suit or
      proceeding,  (B)  if  such  a  Quorum  is  not  obtainable,  or,  even  if
      obtainable,  if a Quorum of disinterested  Administrators  so directs,  by
      independent  legal  counsel  in a written  opinion,  or (C) by the  Common
      Security Holder of the Trust.

            (v) To the fullest  extent  permitted  by law,  expenses  (including
      attorneys'  fees  and  expenses)  incurred  by an  Indemnified  Person  in
      defending a civil, criminal,  administrative or investigative action, suit
      or  proceeding  referred  to in  paragraphs  (i) and (ii) of this  Section
      9.4(a) shall be paid by the Sponsor in advance of the final disposition of
      such action,  suit or proceeding  upon receipt of an  undertaking by or on
      behalf  of such  Indemnified  Person  to  repay  such  amount  if it shall
      ultimately  be  determined   that  such  Person  is  not  entitled  to  be
      indemnified  by  the  Sponsor  as  authorized  in  this  Section   9.4(a).
      Notwithstanding the foregoing,  no advance shall be made by the Sponsor if
      a  determination  is  reasonably  and  promptly  made (1) in the case of a
      Company Indemnified Person (A) by the Administrators by a majority vote of
      a Quorum  of  disinterested  Administrators,  (B) if such a Quorum  is not
      obtainable,   or,  even  if  obtainable,  if  a  Quorum  of  disinterested
      Administrators  so  directs,  by  independent  legal  counsel in a written
      opinion or (C) by the Common  Security  Holder of the Trust,  that,  based
      upon the facts known to the Administrators, counsel or the Common Security
      Holder at the time such determination is made, such Indemnified Person

                                      -44-
<PAGE>

      acted in bad faith or in a manner that such Person  either  believed to be
      opposed to or did not  believe to be in the best  interests  of the Trust,
      or, with respect to any criminal proceeding,  that such Indemnified Person
      believed or had reasonable cause to believe such conduct was unlawful,  or
      (2) in the case of a Fiduciary  Indemnified  Person,  by independent legal
      counsel  in a written  opinion  that,  based  upon the facts  known to the
      counsel at the time such  determination is made, such  Indemnified  Person
      acted in bad faith or in a manner  that  such  Indemnified  Person  either
      believed to be opposed to or did not  believe to be in the best  interests
      of the Trust,  or,  with  respect to any  criminal  proceeding,  that such
      Indemnified  Person  believed  or had  reasonable  cause to  believe  such
      conduct  was  unlawful.  In no event  shall any  advance  be made (i) to a
      Company   Indemnified  Person  in  instances  where  the   Administrators,
      independent  legal  counsel  or  the  Common  Security  Holder  reasonably
      determine that such Person deliberately breached such Person's duty to the
      Trust or its Common or  Capital  Security  Holders or (ii) to a  Fiduciary
      Indemnified  Person in instances where  independent legal counsel promptly
      and  reasonably   determines  in  a  written   opinion  that  such  Person
      deliberately  breached  such  Person's  duty to the Trust or its Common or
      Capital Security Holders.

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

      (c) The indemnifcation and advancement of expenses provided by, or granted
pursuant  to,  the  other  paragraphs  of this  Section  9.4 shall not be deemed
exclusive  of any  other  rights  to  which  those  seeking  indemnifcation  and
advancement  of  expenses  may  be  entitled   under  any  agreement,   vote  of
stockholders  or  disinterested  directors  of the  Sponsor or Capital  Security
Holders of the Trust or otherwise,  both as to action in such Person's  official
capacity and as to action in another  capacity  while  holding such office.  All
rights to indemnification  under this Section 9.4 shall be deemed to be provided
by a contract between the Sponsor and each Indemnified Person who serves in such
capacity  at any time  while  this  Section  9.4 is in  effect.  Any  repeal  or
modification of this Section 9.4 shall not affect any rights or obligations then
existing.

      (d) The Sponsor or the Trust may purchase and maintain insurance on behalf
of any Person who is or was an Indemnified Person against any liability asserted
against such Person and incurred by such Person in any such capacity, or arising
out of such Person's  status as such,  whether or not the Sponsor would have the
power to indemnify such Person  against such  liability  under the provisions of
this Section 9.4.

                                      -45-
<PAGE>

      (e) For  purposes of this  Section  9.4,  references  to "the Trust" shall
include,  in addition to the  resulting or  surviving  entity,  any  constituent
entity (including any constituent of a constituent)  absorbed in a consolidation
or  merger,  so that any Person who is or was a  director,  trustee,  officer or
employee of such constituent entity, or is or was serving at the request of such
constituent entity as a director, trustee, officer, employee or agent of another
entity,  shall stand in the same position  under the  provisions of this Section
9.4 with respect to the resulting or surviving  entity as such Person would have
with respect to such constituent entity if its separate existence had continued.

      (f) The indemnifcation and advancement of expenses provided by, or granted
pursuant to, this Section 9.4 shall,  unless otherwise  provided when authorized
or ratified,  continue as to a Person who has ceased to be an Indemnified Person
and shall inure to the benefit of the heirs,  executors  and  administrators  of
such a Person.

      (g) The  provisions of this Section 9.4 shall survive the  termination  of
this  Declaration  or the earlier  resignation  or removal of the  Institutional
Trustee. The obligations of the Sponsor under this Section 9.4 to compensate and
indemnify  the  Trustees and to pay or  reimburse  the  Trustees  for  expenses,
disbursements and advances shall constitute additional  indebtedness  hereunder.
Such  additional  indebtedness  shall be  secured by a lien prior to that of the
Securities  upon all  property  and funds held or  collected  by the Trustees as
such,  except  funds held in trust for the benefit of the holders of  particular
Capital  Securities,  provided,  that the  Sponsor  is the  holder of the Common
Securities.

      SECTION 9.5.  Outside  Businesses.  Any Covered Person,  the Sponsor,  the
Delaware Trustee and the  Institutional  Trustee (subject to Section 4.3(c)) may
engage in or possess an  interest  in other  business  ventures of any nature or
description, independently or with others, similar or dissimilar to the business
of the Trust,  and the Trust and the Holders of 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.  None of any Covered Person, the Sponsor,  the Delaware Trustee or the
Institutional Trustee shall be obligated to present any particular investment or
other  opportunity to the Trust even if such opportunity is of a character that,
if presented to the Trust,  could be taken by the Trust, and any Covered Person,
the Sponsor,  the Delaware Trustee and the Institutional  Trustee shall have the
right to take for its own account (individually or as a partner or fiduciary) or
to recommend to others any such particular investment or other opportunity.  Any
Covered Person, the Delaware Trustee and the Institutional Trustee may engage or
be  interested  in any  financial or other  transaction  with the Sponsor or any
Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or
act on any committee or body of holders of,  securities or other  obligations of
the Sponsor or its Affiliates.

                                      -46-
<PAGE>

      SECTION 9.6. Compensation; Fee.

      (a) Subject to the  provisions set forth in the Fee Agreement of even date
herewith,  by and among the  Institutional  Trustee,  the Trust and the  Initial
Purchaser (the "Fee Agreement"), the Sponsor agrees:

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

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

      (b) The  provisions of this Section 9.6 shall survive the  dissolution  of
the Trust and the termination of this Declaration and the removal or resignation
of any Trustee.

                                    ARTICLE X
                                   ACCOUNTING

      SECTION  10.1.  Fiscal Year.  The fiscal year (the  "Fiscal  Year") of the
Trust shall be the calendar year, or such other year as is required by the Code.

      SECTION 10.2. Certain Accounting Matters.

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

      (b) The Administrators shall either (i) cause each Form 10-K and Form 10-Q
prepared by the Sponsor and filed with the  Commission  in  accordance  with the
Exchange Act to be delivered to each Holder of Securities,  within 90 days after
the  filing of each Form 10-K and  within 30 days  after the filing of each Form
10-Q or (ii) cause to be  prepared at the  principal  office of the Trust in the
United States, as defined for purposes of Treasury  Regulations ss.  301.7701-7,
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  Administrators  shall cause to be duly  prepared and delivered to
each of the Holders of  Securities  Form 1099 or such other annual United States
federal income tax

                                      -47-
<PAGE>

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 Administrators shall endeavor to deliver all
such statements within 30 days after the end of each Fiscal Year of the Trust.

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

      (e) The  Administrators  will cause the Sponsor's  reports on Form FR Y-9C
and FR Y-9LP to be delivered to the Holder promptly  following their filing with
the Federal Reserve.

      SECTION 10.3. Banking.  The Trust shall maintain one or more bank accounts
in the United  States,  as defined  for  purposes of  Treasury  Regulations  ss.
301.7701-7,  in the  name  and for the  sole  benefit  of the  Trust;  provided,
however,  that all  payments of funds in respect of the  Debentures  held by the
Institutional  Trustee  shall be made  directly to the  Property  Account and no
other funds of the Trust shall be deposited in the  Property  Account.  The sole
signatories  for  such  accounts  (including  the  Property  Account)  shall  be
designated by the Institutional Trustee.

      SECTION 10.4.  Withholding.  The Institutional Trustee or any Paying Agent
and the  Administrators  shall comply with all  withholding  requirements  under
United States  federal,  state and local law. The  Institutional  Trustee or any
Paying Agent shall request,  and each Holder shall provide to the  Institutional
Trustee or any Paying  Agent,  such forms or  certificates  as are  necessary to
establish  an exemption  from  withholding  with respect to the Holder,  and any
representations  and forms as shall reasonably be requested by the Institutional
Trustee or any Paying  Agent to assist it in  determining  the extent of, and in
fulfilling, its withholding obligations.  The Administrators shall file required
forms with applicable jurisdictions and, unless an exemption from withholding is
properly  established by a Holder,  shall remit amounts withheld with respect to
the Holder to  applicable  jurisdictions.  To the extent that the  Institutional
Trustee or any Paying  Agent is required to withhold and pay over any amounts to
any authority with respect to  distributions  or allocations to any Holder,  the
amount withheld shall be deemed to be a Distribution to the Holder in the amount
of the withholding.  In the event of any claimed overwithholding,  Holders shall
be limited  to an action  against  the  applicable  jurisdiction.  If the amount
required to be withheld was not withheld  from actual  Distributions  made,  the
Institutional Trustee or any Paying Agent may reduce subsequent Distributions by
the amount of such withholding.

                                      -48-
<PAGE>

                                   ARTICLE XI
                             AMENDMENTS AND MEETINGS

      SECTION 11.1. 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 Institutional Trustee,

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

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

            (iv) the Holders of a Majority in  liquidation  amount of the Common
      Securities.

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

            (i) unless the Institutional Trustee shall have first received

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

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

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

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

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

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

                  (D) cause the Debenture Issuer to be unable to treat an amount
            equal to the Liquidation Amount of the Capital Securities as "Tier 1

                                      -49-
<PAGE>

            Capital' for purposes of the capital adequacy  guidelines of (x) the
            Federal  Reserve (or, if the Debenture  Issuer is not a bank holding
            company, such guidelines or policies applied to the Debenture Issuer
            as if the  Debenture  Issuer  were  subject  to such  guidelines  of
            policies)  or  of  (y)  any  other   regulatory   authority   having
            jurisdiction over the Debenture Issuer.

      (c) Except as provided in Section 11.1(d),  (e) or (g), no amendment shall
be made, and any such purported amendment shall be void and ineffective,  unless
the Holders of a Majority in liquidation  amount of the Capital Securities shall
have consented to such amendment.

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

      (e)  Sections  9.1 (b) and 9.1 (c) and  this  Section  11.1  shall  not be
amended without the consent of all of the Holders of the Securities.

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

      (g) Subject to Section 11.1(a)(ii), this Declaration may be amended by the
Institutional  Trustee and the Holder of a Majority in liquidation amount of the
Common Securities  without the consent of the Holders of the Capital  Securities
to:

            (i) cure any ambiguity;

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

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

            (iv) modify,  eliminate or add to any provision of this  Declaration
      to such  extent  as may be  necessary  or  desirable,  including,  without
      limitation,  to ensure that the Trust will be classified for United States
      federal  income tax purposes at all times as a grantor  trust and will not
      be  required to register as an  Investment  Company  under the  Investment
      Company Act (including without limitation to conform to any change in Rule
      3a-5, Rule 3a-7 or any other applicable rule under the Investment  Company
      Act or written  change in  interpretation  or  application  thereof by any
      legislative body, court,  government agency or regulatory authority) which
      amendment  does  not  have  a  material   adverse  effect  on  the  right,
      preferences or privileges of the Holders of Securities;

                                      -50-
<PAGE>

provided,  however, that no such modification,  elimination or addition referred
to in clauses  (i),  (ii),  (iii) or (iv)  shall  adversely  affect the  powers,
preferences or rights of Holders of Capital Securities.

      SECTION 11.2. Meetings of the Holders of the Securities; Action by Written
Consent.

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

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

            (i) notice of any such meeting  shall be given to all the Holders of
      the  Securities  having a right to vote  thereat  at least 15 days and not
      more  than 60 days  before  the  date of such  meeting.  Whenever  a vote,
      consent or approval  of the  Holders of the  Securities  is  permitted  or
      required  under this  Declaration  or the rules of any stock  exchange  on
      which the Capital  Securities are listed or admitted for trading,  if any,
      such vote, consent or approval may be given at a meeting of the Holders of
      the  Securities.  Any action that may be taken at a meeting of the Holders
      of the  Securities  may be taken without a meeting if a consent in writing
      setting  forth  the  action  so  taken is  signed  by the  Holders  of the
      Securities  owning not less than the  minimum  amount of  Securities  that
      would be  necessary to authorize or take such action at a meeting at which
      all Holders of the Securities  having a right to vote thereon were present
      and voting.  Prompt notice of the taking of action without a meeting shall
      be given to the  Holders of the  Securities  entitled to vote who have not
      consented  in writing.  The  Administrators  may specify  that any written
      ballot  submitted  to the  Holders of the  Securities  for the  purpose of
      taking any action  without a meeting shall be returned to the Trust within
      the time specified by the Administrators;

            (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 the
      Securities executing it. Except as otherwise provided

                                      -51-
<PAGE>

      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; each meeting of the Holders of the
      Securities  shall be  conducted  by the  Administrators  or by such  other
      Person that the Administrators may designate; and

            (iii) 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 Capital  Securities are then listed for trading,  if
      any, otherwise  provides,  the  Administrators,  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 the  Securities,
      waiver of any such  notice,  action by  consent  without  a  meeting,  the
      establishment of a record date, quorum  requirements,  voting in person or
      by proxy or any other  matter  with  respect to the  exercise  of any such
      right to vote; provided,  however, that each meeting shall be conducted in
      the United  States (as that term is defined in  Treasury  Regulations  ss.
      301.7701-7).

                                   ARTICLE XII
                    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
                              AND DELAWARE TRUSTEE

      SECTION 12.1. Representations and Warranties of Institutional Trustee. The
Trustee that acts as initial  Institutional  Trustee  represents and warrants to
the Trust and to the Sponsor at the date of this Declaration, and each Successor
Institutional  Trustee  represents  and warrants to the Trust and the Sponsor at
the time of the Successor  Institutional Trustee's acceptance of its appointment
as Institutional Trustee, that:

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

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

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

      (d) the execution,  delivery and performance by the Institutional  Trustee
of this Declaration has been duly authorized by all necessary action on the part
of the  Institutional  Trustee.  This  Declaration  has been duly  executed  and
delivered by the  Institutional  Trustee,  and under Delaware law (excluding any
securities  laws)  constitutes  a legal,  valid and  binding  obligation  of the
Institutional  Trustee,  enforceable  against it in  accordance  with its terms,
subject

                                      -52-
<PAGE>

to  applicable  bankruptcy,  reorganization,  moratorium,  insolvency  and other
similar laws affecting  creditors' rights generally and to general principles of
equity and the discretion of the court  (regardless  of whether  considered in a
proceeding in equity or at law);

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

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

      SECTION 12.2.  Representations  and  Warranties of Delaware  Trustee.  The
Trustee that acts as initial  Delaware  Trustee  represents  and warrants to the
Trust and to the  Sponsor at the date of this  Declaration,  and each  Successor
Delaware  Trustee  represents  and  warrants to the Trust and the Sponsor at the
time of the  Successor  Delaware  Trustee's  acceptance  of its  appointment  as
Delaware Trustee that:

      (a) if it is not a natural person,  the Delaware Trustee has its principal
place of business in the State of Delaware;

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

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

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

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

      (f) if the Delaware  Trustee is a natural person,  it is a resident of the
State of Delaware.

                                      -53-
<PAGE>

                                  ARTICLE XIII
                                  MISCELLANEOUS

      SECTION 13.1. Notices.  All notices provided for in this Declaration shall
be in  writing,  duly  signed  by the party  giving  such  notice,  and shall be
delivered,  telecopied  (which telecopy shall be followed by notice delivered or
mailed by first class mail) or mailed by first class mail, as follows:

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

            Matrix Bancorp Capital Trust VIII
            c/o Matrix Bancorp,  Inc.
            700 17th Street,  Suite 2100
            Denver,  CO 80202
            Attention:  David W.  Kloos
            Telecopy: 303-390-0952
            Telephone: 303-595-9898

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

            Wells  Fargo  Delaware  Trust  Company
            919 Market  Street  Suite 700
            Wilmington,  DE 19801
            Attention:  Corporate Trust Division
            Telecopy: 302-575-2006
            Telephone: 302-575-2005

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

            Wells Fargo Bank,  National  Association
            919 Market Street Suite 700
            Wilmington,  DE 19801
            Attention:  Corporate Trust Division
            Telecopy: 302-575-2006
            Telephone: 302-575-2005

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

                                      -54-
<PAGE>

      (e) records of the Trust.

            Matrix Bancorp,  Inc.
            700 17th Street,  Suite 2100
            Denver,  CO 80202
            Attention: David  W. Kloos
            Telecopy: 303-390-0952
            Telephone: 303-595-9898

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

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

      SECTION  13.2.   Governing  Law.  This  Declaration  and  the  rights  and
obligations  of the parties  hereunder  shall be governed by and  interpreted in
accordance with the law of the State of Delaware and all rights, obligations and
remedies  shall be governed by such laws  without  regard to the  principles  of
conflict of laws of the State of Delaware or any other  jurisdiction  that would
call for the application of the law of any jurisdiction  other than the State of
Delaware.

      SECTION 13.3. Submission to Jurisdiction.

      (a) Each of the parties hereto agrees that any suit,  action or proceeding
arising out of or based upon this Declaration,  or the transactions contemplated
hereby,  may be instituted in any of the state or federal courts of the State of
New York located in the Borough of  Manhattan,  City and State of New York,  and
further  agrees to submit to the  jurisdiction  of Delaware,  and to any actions
that are  instituted in state or Federal court in  Wilmington,  Delaware and any
competent  court in the place of its  corporate  domicile  in respect of actions
brought  against it as a  defendant.  In addition,  each such party  irrevocably
waives,  to the fullest extent  permitted by law, any objection which it may now
or hereafter have to the laying of the venue of such suit,  action or proceeding
brought in any such court and  irrevocably  waives any claim that any such suit,
action  or  proceeding  brought  in  any  such  court  has  been  brought  in an
inconvenient  forum and irrevocably waives any right to which it may be entitled
on  account  of  its  place  of  corporate  domicile.  Each  such  party  hereby
irrevocably  waives  any and all right to trial by jury in any legal  proceeding
arising out of or relating to this Declaration or the transactions  contemplated
hereby. Each such party agrees that final judgment in any proceedings brought in
such a court shall be conclusive  and binding upon it and may be enforced in any
court to the jurisdiction of which it is subject by a suit upon such judgment.

      (b) Each of the Sponsor,  the Trustees,  the Administrators and the Holder
of the Common Securities irrevocably consents to the service of process on it in
any such suit,  action or  proceeding  by the mailing  thereof by  registered or
certified mail,  postage  prepaid,  to it at its address given in or pursuant to
Section 13.1 hereof.

                                      -55-
<PAGE>

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

      SECTION 13.4. Intention of the Parties. It is the intention of the parties
hereto  that the Trust be  classified  for  United  States  federal  income  tax
purposes  as a  grantor  trust.  The  provisions  of this  Declaration  shall be
interpreted to further this intention of the parties.

      SECTION  13.5.  Headings.  Headings  contained  in  this  Declaration  are
inserted for convenience of reference only and do not affect the  interpretation
of this Declaration or any provision hereof.

      SECTION 13.6. Successors and Assigns.  Whenever in this Declaration any of
the parties  hereto is named or referred to, the  successors and assigns of such
party shall be deemed to be included,  and all covenants and  agreements in this
Declaration  by the Sponsor and the Trustees shall bind and inure to the benefit
of their respective successors and assigns, whether or not so expressed.

      SECTION   13.7.   Partial   Enforceability.   If  any  provision  of  this
Declaration, or the application of such provision to any Person or circumstance,
shall be held invalid, the remainder of this Declaration,  or the application of
such provision to persons or circumstances  other than those to which it is held
invalid, shall not be affected thereby.

      SECTION 13.8.  Counterparts.  This  Declaration  may contain more than one
counterpart  of the signature page and this  Declaration  may be executed by the
affixing of the signature of each of the Trustees and  Administrators  to any of
such counterpart  signature pages. All of such counterpart signature pages shall
be read as though  one,  and they shall have the same force and effect as though
all of the signers had signed a single signature page.

                                      -56-
<PAGE>

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

                                               WELLS FARGO DELAWARE TRUST
                                                COMPANY, as Delaware Trustee

                                               By:______________________________
                                                  Name:_________________________
                                                  Title:________________________

                                               WELLS FARGO BANK, NATIONAL
                                                ASSOCIATION, as Institutional
                                                Trustee

                                               By:______________________________
                                                  Name:_________________________
                                                  Title:________________________

                                               Matrix Bancorp, Inc.
                                                as Sponsor

                                               By:______________________________
                                                  Name:_________________________
                                                  Title:________________________

                                               By:______________________________
                                                  Administrator

                                               By:______________________________
                                                  Administrator

                                      -57-
<PAGE>

                                     ANNEX I

                                    TERMS OF
                             CAPITAL SECURITIES AND
                                COMMON SECURITIES

      Pursuant to Section 6.1 of the Amended and Restated  Declaration of Trust,
dated as of June 30, 2005 (as amended from time to time, the "Declaration"), the
designation, rights, privileges,  restrictions,  preferences and other terms and
provisions of the Capital Securities and the Common Securities are set out below
(each  capitalized term used but not defined herein has the meaning set forth in
the Declaration):

      1. Designation and Number.

      (a) Capital Securities. 7,500 Capital Securities of Matrix Bancorp Capital
Trust VIII (the  "Trust"),  with an  aggregate  stated  liquidation  amount with
respect  to the  assets  of the Trust of Seven  Million  Five  Hundred  Thousand
Dollars  ($7,500,000) and a stated liquidation amount with respect to the assets
of the Trust of $1,000  per  Capital  Security,  are hereby  designated  for the
purposes  of  identification  only as the  "Capital  Securities"  (the  "Capital
Securities").   The  Capital  Security   Certificates   evidencing  the  Capital
Securities shall be substantially in the form of Exhibit A-1 to the Declaration,
with such  changes  and  additions  thereto  or  deletions  therefrom  as may be
required by ordinary usage, custom or practice or to conform to the rules of any
stock exchange on which the Capital Securities are listed, if any.

      (b) Common  Securities.  232 Common  Securities  of the Trust (the "Common
Securities") will be evidenced by Common Security Certificates  substantially in
the form of Exhibit A-2 to the  Declaration,  with such  changes  and  additions
thereto or deletions  therefrom as may be required by ordinary usage,  custom or
practice. In the absence of an Event of Default, the Common Securities will have
an aggregate stated  liquidation  amount with respect to the assets of the Trust
of Two Hundred  Thirty-Two  Thousand Dollars ($232,000) and a stated liquidation
amount with respect to the assets of the Trust of $1,000 per Common Security.

      2. Distributions.

      (a) Distributions payable on each Security will be payable at a fixed rate
of 5.86% (the "Fixed Rate") per annum from June 30, 2005 until July 7, 2010 (the
"Fixed Rate  Period") and  thereafter  at a variable per annum rate of interest,
reset quarterly,  equal to LIBOR, as determined on the LIBOR  Determination Date
for such Distribution  Payment Period, plus 1.69% (the "Variable Rate") ("Coupon
Rate" is defined to include the Fixed Rate and Variable  Rate, as applicable) of
the stated liquidation amount of $1,000 per Security,  (provided,  however, that
the Coupon Rate for any  Distribution  Payment Period may not exceed the highest
rate permitted by New York law, as the same may be modified by United States law
of general  applicability),  such Coupon Rate being the rate of interest payable
on the Debentures to be held by the Institutional  Trustee.  Except as set forth
below in respect of an Extension Period,  Distributions in arrears for more than
one quarterly  period will bear  interest  thereon  compounded  quarterly at the
applicable  Coupon Rate for each such quarterly  period (to the extent permitted
by  applicable  law).  The term  "Distributions"  as used herein  includes  cash
distributions, any such compounded distributions

                                     A-I-1
<PAGE>

and any Additional Interest payable on the Debentures unless otherwise stated. A
Distribution  is payable only to the extent that payments are made in respect of
the  Debentures  held  by  the  Institutional  Trustee  and to  the  extent  the
Institutional  Trustee  has funds  legally  available  in the  Property  Account
therefor.  During the Fixed Rate Period, the amount of Distributions payable for
any  Distribution  Payment  Period  will  be  computed  for any  full  quarterly
Distribution  Payment  Period on the basis of a  360-day  year of twelve  30-day
months and the amount  payable for any partial  period  shall be computed on the
basis of the number of days elapsed in a 360-day year of twelve  30-day  months.
Upon expiration of the Fixed Rate Period,  distributions will be computed on the
basis of a 360-day  year and the actual  number of days  elapsed in the relevant
Distribution period;  provided,  however,  that upon the occurrence of a Special
Event  redemption  pursuant to paragraph 4(a) below the amounts payable pursuant
to this  Declaration  shall be  calculated  as set  forth in the  definition  of
Special Redemption Price.

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

                  (1) On the second LIBOR Business Day  (provided,  that on such
            day commercial  banks are open for business  (including  dealings in
            foreign  currency  deposits) in London (a "LIBOR Banking Day"),  and
            otherwise the next preceding LIBOR Business Day that is also a LIBOR
            Banking  Day) prior to January 15,  April 15, July 15 and October 15
            immediately succeeding the commencement of such Distribution Payment
            Period (or, with respect to the first  Distribution  Payment  Period
            subsequent to the Fixed Rate Period,  on July 15, 2010),  (each such
            day, a "LIBOR  Determination  Date") for such  Distribution  Payment
            Period), the Calculation Agent shall obtain the rate for three-month
            U.S. Dollar deposits in Europe,  which appears on Telerate Page 3750
            (as defined in the International Swaps and Derivatives  Association,
            Inc. 2000 Interest Rate and Currency  Exchange  Definitions) or such
            other page as may replace such  Telerate  Page 3750 on the Moneyline
            Telerate,  Inc. service (or such other service or services as may be
            nominated by the British  Banker's  Association  as the  information
            vendor for the purpose of displaying  London interbank offered rates
            for U.S. dollar  deposits),  as of 11:00 a.m.  (London time) on such
            LIBOR  Determination  Date,  and the rate so obtained shall be LIBOR
            for such Distribution Payment Period. "LIBOR Business Day" means any
            day that is not a Saturday,  Sunday or other day on which commercial
            banking institutions in The City of New York or Wilmington, Delaware
            are authorized or obligated by law or executive  order to be closed.
            If such rate is superseded on Telerate Page 3750 by a corrected rate
            before  12:00 noon  (London  time) on the same  LIBOR  Determination
            Date, the corrected  rate as so  substituted  will be the applicable
            LIBOR for that Distribution Payment Period.

                  (2) If, on any LIBOR  Determination  Date,  such rate does not
            appear on Telerate  Page 3750 or such other page as may replace such
            Telerate Page 3750 on the Moneyline Telerate,  Inc. service (or such
            other  service  or  services  as may  be  nominated  by the  British
            Banker's  Association as the  information  vendor for the purpose of
            displaying London interbank offered rates for U.S. dollar deposits),
            the  Calculation  Agent shall  determine the arithmetic  mean of the
            offered

                                     A-I-2
<PAGE>

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

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

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

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

      (e)  Distributions on the Securities will be cumulative,  will accrue from
the date of original  issuance,  and will be payable,  subject to  extension  of
Distribution  payment  periods  as  described  herein,  quarterly  in arrears on
January 7, April 7, July 7 and  October 7 of each  year,  commencing  October 7,
2005 (each,  a  "Distribution  Payment  Date").  Subject to prior  submission of
Notice (as defined in the Indenture),  the Debenture  Issuer has the right under
the Indenture to defer  payments of interest on the  Debentures by extending the
interest  distribution period for up to 20 consecutive  quarterly periods (each,
an  "Extension  Period")  at any time and from  time to time on the  Debentures,
subject to the conditions  described  below,  during which  Extension  Period no
interest shall be due and payable  (except any  Additional  Interest that may be
due and

                                     A-I-3
<PAGE>

payable).  During any Extension Period,  interest will continue to accrue on the
Debentures,  and interest on such accrued  interest  (such accrued  interest and
interest  thereon  referred to herein as "Deferred  Interest") will accrue at an
annual rate equal to the Coupon Rate in effect for each such  Extension  Period,
compounded  quarterly  from the date  such  Deferred  Interest  would  have been
payable were it not for the Extension Period, to the extent permitted by law. No
Extension  Period may end on a date other than a  Distribution  Payment Date. At
the end of any  such  Extension  Period,  the  Debenture  Issuer  shall  pay all
Deferred Interest then accrued and unpaid on the Debentures;  provided, however,
that no Extension Period may extend beyond the Maturity Date, Redemption Date or
Special Redemption Date and provided,  further,  that, during any such Extension
Period,  the  Debenture  Issuer  may not (i)  declare  or pay any  dividends  or
distributions on, or redeem,  purchase,  acquire,  or make a liquidation payment
with respect to, any of the  Debenture  Issuer's  capital stock or (ii) make any
payment of  principal or premium or interest on or repay,  repurchase  or redeem
any debt securities of the Debenture Issuer that rank pari passu in all respects
with or junior in interest to the Debentures or (iii) make any payment under any
guarantees of the Debenture  Issuer that rank in all respects pari passu with or
junior in interest to the Guarantee (other than (a) repurchases,  redemptions or
other  acquisitions  of shares of capital stock of the  Debenture  Issuer (A) in
connection  with  any  employment  contract,   benefit  plan  or  other  similar
arrangement  with  or  for  the  benefit  of one or  more  employees,  officers,
directors or  consultants,  (B) in connection  with a dividend  reinvestment  or
stockholder  stock  purchase  plan or (C) in  connection  with the  issuance  of
capital  stock  of the  Debenture  Issuer  (or  securities  convertible  into or
exercisable  for  such  capital  stock),  as  consideration  in  an  acquisition
transaction  entered into prior to the  applicable  Extension  Period,  (b) as a
result of any exchange, reclassification, combination or conversion of any class
or series of the  Debenture  Issuer's  capital  stock (or any capital stock of a
subsidiary  of the  Debenture  Issuer) for any class or series of the  Debenture
Issuer's  capital  stock or of any  class or series  of the  Debenture  Issuer's
indebtedness  for any class or series of the Debenture  Issuer's  capital stock,
(c) the purchase of  fractional  interests in shares of the  Debenture  Issuer's
capital stock pursuant to the conversion or exchange  provisions of such capital
stock or the security  being  converted or exchanged,  (d) any  declaration of a
dividend in connection  with any  stockholder's  rights plan, or the issuance of
rights,  stock or other  property  under any  stockholder's  rights plan, or the
redemption or repurchase of rights pursuant thereto,  or (e) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or the
stock  issuable upon exercise of such  warrants,  options or other rights is the
same stock as that on which the  dividend is being paid or ranks pari passu with
or junior to such stock).  Prior to the termination of any Extension Period, the
Debenture  Issuer may further  extend such  period,  provided,  that such period
together with all such previous and further consecutive extensions thereof shall
not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date.
Upon the  termination  of any  Extension  Period  and upon  the  payment  of all
Deferred  Interest,  the Debenture  Issuer may commence a new Extension  Period,
subject to the foregoing requirements. No interest or Deferred Interest shall be
due and payable  during an  Extension  Period,  except at the end  thereof,  but
Deferred  Interest  shall accrue upon each  installment  of interest  that would
otherwise  have been due and payable  during such  Extension  Period  until such
installment is paid. If Distributions are deferred,  the Distributions due shall
be paid on the date that the related  Extension Period  terminates,  or, if such
date  is  not  a  Distribution  Payment  Date,  on  the  immediately   following
Distribution  Payment Date,  to Holders of the  Securities as they appear on the
books and records of the Trust on the record  date  immediately  preceding  such
date. Distributions on the Securities must be paid on the dates payable (after

                                     A-I-4
<PAGE>

giving  effect to any  Extension  Period) to the extent that the Trust has funds
legally available for the payment of such  distributions in the Property Account
of the Trust. The Trust's funds available for Distribution to the Holders of the
Securities will be limited to payments received from the Debenture  Issuer.  The
payment of  Distributions  out of moneys held by the Trust is  guaranteed by the
Guarantor pursuant to the Guarantee.

      (f) Distributions on the Securities will be payable to the Holders thereof
as they appear on the books and records of the Registrar on the relevant  record
dates. The relevant record dates shall be selected by the Administrators,  which
dates  shall  be  15  days  before  the  relevant   Distribution  Payment  Date.
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,  as the case may be, when due (taking into
account any Extension  Period),  will cease to be payable to the Person in whose
name such  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.  Notwithstanding  anything to the
contrary  contained herein, if any Distribution  Payment Date, other than on the
Maturity Date,  Redemption Date or Special  Redemption Date, falls on a day that
is not a Business Day, then any Distributions  payable will be paid on, and such
Distribution  Payment Date will be moved to, the next  succeeding  Business Day,
and  additional  Distributions  will  accrue  for each day that such  payment is
delayed as a result  thereof.  If the Maturity Date,  Redemption Date or Special
Redemption  date falls on a day that is not a Business Day, then the  principal,
premium, if any, and/or  Distributions  payable on such date will be paid on the
next preceding Business Day.

      (g) 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  the
voluntary or involuntary liquidation,  dissolution, winding-up or termination of
the Trust (each, a "Liquidation")  other than in connection with a redemption of
the Debentures, the Holders of the Securities will be entitled to receive out of
the assets of the Trust available for distribution to Holders of the Securities,
after  satisfaction  of liabilities to creditors of the Trust (to the extent not
satisfied by the Debenture Issuer),  distributions equal to the aggregate of the
stated  liquidation  amount of $1,000  per  Security  plus  accrued  and  unpaid
Distributions thereon to the date of payment (such amount being the "Liquidation
Distribution"), unless in connection with such Liquidation, the Debentures in an
aggregate  stated  principal  amount equal to the aggregate  stated  liquidation
amount 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, and having the same record date as, such  Securities,
after paying or making reasonable provision to pay all claims and obligations of
the Trust in accordance  with Section  3808(e) of the Statutory Trust Act, shall
be  distributed on a Pro Rata basis to the Holders of the Securities in exchange
for such Securities.

      The Sponsor, as the Holder of all of the Common Securities,  has the right
at any  time to  dissolve  the  Trust  (including  without  limitation  upon the
occurrence of a Tax Event,  an Investment  Company Event or a Capital  Treatment
Event), subject to the receipt by the

                                     A-I-5
<PAGE>

Debenture  Issuer  of  prior  approval  from  any  regulatory  authority  having
jurisdiction  over the Sponsor that is primarily  responsible for regulating the
activities  of the Sponsor if such approval is then  required  under  applicable
capital  guidelines  or policies  of such  regulatory  authority,  an opinion of
nationally  recognized  tax counsel that Holders will not  recognize any gain or
loss  for  United  States  federal  income  tax  purposes  as a  result  of  the
distribution of Debentures  and, after  satisfaction of liabilities to creditors
of the Trust,  cause the  Debentures  to be  distributed  to the  Holders of the
Securities  on a  Pro  Rata  basis  in  accordance  with  the  aggregate  stated
liquidation amount thereof.

      The Trust shall  dissolve  on the first to occur of (i) July 7, 2040,  the
expiration of the term of the Trust, (ii) a Bankruptcy Event with respect to the
Sponsor, the Trust or the Debenture Issuer, (iii) (other than in connection with
a merger,  consolidation or similar transaction not prohibited by the Indenture,
this  Declaration  or the  Guarantee,  as the  case  may  be)  the  filing  of a
certificate of dissolution or its equivalent with respect to the Sponsor or upon
the revocation of the charter of the Sponsor and the expiration of 90 days after
the date of revocation without a reinstatement thereof, (iv) the distribution to
the Holders of the Securities of the  Debentures,  upon exercise of the right of
the Holder of all of the outstanding  Common Securities to dissolve the Trust as
described  above,  (v) the entry of a decree of a  judicial  dissolution  of the
Sponsor or the Trust, or (vi) when all of the Securities  shall have been called
for redemption and the amounts necessary for redemption  thereof shall have been
paid to the Holders in accordance with the terms of the  Securities.  As soon as
practicable  after  the  dissolution  of the Trust  and upon  completion  of the
winding  up of the  Trust,  the  Trust  shall  terminate  upon the  filing  of a
certificate  of  cancellation  with  the  Secretary  of  State  of the  State of
Delaware.

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

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

      Upon any such  Liquidation of the Trust  involving a  distribution  of the
Debentures,  if at the time of such  Liquidation,  the Capital  Securities  were
rated by at least one nationally

                                     A-I-6
<PAGE>

recognized  statistical rating  organization,  the Debenture Issuer will use its
reasonable  best  efforts  to  obtain  from at least  one  such or other  rating
organization a rating for the Debentures.

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

      4. Redemption and Distribution.

      (a) The  Debentures  will mature on July 7, 2035.  The  Debentures  may be
redeemed by the Debenture  Issuer,  in whole or in part, on any January 7, April
7, July 7 or October 7 on or after July 7, 2010 at the  Redemption  Price,  upon
not less than 30 nor more than 60 days' notice to Holders of such Debentures. In
addition,  upon the occurrence and  continuation  of a Tax Event,  an Investment
Company Event or a Capital  Treatment  Event,  the Debentures may be redeemed by
the Debenture  Issuer in whole or in part, at any time within 90 days  following
the occurrence of such Tax Event,  Investment Company Event or Capital Treatment
Event,  as the case  may be (the  "Special  Redemption  Date"),  at the  Special
Redemption Price, upon not less than 30 nor more than 60 days' notice to Holders
of the Debentures so long as such Tax Event, Investment Company Event or Capital
Treatment  Event, as the case may be, is continuing.  In each case, the right of
the Debenture Issuer to redeem the Debentures is subject to the Debenture Issuer
having received prior approval from any regulatory authority having jurisdiction
over the Debenture  Issuer,  if such approval is then required under  applicable
capital guidelines or policies of such regulatory authority.

      "Tax Event" means the receipt by the Debenture  Issuer and the Trust of an
opinion of counsel  experienced  in such matters to the effect that, as a result
of any amendment to or change  (including any announced  prospective  change) in
the laws or any  regulations  thereunder  of the United  States or any political
subdivision  or  taxing  authority  thereof  or  therein,  or as a result of any
official  administrative  pronouncement  (including  any private  letter ruling,
technical advice memorandum,  regulatory procedure,  notice or announcement) (an
"Administrative Action") or judicial decision interpreting or applying such laws
or  regulations,  regardless of whether such  Administrative  Action or judicial
decision is issued to or in connection with a proceeding involving the Debenture
Issuer  or the Trust and  whether  or not  subject  to review or  appeal,  which
amendment,  clarifcation,  change, Administrative Action or decision is enacted,
promulgated or announced, in each case on or after the date of original issuance
of the Debentures,  there is more than an insubstantial risk that: (i) the Trust
is,  or will be within 90 days of the date of such  opinion,  subject  to United
States  federal  income tax with  respect to income  received  or accrued on the
Debentures; (ii) interest payable by the Debenture Issuer on the

                                     A-I-7
<PAGE>

Debentures is not, or within 90 days of the date of such  opinion,  will not be,
deductible  by the  Debenture  Issuer,  in whole or in part,  for United  States
federal income tax purposes; or (iii) the Trust is, or will be within 90 days of
the date of such  opinion,  subject  to more than a de  minimis  amount of other
taxes (including withholding taxes),  duties,  assessments or other governmental
charges.

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

      "Capital  Treatment  Event" means the receipt by the Debenture  Issuer and
the Trust of an  Opinion of Counsel  experienced  in such  matters to the effect
that,  as a result  of any  amendment  to,  or change  in,  the  laws,  rules or
regulations  of the  United  States  or any  political  subdivision  thereof  or
therein,  or as the result of any official or  administrative  pronouncement  or
action or decision  interpreting  or applying such laws,  rules or  regulations,
which  amendment  or  change  is  effective  or which  pronouncement,  action or
decision is announced  on or after the date of original  issuance of the Capital
Securities,  there is more than an insubstantial risk that within 90 days of the
receipt  of such  opinion,  the  aggregate  Liquidation  Amount  of the  Capital
Securities will not be eligible to be treated by the Debenture Issuer as "Tier 1
Capital" (or the then equivalent  thereof) for purposes of the capital  adequacy
guidelines of the Federal  Reserve (or any successor  regulatory  authority with
jurisdiction over bank holding  companies),  as then in effect and applicable to
the Debenture  Issuer;  provided,  however,  that the inability of the Debenture
Issuer to treat all or any  portion  of the  Liquidation  Amount of the  Capital
Securities  as Tier 1  Capital  shall  not  constitute  the  basis for a Capital
Treatment  Event,  if such  inability  results from the Debenture  Issuer having
cumulative preferred stock, minority interests in consolidated subsidiaries,  or
any other class of security or interest  which the Federal  Reserve,  may now or
hereafter accord Tier 1 Capital  treatment in excess of the amount which may now
or hereafter  qualify for treatment as Tier 1 Capital under  applicable  capital
adequacy  guidelines;  provided further,  however,  that the distribution of the
Debt Securities in connection with the liquidation of the Trust by the Debenture
Issuer shall not in and of itself  constitute a Capital  Treatment  Event unless
such  liquidation  shall  have  occurred  in  connection  with a Tax Event or an
Investment Company Event.

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

      "Redemption  Price" means 100% of the principal  amount of the  Debentures
being  redeemed  plus  accrued  and unpaid  interest on such  Debentures  to the
Redemption  Date or,  in the case of a  redemption  due to the  occurrence  of a
Special Event, to the Special Redemption Date if such Special Redemption Date is
on or after July 7, 2010.

                                     A-I-8
<PAGE>

      "Special  Redemption  Price" means (1) if the Special  Redemption  Date is
before July 7, 2010, One Hundred Five Percent (105%) of the principal  amount to
be redeemed  plus any accrued  and unpaid  interest  thereon to the date of such
redemption and (2) if the Special  Redemption  Date is on or after July 7, 2010,
the Redemption Price for such Special Redemption Date.

      "Redemption  Date"  means the date  fixed for the  redemption  of  Capital
Securities,  which  shall be any  January  7, April 7, July 7 or October 7 on or
after July 7, 2010.

      (b) Upon the  repayment in full at maturity or  redemption  in whole or in
part of the Debentures  (other than following the distribution of the Debentures
to the Holders of the  Securities),  the proceeds from such repayment or payment
shall  concurrently  be applied to redeem Pro Rata at the applicable  redemption
price,  Securities having an aggregate liquidation amount equal to the aggregate
principal  amount of the  Debentures so repaid or redeemed;  provided,  however,
that holders of such Securities shall be given not less than 30 nor more than 60
days' notice of such  redemption  (other than at the  scheduled  maturity of the
Debentures).

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

      (d) The  Trust  may not  redeem  fewer  than all the  outstanding  Capital
Securities  unless all  accrued and unpaid  Distributions  have been paid on all
Capital  Securities  for all 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
            the    Debentures    in   exchange    for,   the    Securities    (a
            "Redemption/Distribution Notice") will be given by the Trust by mail
            to each Holder of  Securities  to be redeemed or exchanged not fewer
            than 30 nor more than 60 days  before the date fixed for  redemption
            or exchange thereof which, in the case of a redemption,  will be the
            date fixed for  redemption  of the  Debentures.  For purposes of the
            calculation  of the date of  redemption or exchange and the dates on
            which  notices  are  given  pursuant  to  this  Section  4(e)(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 such Securities. Each Redemption/Distribution
            Notice shall be addressed to the Holders of such  Securities  at the
            address of each such  Holder  appearing  on the books and records of
            the Registrar. No defect in the Redemption/Distribution Notice or in
            the mailing  thereof  with  respect to any Holder  shall  affect the
            validity of the redemption or exchange  proceedings  with respect to
            any other Holder.

                  (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 Capital Securities.

                                     A-I-9
<PAGE>

                  (iii) If the 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  Section 4 (which
            notice will be irrevocable),  then, provided, that the Institutional
            Trustee  has a  sufficient  amount  of cash in  connection  with the
            related redemption or maturity of the Debentures,  the Institutional
            Trustee will, with respect to Book-Entry Capital Securities,  on the
            Redemption   Date  or  Special   Redemption   Date,  as  applicable,
            irrevocably  deposit with the Depositary for such Book-Entry Capital
            Securities,  to the extent available therefore,  funds sufficient to
            pay the relevant  Redemption Price or Special  Redemption  Price, as
            applicable,  and will give such Depositary irrevocable  instructions
            and  authority  to pay the  Redemption  Price or Special  Redemption
            Price, as applicable, to the Owners of the Capital Securities.  With
            respect  to  Capital  Securities  that  are not  Book-Entry  Capital
            Securities,  the  Institutional  Trustee  will  pay,  to the  extent
            available  therefore,  the  relevant  Redemption  Price  or  Special
            Redemption  Price, as applicable,  to the Holders of such Securities
            by check mailed to the address of each such Holder  appearing on the
            books  and  records  of the  Trust  on  the  redemption  date.  If a
            Redemption/Distribution  Notice  shall  have  been  given  and funds
            deposited  as  required,  then  immediately  prior  to the  close of
            business on the date of such  deposit,  Distributions  will cease to
            accrue on the  Securities so called for redemption and 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
            applicable   Redemption  Price  or  Special   Redemption  Price,  as
            applicable,  specified  in  Section  4(a).  If any  date  fixed  for
            redemption  of Securities is not a Business Day, then payment of any
            such Redemption  Price or Special  Redemption  Price, as applicable,
            payable on such date will be made on the next succeeding day that is
            a Business Day except that,  if such  Business Day 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 or Special  Redemption  Price,  as applicable,  in
            respect of any Securities is improperly  withheld or refused and not
            paid  either by the Trust or by the  Debenture  Issuer as  guarantor
            pursuant to the Guarantee,  Distributions  on such  Securities  will
            continue  to accrue at the then  applicable  rate from the  original
            redemption  date to the actual  date of  payment,  in which case the
            actual payment date will be considered the date fixed for redemption
            for  purposes  of  calculating  the  Redemption   Price  or  Special
            Redemption  Price, as applicable.  In the event of any redemption of
            the Capital  Securities issued by the Trust in part, the Trust shall
            not be required to (i) issue,  register  the transfer of or exchange
            any Security during a period beginning at the opening of business 15
            days before any selection for  redemption of the Capital  Securities
            and ending at the close of  business on the  earliest  date on which
            the relevant  notice of  redemption  is deemed to have been given to
            all  Holders of the  Capital  Securities  to be so  redeemed or (ii)
            register  the  transfer of or exchange  any  Capital  Securities  so
            selected  for  redemption,  in  whole  or in  part,  except  for the
            unredeemed portion of any Capital Securities being redeemed in part.

                                     A-I-10
<PAGE>

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

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

      5. Voting Rights - Capital Securities.

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

      (b)  Subject  to  the  requirements  of  obtaining  a tax  opinion  by the
Institutional Trustee in certain circumstances set forth in the last sentence of
this paragraph,  the Holders of a Majority in liquidation  amount of the Capital
Securities,  voting  separately  as a class,  have the right to direct the time,
method,  and place of conducting any proceeding for any remedy  available to the
Institutional  Trustee,  or  exercising  any trust or power  conferred  upon the
Institutional  Trustee under the Declaration,  including the right to direct the
Institutional Trustee, as holder of the Debentures, to (i) exercise the remedies
available  under the Indenture as the holder of the  Debentures,  (ii) waive any
past default that is waivable under 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 on behalf of all the  Holders of the  Capital
Securities to any amendment,  modifcation or termination of the Indenture or the
Debentures where such consent shall be required;  provided, however, that, where
a consent or action under the Indenture  would require the consent or act of the
holders of greater than a simple  majority in principal  amount of Debentures (a
"Super Majority") affected thereby, the Institutional Trustee may only give such
consent or take such action at the written  direction of the Holders of not less
than the proportion in liquidation amount of the Capital Securities  outstanding
which the relevant Super Majority  represents of the aggregate  principal amount
of the Debentures outstanding. If the Institutional Trustee fails to enforce its
rights under the Debentures  after the Holders of a Majority or Super  Majority,
as the case may be, in  liquidation  amount of such Capital  Securities  have so
directed the  Institutional  Trustee,  to the fullest extent permitted by law, a
Holder of the  Capital  Securities  may  institute a legal  proceeding  directly
against the Debenture Issuer to enforce the Institutional Trustee's rights under
the  Debentures  without  first  instituting  any legal  proceeding  against the
Institutional  Trustee  or any  other  person  or  entity.  Notwithstanding  the
foregoing,  if an Event of Default has occurred and is continuing and such event
is  attributable  to the  failure of the  Debenture  Issuer to pay  interest  or
premium,  if any, on or principal of the  Debentures on the date such  interest,
premium,  if any, on or principal is payable (or in the case of redemption,  the
redemption date), then a Holder of record of the Capital Securities may directly
institute a proceeding for  enforcement  of payment,  on or after the respective
due dates specified in the

                                     A-I-11
<PAGE>

Debentures,  to such Holder directly of the principal of or premium,  if any, or
interest on the  Debentures  having an aggregate  principal  amount equal to the
aggregate  liquidation  amount of the Capital  Securities  of such  Holder.  The
Institutional  Trustee shall notify all Holders of the Capital Securities of any
default  actually  known  to  the  Institutional  Trustee  with  respect  to the
Debentures  unless (x) such  default  has been cured prior to the giving of such
notice  or (y) the  Institutional  Trustee  determines  in good  faith  that the
withholding  of such notice is in the  interest  of the Holders of such  Capital
Securities,  except where the default  relates to the payment of principal of or
interest on any of the  Debentures.  Such notice shall state that such Indenture
Event of Default also  constitutes  an Event of Default  hereunder.  Except with
respect to directing the time, method and place of conducting a proceeding for a
remedy, the Institutional Trustee shall not take any of the actions described in
clause (i), (ii) or (iii) above unless the Institutional Trustee has obtained an
opinion of tax counsel to the effect that, as a result of such action, the Trust
will not be classified  as other than a grantor trust for United States  federal
income tax purposes.

      In the event the consent of the  Institutional  Trustee,  as the holder of
the  Debentures is required  under the Indenture  with respect to any amendment,
modifcation or termination of the  Indenture,  the  Institutional  Trustee shall
request the written  direction of the Holders of the Securities  with respect to
such  amendment,  modifcation or termination and shall vote with respect to such
amendment,  modification or termination as directed by a Majority in liquidation
amount of the Securities voting together as a single class;  provided,  however,
that where a consent  under the  Indenture  would require the consent of a Super
Majority,  the  Institutional  Trustee may only give such consent at the written
direction of the Holders of not less than the proportion in  liquidation  amount
of such Securities  outstanding which the relevant Super Majority  represents of
the aggregate principal amount of the Debentures outstanding.  The Institutional
Trustee shall not take any such action in accordance with the written directions
of the Holders of the Securities unless the  Institutional  Trustee has obtained
an opinion of tax counsel to the effect that,  as a result of such  action,  the
Trust will not be  classified  as other than a grantor  trust for United  States
federal income tax purposes.

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

      Notwithstanding  that  Holders of the Capital  Securities  are entitled to
vote or  consent  under any of the  circumstances  described  above,  any of the
Capital Securities that are owned by

                                     A-I-12
<PAGE>

the Sponsor or any Affiliate of the Sponsor shall not entitle the Holder thereof
to vote or consent and shall,  for purposes of such vote or consent,  be treated
as if such Capital Securities were not outstanding.

      In no event will Holders of the Capital  Securities have the right to vote
to appoint, remove or replace the Administrators, which voting rights are vested
exclusively in the Sponsor as the Holder of all of the Common  Securities of the
Trust.  Under certain  circumstances as more fully described in the Declaration,
Holders  of  Capital  Securities  have the right to vote to  appoint,  remove or
replace the Institutional  Trustee and the Delaware Trustee.  6. Voting Rights -
Common Securities.

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

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

      (c) Subject to Section 6.8 of the Declaration and only after each Event of
Default (if any) with respect to the Capital  Securities has been cured,  waived
or otherwise  eliminated and subject to the  requirements  of the second to last
sentence of this paragraph,  the Holders of a Majority in liquidation  amount of
the  Common  Securities,  voting  separately  as a class,  may  direct the time,
method,  and place of conducting any proceeding for any remedy  available to the
Institutional  Trustee,  or  exercising  any trust or power  conferred  upon the
Institutional  Trustee under the Declaration,  including (i) directing the time,
method,  place of  conducting  any  proceeding  for any remedy  available to the
Debenture  Trustee,  or exercising any trust or power conferred on the Debenture
Trustee  with respect to the  Debentures,  (ii) waiving any past default and its
consequences  that are waivable  under the  Indenture,  or (iii)  exercising any
right to rescind or annul a declaration that the principal of all the Debentures
shall be due and payable,  provided,  however,  that,  where a consent or action
under the Indenture would require a Super Majority,  the  Institutional  Trustee
may only give such  consent or take such action at the written  direction of the
Holders  of not less than the  proportion  in  liquidation  amount of the Common
Securities  which  the  relevant  Super  Majority  represents  of the  aggregate
principal  amount of the Debentures  outstanding.  Notwithstanding  this Section
6(c),  the  Institutional   Trustee  shall  not  revoke  any  action  previously
authorized  or  approved  by a vote or  consent of the  Holders  of the  Capital
Securities.  Other than with respect to directing the time,  method and place of
conducting any proceeding for any remedy available to the Institutional  Trustee
or the Debenture Trustee as set forth above, the Institutional Trustee shall not
take any  action  described  in clause  (i),  (ii) or (iii)  above,  unless  the
Institutional  Trustee has obtained an opinion of tax counsel to the effect that
for the  purposes  of United  States  federal  income  tax the Trust will not be
classified  as other  than a grantor  trust on account  of such  action.  If the
Institutional Trustee fails to enforce its rights under the Declaration,  to the
fullest  extent  permitted  by law  any  Holder  of the  Common  Securities  may
institute  a legal  proceeding  directly  against  any  Person  to  enforce  the
Institutional Trustee's rights under the Declaration,  without first instituting
a legal proceeding against the Institutional Trustee or any other Person.

                                     A-I-13
<PAGE>

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

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

      7. Amendments to Declaration and Indenture.

      (a) In addition to any requirements under Section 11.1 of the Declaration,
if any  proposed  amendment  to the  Declaration  provides  for, or the Trustees
otherwise  propose to effect,  (i) any action  that would  adversely  affect the
powers,  preferences  or  special  rights of the  Securities,  whether by way of
amendment to the Declaration or otherwise, or (ii) the Liquidation of the Trust,
other than as described in Section 7.1 of the  Declaration,  then the Holders of
outstanding  Securities,  voting together as a single class, will be entitled to
vote on such  amendment or proposal and such  amendment or proposal shall not be
effective except with the approval of the Holders of not less than a Majority in
liquidation amount of the Securities affected thereby; provided, however, if any
amendment  or proposal  referred to in clause (i) above would  adversely  affect
only  the  Capital  Securities  or only the  Common  Securities,  then  only 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 a
Majority in liquidation amount of such class of Securities.

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

      (c)  Notwithstanding  the foregoing,  no amendment or modification  may be
made to the  Declaration if such  amendment or  modifcation  would (i) cause the
Trust to be classified for purposes of United States federal income  taxation as
other than a grantor trust, (ii) reduce or otherwise adversely affect the powers
of the Institutional Trustee or (iii) cause the Trust to be

                                     A-I-14
<PAGE>

deemed an  "investment  company"  which is required to be  registered  under the
Investment Company Act.

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

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

      9.  Ranking.  The Capital  Securities  rank pari passu  with,  and payment
thereon shall be made Pro Rata with, the Common Securities except that, where an
Event of Default has  occurred and is  continuing,  the rights of Holders of the
Common  Securities  to  receive  payment  of  Distributions  and  payments  upon
liquidation,  redemption  and  otherwise are  subordinated  to the rights of the
Holders  of the  Capital  Securities  with the  result  that no  payment  of any
Distribution on, or Redemption Price or Special  Redemption Price of, any Common
Security,  and no other payment on account of  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  Capital
Securities for all distribution  periods  terminating on or prior thereto, or in
the case of payment of the Redemption Price or Special Redemption Price the full
amount  of  such  Redemption  Price  or  the  Special  Redemption  Price  on all
outstanding Capital Securities then called for redemption,  shall have been made
or  provided  for,  and all funds  immediately  available  to the  Institutional
Trustee  shall  first  be  applied  to  the  payment  in  full  in  cash  of all
Distributions  on, or the Redemption  Price or the Special  Redemption Price of,
the Capital Securities then due and payable.

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

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

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

                                     A-I-15
<PAGE>

                                   EXHIBIT A-1
                      FORM OF CAPITAL SECURITY CERTIFICATE
                           [FORM OF FACE OF SECURITY]

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

      UNLESS THIS CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE
OF DTC TO MATRIX  BANCORP  CAPITAL TRUST VIII OR ITS AGENT FOR  REGISTRATION  OF
TRANSFER,  EXCHANGE OR PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON 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.

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED  (THE  "SECURITIES  ACT"),  OR ANY  STATE  SECURITIES  LAWS OR ANY OTHER
APPLICABLE   SECURITIES  LAWS.   NEITHER  THIS  SECURITY  NOR  ANY  INTEREST  OR
PARTICIPATION  HEREIN MAY BE REOFFERED,  SOLD, ASSIGNED,  TRANSFERRED,  PLEDGED,
ENCUMBERED  OR  OTHERWISE  DISPOSED  OF IN THE ABSENCE OF SUCH  REGISTRATION  OR
UNLESS SUCH  TRANSACTION  IS EXEMPT  FROM,  OR NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF  THE  SECURITIES  ACT.  THE  HOLDER  OF  THIS  SECURITY  BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE  DEBENTURE  ISSUER OR THE TRUST,  (B) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A"),  TO A PERSON THE HOLDER  REASONABLY  BELIEVES IS A
"QUALIFIED  INSTITUTIONAL  BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,  (C) PURSUANT
TO AN EXEMPTION FROM THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT TO AN
"ACCREDITED  INVESTOR"  WITHIN THE MEANING OF SUBPARAGRAPH  (a) (1), (2), (3) OR
(7) OF RULE 501 UNDER THE  SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS
OWN ACCOUNT,  OR FOR THE ACCOUNT OF AN  "ACCREDITED  INVESTOR,"  FOR  INVESTMENT
PURPOSES AND NOT WITH A VIEW

                                     A-1-1
<PAGE>

TO, OR FOR OFFER OR SALE IN CONNECTION  WITH, ANY  DISTRIBUTION  IN VIOLATION OF
THE  SECURITIES  ACT, OR (D) PURSUANT TO ANOTHER  AVAILABLE  EXEMPTION  FROM THE
REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT,  SUBJECT  TO THE  DEBENTURE
ISSUER'S  AND THE  TRUST'S  RIGHT  PRIOR TO ANY  SUCH  OFFER,  SALE OR  TRANSFER
PURSUANT TO CLAUSES (C) OR (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION  AND/OR  OTHER  INFORMATION   SATISFACTORY  TO  EACH  OF  THEM  IN
ACCORDANCE  WITH THE AMENDED AND RESTATED  DECLARATION OF TRUST, A COPY OF WHICH
MAY BE  OBTAINED  FROM THE  DEBENTURE  ISSUER OR THE  TRUST.  THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE  HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

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

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

      IN CONNECTION WITH ANY TRANSFER,  THE HOLDER WILL DELIVER TO THE REGISTRAR
AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY
THE AMENDED AND RESTATED

                                     A-1-2
<PAGE>

DECLARATION  OF TRUST TO CONFIRM THAT THE TRANSFER  COMPLIES  WITH THE FOREGOING
RESTRICTIONS.

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

                                     A-1-3
<PAGE>

Certificate Number [P-001]                    Number of Capital Securities 7,500

                    Certificate Evidencing Capital Securities

                                       of

                        Matrix Bancorp Capital Trust VIII

                               Capital Securities

                (liquidation amount $1,000 per Capital Security)

      Matrix  Bancorp  Capital  Trust VIII, a statutory  trust created under the
laws of the State of Delaware (the  "Trust"),  hereby  certifies that Cede & Co.
(the  "Holder"),  as  nominee on behalf of The  Depository  Trust  Company  (the
"Holder"),  is the  registered  owner of 7,500  capital  securities of the Trust
representing  undivided  beneficial  interests  in  the  assets  of  the  Trust,
designated  the  Capital  Securities  (liquidation  amount  $1,000  per  Capital
Security) (the "Capital  Securities").  Subject to the  Declaration  (as defined
below),  the Capital Securities are transferable on the books and records of the
Trust,  in person  or by a duly  authorized  attorney,  upon  surrender  of this
Certificate  duly  endorsed  and  in  proper  form  for  transfer.  The  Capital
Securities  represented  hereby are  issued  pursuant  to, and the  designation,
rights, privileges, restrictions,  preferences and other terms and provisions of
the Capital  Securities  shall in all respects be subject to, the  provisions of
the Amended and Restated Declaration of Trust of the Trust, dated as of June 30,
2005,  among David W. Kloos and T. Allen  McConnell,  as  Administrators,  Wells
Fargo Delaware Trust Company,  as Delaware Trustee,  Wells Fargo Bank,  National
Association, as Institutional Trustee, Matrix Bancorp, Inc., as Sponsor, and the
holders from time to time of undivided beneficial interests in the assets of the
Trust,  including the designation of the terms of the Capital  Securities as set
forth in Annex I to the  Declaration,  as the same may be  amended  from time to
time (the  "Declaration").  Capitalized  terms used herein but not defined shall
have the meaning  given them in the  Declaration.  The Holder is entitled to the
benefits of the  Guarantee  to the extent  provided  therein.  The Sponsor  will
provide a copy of the  Declaration,  the  Guarantee,  and the  Indenture  to the
Holder without charge upon written request to the Sponsor at its principal place
of business.

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

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

      This Capital Security is governed by, and shall be construed in accordance
with,  the laws of the  State of  Delaware,  without  regard  to  principles  of
conflict of laws.

                                     A-1-4
<PAGE>

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

                                               Matrix Bancorp Capital Trust VIII

                                               By:______________________________
                                                  Name:_________________________
                                                  Title: Administrator

                                               Dated:___________________________

                          CERTIFICATE OF AUTHENTICATION

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

                                               WELLS FARGO BANK, NATIONAL
                                                ASSOCIATION,
                                               not in its individual capacity
                                               but solely as the Institutional
                                               Trustee

                                               By:______________________________
                                                  Authorized Officer

                                               Dated:___________________________

                                     A-1-5
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

      Distributions  payable on each Capital Security will be payable at a fixed
rate of 5.86% (the "Fixed Rate") per annum from June 30, 2005 until July 7, 2010
(the  "Fixed  Rate  Period")  and  thereafter  at a  variable  per annum rate of
interest,  reset quarterly,  equal to LIBOR (as defined in the Declaration) plus
1.69% (the "Coupon Rate") of the stated liquidation amount of $1,000 per Capital
Security (provided,  however,  that the Coupon Rate for any Distribution Payment
Period may not exceed the highest  rate  permitted  by New York law, as the same
may be modified by United States law of general applicability), such Coupon Rate
being  the  rate  of  interest  payable  on the  Debentures  to be  held  by the
Institutional  Trustee.  Distributions  in arrears  for more than one  quarterly
period will bear interest  thereon  compounded  quarterly at the then applicable
Coupon Rate (defined to include the Fixed Rate and Coupon Rate,  as  applicable)
for each such quarterly  period (to the extent permitted by applicable law). The
term  "Distributions"  as used  herein  includes  cash  distributions,  any such
compounded  distributions and any Additional  Interest payable on the Debentures
unless  otherwise  stated.  A  Distribution  is payable  only to the extent that
payments are made in respect of the Debentures held by the Institutional Trustee
and to the extent the  Institutional  Trustee has funds legally available in the
Property  Account  therefor.  During  the  Fixed  Rate  Period,  the  amount  of
Distributions  payable for any period will be  computed  for any full  quarterly
Distribution  period on the basis of a 360-day year of twelve  30-day months and
the amount  payable for any partial period shall be computed on the basis of the
number  of  days  elapsed  in a  360-day  year of  twelve  30-day  months.  Upon
expiration of the Fixed Rate Period, distributions will be computed on the basis
of a  360-day  year  and the  actual  number  of days  elapsed  in the  relevant
Distribution Payment Period.

      Except  as  otherwise  described  below,   Distributions  on  the  Capital
Securities  will be cumulative,  will accrue from the date of original  issuance
and will be  payable  quarterly  in  arrears  on  January 7, April 7, July 7 and
October 7 of each year,  commencing  on October 7, 2005 (each,  a  "Distribution
Payment Date").  Upon submission of Notice,  the Debenture  Issuer has the right
under the Indenture to defer payments of interest on the Debentures by extending
the interest  distribution  period for up to 20  consecutive  quarterly  periods
(each,  an  "Extension  Period")  at any  time  and  from  time  to  time on the
Debentures,  subject to the conditions  described below,  during which Extension
Period no interest shall be due and payable (except any Additional Interest that
may be due and payable).  During any Extension Period, interest will continue to
accrue on the  Debentures,  and interest on such accrued  interest (such accrued
interest and interest  thereon  referred to herein as "Deferred  Interest") will
accrue at an  annual  rate  equal to the  Coupon  Rate in  effect  for each such
Extension  Period,  compounded  quarterly  from the date such Deferred  Interest
would have been  payable  were it not for the  Extension  Period,  to the extent
permitted  by  law.  No  Extension  Period  may  end  on a  date  other  than  a
Distribution  Payment  Date.  At the  end  of any  such  Extension  Period,  the
Debenture Issuer shall pay all Deferred  Interest then accrued and unpaid on the
Debentures;  provided,  however,  that no Extension Period may extend beyond the
Maturity  Date,  Redemption  Date  or  Special  Redemption  Date.  Prior  to the
termination  of any Extension  Period,  the Debenture  Issuer may further extend
such period,  provided,  that such period  together  with all such  previous and
further consecutive extensions thereof shall not exceed 20 consecutive quarterly
periods,  or extend  beyond  the  Maturity  Date.  Upon the  termination  of any
Extension  Period and upon the payment of all Deferred  Interest,  the Debenture
Issuer  may  commence  a  new  Extension   Period,   subject  to  the  foregoing
requirements.  No interest or Deferred Interest (except any Additional  Interest
that

                                     A-1-6
<PAGE>

may be due and payable)  shall be due and payable  during an  Extension  Period,
except  at the end  thereof,  but  Deferred  Interest  shall  accrue  upon  each
installment  of interest that would  otherwise  have been due and payable during
such  Extension  Period until such  installment  is paid. If  Distributions  are
deferred,  the  Distributions  due  shall be paid on the date  that the  related
Extension  Period  terminates to Holders of the Securities as they appear on the
books and records of the Trust on the record  date  immediately  preceding  such
date.  Distributions  on the Securities must be paid on the dates payable (after
giving  effect to any  Extension  Period) to the extent that the Trust has funds
legally available for the payment of such  distributions in the Property Account
of the Trust. The Trust's funds available for Distribution to the Holders of the
Securities will be limited to payments received from the Debenture  Issuer.  The
payment of  Distributions  out of moneys held by the Trust is  guaranteed by the
Guarantor pursuant to the Guarantee.

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

                                     A-1-7
<PAGE>

                                   ASSIGNMENT

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

______________________________

______________________________

______________________________

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

______________________________

______________________________

______________________________

(Insert address and zip code of assignee),

and irrevocably appoints________________________________________________________
as agent to  transfer  this  Capital  Security  Certificate  on the books of the
Trust. The agent may substitute another to act for it, him or her.

                        Date:_______________________________________

                        Signature:_________________________________

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

             Signature Guarantee:(1) _________________________________

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

                                     A-1-8
<PAGE>

                                   EXHIBIT A-2
                       FORM OF COMMON SECURITY CERTIFICATE

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

      EXCEPT AS SET FORTH IN  SECTION  8.1 (b) OF THE  DECLARATION  (AS  DEFINED
BELOW),   THIS  SECURITY  MAY  NOT  BE  OFFERED,   SOLD,  PLEDGED  OR  OTHERWISE
TRANSFERRED.

                                     A-2-1
<PAGE>

Certificate Number [C-001]                       Number of Common Securities 232

                    Certificate Evidencing Common Securities
                                       of
                        Matrix Bancorp Capital Trust VIII

      Matrix  Bancorp  Capital  Trust VIII, a statutory  trust created under the
laws of the State of  Delaware  (the  "Trust"),  hereby  certifies  that  Matrix
Bancorp, Inc. (the "Holder") is the registered owner of 232 common securities of
the Trust representing undivided beneficial interests in the assets of the Trust
(liquidation amount $1,000 per Common Security) (the "Common  Securities").  The
Common   Securities   represented   hereby  are  issued  pursuant  to,  and  the
designation, rights, privileges,  restrictions,  preferences and other terms and
provisions  of the Common  Securities  shall in all  respects be subject to, the
provisions of the Amended and Restated  Declaration of Trust of the Trust, dated
as of  June  30,  2005,  among  David  W.  Kloos  and  T.  Allen  McConnell,  as
Administrators,  Wells Fargo Delaware Trust Company, as Delaware Trustee,  Wells
Fargo Bank,  National  Association,  as Institutional  Trustee,  the Holder,  as
Sponsor,  and the holders from time to time of undivided beneficial interests in
the assets of the Trust,  including the  designation  of the terms of the Common
Securities  as set  forth  in  Annex I to the  Declaration,  as the  same may be
amended from time to time (the "Declaration"). Capitalized terms used herein but
not defined  shall have the meaning given them in the  Declaration.  The Sponsor
will provide a copy of the  Declaration  and the Indenture to the Holder without
charge upon written request to the Sponsor at its principal place of business.

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

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

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

      This Common  Security is governed by, and shall be construed in accordance
with,  the laws of the  State of  Delaware,  without  regard  to  principles  of
conflict of laws.

                                     A-2-2
<PAGE>

      IN WITNESS WHEREOF, the Trust has executed this certificate June 30, 2005.

                                               Matrix Bancorp Capital Trust VIII

                                               By:______________________________
                                                  Name:_________________________
                                                  Title: Administrator

                                     A-2-3
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

      Distributions  payable on each Common Security will be identical in amount
to the Distributions payable on each Capital Security,  which is at a fixed rate
of 5.86% (the "Fixed Rate") per annum from June 30, 2005 until July 7, 2010 (the
"Fixed Rate  Period") and  thereafter  at a variable per annum rate of interest,
reset quarterly,  equal to LIBOR (as defined in the Declaration) plus 1.69% (the
"Coupon Rate") of the stated  liquidation  amount of $1,000 per Capital Security
(provided, however, that the Coupon Rate for any Distribution Payment Period may
not  exceed  the  highest  rate  permitted  by New York law,  as the same may be
modified by United States law of general applicability),  such Coupon Rate being
the rate of interest  payable on the Debentures to be held by the  Institutional
Trustee.  Distributions  in arrears for more than one quarterly period will bear
interest  thereon  compounded  quarterly  at the  then  applicable  Coupon  Rate
(defined to include the Fixed Rate and Coupon Rate, as applicable) for each such
quarterly  period  (to  the  extent  permitted  by  applicable  law).  The  term
"Distributions" as used herein includes cash distributions,  any such compounded
distributions  and any  Additional  Interest  payable on the  Debentures  unless
otherwise stated. A Distribution is payable only to the extent that payments are
made in respect of the Debentures held by the  Institutional  Trustee and to the
extent the  Institutional  Trustee has funds  legally  available in the Property
Account  therefor.  During the Fixed Rate  Period,  the amount of  Distributions
payable for any period will be computed for any quarterly Distribution period on
the basis of a 360-day year of twelve  30day  months and the amount  payable for
any partial  period shall be computed on the basis of the number of days elapsed
in a 360-day year of twelve  30-day  months.  Upon  expiration of the Fixed Rate
Period, the amount of distributions payable for any full quarterly  Distribution
period will be computed on the basis of a 360-day year and the actual  number of
days elapsed in the relevant Distribution Payment Period.

      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  quarterly  in  arrears  on  January 7, April 7, July 7 and
October 7 of each year,  commencing  on October 7, 2005 (each,  a  "Distribution
Payment Date").  Upon submission of Notice,  the Debenture  Issuer has the right
under the Indenture to defer payments of interest on the Debentures by extending
the interest  distribution  period for up to 20  consecutive  quarterly  periods
(each,  an  "Extension  Period")  at any  time  and  from  time  to  time on the
Debentures,  subject to the conditions  described below,  during which Extension
Period no interest shall be due and payable (except any Additional Interest that
may be due and payable).  During any Extension Period, interest will continue to
accrue on the  Debentures,  and interest on such accrued  interest (such accrued
interest and interest  thereon  referred to herein as "Deferred  Interest") will
accrue at an  annual  rate  equal to the  Coupon  Rate in  effect  for each such
Extension  Period,  compounded  quarterly  from the date such Deferred  Interest
would have been  payable  were it not for the  Extension  Period,  to the extent
permitted  by  law.  No  Extension  Period  may  end  on a  date  other  than  a
Distribution  Payment  Date.  At the  end  of any  such  Extension  Period,  the
Debenture Issuer shall pay all Deferred  Interest then accrued and unpaid on the
Debentures;  provided,  however,  that no Extension Period may extend beyond the
Maturity  Date,  Redemption  Date  or  Special  Redemption  Date.  Prior  to the
termination  of any Extension  Period,  the Debenture  Issuer may further extend
such period,  provided,  that such period  together  with all such  previous and
further consecutive extensions thereof shall not exceed 20 consecutive quarterly
periods,  or extend  beyond  the  Maturity  Date.  Upon the  termination  of any
Extension Period and upon the payment

                                     A-2-4
<PAGE>

of all Deferred  Interest,  the  Debenture  Issuer may commence a new  Extension
Period, subject to the foregoing requirements.  No interest or Deferred Interest
(except any  Additional  Interest that may be due and payable)  shall be due and
payable  during an Extension  Period,  except at the end  thereof,  but Deferred
Interest  shall accrue upon each  installment  of interest that would  otherwise
have been due and payable during such Extension Period until such installment is
paid. If Distributions are deferred,  the Distributions due shall be paid on the
date that the related  Extension Period  terminates to Holders of the Securities
as they  appear  on the  books  and  records  of the  Trust on the  record  date
immediately preceding such date.

      Distributions  on the Securities  must be paid on the dates payable (after
giving  effect to any  Extension  Period) to the extent that the Trust has funds
legally available for the payment of such  distributions in the Property Account
of the Trust.  The Trust's  funds  legally  available  for  Distribution  to the
Holders  of the  Securities  will be  limited  to  payments  received  from  the
Debenture  Issuer.  The payment of Distributions out of moneys held by the Trust
is guaranteed by the Guarantor pursuant to the Guarantee.

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

                                     A-2-5
<PAGE>

                                   ASSIGNMENT

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

______________________________

______________________________

______________________________

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

______________________________

______________________________

______________________________

(Insert address and zip code of assignee),

and irrevocably appoints________________________________________________________
as agent to transfer this Common Security Certificate on the books of the Trust.
The agent may substitute another to act for it, him or her.

                        Date:_______________________________________

                        Signature:_________________________________

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

             Signature Guarantee:(1) _________________________________

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

                                      C-1

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